2017 - novamont.com · to do a lot more, with the contributionof numerous partners who, on the one...

2017SUSTAINABILITY

REPORTBETWEEN URBAN AND NATURAL LANDSCAPES

2017SUSTAINABILITY

REPORT

BETWEEN URBAN AND NATURAL LANDSCAPESB

We are proud to present the tenth Sustainability Report.This commitment of ours began in 2008, and we have continued,

with growing conviction.This year, we have produced the first Group Report, including

Mater-Biopolymer S.r.l. and Mater-Biotech S.p.A., togetherwith Novamont S.p.A., in this adventure.

Our point of reference were the GRI Standards, and conformity to them has been assured also this year.

The operating criteria and methods these standards require were placed within the very broad and challenging framework of Sustainable Development Goals (SDGs), established by the United Nations, in their

2030 Agenda.

Each chapter in the Report deals with one of our material topics and describes the goals that we set ourselves, to work to achieve the SDGs.

We hope we have described our policies, strategies and activities effectively, as a continuous commitment to social responsibility.

Dates:

Reportingyear: 2017

Reportingfrequency: Yearly

Mostrecentreport: August 2017

Reporting:

Boundary: Novamont S.p.A.

Mater-Biopolymer S.r.l.

Mater-Biotech S.p.A.

ReferenceGuidelines: GRI Standards

Externalassurance: Sai Global Italia S.r.l.

Consultation:

Online: www.novamont.com

Paper: On request

Contacts: Requestsforinformationandexplanations: Francesco Razza HeadofGroupSustainability [email protected]

ContributionsThisSustainabilityReportcomesfromtheworkandcollaborationofoversixtypeople,whoworkinourGroupandwhowewishtothankforprovidingthedataandinformationattheheartofthisReportingoodtime.Ifsharingandcommitmentareamongtheprinciplesofacompany’sresponsiblemanagement,theworkdonetoproducethisdocumentisanexcellentexampleofwhatwemeanbysocial,economicandenvironmentalsustainability.

Catia Bastioli Gaetano Lo Monaco

Elisa Sonzini Claudio Maulini

Andrea Maci Andrea Di Stefano

Giuseppina Molella Claudio Russo

Roberto Bertani Federica Mastroianni

Massimo Sponton Marco Versari

Maria Teresa Riolo Cecilia Giardi

Luisa Posati Paolo Franceschini

Antonino Maltese Emilio Mazza

Luca Franzosi Paolo Lascola

Mauro Grilli Lucio Sabatini

Salvatore La Rocca Stefano Mambretti

Maria Dani Maddalena Lombardi

Daniele Chieruzzi Leonardo Belvedere

Francesca Ariatta Fernanda Farachi

Christian Garaffa

Francesco Degli Innocenti Maurizio Pontonio

Alessandra Novelli Francesco Falduti

Giulia Gregori Marco Salvadeo

Mariella Maestri Alberto Fragapane

Laura Beltrame Daniela Montesu

Alessandro Ferlito Federico Cioci

Matteo Crepaldi Ambra Morato

Luca Alessandrini Alfonso Morelli

Massimo La Marra Stefano Dessì

Enrico Cesareto Francesca Zecchin

Mauro Marcelli Alessandra Meluso

Simona Bellingrado Enza di Giovanni

Daniele Antonini Annalisa Perelli

Giulia Barbero Federica Silvestri

Flavia Vigoriti Monica Suragni

Emmerik Lucchini Laura Atzeni

IndexIndex

Vision MissionLiving Chemistry for a better quality of lifeOur figures Thegovernancebodies OurworkersThe sites Thesitesaroundtheworld Thecommercialnetwork ThesitesinItaly ThesitesandinterrelationsThe transformation technologiesThe products and end of lifeThe products Matrol-BiandCelus-Bi

161617181819202121222324252627

the novamont group 15Our value and our history The circular bioeconomy TheconceptThe life of MATER-BIOur opportunities and our risksHonesty and transparency

384040414245

1 - VALUE AND STABILITY OF THE COMPANY 37

Bioplastics as an economic system The selection of the suppliersDonations

565758

3 - INDIRECT ECONOMIC IMPACTS 55

Research and Development Putting innovation firstMater-Biotech, the feather in our cap 1,4BDO

50515152

2 - INNOVATION 49

The reporting principles The processes Stakeholderengagement MaterialityanalysisThe resultsThe management approachThe external assurance

30303132343535

the METHODOLOGY 29

The regulation context National InternationalThe international trend

104104104105

7678797982828386889191

5 - PRODUCTION CHAIN and PRODUCT SUSTAINABILITY 73

7 - REGULATION CONTEXT 103

Index

Organogram Human resources Recruitmentsandterminations Thewellbeingofouremployees LeaveNO to any form of discrimination Freedomofassociationandcollectivebargaining CollectivebargainingagreementsUpdating skillsSafety

62646566676767686869

4 - SAFETY AND WELLBEING OF COLLABORATORS 61

Products in compliance CertificationsThe Group’s management systemsCustomer satisfaction 1-Satisfaction 2-Complaints 3-Customerloyalty

9697989899

100100

6 - COMPLIANCE OF PRODUCT 95

Projects and collaborations TheItalianStrategyfortheBioeconomy ThepartnershipwithColdiretti Manifestoforthecirculareconomy The“TrenoVerde” Internationalattention Thenationalassociationswearemembersof Theinternationalassociationswearemembersof

110110111111112112113114

8 - PARTNERSHIPS AND COLLABORATIONS 109

Our sustainable production chain Supply chain activities sequenceSustainable production Energy Water Biodiversity Emissions WastewaterandwasteOur sustainable products ISCCPlus eLabel!

gri content index 175

CatiaBastioliChief Executive Officer

2017 was a key year for Europe that saw a progressive consolidation of positivedynamicsintendedtostimulatenewdriversforthesustainabilityofpresentandfutureeconomic development. InMarch 2017, the EUCouncil and Parliament signed theagreementontheCircularEconomyPackage,whoseregulationsconcerningrecycling,packaginganddumpingwererecentlyapproved,withnew,ambitioustargets.Thepushtowardsrecyclable,biodegradableandcompostableproductshasbecomeincreasinglydetermined,withmore stringent targets in termsof their renewability.Consider, forexample,theFrenchregulationsthatmakeitobligatorytouseexclusivelybiodegradablebagsforfruitandvegetables,withincreasinglyrenewablecontent(30%in2017,40%in2018,50%in2019and60%in2020);theItalianlawthatrequires,from2018,thatbagscontainatleast40%ofrenewablerawmaterials,whichshouldincreaseto50%in2020andto60%in2021,andsimilarmeasuresadoptedinSpainandBelgium.Allofthesemeasuresare indicativeofatrendthatwillextendtomostofEurope,withtheapplicationoftheEuropeanDirective720/2015,onthebasisofwhich,in2017,Novamontdecided,voluntarily,forsomefamiliesofMATER-BI,toworktoachieve,inadvance,thegoalsofItalyandFranceconcerningtherenewablecontent.Italy toohascontinued itspath towards increasinglysustainabledevelopmentgoals.Indeed,the2030NationalEnergyStrategy,whichfocusesoncompetitiveness,safetyandtheenvironment,theItalianBioeconomyStrategy,whichprovidesasharedviewoftheopportunitiesandofthechallengesrelatedtoimplementinganItalianmodelofthecircularbioeconomyandprovidesanopportunity tofindnewformsof inclusivedevelopment that safeguardnatural capital andcreatenewstudycases that canbereplicated all around theMediterraneanbasin, havebeendefined.The evolutionofthe current policies, both national and international, provides a significant impetustoachieveagenuinelysustainableeconomy, inwhichdevelopmentgoalsmanagetocoincidewiththeconservationofecosystemsandofnaturalcapital,andareabletoputthedignityofmankindatthecentre.

LETTER FROM THE CEO FOR THE 2017 SUSTAINABILITY REPORT

Building a sustainable world 126

10 - PROMOTING SUSTAINABILITY 125

2018 NOVAMONT GROUP GOALS 137

dma - disclosure onmanagement approach 159

The territory and us 132

11 - SAFEGUARDING AND MAKING THE MOST OF THE TERRITORY 131

Sharing the workloadThe Sustainability ReportThe web and social networksOur publicationsEvents Eventpartnersaroundthecountry

118118118119120122

9 - TRANSPARENCY AND COMMUNICATION 117

ForNovamont,thishasalwaysmeantlookingforlinkswiththeterritoryandguaranteeingtherighttoliveinacleanandhealthyenvironment,byconstructingtherightbalancebetweentheactivitiesofmankindandNature.So,alsofor2017,wechosetomeasureour goals by taking the SustainableDevelopmentGoals of theUnitedNations as areference, becausewe believe that the global challenges ahead of us, startingwithclimate change, desertification and soil decay, and food safety, must be seized asopportunities to revitalizewhole sectors,beforeandafter,encouraging thecreationofnewopportunitiesforinvestment,development,workandopeninnovation,startingwithwastematter,withcultivatingarid,marginallandandwiththevirtuouscombinationofscienceandknowledge,foraproductionsysteminwhichwasteisalsoaresource.Our production chain for bioplastics andbiochemical is continuing in this direction,withacontinuousandcoherentapproachlinkedtotheparticularcharacteristicsoftheterritories,whichwasstartedyearsago,whenweweremovedbythespiritofcreatingnewdevelopmentrootsandfoundedourmodelofthebioeconomyonregeneratingdeindustrialized sites, usingnew technologies thathaveahighaddedvalue, togivelifetobiorefineriesinmarginalareasthatareinterconnectedwithintegratedfarmingproductionchainsandarebasedonthesustainableuseofbiomass.Andso,inlinewiththisphilosophy,in2017,oursubsidiarycompany,Mater-Biopolymer,beganreconvertingasecondpolymerizationline,doublingitsproduction;inOctober,ourfactoryinTerni,expandeditsproductioncapacity,andtheplantsthatMater-Biotechhadbegunin2016startedrunningatfullcapacity.This year, too, we concentrated our investment efforts on R&D, on developingbioplastics, but also bioherbicides and biolubricants, thinking above all about thosesectorsinwhichthepossibilityofsoilpollutionandofspreadingintotheenvironmentarehigh.Thesoil isanon-renewable resourcethatclimatechangeanderosionasaresultofincorrectfarmingpracticesmakeincreasinglylessfertileandmorevulnerable.Thedailyuseofbiodegradable andcompostable applications inMATER-BI, such asbags, shopping bags, cutlery, cups, capsules and food packaging, not onlymakes itpossibletoimprovethemanagementoforganicwaste,butalsotoreducethechanceofitpollutinggreatly,byencouragingtheproductionofhighqualitycompost,whichhassurprisingeffectsonrestoringtheorganicmaterialoffarmland.Thinkalso,forexample,ofthemulchingtechniqueinfarming,whereourbiodegradablefilmisavalidsolutionto the problemof soil pollution, particularly in those rural areas,where there is noregulatedmanagementofthedisposalandrecyclingprocesses.Ourgrowingcommitmenttobuildingamodelofthebioeconomythatfocusesontheefficientuseofresourcesandonterritorialregeneration,hasbeenacknowledged,alsothisyear,bothnationallyandinternationally.WeconfirmedourpresenceatthemostimportantEuropeanroundtablesonthebioeconomy,andinadditiontoparticipatingintheG7EnvironmentMeeting inBologna,duringtheItalian-French initiative“StopPlasticWaste–CoalitionEvent”,wewereoneofthethreeItaliancompaniesselectedtorepresentItalyinthecoalitionoftheEnterpriseG7,andtopresenttheletterofintent

towards a circular economy to theG7Ministers and to the EuropeanCommission.TheG7 also provided an invaluable opportunity to launch the pamphlet “A circularapproachtothebioeconomy,anopportunitytodecarbonizetheeconomyandputitintouchwithsocietyagain”.Alsofor2017,wewantedtobringsocietyclosertothetopicsofsustainability,bycontinuingsensitizationprojectssuchasScuola@Novamont,theproject thatseeks to informstudentsabout thebioeconomyandproducts fromrenewablesources.And,forthefirsttime,weopenedthedoorsofourMater-Biotechfacility, to allow people, families and the authorities to learn, close up, about ourprocessesand,moregenerally,abouttheopportunitiesprovidedbythebioeconomysectorintermsofsustainableproductsandsolutions.Today,Novamontcanbethoughtofasatruedemonstratorcapableofgivingvaluebacktolocalcommunities,intermsofenvironmentalsustainability,economicdevelopment,employmentandmulti-disciplinarytraininginthefield,startingfromwhich,itispossibletodoalotmore,withthecontributionofnumerouspartnerswho,ontheonehand,accompanyusandsupportourdevelopmentmodel,andontheother,receiveeconomic,socialandenvironmentalbenefitsfromit,withanenormousaccelerationeffectonthewholesystem.Inviewof the importanceof interconnections, in2017,weconsolidatedour strongrelationshipwiththefarmingsector,whichhassupportedusforyearsintheintroductionontothemarketofbio-productsforagriculturaluse,suchascomposts,bioherbicides,biodegradablemulchingfilmsand,withproductionchainagreements,hasworkedwithustospreadknowledgeofgoodpracticesinfarming.Westrengthenedourrelationshipwiththeuniversityandresearchworlds,whichisessentialingrowingtheproductionchain,what leadsupto itandwhatfollows it;ourcollaborationswiththeorganizedretail trade, the big brands, cateringmanagement companies and themulti-utilities,whichcanincreasinglycontributetothisaccelerationbyinformingaboutandtrainingforsustainableconsumptionpractices.Inadditiontoallofthesesubjects,thereistheenvironmentalist world, the associationist world and the local authorities, who arecontributingtooutliningincreasinglyambitiousgoalsforsustainability.Atthispoint,therealchallengenowisto“take”fromwhatwehavelearntsofarfromthisdemonstratorallofthoseaccelerationelementsforsectorsthat,todate,werenotnecessarilyconnectedwitheachother,butthat,byusingtheplatformandinfrastructurescreated, might connect with each other, and thereby increase the consequencesexponentially.Forthistohappen,thereneedstobeastrongandconstantdesireonthepartofallplayerstocollaborate,beyondthegreatdifficultiesthatamodelinnovationsectorhas,bycountingonarelationshipoftrustamongthepartiesinvolvedandonchallengingandsharedgoals.

LETTER FROM THE CEO FOR THE 2017 SUSTAINABILITY REPORT

Webelievethateconomic,environmentalandsocialsustainabilityispossibleandincreasinglynecessaryinanyproductionsystem,andwewanttocontributetothetransitionfromaproduct-basedeconomytoasystem-based economy,startingwithmakingthemostoftheterritoryandwithcollaboration

amongthevariouspartiesinvolved.

THE

NOVAMONT

GROUP1515

Vision

MissionBioplasticsandbiochemicalsareourreferencesector,andweproducetheminbiorefineriesthathavebeenintegratedintotheterritory,withtechnologiesthathavealowenvironmentalimpact.Theintegrationofchemistryandfarmingallowsustomakeefficientuseofresources,withenvironmental,socialandeconomicadvantagesforthesystem.

Webelievethateconomic,environmentalandsocialsustainabilityispossibleandisincreasinglynecessaryinallproductionsystems,andwewanttocontributetothetransitionfromaproduct-basedeconomy

toasystem-based economy,

startingwithmakingthemostoftheterritoryandwithcollaborationamongthevariouspartiesinvolved.

ItwasintheMontedison School of Material Sciencethattheplantointegrate chemistry, the environment and farming began to develop.Numerousstepsforwardhavebeenmade,andtoday,weareacknowledged,internationally,tobetheleadersinthesectorofbioplasticsandbiochemicals.

Living Chemistryfor a better quality of life

1616

THE NOVAMONT GROUP

NovamontismanagedbyaBoardofDirectors(BoD)appointedbythepartners’meeting.Theboardismadeupof1chairperson,theChiefExecutiveOfficerand10councelors,whoremaininofficeforthreeyears,duringwhichtheyproducethecompany’sstrategies,alsoinrelationtoeconomic,environmentalandsocialmatters.TheBoDisauditedbytheBoardofAuditorsandbythepartners’meeting.

The governance bodies

Our figuresTurnover: € 195,332,703

Sharecapital:

Novamont:€ 13,333,500

Mater-Biotech:€ 120,000

Mater-Biopolymer:€ 180,000

Ownershipstructureandlegalform:

NovamontS.p.A.:75% Mater-Bi S.p.A. - 25% Versalis S.p.A.

Mater-BiotechS.p.A.:100% Novamont S.p.A.

Mater-BiopolymerSrl:100% Novamont S.p.A.

QuantityofMATER-BIproduced: 65,987 tons

Our workers

18 1918 19

THE NOVAMONT GROUP

Ourrootsliedeepinourterritory.Usingtechnologies that are “the first of their kind”,createdinourresearchcentres,sitesthatarenolongercompetitive,orhavebeenabandoned,arereconvertedandtransformedintoinnovativelaboratoriesandindustrialplants.Ourproductsaretheresultofcombiningtheseavant-gardeproprietarytechnologieswithour“model of the bio-economy”,whichisbasedonintegratedbiorefineriesandterritorialregeneration.

Novamont Novara:inNovara,thereistheadministrationcentre,andtheresearchanddevelopmentlaboratories,togetherwithinnovativepilotplants.

Mater-Biotech:thissiteisbasedinAdria(nearRovigo)andisasubsidiarythatis100%ownedbyNovamont.Thisistheworld’sfirstplantthatcanproducebutanediol(BDO)directlyfromsugars,byfermentationprocesses.

Mater-Biopolymer:thissiteproducesORIGO-BIbiopolyestersanddevelopsnewbiopolymers.ThesiteisinPatrica(nearFrosinone),andin2017,itwaspurchased100%byNovamont.

Novamont Piana di Monte Verna:thissiteisourresearchcentrewhichisspecializedinthedevelopmentofindustrialbiotechnologies.ThissitewaspurchasedandreconvertedbyNovamont,in2012.

Novamont Terni:inTerni,wehavetheproductionplantofMATER-BIandprocessengineeringandqualitycontrollaboratories.

The sitesNovamont

NorthAmerica

NovamontFrance

NovamontGmbH

NovamontRepresentationOffice

(Brussels)

USA

Canada

Argentina

Chile

Italy

Germany

France

Ireland

Finland

Sweden

Norway

Denmark

BalticStates

Poland

Mauritius

Tunisia

Japan

Thailand

HongKong

India

Taiwan

Benelux

UK

Romania

Greece

SouthKorea

Israel

Australia

The sites around the world

The commercial network

20 2120 21

THE NOVAMONT GROUP

The sites and interrelations

The sites in Italy

THE NOVAMONT GROUP

The transformation technologies

The products and end of life

THE NOVAMONT GROUP

“MATER-BI”isourinnovativefamilyofbiodegradableandcompostablebioplastics,whichweredevelopedtoprovidesolutionstospecificenvironmentalproblems.MaterialsinMATER-BI,whichareobtainedusingaseriesofproprietarytechnologies,thefirstoftheirkindinthefieldofstarches,cellulose,vegetableoilsandtheircombinations,areproducedinanintegratedproductionchain.

MATER-BI has applications in numerous sectors, and provides unique and innovative solutions to specific environmental problems.

Packaging:disposedofinthedifferentiatedcollectionoforganicwasteandsentfororganicrecyclingtobetransformedintocompost.

Farming:biodegradableproductsinthesoilthatsimplifytheoperationsofmanagingplasticwasteandcontributetoabetterdevelopmentofvegetablecrops.

Collective catering:compostablecrockeryhelptosimplifywastemanagement,whenitisnotpossibleorpracticaltousewashableandreusablecrockery.

Other applications:biofillersfortheautomotivesector,productsforpersonalhygieneandcare,objectsforpetstochew,giftsandfancygoods.

Differentiated waste collection:bagsforcollectingorganicwastearecompletelybiodegradable,compostableandresistanttohumidity.

Large-scale distribution:shoppingbags–whichcanbereused,alsofortheseparatecollectionoforganicwaste–andbagsforthefruitandvegetabledepartment,areusedsuccessfullyintheorganizedretailtrade.

The productsMATROL-BI isourexperimentallineofrapidlybiodegradablebiolubricantsandgreases,whichareobtainedfromrenewableresources.Theseareavalidalternativetoproductsoffossilorigin(providingadvantagesintermsofperformance),andaretheoptimalsolutionformachinerythatoperatesinecologicallysensitiveareas;intheeventofaccidentaldispersalintotheenvironment,MATROL-BIbiodegradesinafewdays,leavingnotraces.

CELUS-BI isourinnovativefamilyofingredientsforthecosmeticsandpersonalcaresector,whichareobtainedfromrenewablerawmaterialsofEuropeanorigin,insynergywithfoodcropsthatrespectthespecificcharacteristicsoftheterritories.Itsapplicationsarefoundinmoisturisingcreams,shampoos,foundationandlipsticks,anditcombineshighperformancewithlowenvironmentalimpact.

Matrol-Bi and Celus-Bi

26 2726 27

THE NOVAMONT GROUP

Forus,theSustainabilityReportisthetoolwithwhichwecommunicateour environmental, social and economic policies, and the resultsachievedduringtheyear.FromtheReport,youcanlearnaboutthe

valueswebelieveinandourcommitment.TheReportreferstothecompaniesintheGroup:

Novamont S.p.A., Mater-Biopolymer S.r.l. andMater-Biotech S.p.A..

theMETHODology

29292929

ThisreporthasbeenpreparedinaccordancewiththeGRI Standards:Coreoption.

ThisSustainabilityReportreferstothecalendaryear2017.Withrespecttothepreviousyear,thisreporthaschangedsignificantly,asthescopeofthereportinghasbeenextendedfromNovamontS.p.A.,toallofthecompaniesintheGroup,andthematerialtopics,and,consequently,alsotheindicators,havebeenreviewed.Thus,theprincipleofcomparabilityisnotentirelyapplicable,asonlythedatathatreferstoNovamontS.p.A.canbecomparedtothoseofthepreviousreports.

The principles used to define Report contents:

The principles to define the quality of the information in the Report:

• Stakeholder inclusiveness

• Balance• Timeliness

• Comparability• Clarity• Accuracy

• Reliability

• Sustainability context• Materiality• Completeness

Materiality(thatis,thethresholdatwhichtopicsbecomesufficientlyimportanttobereported)isthemainreferencesetbytheGRIStandardsfordrawingupthecontentsoftheReport.Weinvolvedourstakeholders,throughstakeholder engagement,todefinethemateriality.

Thisprocessisdividedintothreepoints:

1. Identifying the categories of stakeholder. Thisprocedurewasdevelopedin2014,involvingthevariouscompanyfunctions,withquestionnairesandfocusgroups.In2017,theidentificationwasreassessedandconfirmed,withoutvariations.

2. Defining the methods of engagement. Foreverycategoryofstakeholderidentified,differentmethodswerechosen,totakeaccountofindividualcharacteristicsandtofacilitatetheexpressionofeachposition.Everyyear,anengagementplanthatisdifferentfromthepreviousonesisprepared,inordertoprovidethestakeholderswithavarietyofwaystolisten.

3. Implementation of the engagement. Thisactivityismonitoredandrecorded,andtheresultsaresharedwiththestakeholdersinvolved.

Stakeholders categories identifiedGovernmentsSuppliers

DirectcustomersIndirectcustomers

EmployeesCommercialandmarketingfunction

Communities/CompaniesMediaandpress

AssociationsandNGOsResearchandinnovationLocalcommunities

WastemanagementchainFarmingworld

NationalandinternationalorganizationsFuturegenerations

2017 Engagement methodsMonitoringofthelegislationpanorama

PresentationeventfortheSustainabilityReportTelephoneinterviewTelephoneinterview

NewslettersQuestionnaire

BrochuresMonitoringofpressreviews

PresentationeventfortheSustainabilityReportPresentationeventfortheSustainabilityReport

MonitoringthroughthemediaQuestionnaire

PresentationeventfortheSustainabilityReportPresentationeventfortheSustainabilityReport

Scuola@Novamont

The reporting principles

The processes

Stakeholder engagement

30 3130 3130 31

THE METHODology

Theprocessofdefiningthematerialtopicsisdividedintofourstages:

1. Identifying priority topics for the company. Everyyear,thesetopicsarereassessedand,ifnecessary,modifiedorintegrated.In2017,Mater-BiopolymerandMater-Biotechwerealsoinvolvedintheprocess.

2. Identifying priority topics for the stakeholders.Everyyear,theprioritytopicsforthestakeholdersarealsoreassessedand,ifnecessary,modifiedorintegrated.

3. Assigning priorities. Apriorityscale,from1to5,isusedforboththecompanyandthestakeholders,where1correspondsto“Notveryimportant”and5to“Veryimportant”.

4. Identifying materiality. Theworkofreassessingcarriedoutin2017ledtotheidentificationof11topicsthatareimportanttotheGroupandtothestakeholders,whichcorrespondtoallofthetopicsthatexceeded,fortheGrouporforthestakeholders,thescoreof3,which,forus,indicatesthematerialitythreshold.

The material topics identified are reported below:

Materiality analysis

32 3332 3333

THE METHODology

The resultsThisSustainabilityReportisorganizedinaccordancewiththematerialityanalysis.Eachchapterdealswithoneofthematerialtopicsidentified.InordertoincludeeverythingwewanttocommunicateinthebroadcontextoftheUN2030AgendaforSustainableDevelopment,everychapterislinkedtooneormoreoftheSustainableDevelopmentGoals(SDGs).Ourgoalsandourtargetscan,therefore,bereferredtoandcomparedwiththecommitmentsthatthemorevirtuousgovernmentsandcompanieshavemadewithrespecttoourfuture.

Sustainable Development Goals for which Novamontis implementing policies, strategies and actions:

Sustainable Development Goals for which Novamontis not implementing policies, strategies and actions: TheSustainabilityReportwasauditedexternallybySAIGlobalItalia,

anorganizationthatisindependentofourGroup,asreportedintheAssuranceStatement,onpage182.

TheDMA(DisclosureonManagementApproach)describesthematerialtopicsidentifiedbytheNovamontGroup,andtheinstrumentsweusetoprovideaccurateinformationonhowwemanageoureconomic,environmentalandsocialimpacts,anddefines:

1. The boundary,thatis,towhatextenttheGroup’sactivitieshavepositiveornegativeimpacts(insideoroutsidetheGroup)

2. The relationship with the topics of the GRI-Standards topics

3. The policies guidingtheorganization

4. Thedeclaredcommitments

5. The goalsforthereportingyear

6. The responsibilitiesallocated

7. Thefinancial,humanandtechnologicalresourcesmadeavailable

8. The mechanisms for collecting requests from the stakeholders

9. Specific actions

The management approach

The external assurance

34 3534 3534 35

THE METHODology

SDG 8: Decentworkandeconomicgrowth

2030 Agenda operating goal8.2Diversification,technologicalprogressandinnovationenable us to achieve higher economic productivitystandards.

Our specific commitmentTodevelopinnovativeandcompetitiveproducts,therebycontributing to the development of local communitieswith the creation of new jobs, and to promote theeconomicgrowthoftheGroup,toconsolidateitsvalue.

SDG 9: Industry,innovationandinfrastructure

2030 Agenda operating goal9.2Topromoteinclusiveandsustainableindustrializationandsignificantlyincrease,by2030,thelevelofemploymentintheindustryandthegrossdomesticproduct,inlinewiththenationalcontext,anddoublethisvalueindevelopedcountries.

Our specific commitmentTodesignanddevelopproductsandprocessesthathaveastronglyinnovativevalueandcreateextendedresearchnetworksdedicatedtosustainability.Tousetheknowledgeacquired to convert traditional production processes tothebesttechnologiesavailable.

CHAPTER

1VALUE AND STABILITY

OF THE COMPANY

373737

Weworkedtodevelopaninnovative company,thathaditsrootsintheterritoriesandthatwascompetitive

intheworld

TheeconomicvaluegeneratedbyourGrouphasgrownovertheyears,andhaslargelybeendistributedtothevariousstakeholdergroups,suchassuppliers,collaborators,financialbackersandthepublicadministration.Inthereportingyear,wekeptback10.9% ofthevaluegenerated.

Economic value generatedReceiptsandotheroperatingincomes € 202,615,408Incomesfromfinancialmanagement - € 329,445 Extraordinaryreceipts - - -Revaluationsoffixedassets - - - Contributionsreceived € 5,643,738 Total economic value generated € 207,749,701

Economic value distributedOperatingcosts € 154,970,839 Paymentofcollaborators € 28,118,950 Paymentoffinancialbackers € 4,046,692 Paymentofthepublicadministration - € 2,016,341 Extraordinarycosts - - -Total economic value distributed € 185,120,140

Economic value retainedDepreciationofnon-materialgoods € 3,113,490 Depreciationofmaterialgoods € 15,614,942 Provisions - € 6,467,740 Lossgenerated € 10,368,869 Total economic value retained € 22,629,561

Our value and our history

ThedatarefertotheConsolidatedFinancialStatementsofNovamontGroup

38 3938 3938 39

CHAPTER 1 – VALUE AND STABILITY OF THE COMPANY

Inthecirculareconomy,allactivities,startingwithextractionandproduction,areorganizedinsuchawayasnottogeneratewaste,as all waste is reused in the production cycle.Whenthisisassociatedwiththeuseofrenewableresources,wecrossthenewfrontierofthecircularbioeconomy,forwhichwecanconsiderourselvesoneofthemainplayers.Allofourproductsuserenewableresourcesandarerecyclable.Thecornerstonesofourbioeconomicmodelare:

Withthesecornerstones,ourgoalsandourworkconstituteasignificantcontributiontoachievingtheSustainableDevelopmentGoals“Decentworkandeconomicgrowth”(SDG8)and“Industry,InnovationandInfrastructure”(SDG9).

Creatinginnovativebiorefineriesthatareintegratedintotheterritory,byreconvertingindustrialsitesthatarenolongercompetitiveoraredisused,andtherebygeneratenewopportunitiesforthelocaleconomies.

Contributingtothecirculareconomybyusingrenewablerawmaterialstomakeproductsthat,attheendoftheirlives,aretransformedintoanewresource,therebyovercomingthelimitsofthelineareconomy:production,consumptionanddisposaloftheproducts.

Usingintegratedeconomicsystemstocreatenewlinksbetweenproductionsectorsthatmakethemostofthesynergiesandspecificcharacteristicsoftheterritories.

PRODUCTIONOur products use renewable resources (materials and energy) throughout the production chain, from the raw materials to the transformation processes, to guarantee the best environmental performance.

USeWe produce MATER-BI,

a family of biodegradable and compostable bioplastics that are used in the

farming sector, in collective catering, in the retail sector and in the collection of waste.

RECYCLINGThanks to its biodegradability and compostability, MATER-BI is rightfully disposed of with the organic waste and, following biological treatment (composting or anaerobic digestion), it turns into compost, which is used in agronomy and nursery gardening.

The circular bioeconomy The life of MATER-BI

The concept

40 4140 4140 41


Ourmodelofthecirculareconomyhasitsmainelementsbeforetherawmaterialproductionchain,andaftertheproductionchain,intheendoflifeoftheproducts.Theuseofrenewablematerialsandtheproductionofbiodegradablematerialsmakethewholechainsustainable.Theopportunitiesandtherelativerisksderive,ontheonehand,fromtheneedtoproducebiologicalresourcesusingsustainablefarmingsystems,andmoreimportantly,inareasclosetotheproductionplants;ontheotherhand,itisnecessarytohaveasufficientlylargeandwidespreadseparatedcollectionandtreatmentsystemforbiodegradablewaste,inordertocollecttheproductsattheirendoflife,sothattheycanberecycledintheformofcompost.TheusersofproductsinMATER-BIdemandalevelofperformancethatisequivalenttothatoftraditionalproducts,aswellastheirparticularpropertiesofbiodegradabilityandcompostability,which,togetherwiththefactthattheyoriginatefromrenewableresources,mustbedocumentedandcommunicatedclearly.

WeareawarethatonlybymeansofeffectiveProductStewardshipcantheopportunitiesbeincreasedandtherisksreducedtoaminimum.Tothisend,weestablishedtheEcology of Products and Environmental Communications functionwithinthecompany,whichfollows,inanintegratedmanner,productcharacterizationandcertificationandtheimplementationofCorporate Social Responsibility,instruments,includingmaterialityanalysisandstakeholderengagement.ThenewgradesofMATER-BIputontothemarketin2017receivedbiodegradabilityandcompostabilitycertification,confirmingthattheyconformtotheregulations.Ourcommitmenttoimprovingiscontinuous.Throughout2017,thestakeholderswereguaranteedahighlevelofinformationintheSustainabilityReportandothercommunicationtools.In2016,ECOVADISassessedoursocialresponsibilitypracticeswithapositivescoreof72/100(advancedlevel).In2017,weworkedtoimprovethisscore,whichwewillrepeatin2018.TheworkersandlocalcommunitiesinwhichthecompaniesinourGroupareintroducedlookfavourablyupontheeconomicdevelopmentassociatedwiththem,andtheabilityofourmodelforthebioeconomytogivelifebacktothedisusedplantsandtoidentifyneweconomiesfortheterritoryisseenasanopportunitybymanystakeholdercategories.Ofcourse,highqualitystandardsarerequiredfortheproduction.Forthelastyear,weshouldhighlightanumberofproblems

Our opportunitiesand our risks

42 4342 4342 43


concerningthepresenceofsmellsandnoisescomingfromtheMater-Biotechsite,whichweredealtwithduringanopendaytoencourageintegrationwiththeterritoryandwiththedraftingofaplantoreducethenoiseandsmells.Themodelofthecirculareconomyistheresultofyearsofincreasingknowledge,andhasledtothedevelopmentofanevolvedregulatoryandeconomicreferenceframework.Thefactthatthisframeworkstillexists,andhowitmightdevelopinthemediumandlongterm,constituteopportunities,butalsodangersforoureconomy.Indeed,themodelrequirescontextsinwhichwastemanagementiswelldeveloped,andcanmakethemostofMATER-BI’sbiodegradabilityandcompostability.Oneenvironmentalaspectthathasreceivedalotofinterestfromthemeansofcommunicationatalllevelsisthegrowingconcentrationofmicroplasticsinwater,particularlyintheseasandoceans,resultingfromtheuncontrolleddisposalofplasticintheenvironment.Thebiodegradabilityofsomeplasticsdoesnotjustifytheirdisposalintheenvironment,butifthishappens,itreducesthedamagecausedbynon-biodegradablematerials.

Our model of the circular bioeconomy has ample prospects for growth.Thebio-butanediolproducedbyMater-Biotechisthefirstbutanediolofbiologicalorigin,butthegrowinginterestinproductsof“natural”originisprovidingnewmarketprospectsforthisproductandforanyotherproductsfromourproductionchain.Thisfavourabletrendmaybehamperedifthedifferenceincostfromequivalentproducts,offossilorigin,becomessignificant;thisfactorisinfluencedprimarilybythepriceofoil.

OurGroup’scommitmentsaresharedbyallofouremployeesandcollaborators,whohaveallagreedtobehaveethicallytowardsexternalcolleaguesandstakeholders,insuchawayastobaseourpolicies,strategiesandactionsonprinciplesofhonestyandtransparency.Allofoursiteshaveacodeofethicsthatcontainsrulesofbehaviourwhichgoverntherelationshipsbetweenemployees,thepublicadministrationandsuppliers.Inthereportingyear,theGroupdidnotreceiveanysanctionsfornon-compliancewithenvironmentalandsocialregulations.In2017,theGroupmadeavoluntarycorrectionformistakenlychargingVATinthetransferofalicencefromNovamontS.p.A.tothesubsidiaryMater-BiotechS.p.A.Thecorrectionentailedasanctionof€689,000forNovamontS.p.A.and€612,500forMater-BiotechS.p.A..

Honesty and transparency

1 Novamontconsiderssanctionsofsumsgreaterthan€50,000,thatis,greaterthan0.021%ofitsturnoverin2017,tobe“significant”.Onlythe“significant”sanctionshavebeenreportedinthisSustainabilityReport.

44 4544 4544 45


Furthermore,theGroupwasnotinvolvedinlegalactionsconcerninganti-competitivebehaviourandmonopolypractices. Onthecorruptionfront,wehavenonewsofdeedsreportedtotheIntellectualPropertyandLegalAffairsfunction.AllofourcompanieshavevoluntarilyadoptedtheOrganization,ManagementandControlModel,ex-ItalianLegislativeDecree231/2001.2017wasdedicatedtodrawingupvariousproceduresconcerninganti-corruption(Purchases,CommercialFunction),andtocarryingoutaudits(HumanResources,Sponsorships,PublicFinancing)andtrainingactivities(Purchases,CommercialFunction,Sponsorships,PublicFinancing),demonstrating,foreachoftheseareas,ahighlevelofattentiontotheanti-corruptiontopic.

SDG 8 Decent work and economic growth

Long-term goal

TopromotetheGroup’seconomicgrowthinordertoreinforceitsstabilityandvalue,bydevelopinginnovativeandcompetitiveproductsonthemarketandcontributingtothecreationofnewjobsandtothedevelopmentoflocalcommunities.

SDG 9Industry, innovation and infrastructure

Long-term goal

TopromoteinclusiveandsustainableindustrializationandmaintainahighlevelofinnovationinourproductsinordertocreateopportunitiesfordevelopmentforNovamont,fortheterritoryitoperatesinandfortheeconomy.


Goals

46 4746 4746 47

SDG 9: Industry,innovationandinfrastructure

2030 operating goal9.5Toincreasescientificresearch,improvetechnologicalabilitiesintheindustrialsector,inallcountries(particularly,indevelopingcountries)andencourageinnovationsand,by2030,considerablyincreasethenumberofemployeesforeveryonemillionpeopleintheresearchanddevelopmentsectorandtheexpenditureonresearch(bothpublicandprivate)andondevelopment.

Our specific commitmentTodesignanddevelopproductsandprocessesthathaveastronglyinnovativenatureandcreateextendedresearchnetworksdedicatedtosustainability.Tousetheknowledgeacquired to convert traditional production processes tothebesttechnologiesavailable.

Chapter

2innovation

494949

Innovation has always been one of our key values.Industry, research and training are our vocations.

ofour2017turnoveronresearch

ofworkforceemployed

inresearchanddevelopment

in the sector of natural and synthetic polymers and processes fortransformingrenewablerawmaterials,withthecontinuousdevelopmentoforiginaltechnologies.

whichrangefromthelaboratoryscaletoinnovativepilotplants

we invested

REGISTERED OVER THE YEARS developed

Extensionoftheproductionchainandthenewtechnologieshavemadeprocessinnovationpossible,leadingtoproductinnovation.Novamontwantstostandoutwithitsinnovation,anddemonstratesthisinitseffort,overthelastfewyears,tomakeMATER-BIoneofthemostwidespreadandsustainablebiodegradableplasticsintheworld.Ourmostrecentportfolioofinnovative,biodegradableproductsofvegetableorigin,suchasthebiolubricants,bioherbicidesandplasticizers,haspositivevaluesalsoforenvironmentalprotection.Ourcommitmentinresearchandininnovationhasalsoledtothedevelopmentandindustrializationofinnovativeproductsforthelarge-scaleretailtrade,suchastheCasaPrivateLabellinesofpaperwithcompostablepackaginginMATER-BIusedbythemostimportantItalianlarge-distributionchains.

Forus,innovationalsomeanscreatinganintegratedandsustainablebiorefineryplant,suchasMater-Biotech,withaninvestmentofmorethan€100million:thisproductionplant,whichhasacapacityof30,000tonnesperyear,wasconceivedtoreuseby-productsfortheenergyneedsoftheplantitself.Thisistheworld’sfirstindustrialplantdedicatedtotheproductionofbio-butanediol(1,4BDO)directlyfromsugars,thankstotechnologydevelopedbyGenomatica,aleaderinindustrialbiotechnologies,andNovamont’sknow-howindevelopinglow-impactprocesses.

Research and Development Putting innovation first

Mater-Biotech, the feather in our cap

50 5150 5150 51

Chapter 2 - innovation

1,4 BDO, from renewable raw materials

Textiles,electronics,theautomotiveandconsumergoodsindutriesarethesectorsinwhich1,4BDOisusedinsteadoftheequivalentfromfossilsources.AlsoforMATER-BI,theuseof1,4BDOwasasignificantinnovation,asitallowedusingahighdegreeofrenewablerawmaterials,withasubsequentreductioninthedependencyonfossilrawmaterialsandingreenhousegasemissions.

SDG 9:Industry, innovation and infrastructure

Long-term goal

TopromoteinclusiveandsustainableindustrializationandmaintainahighlevelofinnovationinitsproductsinordertocreateopportunitiesfordevelopmentforNovamont,fortheterritoryitoperatesinandfortheeconomy.

chapter 2 - innovation

Goals1,4 BDO

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SDG 8: Decentworkandeconomicgrowth

2030 operating goal8.3 To promote policies geared towards development,thatsupportproductionactivities,thecreationofdecentjobs, entrepreneurs, creativity and innovation, and thatencouragetheformalizationandgrowthofsmall/medium-sizedbusinesses,alsothroughaccesstofinancialservices.

Our specific commitmentTo encourage the development and integration of thechain for the manufacture of innovative products, bycontributingtothecreationofvalueinthecommunitiesinwhichouractivitiestakeplace.

CHAPTER

3INDIRECT ECONOMIC

IMPACTS

55555555

Renewable and compostable bioplastics constitute a complex economic system that involves a number of sectors.

Aswellasthechemicalproductionsector,thefarmingsectorintheearlypartoftheproductionchain,fortheproductionofrawmaterials,isaffected,asistheendoflifechain,lateron,forthemanagementoforganicrecyclingand,again,thefarmingsector,fortheuseofcompost.Theappliedresearchsectorisalsogreatlyinvolved.Thisbroadinvolvementofvarioussectorsgeneratesdevelopmentandjobs.

Theproportionofoursupplierswhooperatelocallyishigh,asmuchas69%.Forus,localmeansaneconomicoperatorwithItalianheadquarters.Thisresultissignificantifwetakeintoaccounttheinternationalnatureofthesector,whichregularlypurchasesitsprecursorswithoutconsideringtheaspectofproximity.

The selection of suppliers

Bioplastics as aneconomic system

Assumingacompleteintegration(120,000tons/yearofbioplastics)oftheproductionchainandoftheprocessesthatcharacterizeNovamont’smodelofthebio-economy

56 5756 5756 57

CHAPTER 3 - INDIRECT ECONOMIC IMPACTS

56 57

SDG 8Decent work and economic growth

Long-term goal

TopromotetheGroup’seconomicgrowthinordertoreinforceitssoundnessandvalue,bydevelopinginnovativeproductsthatarecompetitiveinthemarketandcontributingtothecreationofnewjobsandtothedevelopmentoflocalcommunities.

GoalsAsademonstrationofhowimportantitisforustooperateinaneconomicallyandsociallystableterritory,capableofinnovationandofcreatingwellbeing,weallocatedfundsforyoungentrepreneursandcooperativesaffectedbytheearthquakeon24August2016.Thefundshavecontributedtorestoringproductionfacilitiesandcapacity.

This all happened as part of the initiative“La rinascita ha il cuore giovane” (“Rebirth is young at heart”),

which was promoted by:

Legambiente

Altromercato

Libera

Federparchi

Alce Nero

Fondazione Symbola

Alleanza Cooperative Italiane Giovani

Donations

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CHAPTER 3 - INDIRECT ECONOMIC IMPACTS

SDG 3: GoodhealthandWellbeing

2030 Agenda Operating goal3.9By2030,toreduceconsiderablythenumberofdeathsanddiseasesfrom dangerous chemical substances and from contamination andpollutionoftheair,waterandsoil.

Our specific commitmentTohaveprocessesandproducts,andtoestablishworkplacesthatdonotfavourriskstothehealthandsafetyofworkersandofthecommunity,andtoreduceeveryformofpollutionasmuchaspossible.

SDG 5: GenderEquality

2030 Agenda Operating goal5.1To put an end, everywhere, to all forms of discrimination againstwomenandgirls.

Our specific commitmentEqualopportunitiesandfightingdiscriminationareamongourpriorities.

SDG 4: QualityEducation

2030 Agenda Operating goal4.2By2030,toguaranteethateverygirlandboyhasqualitychildhooddevelopment, andaccess tohealthcareandpre-schooleducation thatpreparesthemforprimaryschool.4.4 By 2030, to increase, considerably, the number of young peopleandadultswithspecificskills (including technicalandprofessional) foremployment,decentworkandentrepreneurship.4.7 By 2030, to guarantee that all pupils acquire the necessaryknowledgeandskillstopromotesustainabledevelopment,alsothrougheducation aimed at sustainable development and lifestyle, at humanrights,atgenderequality,atpromotingapeaceful,non-violentculture,ataglobalcitizenryandatmakingthemostofculturaldifferencesandthecontributionofculturetosustainabledevelopment.

Our specific commitmentTo encourage the development of an ethical and environmentalconscience,bytransmittingknowledgeaboutthecorrectmanagementofproducts,resourcesandwastetothewholecommunity.

CHAPTER

4SAFETY AND WELLBEING

OF COLLABORATORS

616161

As shown in this first Report as Novamont Group, in the last few years we have grown, with new acquisitions and partnerships. However, the increased size and complexity have not altered our ability to respond promptly to the demands of the markets and to the changing scenarios we operate in.Organogram

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CHAPTER 4 - SAFETY AND WELLBEING OF COLLABORATORS

Wearealwaysinsearchofhumanresources,togrowandaddvaluetotheGroup.In2017,441peopleworkedintheNovamontGroup:286inNovamontS.p.A.,74inMater-Biotech,and81inMater-Biopolymer.

19 members of the governance committee

*Ofwhich:3terminationsasaresultofthenaturalendofafixed-termcontract,7voluntaryresignations,1death.

*Ofwhich:2terminationsasaresultofretirement,1voluntaryresignationand4endoffixed-termcontracts.

*Ofwhich:voluntaryresignationsofpermanentpersonnel,endoffixed-termcontract.

OverallTurnover:(Entries+Exits/personnelat2017end)*100 NegativeTurnover:(Exits/personnelat2017end)*100

Human resources Recruitments and terminations

64 656565


Acodeofethicsateverysiteseekstopromoteequalityoftreatmentofemployees,collaboratorsandexternalrepresentatives.Inaccordancewithinternationalnorms,ourpoliciesaimtopreventanydiscriminationandanybehaviourthatmayharmaperson,hisconvictionsorhispreferencesineveryfield.WearenotawareofanysituationsofdiscriminationagainstanyoneinsideoroutsidetheGroup.

Maternity leave: 5employeesPaternity leave: 12employeesParental leave: 5femaleemployees,1maleemployee

NoparentalleavewasgrantedattheMater-BiopolymerandMater-Biotechsites.

All of the male and female employees who took leave last year still work for the company.

ThetradeunionrightsandfreedomofassociationofworkersareaguaranteedrightwithinourGroup.TheAU(AmalgamatedUnion)ispresentinNovamontandMater-Biopolymer,andaunionrepresentativeispresentinMater-Biotech.

Leave

NO to any formof discrimination

Freedom of associationand collective bargaining

Webelievethattheirsatisfactioniscloselyrelatedtotheefficiencyofourcompanies,soallpersonnelareemployedwitharegularemploymentcontract,andnoformofirregularemploymentoruseofchildlabouristolerated.Weundertaketoprotectthemoralintegrityofouremployeesbyguaranteeingtherighttoworkinconditionsthatrespectthedignityoftheperson.Consequently,nopressureofanykindintendedtopersuadesomeonetoactagainstthelaworthecodeofethicsistolerated.Everyheadisrequiredtomakethemostoftheworktimeofhiscollaborators.Anyrequestbyasuperiortoasubordinatetobehaveinawaythatconstitutesaviolationofthecode,isanabuseofapositionofauthority.InaccordancewiththeCLA,allbenefitsprovidedforfull-timeemployeesareextendedtopart-timeandtemporaryemployees,inallofourcompanies.Notonlythedirectors,butalloftheemployeesofNovamontcanoptintotheHealthcareFundmentionedinthecollectivenationallabouragreement(FASCHIM).Mostoftheemployeeshavechosenanon-profitfundmanagedbyagroupconsistingofrepresentativesoftheemployeesandofthecompanies(FIAMI).

It is essential for us to ensure the wellbeing of our employees.

The wellbeing of our employees

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100%ofemployeesinNovamont,Mater-Biopolymerand Mater-Biotecharecoveredbycollectivebargainingagreements,inaccordancewiththeCLAforthechemicalindustry.AllofthedirectorsarecoveredbytheCLAfordirectorsofcompaniesthatproducegoodsandservices.

Personneltrainingisthetoppriorityforus,bothfornewemployeesandascontinuoustrainingduringtheprofessionalcareer.

Continuous trainingofhumanresources,fromatechnicalpointofviewandintermsofvision

Work experiencewiththesupportofexpertsinindustrialresearchandprojectmanagement

Strategic planning and managementofindustrialresearchprojects

CollaborationwithtopItalianandinternationalresearch institutes

Developmentoftechnical-scientific knowledgeinthebioeconomicsector

An industry based on knowledgesystemicvisionandmultidisciplinaryskills

Thesafetyofouremployeesbeginswiththechoiceoftherawmaterialsforproduction.Indeed,everynewcomponentisselectedwhiletakingintoconsiderationtheriskslinkedtoitsprocessingandtoitspresenceinthefinishedproducts.Wearestronglyconvincedthatthephysicalprotectionofemployeesandcollaboratorsandthehealthynatureoftheworkingenvironmentsmustbethecompany’stoppriority.Inaccordancewiththelaw(Art.35ItalianLeg.Dec.No81/08),allofouremployeesreceiveextensiveandappropriatetrainingonhealthandsafety.Thediagrambelowshowsthenumberofworkers,in2017,involvedintheperiodicmeetingsonhealthandsafety,bothcompulsoryandoptional,withrespecttothenumberofmeetingsrequiredbylaw.

Periodic health and safety meetings

Collective bargaining agreements

Updating skills

Safety

68 6968 6968 69


TheanalysisoftherisksisexaminedusingthemanagementsystemBSOHSAS18001,alwaysapplyingtheprecautionaryprincipleinsituationsinwhichtherearedoubtsaboutthedefinitionofrisk.Ourprocessingdoesnotentailhighrisksofprofessionaldiseases.1 2 3

1 Thedataanalysedalsoincludesthelessimportantinjuries(whichrequiredfirstaid),andthose thatoccurredwhiletravelling.2 By“dayslost”,wemeancalendardays.The“dayslost”werecalculatedfromthedayafterthe injury.3 Thefactorof200,000comesfrom:50weeks*40hours*100employees.

INJURYRATE(IR)

(n°ofinjuriesintheyear/no.ofhoursworkedinthereporting

year)*200,000

OCCUPATIONAL DISEASE RATE

(ODR)

(Totalcasesofoccupational

diseases/Totalhoursworked)*200,000

LOST DAY RATE (LDR)

(n°ofdayslostbecauseofinjuriesandoccupationaldiseasesinthereportingyear/totalhoursworked)*200,000

ABSENTEEISM RATE (AR)

(totaln°ofdaysofabsenceinthereportingyear/totalworkingdaysfortheworkforceinthesameperiod)*200,000

Goals

SDG 3 Good health and Wellbeing

Long-term goal

Toensurethatworkersareprotectedintheworkplaces,andtoguaranteeahighlevelofphysical,mentalandsocialwellbeing.

SDG 5Gender Equality

Long-term goal

Toguaranteeequalityandnon-discriminationofworkers,andtocontributetothedevelopmentofaninclusivesociety.

SDG 4Quality Education

Long-term goal

Toguaranteeandspreadknowledgethatwillallowforamoresustainablefutureforthegenerationstocome.

717171


CHAPTER

5PRODUCTION CHAIN

AND PRODUCT SUSTAINABILITY

SDG 12: Responsibleconsumptionandproduction

SDG 6: Cleanwaterandsanitation

SDG 7: Affordableandcleanenergy

SDG 13: Climateaction

To read the operating goals and specific commitments, turn to pages 74-75.

7373737373


2030 Agenda operating goals12.2 By 2030, to achieve the sustainablemanagementandefficientuseofnaturalresources.12.4By2020,toachievetheeco-compatiblemanagementofchemicalsubstancesandofallwasteduringtheirentirelife cycle, in accordance with the agreed internationalframeworks,andtoreduceconsiderablytheirreleaseintotheair,waterandsoil,tominimizetheirnegativeimpactonhumanhealthandontheenvironment.12.5 By 2030, to reduce the production of wasteconsiderably, by prevention, reduction, recycling andreuse.

Our specific commitmentToproduceandmakeavailableproductsthatcontributetodevelopingsustainableeconomicmodels, in linewiththeprinciplesofthecirculareconomy.Novamontproductsuserenewableresources,andthanksto their biodegradability and compostability, they haveverypositiveeffectsonthewastecycle.

SDG 6: Cleanwaterandsanitation

2030 Agenda operating goals6.3 To improve the quality of water by eliminatingdumping,reducingpollutionandthereleaseofchemicalproducts and dangerouswaste, halving the quantity ofuntreatedrefluentwaterandconsiderablyincreasingsaferecyclingandreuseworldwide.6.4 By 2030, to increase considerably efficiency in theuseofwaterineverysectorandguaranteeasustainableprovisionandsupplyofdrinkingwater,totacklethewatershortageandreduceconsiderablythenumberofpeoplewhosuffertheconsequences.6.5 By 2030, to implement integrated management ofwater resources at all levels, also by means of cross-bordercooperation,inanappropriateway.

Our specific commitmentToreducetheuseofwaterand itsqualitydeteriorationasmuchaspossiblealong thewholeof theproductionchain.

SDG 7: Affordableandcleanenergy

2030 Agenda operating goals7.2By2030,to increaseconsiderablytheproportionofrenewableenergyinthetotalenergyconsumption.7.3By2030,todoubletheglobalrateofimprovingenergyefficiency.

Our specific commitmentTochooseprocessesandplantsthatmake itpossibletoreduceenergy consumptionanduse renewable sourcesforitsproduction.

SDG 13: Climateaction

2030 Agenda operating goals13.2To integrateclimatechangemeasures intonationalpolicies,strategiesandplanning.13.3 To improve education, sensitization, the ability ofhumansandinstitutionstomitigateclimatechange,adaptandreducetheimpactandtimelywarning.

Our specific commitmentTo design our processes and products, taking intoconsideration the effect of their life cycle on climatechangeandidentifyingactionstoreduceit.

74 7574 7574 7574 7574 75

Our sustainable production chainWehavealwayssoughttobuildanddevelopourproductionchaininaccordancewithprinciplesofsustainability,andeconomic,socialandenvironmentalproduction.Everyday,wetrytomaximizetheuseofnaturalrawmaterialsfromtheterritory,andreducetoaminimumtheenvironmentalimpactofourproductionsbyproducingcompletelyrecyclablematerials.

Everysupplierisaskedtoadoptmanagementsystems,suchasISO14001,ISO9001,OHSAS18001,andSA8000.SomesuppliersselectedonthebasisoftheirimportancefortheproductionchainareaskedtoundergochecksbytheProductEcologyandEnvironmentalCommunicationsfunction.ThiscommitmenttosustainabilityofourshasledustoadheretotheResponsibleCareprogramme(Novamont,since2012,andMater-Biotech,since2013).ResponsibleCareisavoluntaryprogrammethatpromotessustainabledevelopmentintheworld’schemicalindustry,anditsprinciplesaresafety,healthandtheenvironment.

In2017,wedidnotmakeanydirectinvestmentsincountriesinwhichthelevelofrespectforhumanrightscausesconcernorattentionintheinternationalcommunity.Toassessandmonitortheriskofoursuppliersviolatinghumanrights,weadoptedtheHumanRightsProtectionIndex.Theindexofeachofoursuppliersofmaterialshasbeencalculated,identifyinghisgeographicallocationandthesupplyquantity.

Innocasedidwebecomeawareofsituationsofchildlabourorofforcedlabourinourcompaniesorinthoseofoursuppliers.Furthermore,allofoursuppliersguaranteefreedomofbargainingandofassociation.

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CHAPTER 5 – PRODUCTION CHAIN AND PRODUCT SUSTAINABILITY

76 77

Supply chain activities sequence Sustainable production

Energy

Standards,assumptionsandmethodsusedforthecalculationThedatashowncomefromdirectmeasurementsandfromtheconsumptionreportedintheinvoicesfromtheelectricitysupplier.SourceoftheconversionfactorsusedElectricity1kWh=3.6MJ,Steam:2.75MJ/kg(thisincludestheheatforheating+evaporationenthalpy)LHVMethane:36.8MJ/Nm3(Ecoinvent3.3)MJ/Nm3(Ecoinvent3.3)

78 7978 7978 7978 79


78 79

Alloftheelectricityweneedcomesfromrenewablesourcesofguaranteedorigin,whichisverifiedbymeansofthe“ZeroEmissionElectricity”certificationbyathirdparty.Inthisway,weachieveareductionintheemissionofgreenhousegasesandofotherpollutants,weimprovetheenvironmentalprofileofMATER-BIandweboosttheproductionofrenewablesources.Alloftheenergyweproduceourselvesisusedbythecompany,withtheexceptionofMater-Biotech,wherethesurpluselectricityfromtheco-generatorisputontothegrid.

Thegraphshowsthetrendsrelatingtothespecificconsumptionofsteam,methaneandelectricity,normalizedtothe2009values.ThespecificconsumptionvalueswereobtainedfromtheratioofthetotalconsumptionofthecorrespondingutilityandtheoverallquantityoftheORIGO-BIandMATER-BIpolyestersproducedinthereferenceyear.Thelowspecificconsumptionofmethanein2011isduetothehighproductivityoftheplants.Incontrast,theincreasesinmethanerecordedstartingfrom2012areduetotheprogressiveincreaseinthequantityofself-producedsteam,which,in2014,reached100%.In2017,thespecificconsumptionofmethanedroppedby20%withrespecttothepreviousyear,thankstoincreasedproductivity.Forthespecificconsumptionofelectricity,wecanseeafairlyconstanttrendthatisalwaysbelowthereferencevalue(2009).

Baselineforthecalculation2017Standards,assumptionsandmethodsusedforthecalculation Thereductionsinelectricityandmethanearecalculatedasthedifferencebetweenthespecificconsumptionsin2017withrespectto2016,multipliedbythequantitiesofMATER-BIandORIGO-BIproduced.

80 8180 8180 8180 81


80 81

Water

Biodiversity

Datafrommetersand/orconsumptionindicatedoninvoices.

Mater-Biotech,whichextendsoveranareaof200,552m2,issituatedwithinthePoDeltaRegionalPark,whichcomesundertheNatura2000Network,theEuropeanUnion’smainpolicyinstrumentforpreservingbiodiversity.ItisanecologynetworkthatcoversthewholeoftheEUterritory,thatwasestablished,inaccordancewiththeDirective92/43/EEC“Habitats”,toguaranteethelong-termmaintenanceofthenaturalhabitatsandspeciesoffloraandfaunathatarethreatenedorrarethroughoutthecommunity.ThepremisesofNovamontS.p.A.andMater-Biopolymerarelocatedinurbanandindustrialareas.

Emissions

BaseYear ThedatapresentedinthisReportconstitutetheBaselinedata,because,forthefirsttime,ithasbeencalculatedinanaggregatemannerforthethreecompanies.GWPRateThedirectemissionsaretheemissionsduetothedirectcombustionofnaturalgasforallofthepremisesandoftherefluentsinthecombustor(onlyTerni).TheemissionsfromnaturalgascombustionforMater-BiotechwerevalidatedbyBureauVeritas,andareequalto28,946tonsCO2e.Emissionfactorfornaturalgasconsumption:2.17kgfossilCO2/Nm

3 ofmethaneobtainedfromtheEcoinvent3.3dataset[Heat,districtorindustrial,naturalgas{EuropewithoutSwitzerland}/heatproduction,naturalgas,atindustrialfurnacelow-NOx>100KW/Alloc.RecUForMater-Biotech,theemissionsofbiogenicCO2werecalculatedasfollows:•CO2fromfermentation:stoichiometricbalance•CO2frombiogascombustion:stoichiometricbalanceandcompositionofthemethaneasindicatedbyMater-Biotech:66%methaneand34%CO2 Methanedensity:0.8kg/Nm3

CO2density:1.98kg/Nm3

Approachusedforconsolidatingthedata100%operationalcontrolStandards,assumptionsandmethodsusedforthecalculationDirectmeasurementsandstoichiometricbalance

82 8382 8382 8382 83


82 83

GWPRateTheindirectemissionsareemissionsrelatingtotheenergypurchasedexternally,thatis,steam(onlyforNovaraandelectricityfromaGO-certifiedrenewablesource).Thefollowingconversionfactorswereusedforthecalculation:•Steam:0.242CO2e/kg,SourceEcoinvent3.3Record:“Steam,inchemicalindustry{RER}production,alloc.RecU”.•Renewableelectricity:39.2kgCO2/MWh“Electricitymediumvoltage{IT},marketfor,Alloc.DefU(RECs)”.In2017,allNovamontGroupsitesalsoobtained“ZeroEmissionElectricity”certification.Standards,assumptionsandmethodsusedforthecalculation Directmeasurementsandstoichiometricbalance.

ThenumeratorshowsthedirectemissionsofgreenhousegasesandthechosendemoninatoristhequantityofMATER-BIproduced.TypesofGHGemissionsincludedOnlydirectemissions(Scope1)GasesincludedinthecalculationFossilCO2

SourcesoftheemissionfactorsusedDirectmeasurementsforVOCandPM(laboratorytests).ForNOXandCOfromthemethaneboilerinTerni,theEcoinvent3.3emissionfactorswereused.Thedirectmeasurementswereestimatescalculatedashourlyconcentration(timelyanalysis)forthehoursofuse.Standards,assumptionandmethodsusedforthecalculationNOX:2.56E-5kg/MJCO:1.56E-5kg/MJ[datasetecoinvent3.3.“Heat,districtorindustrial,naturalgas{EuropewithoutSwitzerland}/heatproduction,naturalgas,atindustrialfurnacelow-NOX>100KW/Alloc.RecU”].

Basedonanannualexternalanalysis

BaseYearThedatapresentedinthisReportconstitutetheBaselinedata,because,forthefirsttime,ithasbeencalculatedinanaggregatemannerforthethreecompanies.“Scope”inwhichthereductionismadeScope2Standards,assumptionsandmethodsusedforthecalculationForthecalculationoftheemissions(avoided)associatedwiththeGOs,thetotalelectricityconsumption(2017)wasmultipliedbythedifferenceoftheemissionfactorsassociatedwiththenationalelectricalmixandwiththeproductionofelectricityfrom(largescale)hydroelectricplants,takenfromthefollowingdatasets:•Renewableelectricity:39.2kgCO2/MWh“Electricitymediumvoltage{IT},marketfor,Alloc.DefU(RECs)”. •Traditionalelectricitymix:544kgCO2/MWh“Electricitymediumvoltage{IT},marketfor,Alloc.DefU(RECs)”.ThecalculationforMater-Biotechwasmadeasiftheplantdidnothaveacogenerationpowerplant,ananaerobicdigestion(AD)plant,anddidnotuseGOs.Inthiscase,itwouldhavebeenforcedtodrawelectricityfromthemains(Italianmix+import)andtheheat(forthesteamproduction)fromaboiler(weassumeitwaspoweredbynaturalgas,withanefficiencyof0.88).Finally,therewouldhavebeennoelectricitysurplussoldtotheoutside.

84 8584 8584 8584 85


84 85

Wastewater and waste

Standards,assumptionsandmethodsusedforthecalculationWastewatervolumes:measuredbymeters.Characterizationofthewastewater:chemicaltesting.FortheTerniplant,thewateremissionswerecalculatedwithchemicaltestingcarriedoutbyexternallaboratories.Morespecifically,fortheemissionsofuntreatedrefluentsandofblackwater,theannualemissionswerecalculatedasthemeanofthetwotestscarriedoutatsix-monthintervals.Forthepurifier,onlyonetestwascarriedoutduringtheyear.

Standards,assumptionsandmethodsusedforthecalculationThequantityofwastewascommunicatedbythepeopleresponsibleforthevarioussitesonthebasisofthequantitiesdisposedofduring2017,whichwereinsertedintotheEnvironmentalDeclarationForm.

*StartinginApril2017,theproductionofdangerouswastefellconsiderablyfollowingthestart-upoftherecoveryplant.

Total quantity of waste, characterizationand destination in tons

*

86 8786 8786 8786 87


86 87

Our sustainable productsAlloftheMATER-BIgradesarebiodegradableandcompostable.Thismeansthattheproductstheygointoasrawmaterialscanbesentfororganicrecycling.Asdescribedinthechapter“Valueandstabilityofthecompany”,thisallowsthecycletobecompleted,asthecompostobtainedcanreturntonature,andcontributetotheformationofotherrawmaterialsofbiologicalorigin,whichisanimportantpieceinthecirculareconomy.

By biodegradability we mean the ability of an organic substance, of vegetable or animal origin, to decompose into simpler substances under the action of bacteria and other microorganisms. In organic

waste, biodegradation allows reintegration into the natural cycle.

Compostability is the ability of an organic material, animal or vegetable, to decompose and turn into a mixture of substances,

the compost, to be used as a fertilizer and ground nutrient.

88 8988 8988 8988 89


88 89

TheuseofrenewablerawmaterialsinourproductsisoneofthequalifyingelementsofMATER-BI.Replacingafossilsourcewitharenewableonemeansreducingsignificantlytheconsumptionofresourcesandtheenvironmentalloads.TherenewablerawmaterialcontentofMATER-BIvariesdependingonthegrade,andwedocontinuousresearchtoincreasethispercentage.Thepercentageofrenewablematerialhasnoinfluenceonthebiodegradabilityorcompostability.Oftherenewablesources,weselectthosethataremostsustainable;wedonotusesoyaorpalm,andwecheckthemethodsforfarmingthoseused.Currently,theuseoffarmlandpertonneofMATER-BI(forfilmapplications)isapproximately0.03hectares,formaize,0.14hectares,fortheoilcrops,and0.01hectares,fortheproductionofadditives.

Thetotalofthematerialsusedin2017was126,917tonnes,ofwhich51,064werenon-renewable,and75,853wererenewable.Thisvalueincludesrawmaterials,materialslinkedtotheprocesses(e.g.lubricants)andthematerialsusedforpackaging.

WeobtainedISCC Plus certification,whichmakesitpossibletoverifyandtracetheoriginofthestarch.Thiscertificationguaranteesthatthecertifiedrawmaterialwasproducedwithoutexploitingvirginordeforestedland.

ThemultilabeleLabel!obtainedbyMATER-BIcertifiesitsenvironmentalperformanceaccordingtoobjectiveandtransparentparameters:thecontentofrenewablerawmaterials,theirsustainability,greenhousegasemissions,therecoverymethodandthebiodegradabilityinnature.

eLabel!

ISCC Plus

90 9190 9190 9190 91


90 91

Goals

SDG 6 Clean water and sanitation

Long-term goal

Tocontributesignificantlytosafeguardingwaterasasharedcommodityoftheterritoryandofthecommunity.

SDG 12 Responsible consumption and production

Long-term goal

Tomakeasignificantcontributiontothesustainabilityandcircularnatureoftheeconomy,bymeansofourcompostable,biodegradableandrenewableproducts.

SDG 13Climate action

Long-term goal

Tocontribute,increasinglysignificantly,tothedecarbonisationoftheeconomy,bymeansofhighlyintegratedproductionprocesses,energyefficiency,supportingrenewableenergysources,andcreatingproductsandsolutionsthatcanresolveproblemsconnectedwithwastemanagement.

SDG 7Affordable and clean energy

Long-term goal

Toreduceenergyconsumptionandpromotetheuseofrenewablesourcesforitsproduction.

9292929292 9393939393



2030 operating goal12.6 To encourage companies to adopt sustainablepracticesandincludeinformationonsustainabilityintheirannualreports.

Our specific commitmentToproduceandmakeavailableproductsthatcontributetodevelopingsustainableeconomicmodels,inlinewiththeprinciplesof the circularbioeconomy.Ourproductsusegrowingquantitiesofrenewableresources,andthankstotheirtotalbiodegradabilityandcompostability,theyhaveverypositiveeffectsonthewastecycle.

CHAPTER

6COMPLIANCEOf PRODUCT

959595

Ineverydesignphaseforourproducts,weareinspiredbyacautionaryapproachand,intheabsenceofsuitablescientificknowledge,wechoosethesolutionthatguaranteesthemorelimitedriskstohealthandtotheenvironment.Thisgoesforeverydesignphase:

•Intheevaluationofpossiblenewrawmaterialsthatweconsideronthebasisofriskclassifications,butthatwealsosubjecttolaboratorytests,forexample,onbiodegradation.•Intheevaluationofformulations,whethertheyareneworarebeingmodified,whichweanalyseinaccordancewiththeregulations(CLP,Reg.1272/2008)andwhichwesubjecttobiodegradationanddisintegrationtestsand,ifnecessary,compatibilitywithfoodcontact.

Startingwiththeconceptionofanewformulation(grade)ofMATER-BI,thefollowingactivitiesarecarriedout,andthefollowingdocumentsareproduced:

Activities and documents

Optional activities

• Assigninganunambiguousnametothenewgrade

• Production of: Product processing sheet, Technical data sheet, Safety sheet

• Industrialization of MATER-BIwhichissoldingranularformtoplastictransformers

• Transmission of information and documents about the sustainability of the products

Ourproductsaredevelopedwhilefullyrespectingtheappropriateregulationsandfollowingtheguidelinesandstandards,toachieveahighlevelofqualificationintermsofsustainability.

Products in compliance

Compostability certificates:98.8%oftheweightofcertifiedMATER-BI,withrespecttothetotalquantityofmaterialsoldwiththebrandnameMATER-BI.

EveryproductinMATER-BIfullysatisfiesItalianandEuropeannormsandlawsonconformityandissuitableformakingproductsthatcomplywiththeessentialrequisitesoftheEuropeanDirectiveonpackagingandwastefrompackaging(94/62/EC)andthatsatisfy,inparticular,theharmonizedEuropeanstandardEN13432(organicrecycling).Otherformsofrecoveryarealsopossible,forexample,energyrecovery.Onthebasisofinternationalregulations,MATER-BIisnotadangerousmaterial,andcanbeprocessedincompletesafety.

AnumberofindependentinternationalorganizationshavecertifiedthebiodegradabilityandcompostabilityofMATER-BI,inprofessionalcompostingplants,inaccordancewiththemaininternationalstandards,suchastheharmonizedstandardEN13432.

Therewerenocasesofnon-conformitytoregulationsorvoluntarycodeswithrespecttotheinformationandlabelsoftheproductsandservices,orcasesofnon-conformitytoregulationsorvoluntarycodesinthemarketingactivities,includingpublicity,promotionandsponsorship.

CertificationlogoguaranteedbyEuropean

Bioplastics

OKCOMPOSTcertificationlogosguaranteedbyTÜV

AUSTRIA

CertificationlogoguaranteedbytheItalianConsortiumofComposters,whichis

widespreadintheItalianmarket

LogoofcertificationwidespreadintheUnitedStates,guaranteedbytheBiodegradableProduct

Institute(BPI)

Certifications

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CHAPTER 6 – COMPLIANCE OF PRODUCT

OurNovamontandMater-BiopolymersitesapplyanintegratedQuality,EnvironmentandSafetymanagementsystem,andarecertifiedfortheISO9001:2015,ISO14001:2015andOHSAS18001:2017schemes.OurMater-Biotechsitewillobtainallofthecertificatesin2018.

Weareawarethatassessingthequalityofourproductsandoftheservicesconnectedwiththemisdonenotonlywithrespecttothenormsandstandards,butalsowiththejudgementofourcustomers.Toassesthis,weadoptedadetectionsystemforthreedifferentaspects:

1 - Satisfaction 2 - Complaints 3 - Costumer loyalty

novamont

iso 9001:2015 iso 9001:2015

iso 14001:2015 iso 14001:2015

ohsas 18001:2017 ohsas 18001:2017

mater-biopolymer mater-biotech

AWAITED FOR 2018

The Group’s management systems

Customer satisfaction

In2017,satisfactionwasmeasuredusingaquestionnairethatfocusedonthefollowingthemes:•Safety•Innovation•Environmentalperformance•AbilityonthepartofNovamonttobeanidealbusinesspartnerandnotjustasimplesupplier.Thequestionnairewassenttovarioussegmentsofclientele.83%ofrespondentssaidtheywereverysatisfiedorsatisfiedwithNovamont.Itwaspossibletomeasurethesatisfactionalsowithrespecttofourdifferentaspectsoftherelationshipbetweenusandourcustomers:qualityofthepre-andpost-salesservices;willingnessandcourtesyofourpersonnel,withwhomthecustomerinteracts;qualityoftheordermanagementandlogistics;qualityoftheproduct,alsointermsofinnovationandsustainability.1

1 Detectionmethod:completionbyclient.Meanresponsepercentage:24%.Withrespecttothepreviousyear,thereisconfirmationoftheaverageperformanceintheOrderManagementandLogisticssectors.Progresswasmadeinthesatisfactionwiththeproduct.Onpost-salesservices,thecausesofcriticalaspectswereidentifiedandcorrespondingactionstrategieswereproduced.

1 - Satisfaction

98 9998 9998 99


Foryears,wehaveusedaconciseindicatorthatassessestheincidenceofcomplaintsandofreportsbycustomers,calledtheComplaintsIndex(CI).In2017,theindexfellfurther,improvingthetargetswehadsetourselves.

Mostofourcustomershavearelationshipwithusthatisgovernedbyanagreementoverrespectfortheproceduralregulationsfortransformingtheproduct.Thisisinordertoguaranteethehighqualitystandardsofthefinalproduct.In2017,70%ofourproductwassoldundertheseagreements.In2017,noagreementwasrescinded,andtheoverallnumberincreasedby10%,withnewagreements.

Index of complaints and reports

2 - Complaints

3 - Costumer loyalty

SDG 12Responsible consumption and production

Long-term goal

Tomakeasignificantcontributiontothesustainabilityandcircularnatureoftheeconomy,bymeansofourcompostable,biodegradableandrenewableproducts.

Goals

100 101100 101100 101


SDG 14: Lifebelowwater

2030 Agenda operating goals14.1 By 2025, to prevent and reduce, significantly,all forms of sea pollution, particularly that caused byactivities carriedoutondry land, includingpollutionbymarinedebrisandbynutritionalsubstances.

Our specific commitmentTocontribute to reducing thephenomenonofpollutingseasandoceans,bydevelopingbiodegradableproducts.

SDG 16: Peace,justiceandstronginstitutions

2030 Agenda operating goals16.bTopromoteandapplynon-discriminatory lawsandpoliciesforsustainabledevelopment.

Our specific commitmentTo collaboratewith fair production systems that createopportunitiesforsustainabledevelopment.

CHAPTER

7REGULATION CONTEXT

103103103103103103

Broaderscenarioswereoutlinedin2017,thankstotheapprovaloftheschemeofnewdirectivesonwaste,dumping,packaging,vehiclesthatcouldnolongerbeused,batteriesandelectricwaste;thesedirectiveswereincludedinthepackageonthecirculareconomy.Confirmationofthecentralimportanceoftheapproachtothelifecycle(cradletograve),whichmakesthemostofproductslikeMATER-BIthathavevaluewhenusedasrenewablerawmaterials(cradle),andattheirendoflifethroughorganicrecycling(grave).

Thespreadofproductsinbiodegradableandcompostableplasticisinfluencedbytheregulationcontext,insofarasthesecharacteristicsmayberequiredinspecificcontexts.Forexample,ItalianLawNo.296,of27December2006,requirestheexclusiveuseofbiodegradableandcompostableshoppingbags.Since1January2018,asimilarrequirementwillbemadeofbagsforfoods,followingtheapproval,in2017,oftheItalianLawNo.123(3August2017).Theseincludelightbagsforfruitandvegetablessoldloose,meat,fish,andovenanddelicatessenproducts.AllwillhavetorespecttheEuropeanstandardUNIEN13432,andwillhavetobecertifiedbyathird-party.Theconsumerwillhavetobeinformedthatthesebagswillbesuppliedonpayment,andinformedabouttheircharacteristics.

The regulation context

International

NationalIntheirprospectiveanalysiswhenassessingrisksandopportunities,Novamontalsoconsiderthescenariosthatmighthaveinfluenceinyearstocome.In2017,thetopicof“littering”becameparticularlyimportant,asitmighthavelegislativeconsequencesinthefuture,onthecontrolandaccidentalreleaseofplasticsintotheenvironment.

Littering is the accidental release into the environment ofplastic, which accumulates, particularly in the seas

and in water environments

The international trend

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CHAPTER 7 – Regulation context

104 105

SDG 14Life below water

Long-term goal

Tomakeasignificantcontributiontoresolvingtheproblemsofpollutingtheseasandoceans,bydevelopingproductswithbiodegradabilitycharacteristics.

SDG 16Peace, justice and strong institutions

Long-term goal

Tocommunicate,toourstakeholders,ourvisionandourcommitmenttoacircularsocietyandtosustainabledevelopment.

Goals

www.bbc.com/news/science-environment-42264788

Thegreatestharmcomesfromfragmentationintomicroplasticpieces,whichareingestedbythemicrofauna;thisphenomenonmayleadtotheaccumulationofpollutingsubstancespresentinthewasteaboveallintheorganismsthatarefoundatthetopofthefoodchain(bio-magnification).Biodegradableplasticsreducethesizeofthisimpact,insofarastheydecayinshortertimesandthereforereducetheaverageconcentrationofplasticsintheenvironment.Usingbiodegradableplasticsis,therefore,particularlyadvisablewherereleaseintotheenvironmentisverylikelyorinevitable,suchasfish-breeding,musselfarmingandfarmingpractices.Alsoinouropinion,correctmanagementofwaste,itscollectionandcontrolledmanagement,isthebestoptiontopursue.Alsoforbiodegradablematerials,itisnecessarytoestablishalloftheactionsandresourcestocollectitandsenditforcorrectrecovery.

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CHAPTER 7 – Regulation context

SDG 17: Partnershipsforthegoals

2030 Agenda operating goals17.16TointensifytheglobalpartnershipforSustainableDevelopment, assisted by multilateral collaborationsthat develop and share knowledge, skills, and technicaland financial resources to achieve the SustainableDevelopmentGoalsinallcountries,particularlyemergingcountries.17.17Toencourageandpromoteeffectivepartnershipsin the public sector, between public and private in civilsociety,basedontheexperienceofpartnershipsandontheirabilitytofindresources.

Our specific commitmentTo promote the creation of integrated knowledgenetworks,bycreatingextendedpartnershipstoachieveasharingofsustainabledevelopmentgoals.

CHAPTER

8PARTNERSHIPS AND COLLABORATIONS

109109109

Webelieveinnetworkingandinpartnershipsbasedonsharingcommonprojects,because,inouropinion,networkinghelps,inpractice,topursueandimplementtheprinciplesofsustainabledevelopment.

WithBiochemtexandVersalis,wedevelopedClusterSpring,anon-profitassociationthatgivesaglimpseofthedevelopmentofthebioeconomysector.ClusterSpringimmediatelybecameoneoftheinterlocutorsthatcontributedtodrawinguptheItalianStrategyfortheBioeconomy,whichwaspromotedbytheCabinetOfficeandlaunchedinApril2017.TheaimofthestrategyistonetworkthemainsectorsoftheBioeconomy,tosharenewknowledge,technologiesandservicesandtocreatelonger,moresustainablevaluechainsthataremoredeeplyrootedintheterritories.

Projects and collaborations

The Italian Strategy for the Bioeconomy

In2017,ourstrategicpartnershipwithColdiretti,forthegrowthofinnovativeagro-industrialproductionchains,continued.Inparticular,supportwasgiventothenationalColdirettiinitiative“IlVillaggiodegliAgricoltori”(“TheVillageofFarmers”),whichseekstopublicizethebeautyoftheItaliancountrysideanditsextraordinarybiodiversity.TablewaremadeofMATER-BIwasprovidedfortheinitiative.

Wesignedthe“Manifestoforthecirculareconomy”withanothereightinternationallyleadingcompaniesMadeinItaly,thataregreatlyinvolvedinthethemeofthecirculareconomy:

ThesecompaniesundertaketostrengthentheircollaborationsandtoinvolvealloftheItalianindustrialproductionchains.

Enel

Bulgari

Intesa Sanpaolo FaterCosta Crociere

Eataly Gruppo Salvatore Ferragamo

The partnership with Coldiretti

Manifesto for the circular economy

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CHAPTER 8 – PARTNERSHIPS AND COLLABORATIONS

Theinternationalattentionthatourcompanyhasreceivedled,in2017,toaboutthirtyrepresentativesofDutchbusinessesandassociationsinthefarmingandfoodhorticulturesectortovisitus,atourNovarasite,tolearnaboutourmodelforthebioeconomy,intendedasterritorialregeneration.RepresentativesoftheCanadianbioindustrieswereinsteadwelcomedtotheresearchcentreinPianadiMonteVerna.

As“Championsofthecirculareconomy”,wearepartnerswiththe“TrenoVerde”(“GreenTrain”),thecampaignbytheenvironmentalorganizationLegambienteandbytheItalianStateRailways.Onit,wehavetravelledaroundItaly,talkingaboutourbestpractices.Thebestpracticescreateinnovativeproductionchainsforbioplasticsandbiochemicals,bringingeconomic,socialandenvironmentaladvantages.Mater-BiotechwasawardedduringthestopinVicenza,asanexampleofItaliaexcellencethathasputitsmoneyonanewmodelforeconomicdevelopment.

The “Treno Verde”

International attention

Assobioplastiche www.assobioplastiche.org

ClubDonegani www.cluddonegani.it

ConsorzioIBIS www.poloibis.it

FondazioneMarisaBellisario www.fondazionebellisario.org

FondazioneSodalitas www.sodalitas.it

FondazioneSviluppoSostenibile www.fondazionesvilupposostenibile.org

IstitutoItalianoImballaggio www.istitutoimballaggio.it

ItaliaDecide www.italiadecide.it

KyotoClub www.kyotoclub.it

ReteItalianaLCA www.reteitalianalca.it

SocietàdiOrtofrutticolturaItaliana www.soihs.it

Symbola www.symbola.net

UnindustriaFrosinone www.un-industria.it/menu/le-sedi/frosinone/

P.U.M.A.S.PoloUmbroMaterialiSpecialiemicro-nanotecnologie www.poloinnovazionepumas.net

Osservatoriosullacriminalitànell’agricolturaesulsistemaagroalimentare www.osservatorioagromafie.it

Associazioneperl’unificazionenelsettoredell’industriachimicaentefederatoall’Uni www.unichim.it

Assobiotech www.assobiotech.federchimica.it

ChimicaVerdeBionet www.chimicaverde.it

ClubofRome www.clubofrome.org

Federchimica www.federchimica.it

AssociazioneAcomeAmbiente www.acomeambiente.org

ConfindustriaTerni www.confindustria.umbria.it

ClusterTecnologicoNazionaledellachimicaVerde-SPRING www.clusterspring.it

Consorziointeraziendaleperlaformazioneprofessionale www.ain.novara.it

AssociazioneIndustrialeNovara www.ain.novara.it

ConsorzioItalianoCompostatori www.compost.it

ConsiglioNazionaledellaGreenEconomy www.statigenerali.org

The national associations we are members of

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CHAPTER 8 – PARTNERSHIPS AND COLLABORATIONS

ABA-AustraliasianBioplasticAssociation www.bioplastic.org.au

EPNOE–EuropeanPolysaccharideNetworkofExcellence www.epnoe.eu

GMI–GreenManagementInstitute www.greenmanagement.org

PlasticsEurope www.plasticseurope.org

PPIBiobased www.bbi-europe.eu

REA–RenwableEnergyAssociation www.r-e-a.net

TPOrganics www.tporganics.eu

VerbandeskommunalerUnternehmen www.vku.de

VerbundkompostierbareProduktee.V. www.deverbund.com

CRE–Composting&AnaerobicDigestionAssociationofIreland www.cre.ie

BBIA–Bio-basedandbiodegradableindustriesassociation www.bbia.org.uk

EuropaBio www.europabio.org

FPA–Foodservicepackagingassociation www.foodservicepackaging.org.uk

Nordicbioplasticsassociation www.nordicbioplastic.com

BelgianBiopackaging www.belgianbiopackaging.be

EuropeanCompostNetwork www.compostnetwork.info

GKLe.V www.gkl-online.de

HeRoe.V www.heronetzwerk.de/startseite/

C.A.R.M.E.N.e.V www.carmen-ev.de

EuropeanPlasticsConverters www.plasticsconverters.eu

HollandBioplastics www.hollandbioplastics.nl

The international associations we are members of

SDG 17Partnerships for the goals

Long-term goal

Tocreateincreasinglyintegratednetworks,involvingthewholeproductionchain,companyandcommunitiesinwhichtheyarelocated,toshareknowledgeandtopromotethecirculareconomy.

GoalsCHAPTER 8 – PARTNERSHIPS AND COLLABORATIONS

114 115114 115114 115

SDG 16: Peace,justiceandstronginstitutions

2030 Agenda operating goals16.6 To develop effective, responsible and transparentinstitutionsatalllevels.16.7To ensure there is a responsible decision process,that is open to everyone, that is participative andrepresentativeatalllevels.

Our specific commitmentTouseeffective,transparentandinclusivecommunicationforallstakeholders.

CHAPTER

9TRANSPARENCY

AND COMMUNICATION

117117117

Ourcommitmenttoabroadandtransparentcommunicationisdocumentedbythemultitudeofinstrumentsused.Inouropinion,everystakeholderdeservesattention,andthemosteffectiveformofcommunicationmustbeusedforhim.

Inouropinion,theSustainabilityReport,whichwehavepublishedregularlysince2008,isthemaincommunicationinstrumentintheareaofCorporateSocialResponsibility(CSR).

Alsoforus,networkingovertheInternetisbecomingapriorityinstrument.Essentialinformationaboutourcompaniesandourproductscanbefoundonthewebsitewww.novamont.comandonthespecificnationalwebsitesthatwehaveopened:

Detailedinformationaboutourproductscanalsobefoundonthewebsites:

uk.novamont.com

france.novamont.com

www.materbi.com

germany.novamont.com

northamerica.novamont.com

agro.novamont.com

Sharing the workload

The Sustainability Report

The web and social networks

Ontheprinciplesocialnetworks,wedailydialoguewithourcommunity:

Theyoungeronescanlearnabouttheworldofsustainabilityandofbioplastics,whichistalkedaboutintheproject“DiscoveringMATER-BI”,onthewebsite:www.allascopertadelmaterbi.it,theYouTubepage:www.youtube.com/channel/UCy0tvggAjBaq31-IRTEsx8g andthesocialnetworks, Facebook: www.facebook.com/scoprimaterbi andTwitter: twitter.com/scoprimaterbi

Occasionally,wethinkitisappropriatetoexpresswhatwethinkalsoinpublicationsthatcanbecomeareferenceforabroaddiscussionatbothanationalandaninternationallevel.In2017,we:

•published “Acircularapproachtothebioeconomy:anopportunitytodecarbonizetheeconomyandreconnectwithsociety”.

• contributed to the publicationofthesecondreport“TheNewPlasticsEconomy”bytheEllenMacArthurFoundation.

facebook.com/novamont

twitter.com/Novamont

linkedin.com/company/novamont/?originalSubdomain=it

instagram.com/novamont_group

youtube.com/user/NOVAMONTCHANNEL/featured

facebook.com/materbi

twitter.com/materbi

Our publications

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CHAPTER 9 – TRANSPARENCY AND COMMUNICATION

Participatingdirectlyineventsandpersonalmeetingswithallofourinterlocutorsisnecessaryforus,inordertogiverobustnessandcredibilitytoourcommunications.Themaineventsin2017were:

BBI JU Stakeholder Forum (Brussels,6-7December2017)forthepresentationofFirst2Run.TheEuropeanUnionconsidersthis

asignatureprojectandentrusteduswithcoordinatingit.Itsgoalwastodemonstratethetechnical,economicandenvironmentalsustainabilityofabiorefinery.

Financial Times Circular Economy Summit (London,25May2017)Duringthisevent,wepresentedourmodelofthebioeconomy,demonstratingthatthisrepresentsanopportunitytodecarbonizetheeconomyandreconnectitwithsociety.

G7 Environment(Bologna,10-11June2017)

• Aconvention“TheInternationalCoalitionStopPlasticWaste-Abioeconomyculturalrevolutiontosavetheoceans”organizedtotakestockofpoliciestoreducetheseapollutioncausedbyplasticwaste,andoftheactivitiesofthe“Stop Plastic Waste Coalition”

• Ameeting“FirmsforSustainableDevelopment” inwhichtheChiefExecutiveOfficer,CatiaBastioli,discussedhowtoencouragethetransitiontowardsanewmodelofsustainabledevelopment,withhercolleaguesfromimportantcompaniesintheG7countries.

Bioeconomy Investment Summit(Helsinki,14-15December2017)inwhichwecontributedinthediscussiononhowtobringthebioeconomyoutfromitsnichepositiontobecomeawidespreadpractice,alsowithagreaterroleofpublicinvestments.

Events

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CHAPTER 9 – TRANSPARENCY AND COMMUNICATION

Wecontributetoplanningeventswithsustainablecriteria,providingourproductsforthem.Thisisalsoawayinwhichwecanspreadourideasandcontributetospreadingthesustainabilityculture.In2017,wewerepresentinthiswayatEcomondo(Rimini,7-10November2017),Fa’ la cosa giusta!(Milan,10-12March2017)andNovara Jazz(Novara,22May–11June2017).

Event partners around the country

SDG 16Peace, justice and strong institutions

Long-term goal

Tocommunicateinordertoshareourvisionandourcommitmenttoacircularsocietyandsustainabledevelopment,withourstakeholders.

GoalsCHAPTER 9 – TRANSPARENCY AND COMMUNICATION

122 123122 123122 123

SDG 4: QualityEducation

2030 Agenda operating goal4.7 By 2030, to guarantee that all pupils acquire thenecessary knowledge and skills to promote sustainabledevelopment,alsothrougheducationaimedatsustainabledevelopmentandasustainablelifestyle,athumanrights,atgenderequality, atpromotingapeaceful,non-violentculture, at a global citizenry and atmaking themost ofcultural differences and the contribution of culture tosustainabledevelopment.

Our specific commitmentTo encourage the development of an ethical andenvironmental conscience, by transmitting knowledgeaboutthecorrectmanagementofproducts,resourcesandwaste,tothewholecommunity.

CHAPTER

10PROMOTING

SUSTAINABILITY

125125125

Wewillbeabletobuildamoresustainableworldonlywheneveryonehastheknowledgeandawarenessofhisownresponsibility.Thisiswhywetrytoaccompanythegrowthoffuturegenerationswithactivitiesthatteachaboutthetopicsofsustainabilityateveryage.Forthelittleones,wehavedevelopedakaleidoscopeofinstrumentscalled“DiscoveringMATER-BI”.ThecharacterleadingthediscoveryisBiadeCompostabilis,ourmascotillustratedbyPaoloMotturaofWaltDisney.In2017,thethirdepisodeintheseries“TheadventuresofBiadeCompostabilis”,“Gamesofequilibrium”,waspublished,onpaperandontheWeb.Theprojectalsoincludesdedicatedworkshops,teachingmaterialsonscientifictopics,publicationsongoodenvironmentalpracticesandscientificresearchontheproductionofbiodegradableandcompostablebioplastics,likeMATER-BI.BiadeCompostabiliswasalsothemaincharacterinatravellingexhibition“B Come Natura”,(“BLikeNature”),promotedincollaborationwithUnicoopFirenze.Thepathsofthisgamerunalongthesupermarketaisles,andhaveinvolvedadultsandchildrenintopicsofsustainabilityoftheenvironmentandofbioplastics.In2017,wesupportedthecooperativeComunitàEducativaGiovanile(YouthEducationCommunity)insettinguptheproject“CURA&GERMOGLIA”(CARE&GERMINATE),whichinvolved461primaryschoolchildren.ThechildrenweremadetoplantseedsofbasilinlittleMATER-BIcups,toexperiencetheimportanceofresponsibilityandrespectfortheenvironment.

Building a sustainable world

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Foryounggraduates,wethoughtofhigh-levelpost-graduatetraining,withthefirstMaster’sin“Bioeconomyinthecirculareconomy”,Biocirce.WepartneredupwithIntesaSanpaolo,GFBiochemicals,PTPScienceParkinLodiandfourItalianuniversities(Milan-Bicocca,Turin,BolognaandNaples-FedericoII).TheMaster’sreceivessupportalsofromClusterSpringandAssobiotech,togetherwithothersubjectsinvolvedinthebioeconomy.ThosewhocompletetheMaster’sbecomeprofessionalsspecializedinthesectorofthecircularbioeconomyandintheresponsibleandsustainableuseofrenewableresourcesandofbiotechnologicalprocesses.Furthermore,wehavealwaysprovidedtrainingactivitiesforyourresearchersandexpertsformultidisciplinaryprojects,incollaborationwithuniversitiesandresearchcentresofexcellence,inItalyandabroad.

SDG 4Quality Education

Long-term goal

Togenerateandspreadknowledgethatwillallowamoresustainablefutureforthegenerationstocome.

Goals

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CHAPTER 10 – PROMOTING SUSTAINABILITY

SDG 2: Zerohunger

2030 Agenda operating goal2.4By2030, to guarantee sustainable foodproductionsystems and implement resilient farming practicesthat increase productivity and production, that help toprotectecosystems,that increasetheabilitytoadapttoclimatechange,toextremeweatherconditions,droughtandfloodingandotherdisasters,and thatprogressivelyimprovethequalityofthesoil.

Our specific commitmentTo contribute to the development and spread ofsustainableagriculture,bydevelopingproductsthatmakethemostofrawmaterialsofvegetableorigin,grownusingthebestpracticesandcarefuluseofthesoil.

SDG 11: Sustainablecitiesandcommunities

2030 Agenda operating goal11.6 By 2030, to reduce the negative environmentalimpact,percapita,ofcities,bypayingparticularattentiontoairqualityandtomanagingurbanandotherwaste.

Our specific commitmentTomaximizetheefficiencyofwastemanagementinurbanandmetropolitanareas,byencouragingrecycling.

CHAPTER

11SAFEGUARDING

AND MAKING THE MOSTOF THE TERRITORY

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Thelifecycleofourproductsiscloselylinkedtotheterritory.Fromtherawmaterialsofbiologicalorigin,allthewaytotheendoflife,whichiscloselylinkedtotheorganicrecyclingofwaste,ourproductsinteractcloselywiththebiologicalprocessesandecologyoftheterritories.Atthesametime,wetrytowelcomeandmakethemostoftheterritoriesthatwelcomeourcompanies,alsofromasocialandeconomicpointofview.

The territory and us

Wewanttokeepbeginandrenewthedialoguewithallmembersofourlocalcommunities.In2017,wecontinuedtheinitiativeoftheOpenDaysatallofoursites.

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CHAPTER 11 - SAFEGUARDING AND MAKING THE MOST OF THE TERRITORY

Allofthevisitorsweregiventheopportunitytolearnaboutourinnovativeproductionactivities,andtheyoungervisitorstookpartinworkshopsoncreativeexperimentswiththeproductsofthebioeconomy.TheinitiativewasparticularlysignificantforMater-Biotech,wherethelocalcommunityinAdriahadmadeanumberofcomplaintsabouttheemissionofnoiseandofsmells.Thepeoplewerealsoabletolearnaboutourplanstoreducethese.

InNovara,wewerepartnersinthethirdTedxNovara.Usinganewconferenceformat(inspiredbytheUSTED,TechnologyEntertainmentDesign:livepresentations,performancesandvideoprojections),wemadeourcontributiontoinformingtheaudienceaboutourmodelofenvironmentalandsocialsustainability,andofregeneratingterritories,withtheconvictionthatthewholecommunityshouldbeurgedtogrowculturallyinthisrespect.

SDG 2 Zero hunger

Long-term goal

Todevelopproductsusingrawmaterialsofvegetableorigin,fromsustainableagriculture,grownusingthebestfarmingpracticesandacorrectuseofthesoil.

SDG 11Sustainable cities and communities

Long-term goal

Toimprovewastemanagementinurbanandmetropolitanareas,bysettingupinnovativeandinclusiveprojectstosatisfytheneedsoftheterritory.Toincreasinglystrengthenourpartnershipswithallpartiesinvolvedinthewastemanagementchain.

GoalsCHAPTER 11 – SAFEGUARDING AND MAKING THE MOST OF THE TERRITORY

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136

ACOMMONCOMMITMENTTOTHE2030AGENDA

137

2018novamont group

goals

●PlanningandcarryingoutofchemicaltestsonthecontentsofSOM(SoilOrganicMatter)intheexperimentationsoiloncardoon.Processingoftheresultsofthetestsandcollectionofinformation,intermsofyieldperhectare,yearofcrop,etc.,necessarytoreconstructthefarmingprotocolintheSOMmodel.

●Reducinginjuries.

●MaintainingperformanceintermsofoccupationaldiseasesintheGroup’sfacilitiesandsites(0incidence).

●Avoluntaryfluvaccinationcampaign(1ststageinNovara).

●Improvingthepsychophysicalstateofhealthofworkers:implementationofthesafetymanagementsystemOHSAS18001ontheMater-BiotechproductionsiteinBottrighe.

●Upgradeofthe“site&cropspecific”modelforsimulatingthevariationoftheSoilOrganicMatter(SOM),tosupportthecarbonfootprinttestoftheexperimentaloilysubstances.Theresultsofthemodelwillbecomparedwiththedatagatheredfromthefield,totestitsreliabilityandimproveit.

●Achieved:thetestsonsoilswerecarriedout.

●Achieved:Novamont’sInjuryRatehasimprovedwithrespecttolastyear.

●Toreduceinjuriesfurther.

●TomaintainperformanceintermsofoccupationaldiseasesattheGroup’sfacilitiesandsites(0incidence).

●Achieved:occupationaldiseasesconfirmedatzero.

●Achieved:Voluntaryflu-vaccinationcampaigncarriedout.

● 50%: at the Mater-Biotech site, theIntegrated Management System (IMS)was implemented, but it has to becheckedbyanindependent,third-partyorganization.

●40%:themodeliscurrentlyundergoingassessment.Oncethecheckshavebeendone,itwillbeimprovedwiththeexperimentaldata.

●FinalizationoftheupgradeofthemodelanditsapplicationintheprojectFirst2Run(http://www.first2run.eu/).

●TocertifyMater-Biotech’sIntegratedManagementSystem.

Sdgs target in 2017 target in 2018ACHIEVEMENT STATUS

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2018 NOVAMONT GROUP GOALS

●ExtensionofScuola@Novamont(theeducationprojectthatseekstoteachstudentsaboutthetopicsofthebioeconomyandproductsfromrenewablesources,welcomingclassesfromdifferentordersandgradestotheproductionsitesandresearchcentresoftheNovamontGroup)toMater-Biotech.

●Startofthe“School-WorkAlternation”(SWA)project,atoolwithwhichwetrytobringtheworldofschoolclosertothatofwork,bygettingstudentstohavevariousexperiences,includingdirect,“onthejob”experienceofafewweeks,fortheinclusionof4studentsfromschoolsintheprovinceofNovara.

● Start of the first university, level II Master’s,“Bioeconomyinthecirculareconomy”(BIOCIRCE),incollaborationwith4universitiesandotherprivateItaliansubjects.

●GettingtheScuola@Novamontprojectoperatingfully,withalloftheGroup’ssitesinvolved.

●Achieved:on30March,anopendaywasorganized thatwasdedicated to schoolsintheterritory.164studentstookpart.

●Achieved:duringtheyear,studentswereincludedinthe“school-workalternation”project.

●Achieved.TheprojectScuola@NovamontwasactivatedandsharedwiththeGroup’ssites.Theopendayswereorganizedonthebasisoftherequestsfromtheterritory.

●Achieved.

●ActivationofthethirdyearofScuola@Novamont. Classes of various ordersand grades will be welcomed to theproduction sites and research centresof the Novamont Group, such as theadministration centre in Novara, theproductionplantsinTerniandtheMater-Biotechfacility.

●Startofthesecond,levelIIuniversityMaster’s,“Bioeconomyinthecirculareconomy”(BIOCIRCE).

●ContinuationoftheSWAproject,andextensiontoalloftheGroup’ssites.

●Creationofthekit“Vivichem:Thebiorefineryinabox”,toillustrateinschoolswhichrenewablerawmaterialsandprocessesleadtotheproductionofbioproductsandbiopolymersinaBiorefinery.


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●BoostingcommunicationfortheprojectFirst2Runasthefirstflagshipofthebio-basedPPP,withappropriateeventsandspecificactivities,alsoincollaborationwiththeEUCommissionandwithBBIJU.

●Startofaprojectaimedatcoordinators,specialistsandyoungpeoplewith ahighpotential, basedonthe “Development Centre” method; this approachalternates training sessionswith skills assessment,enabling everyone to understand their trainingneeds and to be aware of the development plansandmodelsthatcanhelptosatisfythem.Weexpectto involve about 100 employees in the trainingproject, in8/12trainingsessionsovera36-monthperiod(2016-2019).

●Organizinganopen-doordayattheMater-biotechfacility,topublicizetheresultsoftheprojectUEBIO-QED.

●Achieved: the “Development Centre”projectwascontinuedwiththreesessionsaimed at people in charge, specialistsand young people. From its beginning(2016), this project has involved about70collaborators.

●Achieved:thecommunicationactivitieswereenhancedwiththedistributionofleaflets.

●Achieved:inSeptember2017,therewastheopendayattheMater-Biotechfactory,organizedaspartoftheprojectBIO-QED.

●TocontinuewithcommunicationabouttheprojectFirst2Runasthefirstflagshipof the bio-based PPP, with appropriateevents and specific activities, also incollaboration with the EU Commissionand with BBI JU and other strategicprojects.

●Tocreateeducationvideos,focusingontheseparatecollectionoforganicwaste.

●Tocreateeducationandpromotionalvideostoadvertiseproducts,withafocusonthefarmingworld,inseverallanguages,foragreater,internationalspread.

●Tocontinuethe“DevelopmentCentre”program,alsoin2018.

●Todevelopneweducationproposals,suchasinteractiveandmultimediaexhibits,comicstrips,animation,creativeworkshopsandspreadingscientificknowledge,withourmascotBiaDeCompostabilis.


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●Installationofasystemforrecoveringwaterfromthecuttingsystem,toachieveadditionalreductionsin water consumption at Novamont’s productionplantinTerni.

●Toplan,togetherwiththeactivitiesalreadyimplementedin2016and2017,anothertwo5-day,projectmanagementcourses(theoreticalconceptsoftheproject,plusexercisesonactualcompanycasesofthePMPmethod)

●Installationofacuttingwaterrecoverysystem,tofurtherreducewaterconsumptionintheNovamontTerniproductionplant.

●Toinvolveatleasttwentycollaborators,offeringthemlanguagecourses,atvariouslevels,whicharegiven,traditionally,onanonlineplatform.Theseareindividualcourses,andhavetheadvantageofbeingflexibleintermsoftimeandduration.

●Toprovideatechnical,engineeringcourse:atrainingcourseoffivesessions,forengineersintheNovamontGroupandanyoneinvolvedinresearchprojects,technologiesandprocesses.

●ToprovideinternalcoursesforabouteightycollaboratorsattheNovarasite,ontheuseoftheOfficepackage.

● 50%: the feasibility analysis wasconcluded. In 2018, installation isplanned of new cuttingwater filtrationequipment on Line 5, to improve theeffectiveness of the cutting waterpurification.Thiswillmakeitpossibletoreducewater consumption by reducingthemake-upwater.


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●Maintenanceofthesupplyof“GOs”-certifiedrenewableelectricityforthesitesinNovara,Terni,PianadiMonteVerna,andextensiontotheMater-BiopolymerandMater-Biotechsites.

●Toobtain“Zeroemissionselectricity”certification,demonstratingthecorrectmanagementofthe“GOs”foralloftheNovamontsitesmentionedabove.

●Feasibilityanalysisofthechangeovertoasustainablehostingprovider.

●ReducingO2tothechimneyoftherecoverycombustor,witheffectsofoptimizingtherecoverycapacities.

●Optimizingandimprovingthethermoregulationcyclesoftheprocessdevices.

●Strengtheningoftheinsulationofthepipingandoftheequipmentforhigh,orveryhightemperatureprocessliquidsandtechnicalliquids(energyvectorssuchassteamanddiathermicoil).

●Achieved:alloftheGroup’ssitesuseGOs-certified,renewableelectricity.

●Achieved:the“Zeroemissionelectricity”certificationwasobtainedforallcompaniesintheNovamontGroup.

●Theprojectwaslinkedtounifyingmanagementofweb,institutional,social,andproductinformation,whichwasnotactivatedduringlastyear.

●20%:theassessmentofthefutureproductionstructurehasnotbeencompleted.

●50%:optimizationwasimplementedonpolymerizationline1andwillbeextendedtotheotherproductionlines.

●50%:theactivitiesofinsulatingthepipingwerepartiallyimplemented.

● Use of GOs-certified, renewableelectricityforalloftheGroup’scompaniesandsites,alsofor2018,fromwindand/orhydroelectricplants.

●Implementationofasystemforupgradingbiogastobio-methaneintheMater-Biotechproductionplant.

●Obtaining“Zeroemissionelectricity”certificationalsofor2018.

●Continuationofincreasingtheinsulationofthepipingandofthedevicesforhighorveryhightemperatureprocessandtechnicalliquids.

●ContinuationofthearrangementstudyforreducingO2tothechimneyoftherecoverycombustor.

●Extensionoftheoptimizationandimprovementofthethermoregulationcyclesoftheprocessdevicestootherproductionlines.

●FullrunningofthenewsteamgeneratorattheMater-Biopolymerplant,withanenergyefficiencyof92-93%.


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●Start-upoftheplantfortherecoveryandvalorisationofasub-productoftheMater-Biopolymerprocess,andincreaseintheproductioncapacityofOrigo-Bi(thebiodegradable,compostablepolyesterproducedbyNovamont).TheMater-Biopolymersitewillbereportedonstartingin2018

●Continuouscommitmentinround-tablediscussionsonthesectorofthebioeconomyandofdecarbonization,toensurethattheEuropeanandnationalstrategiesareappliedinactualresearchanddevelopmentprojectsandprojectstorelaunchtheterritories.

●Adoption,onthepartoftheItalianauthorities,ofanationalstrategyforthebioeconomy,developedalsothankstothecontributionoftheGreenChemistryCluster.

●Achieved:therecoveryplantwasinstalled,andtheOrigo-Biproductionlinewillstartoperatingin2018(80%).

●Achieved:NovamontwasconfirmedontheboardofadministrationofSPRING.

●Achieved:thenationalstrategyonthebioeconomywasofficiallypresentedinApril2017.

●Start-upoftheOrigo-Biplant.

●Toparticipateactivelyinround-tablediscussionsonthebioeconomyandondecarbonization,toensurethattheEuropeanandItalianstrategiesareappliedinactualresearchanddevelopmentprojectsandprojectstorelaunchtheterritories.

●FinalizingandlaunchoftheMATER-BIgradeformakingcompletelybiodegradableandcompostablefreezerbags.The“GeloCuki”lineisbeingdevelopedbyCuki,inexclusivepartnershipwithNovamont.


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●PresentationtotheSODALITASSOCIALAWARDoftheLifeCycleAssessmentcarriedoutforthetrialcollectionoforganicwasteinMilanmarkets,promotedbytheAziendaMilaneseperIServiziAmbientali(AMSA–MilaneseEnvironmentalServicesCompany)andNovamont,in2016.

●Useofbio-BDO(bio-butanediol)producedbyMater-Biotech,inallMATER-BIgrades,reachingaminimumrenewablecontentpercentageof40%.

●Start-upoftheplantfortheindustrialproductionofTHF,alsofromrenewablesources.

●Integrationoftheenvironmentmanagementsystem,inaccordancewithISO14001,attheMater-BiotechsiteinBottrighe,nearAdria,andtransitiontothenew2015versionsattheMater-BiopolymerSite,inPatrica,nearFrosinone.

●Achieved:theprojectwaspresented.AMSAandNovamontwonthe2017SodalitasSocialAward,inthecategory“Sustainableconsumptionandlifestyles”.

●AchievedforMater-Biopolymer,and80%forMater-Biotech.Thecertificationwillbeobtainedbythemiddleof2018.

●50%:theprocessofreplacingfossilBDOwithbio-BDObegan,involvingthemostimportantgradesforfilms.Theprocessofreplacingwillcontinueinto2018.

●Achieved:theplantisactive.

●Settingupofa“Novamont”Award,aspartoftheCRESCOAwardinitiativepromotedbySODALITAS.

●PromotionoftheCompostGoalinitiative,aprogrammeformeasuringperformance,toawardvirtuousbehaviourinthecollectionoforganicwaste,in3regions:Apulia,BasilicataandCampania.

●ISO14001:2006environmentmanagementcertificationobtainedfortheMater-Biotechsite.

●ReductionofthequantityofwastesludgefromtheMater-Biotechproductionprocess(anaerobicdigestionplant)andexploitationofit.

●Useofbio-BDOproducedbyMater-BiotechinadditionalgradesofMATER-BI,reachingaminimumrenewablecontentof40%.

●ParticipationintheResponsibleCare2018award.


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●Participationinimportantevents:LaunchoftheItalianBioeconomyStrategy,G7Environment,FinancialTimesCircularEconomySummit(London),Ecomondo.

●Implementationofanintegrateddashboardforsimultaneous,real-timemonitoringofconsumptionsattheTerniproductionfacility.

●Upgradeoftheenvironmentaldatabase,withresponsiblecare,datasupportingtheO-LCA.

●ExtensionofthereportingscopeoftheSustainabilityReport,toincludetheMater-BiopolymerandMater-BiotechsitesoftheNovamontGroup.

●ImplementationoftheO-LCAmethodtosupportthecompanystrategyforenvironmentalsustainability.

●Toimprovethescoreforsustainablepractices,determinedusingtheEcoVadismethod.

●FeasibilitystudyofO-LCAappliedtothegreenhousegasbalanceofthewholebusinessoftheNovamontGroup.

●Achieved:allofthescheduledeventswerecarriedout,withaverypositivereturn.

●30%implemented(thiswillcontinuein2018).

●Achieved:thedatabasewasextendedandimproved.

●Achieved:the2017ReportisthefirstreportfortheNovamontGroup.

●80%:theO-LCAhasbegun.Thefirstresultswillbeavailablein2018.

●80%:allofthedocumentationrelatingtoupdatingtheassessmenthasbeenprepared.

●Achieved:thefeasibilitystudywasconcludedwithapositiveresult.InMay2018,thepreliminaryCFdatafortheNovamontGroupwillbeavailable.

●Participationinimportantevents:annualConventionoftheKyotoClub,WorldBioMarkets2018,Greenweek–GreenEconomyFestival,CNI-UNESCONationalCommitteeforEducationonSustainability,InnovativeBio-basedProducts:Investment,EnvironmentalImpactsandFuturePerspectives,InternationalConsortiumonAppliedBioeconomyResearch(ICABR)AnnualConference,BIOWorldCongressonIndustrialTechnology,Ecomondo.

●Completionoftheimplementation.

●Upgradeofthe“environmentaldata”database(e.g.inclusionofadditionaltrends/newdata)andimplementationofaninternalmonitoringsystemthatinformstherespectivedepartmentsofanyincreasesinconsumptionorinspecificemissions.

●MaintainingtheSustainabilityReportfortheNovamontGroup,alsoin2018.

●ConclusionoftheO-LCAandinternalsharingoftheresults.ImprovementofthepreliminaryO-LCAmodelfortheNovamontGroup.

●ToachieveahigherscoreintheEcovadisassessmentthanthepreviousone(72/100).


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●Purchaseofa“carbonneutral”monomer. ●100%achieved:startingfromthemonthofJuly2017,thewhomonomersupplyis“carbonneutral”.

●Commitmenttotheround-tablediscussionsonthedecarbonisationsector.

●ParticipationinandsupportofeventsandinitiativesorganizedbythevarioussubjectsthatresideintheterritoriesinwhichNovamontoperates,tocontributetoorganizingeventsthathavealowenvironmentalimpact,tospreadinggood,sustainablepractices,andtodevelopprojectsandcoursesforsocialinclusion,withimportantconsequencesfortheterritory.

●Implementationoftheinternationalprogramme“OperationCleanSweep”,zeroplasticgranulesscatteredintotheenvironment.


●Tokeepthemonomersupply“carbonneutral”,alsofor2018.

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●Continuationoftheresearchanddisseminationactivitiesmentionedinthefundedprojectsongoingin2017.

●ParticipationinItalianandEuropeanresearchprojectsaimedatcreatingknowledgeinthefieldofbioplasticsandbiochemicals.

●Extensionandenhancementofthepartnershipswiththeworldsofacademiaandresearch.

●70%:theresearchanddisseminationactivitiesarecontinuingcorrectlyandinlinewiththetimes.

●Achieved:1)ParticipationintheDACIAprojectforstudyinganddevelopinglow-impactfermentationprocessesfortheproductionoflong/medium-chaindicarboxylicacidsfromrenewablesources,foruseinthesynthesisofnewbiodegradableandcompostable,polymericmaterials;2)ParticipationintheCIRC-PACKprojectfordevelopingmaterialsandprocesseswithaviewtothecirculareconomy;3)ParticipationintheEMBRACEDproject,withthegoalofdevelopingprocessesforrecoveringandmakingthemostofthevariousfractionsobtainedfromsolidurbanwaste,withparticularreferencetotheorganicfractionofAHP;4)ParticipationintheBIOMOTIVEprojectforthedevelopmentoflow-impactmonomersandprocessesfortheproductionofbio-basedmaterials;5)PromotionofYEASTDOC,aEuropeandoctoralprogrammetotrainresearchersinthefieldofyeastbiotechnology.

● 70%: also for 2017, there are variouspartnershipactivitieswithresearchinstitutes,theworldsofacademiaandindustry,aimedatdefininganddevelopingcommonprojectsandcourses.

●Continuationoftheresearchanddisseminationactivitiesmentionedintheongoingsubsidizedprojectsfor2018,aimedatcreatingknowledgeinthefieldofbioplasticsandofproductsfromrenewablesources.●Continuationoftheactivitiesinto2018.

●StartoftheEffectiveproject,whichopensuptoanewsector,namelythetextilesector,creatingtheopportunityfornew,virtuouscollaborationsonthethemeofsustainability.● Participation in and support to eventsand initiatives organized by the varioussubjects that reside in the territories inwhichNovamont operates, to contributeto organizing events that have a lowenvironmental impact, and to spreadinggood,sustainablepracticesandtodevelopprojects and courses for social inclusion,with important consequences for theterritory.


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dmadisclosure on

management approach

ALL OF THE RELEVANCE CLASSESThematerialtopicswereidentified,applyingtheprinciplesfordefiningthecontentsofthereportandusingprocessesforstakeholderengagementandanalysisofmaterialitydescribedinthechapter“Method”.Foreachmaterialtopic,thelimitswithinwhichthepotentialandrelativeimpactscanfallwereidentified:•insidethecompany:inthiscase,theimpactsprimarilyaffecttheinternalstakeholders(e.g.employees)•outsidethecompany:inthiscase,theimpactsprimarilyaffecttheexternalstakeholders(e.g.customers,localcommunities,etc.)•insideandoutsidethecompany:inthiscase,theimpactsthereareaffectbothinternalandexternalstakeholders.

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueintegratedQuality,EnvironmentandSafetyPoliciesandkeepthemupdated.•NovamontTheQASSPolicy(whichwasupdatedon8/03/2016)coversallNovamontsitesinItaly;itreferstointernationalstandards(ISO9001,14001andOHSAS18001)andconfirmsthefollowingcommitments:-Todevelopsolutionsthatcanprovideenvironmental,socialandeconomicadvantages,andsystemadvantagesasthemainfocusoftheorganization.Theseaspectsareincorporatedintoallpartsofourbusiness,startingwiththeproductsthemselves,theproductionprocessanditsmaintenance,thesupplychain,eveninvolvingourapproachtocommunicatingandinteractingwiththecommunity.-TobeinvolvedinmanagingQuality,Environment,HealthandSafety,ensuringthatCorporateSocialResponsibility,legalconformity,environmentalawareness,greatersustainabilityandcustomersatisfactionareachieved.•Mater-BiopolymerTheQASSPolicy(whichwasupdatedon31/03/2017)coverstheMater-Biopolymersite(Patrica)andconfirms:-Awareoftheextremeimportanceofprotectingthehealthandsafetyofworkers,ofprotectingtheenvironmentandofcustomersatisfaction,Mater-Biopolymerundertakestodevelop,implement,measure,monitor,reviewandimproveitsprocessescontinually,toensuretheyconformtothestandardsISO9001,14001andOHSAS18001.•Mater-BiotechTheQASSPolicy(whichwasupdatedon2/01/2017)coverstheMater-Biotechsite(Adria)andconfirms:-inlinewiththepolicyoftheNovamontGroup,Mater-BiotechundertakesalwaystooperateinaccordancewiththemethodsrequiredbythemanagementsystemforQuality,Environment,HealthandSafetyinaccordancewiththeinternationalstandardsISO9001,14001andOHSAS18001.

ThedetailedStrategicDocument(whichwasupdatedin02/2015)containsthestrategydevelopedbytheNovamontGroup.InaccordancewiththemanagementoftheGroup’scompanies,theChiefExecutiveOfficerproducestheGroup’sCompetitionStrategyandestablishesgoalsandstrategicinitiativeactions.TheStrategyDocumentcoversalloftheGroup’ssitesanddoesnotrefertointernationalstandards.

COMMITMENTS•TheNovamontGroupexpressesitscommitmentstosustainabilitywiththeSustainabilityReport.Thisdocumentdescribesthecompany’sactivitiesfromaneconomic,environmentalandsocialpointofviewandillustratesthestrategy,commitments,managementmethods,materialtopicsandresultsobtainedoverthereportingyear.TheGroupalsoundertakestoproducetheReportinaccordancewiththeGRIStandards.TheChiefExecutiveOfficerhassummarizedthecommitmentstosustainabilityinaletteratthebeginningofthisReport.Thedocumentisavailableandcanbeconsultedonthewebsitewww.novamont.com.•AllofthecompaniesintheGroupexpresstheircommitmentbyeachoneadoptingitsowncodeofethics.Theaimofthecodesistoidentifyandspreadcommonrulesofbehaviour,toencouragekeepingamorallycorrectconductandrespectforthecurrentregulationsinrelationshipswithallsubjectsthatarepartoftheGroup,includingexternalstakeholders.

GOALS AND AIMS•Sustainabilitygoals:-Thelong-termgoalsweredevelopedinaccordancewiththeSustainableDevelopmentGoals(SDGs),toenabletheNovamontGrouptocollaborateonsustainabledevelopment.Everyyear,theaimsaresetforthereportingyear,andtheirstateofprogressismonitoredatsix-monthintervals.-Thelong-termgoalsandaimsarereportedonintheSustainabilityReport.-ThegoalsandaimsconcernallofthecompaniesintheNovamontGroup(NovamontS.p.A.,Mater-Biopolymer,Mater-Biotech).-Foreveryaim,wherepossible,aquantity,oralternativelyquality,indicatorisselected.-Thegoalsandaimshaveavoluntaryandameliorativenaturewithrespecttonationallegislation.

InNovamontS.p.A.’sintegratedManagementSystem,Mater-BiopolymerandMater-Biotecharesetotherimprovementgoals,whicharereportedintheimprovementplanofeachcompanysite.

SPECIFIC ACTIONS•NovamonthasadoptedasustainabilitymanagementsystemthatisbasedontheSustainabilityReport.SustainabilitymanagementiscontinuousandextendstoallofthecompaniesintheGroup,involvingallsites,allemployeesandallfunctions.ThesustainabilitymanagementreferstotheGRIStandardsissuedbytheGlobalSustainabilityStandardsBoard(GSSB–www.globalreporting.org/standards).•NovamontandMater-BiopolymerhaveadoptedandkeepactiveanintegratedQuality,EnvironmentandSafety(QES)Managementsystem.Mater-BiotechhasimplementedanintegratedQESsystem,whichwillbecertifiedin2018.Inallthreecases,theintegratedmanagementsystem:-coversallcompanysites(NovamontNovara,NovamontTerni,NovamontPianadiMonteVerna,Mater-BiopolymerandMater-Biotech)-isalong-termactivity,asitsgoaliscontinualimprovementovertime-providestheframeworkfordeveloping,implementing,monitoringandreviewinggoals,aimsandstandardsinsuchawayastocreateacultureofcontinuouslyseekingimprovementsandreducingpossibleriskfactors-is,andwillbe,certifiedinaccordancewiththeinternationalstandardsISO9001,14001andOHSAS18001.

COMPLAINT MECHANISMSTheNovamontGroupgivestheopportunitytorequestinformationandmakecomplaintsthroughitswebsitewww.novamont.com.

ASSESSING THE MANAGEMENTTomonitortheeffectiveadequacyofthemanagementofmaterialtopics,Novamont,Mater-Biopolymer,andfromnextyear,alsoMater-Biotechusetheresultsoffirst-andthird-partyauditsoftheintegratedmanagementsystemstoevaluateanypresenceofnon-conformitiesorcomplaintsfrominternalandexternalstakeholders.Theresultsoftheauditare:-AuditReport-informativereportindicatedintheinformationcolumn-Evaluationtoolsusedbythecustomers-Feedbackfromthestakeholders.Inthereportingyear,themanagementmethodsandapproachwereextendedtothetwonewcompanies.

MOTIVATIONS AND Boundaries

MANAGEMENT TOOLS

Responsibility:TheindividualheadsoftheGroup’ssitesareresponsiblefordrawinguptheQASSPolicies.ThedetailedStrategicDocumentisproducedbytheChiefExecutiveOfficer,withthesupportofthemanagementoftheGroup’scompanies.

Responsibilities:ThecommitmenttosustainabilitystartswiththeChiefExecutiveOfficerandinvolvesallofthecompaniesintheGroup.ThecodeofethicsofeachcompanyispresentedtotheChiefExecutiveOfficerandisapproachedbytheBoardofDirectors.

Responsibilities:ManagementofthesustainabilityiscoordinatedbytheEcopecfunctionandinvolvesalloftheGroup’scompanies.TheIntegratedManagementSystemscomeundertheresponsibilityofthespecificcompanyfunctions.

Responsibilities:ManagementofthesustainabilityiscoordinatedbytheEcopecfunctionandinvolvesalloftheGroup’scompanies.TheIntegratedManagementSystemscomeundertheresponsibilityofthespecificcompanyfunctions.Requestsforinformationandanycomplaintsaremanagedandforwardedtothespecificfunctions.

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Relevance Class: GENERATING VALUE

2.Innovation

1.Valueandstabilityofthecompany

Theeconomicwealthproducedandredistributedinsideandoutsidethecompaniesinthegroup.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsbothinsideandoutsidetheGroup

Thedevelopmentofproducts(bioplasticsandbiochemicals)thatareincreasinglyinnovative,obtainedfromhighlyintegratedproductionchainsthatembodytheprinciplesofthecirculareconomy.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsbothinsideandoutsidetheGroup

201-1:Directeconomicvaluegeneratedanddistributed205-1:Operationsassessedforrisksrelatedtocorruption205-2:Communicationandtrainingaboutanti-corruptionpoliciesandprocedures206-1:Legalactionsforanti-competitivebehavior,anti-trust,andmonopolypractices307-1:Non-compliancewithenvironmentallawsandregulations

%ofworkforceemployedinResearchandDevelopment

GRI201:EconomicPerformance2016GRI205:Anti-corruption2016GRI206:Anti-competitiveBehavior2016GRI307:Environmentalcompliance2016

Nocorrespondencefound

MATERIAL TOPIC

MATERIAL TOPIC

MOTIVATIONS AND BOUNDARY


MATERIAL TOPICS FROM

GRI STANDARDS


GRI STANDARDS


GRI STANDARDS

DISCLOSURE

DISCLOSURE

3.Indirecteconomicimpacts

Theeconomicimpacts,positiveornegative,generatedontheeconomyandonthecommunity.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsoutsidetheGroup.

203-2:Significantindirecteconomicimpacts204-1:Proportionofspendingonlocalsuppliers

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueIntegratedPoliciesforQuality,theEnvironmentandSafety,andkeepthemupdated.

•NovamontTheQASSPolicyconfirmsthevariouscommitments,includingtheimportanceof:

GRI203:IndirectEconomicImpacts2016GRI204:ProcurementPractices2016

MATERIAL TOPIC


DISCLOSURE

Responsibilities:Theresponsibilityformanagingthematerialtopicsoftherelevanceclass“GeneratingValue”fallson:•theChiefExecutiveOfficer•theGroup’sGeneralOperationManagement•theBioplasticsCoreBusinessManagement•Functionsandcontactpeopleintheassociatedcompanies.

MANAGEMENT TOOLS

-Promotingthetransitionfromaproduct-basedeconomytoasystem-basedeconomy,bymeansofamodelforthebioeconomyfoundedonterritorialregeneration,startingwithlocalareasandredevelopingindustrialsitesthatarenolongercompetitiveordisused,togeneratenewproductionchains,newproductsandnewjobs.•Mater-BiopolymerTheQASSPolicyconfirmsthevariouscommitments,including:-Ensuringrespectfortheapplicablelegalregulationsandotherinstructionsthattheorganizationagreesto.•Mater-BiotechTheQASSPolicyconfirmsthevariouscommitments,including:-Respectingtheapplicablelaws,regulationsandstandardsand,whereapplicable,thecustomer’srequirements;ifthereisnolaworadequatestandard,Mater-BiotechadoptsandappliesstandardsandmethodsthatreflectitscommitmenttoconformitytotheQASSrequirements,thebestavailabletechniquesandtheexpectationsofthecompany.-Adoptingaconstantandcontinuousprocessofmonitoringandimprovingperformance.ForageneraldescriptionoftheQASSPolicies,turntothesection“Processescommontoallrelevanceclasses”.ThedetailedStrategyDocumentgivestheaddressesandpoliciesintheareaofeconomicperformance.ForageneraldescriptionoftheStrategyDocument,turntothesection“Processescommontoallrelevanceclasses”.

COMMITMENTSThecommitmentsundertakenforthematerialtopicsofthisrelevanceclassareproducedfollowingwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.

AIMS AND GOALSThegoalsandaimspursuedforthematerialtopicsofthisrelevanceclassareproducedfollowingwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.

RESOURCESThehumanandfinancialresourcesformanagingthematerialtopicsofthisrelevanceclassareallocatedtothefollowingNovamontfunctions:•GroupOperationGeneralManagement•PlasticsCoreBusinessGeneralManagement•AgroManagement•InstitutionalRelationsandAssociations•NewBusinessDevelopmentandLicences•IntellectualPropertyandLegalAffairs•ProductEcologyandEnvironmentalCommunications•StrategicPlanningandCorporatecommunications•HumanResources•ResearchandDevelopment•FinanceandAuditingAdministration.

TheNovamontfunctionsinterfacewithoneanotherandcollaborateactivelywiththespecificfunctionsofMater-BiopolymerandMater-Biotech.

COMPLAINT MECHANISMSThemechanismsbywhichanycomplaintscanbemadeaboutthetopicsofthisrelevanceclassaredevelopedinaccordancewithwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.

SPECIFIC ACTIONSTheChiefExecutiveOfficerandtheBoardofDirectorsmakeperiodicassessmentsoftheNovamontGroup’seconomicperformanceandanalysetherisksandopportunities,inordertoincreasethecompany’svalueanditsabilitytogeneratevalueforitselfandforsociety,alsobymeansofinnovativeprocesses.

162 163162 163162 163162 163162 163162 163162 163


162 163

Relevance Class: MANAGING THE WORK

4.Safetyandwellbeingofcollaborators

Protectingcollaboratorsandpromotingphysical,mentalandsocialwellbeinginworkplaces.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionswithintheGroup.

401-1:Newemployeehiresandemployeeturnover401-2:Benefitsprovidedforfull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees401-3:Parentalleave403-1:Workersrepresentationinformaljointmanagement–workerhealthandsafetycommittees403-2:Typesofinjuryandratesofinjury,occupationaldiseases,lostdays,andabsenteeism,andnumberofwork-relatedfatalities403-3:Workerswithhighincidenceorhighriskofdiseasesrelatedtotheiroccupation404-1:Averagehoursoftrainingperyearperemployee405-1:Diversityofgovernancebodiesandemployees406-1:Incidentsofdiscriminationandcorrectiveactionstaken.

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueIntegratedPoliciesforQuality,theEnvironmentandSafety,andkeepthemupdated.•NovamontTheQASSPolicyconfirmsthevariouscommitments,includingtheimportanceof:-Ensuringthatworkers,suppliersofservicesandcontractemployeeshaveadequateresources,informationandtrainingnecessarytocarryouttheirworkcompetentlyandsafely,insuchawayastoguaranteethatthegoalsofthesystemareachieved,intermsofproductandserviceconformity.-Ensuringthatallworkersundertakeactionstopreventinjuriesandmishaps,byapplyingtheproceduresformanagingtheriskrelatedtotheirwork.-Identifying,reporting,recordingandanalysinginjuriesandunplannedevents,inordertolearnfromthemandtoimplementcorrectiveandpreventiveactions.-Consultingworkersandcommunicatingwiththerelevantpartiesconcerned,ondevelopingandimprovingthemanagementsystem.•Mater-BiopolymerTheQASSPolicyconfirmsthevariouscommitments,including:-Minimizingtheriskstopeopleasaresultoftheactivitiescarriedout,andpreventinginjuriesandprofessionaldiseases.-Ensuringthatdangersresultingfromtheactivitiescarriedoutareidentified,assessingthecorrespondingrisksandimplementingsuitablepreventiveactions.-Promotingthespreadofacultureofsafetyandsensitizingtheemployeesandcontractorstotheirroleandtheirresponsibilitiesinthefieldofsafetyatwork.-Ensuringthegrowth,involvementandparticipationofthehumanresources.•Mater-BiotechTheQASSPolicyconfirmsthevariouscommitments,including:-Ensuringthatworkers,suppliersofservicesandcontractemployeeshaveadequateresources,informationandtrainingnecessarytocarryouttheirworkcompetentlyandsafely,insuchawayastoguaranteethatthegoalsofthesystemareachievedintermsofproductandserviceconformity.-Ensuringthatallworkersundertakeactionstopreventinjuriesandmishaps,byapplyingtheproceduresformanagingtheriskrelatedtotheirwork.ForthegeneraldescriptionoftheQASSPolicies,turntothesection“Processescommontoallrelevanceclasses”.

ThedetailedStrategyDocumentgivestheaddressesandpoliciesrelatingtoeconomicperformance.ForthegeneraldescriptionoftheStrategyDocument,turntothesection“Processescommontoallrelevanceclasses”.

GRI401:Employment2016GRI403:OccupationalHealthandSafety2016GRI404:TrainingandEducation2016GRI405:DiversityandEqualOpportunity2016GRI406:Non-discrimination2016

MATERIAL TOPIC

disclosure

MANAGEMENT TOOLS



RESOURCESThehumanandfinancialresourcesformanagingthematerialtopicsofthisrelevanceclassareallocatedtothefollowingNovamontfunctions:•HumanResources•GroupOperationGeneralManagement•Quality,EnvironmentandSafety.TheNovamontfunctionsinterfacewithoneanotherandcollaborateactivelywiththespecificfunctionsofMater-BiopolymerandMater-Biotech.

COMPLAINT MECHANISMSForallaspectsconcerningthehealthandsafetyofworkers,itispossibletomakecomplaintsorsuggestions,orreportanynon-conformities,usingaspecialform,anonymously,atallofourGroup’ssites.

SPECIFIC ACTIONS•Novamont,Mater-BiopolymerandMater-Biotechhaveadoptedandkeepactiveanintegratedmanagementsystemthatusesauditingprocesses(internalandexternal)andperiodicreviewstocheck,monitorandreduceanynegativeimpactsonthehealthandsafetyofworkers.Forthedescriptionoftheintegratedmanagementsystem,turntothesection“Processescommontoallrelevanceclasses”.•Novamont’sHumanResourcesManagementDepartment,andthoseofMater-BiopolymerandMater-Biotech,managetheprofessionalandpersonaltrainingprogrammesofworkers,new-employees,internsandtemporaryemployees.Theprogrammesaredevelopedonthebasisofcompanyrequirements,andthetrainingprioritiesforindividualworkersaredecidedbyfunctionheadsandbytheHumanResourcesDepartment.•ReviewingtheintegratedManagementSystemforthehealthandsafetyofworkers:-involvesthedirectorsofthesitesandtheheadsofthecompanyfunctions-iscarriedoutatleastonceayear-ispartofaninternalauditingprocess,asareviewofauditresults,ofnon-conformitiesandthecorrectiveactionscarriedout,ofthegoalsandoftheindicatorsmakesitpossibletoimplementimprovementactions.-satisfiesinternationalstandards(ISO9001,14001andOHSAS18001).

Responsibilities:Theresponsibilityformanagingthematerialtopicsoftherelevanceclass“Safetyandwellbeingofworkers”fallson:•theHumanResourcesFunction•Quality,EnvironmentandSafety•thefunctionsandcontactpeopleintheassociatedcompanies.


GRI STANDARDS

MOTIVATIONS AND boundary

164 165164 165164 165164 165164 165164 165164 165


164 165

Relevance Class: SUSTAINABILITY OF THE PRODUCTION CHAIN

5.Productionchainandproductsustainability

Developingaresponsibleandsustainableintegratedchainfortheproductionofbioplasticsandbioproducts(i.e.applications)withrawmaterialsofvegetableoriginfromsustainableagriculture,withcharacteristicsofcompostability,biodegradabilityandrenewability.Anyassociatedimpacts,positiveornegative,mayhaverepercussionsinsideoroutsidetheGroup.

302-1:Energyconsumptionwithintheorganization302-4:Reductionofenergyconsumption303-1:Waterwithdrawalbysource304-1:Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas305-1:Direct(Scope1)GHGemissions305-2:Energyindirect(Scope2)GHGemissions305-4:GHGemissionsintensity305-5:ReductionofGHGemissions305-7:Nitrogenoxides(NOx),sulfuroxides(SOx),andothersignificantairemissions306-1:Waterdischargebyqualityanddestination306-2:Wastebytypeanddisposalmethod407-1:Operationsandsuppliersinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatrisk408-1:Operationsandsuppliersatsignificantriskforincidentsofchildlabor409-1:Operationsandsuppliersatsignificantriskforincidentsofforcedorcompulsorylabor

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueIntegratedPoliciesforQuality,theEnvironmentandSafety,andkeepthemupdated.•NovamontTheQASSPolicyconfirmsthevariouscommitments,includingtheimportanceof:-Developingbioplasticsandbiochemicalsthroughtheintegrationofchemistryandagriculture,byactivatingbiorefineriesthatareintegratedintotheterritoryandprovidingapplicationsolutionsthathavealowenvironmentalimpact,thatguaranteeanefficientuseofresourcesthroughouttheirlifecycle.-Keepingtotheprinciplesofsustainablemanagementorresources,preventingpollution,managingtheenvironment,safetyandsustainabilityoftheproducts.-Developingeffectivecollaborativesystems,byestablishingandmaintainingfruitfulworkingrelationswiththeinternalandexternalpartiesinvolved,beforeandafterthesupplychain.•Mater-BiopolymerTheQASSPolicyconfirmsthevariouscommitments,including:-Guaranteeingtheidentification,assessmentandcontainmentoftheenvironmentalimpactsoftheiractivitiesundernormal,abnormalandemergencyconditions.-Guaranteeingcontrolofthenaturalandenergyresourcesusedandofthepollutingemissionsgenerated.•Mater-BiotechTheQASSPolicyconfirmsthevariouscommitments,including:-Adheringtotheprinciplesofsustainablemanagementofresources,preventingpollution,environmentalmanagement,safetyandsustainabilityoftheproducts.ForageneraldescriptionoftheQASSPolicies,turntothesection“Processescommontoallrelevanceclasses”.Inadditiontoassessingtheexternalenvironmentaleffectsofitsactivities,theGroupacquiresinstrumentstoassessthedirectandindirectimpactsassociatedwiththeactivitiesoftheorganizationandwiththelifecycleofitsproducts,aspartofLifeCycleThinking.Areasforimprovement,policiesandenvironmentalstrategiesarethenidentifiedonthebasisoftheseassessments.

GRI302:Energy2016GRI303:Water2016GRI304:Biodiversity2016GRI305:Emissions2016GRI306:EffluentsandWaste2016GRI407:FreedomofAssociationandCollectiveBargaining2016GRI408:ChildLabor2016GRI409:ForcedorCompulsoryLabor2016

MATERIAL TOPIC

disclosure

MANAGEMENT TOOLS



RESOURCESThehumanandfinancialresourcesformanagingthematerialtopicsofthisrelevanceclassareallocatedtothefollowingNovamontfunctions:•GroupGenerationGeneralManagement•BioplasticsCoreBusinessGeneralManagement•AgroDepartment•Quality,EnvironmentandSafety.•EcologyofProductsandEnvironmentalCommunications(ECOPEC)TheNovamontfunctionsinterfacewithoneanotherandcollaborateactivelywiththespecificfunctionsofMater-BiopolymerandMater-Biotech.

COMPLAINT MECHANISMSThemechanismsbywhichanycomplaintscanbemadeaboutthetopicsofthisrelevanceclassaredevelopedinaccordancewithwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.Complaintsaboutthetopicsthatrelatetothisrelevanceclasscanbesenttotheemailaddress:[email protected].

SPECIFIC ACTIONSTheNovamontGroupadoptsmethodsandpracticestoassessandquantifytheenergyandenvironmentalloadsandthepotentialimpactsoftheproductsandprocesses,throughoutthelifecycle,withthereasoningofasupply-chain:-ApplicationoftheLifeCycleAssessmentmethod-Internallaboratoryteststoassesstheperformanceofanumberofgradesoftheproduct(e.g.biodegradationandmechanicalperformance)-Involvementofalloftheprofessionalskillsnecessarytodevelop,manageandcontrolanintegratedproductionchain.-AdoptionandmaintenanceofanintegratedManagementSystemforQuality,theEnvironmentandSafety;forthedescriptionofthis,turntothesection“Processescommontoallrelevanceclasses”.

Responsibilities:Theresponsibilityformanagingthematerialtopicsoftherelevanceclass“Sustainabilityoftheproductionchain”fallson:•GroupOperationGeneralManagement•BioplasticsCoreBusinessGeneralManagement•Quality,EnvironmentandSafety•AgroDepartment•ECOPEC•thefunctionsandcontactpeopleintheassociatedcompanies.


GRI STANDARDS


166 167166 167166 167166 167166 167166 167166 167


166 167

Relevance Class: LAWS AND REGULATIONS

6.Complianceofproduct

Theconformityofproductstotheprincipleperformancestandardsandobtainingcertificationofthecharacterizingparameters,suchas,biodegradabilityandcompostability.Anyrelatedimpacts,positiveornegative,mayhaverepercussionsinsideandoutsidetheGroup.

417-2:Incidentsofnon-complianceconcerningproductandserviceinformationandlabeling417-3:Incidentsofnon-complianceconcerningmarketingcommunications419-1:Non-compliancewithlawsandregulationsinthesocialandeconomicarea

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueIntegratedPoliciesforQuality,theEnvironmentandSafety,andkeepthemupdated.•NovamontTheQASSPolicyconfirmsthevariouscommitments,including:-Respectingtheapplicablelaws,regulationsandstandards,andwhereapplicable,thecustomer’srequirements;ifnoadequatelaworstandardexists,NovamontadoptsandappliesstandardsandmethodsthatreflectourcommitmenttoconformingtotheQASSrequirements,thebesttechnologiesavailableandtheexpectationsofthecompany.•Mater-BiopolymerTheQASSPolicyconfirmsthevariouscommitments,including:-Continuallydeveloping,implementing,monitoring,reviewingandimprovingtheprocesses,toguaranteeconformitytothestandardsISO9001,14001andOHSAS18001.-Guaranteeingrespectfortherelevantlegalinstructionsandforotherinstructionsthattheorganizationsubscribesto.•Mater-BiotechTheQASSPolicyconfirmsthevariouscommitments,including:-Respectingtherelevantlaws,regulationsandstandards,andwhereapplicable,thecustomer’srequirements;ifnoadequatelaworstandardexists,Mater-BiotechadoptsandappliesstandardsandmethodsthatreflectourcommitmenttoconformingtotheQASSrequirements,thebesttechnologiesavailableandtheexpectationsofthecompany.

Forthegeneraldescriptionoftheintegratedpolicies,turntothesection“Processescommontoallrelevanceclasses”.

COMMITMENTSThecommitmentsundertakenforthematerialtopicsofthisrelevanceclassareproducedfollowingwhatisdescribedin

GRI417:MarketingandLabeling2016GRI419:SocioeconomicCompliance2016

MATERIAL TOPIC

disclosure

MANAGEMENT TOOLS

7.RegulationcontextTheItalianandinternationalregulationcontextinthesector,whichgovernstheuseofrenewable,biodegradableandcompostableproducts,andwhichcanaffecttheproductionchainandthereferencemarket.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsinsideandoutsidetheGroup.

thesection“Processescommontoallrelevanceclasses”.Furthermore,thecompaniesintheGroupundertaketoavoidbehavioursthatmayleadtothecommissionofacrime,asdescribedbyItalianLeg.Dec.No.231/2001,byadoptinganOrganization,ManagementandControlModel(OMM).


RESOURCESThehumanandfinancialresourcesformanagingthematerialtopicsofthisrelevanceclassareallocatedtothefollowingfunctions:•Quality,EnvironmentandSafety.•IntellectualPropertyandLegalAffairs.

COMPLAINT MECHANISMSThemechanismsbywhichanycomplaintscanbemadeaboutthetopicsofthisrelevanceclassaredevelopedinaccordancewithwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.ComplaintscanalsobemadethroughNovamont’sCustomerService,whowillforwardittotherelevantcompaniesandfunctions.

SPECIFIC ACTIONSEachgradeofMATER-BIisaccompaniedbythefollowinginformation:-Unmistakablename-Safetycards-Technicaldatacards-Instructionsonhowtomanageandhandleitcorrectly,forthepurposesofsafety.

MATERIAL TOPIC

Responsibilities:Theresponsibilityformanagingthetopicsfallson:•ChiefExecutiveOfficer•BoardofDirectors•BoardofAuditors•SupervisoryBodies•GroupOperationGeneralManagement•OperatingUnitManagement•Quality,EnvironmentandSafety•thefunctionsandcontactpeopleintheassociatedcompanies.

disclosure


GRI STANDARDS


GRI STANDARDS



Nocorrespondencefound.

No.oflegislativeandnon-legislativedocumentsthatinfluenceorwillinfluenceNovamont’soperatingcontext168 169168 169168 169168 169168 169168 169168 169


168 169

Relevance Class: TRANSPARENCY AND COMMUNICATION

9.Transparencyandcommunication

8.Partnershipsandcollaborations

Actinginaccordancewiththewholeproductionchain,thecompanyandthecommunity,bybuildingintegratednetworks,toshareknowledgeandpromotethecirculareconomy.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsinsideandoutsidetheGroup.

Thequalityandtransparencyofcompanyandproductcommunicationsintendedforallstakeholders,internalandexternal.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsinsideandoutsidetheGroup.

N°ofstrategiccollaborationsandprojects

N°ofeventsthatNovamonttookpartin

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueIntegratedPoliciesforQuality,theEnvironmentandSafety,andkeepthemupdated.•NovamontTheQASSPolicyconfirmstheimportanceof:-DistributingthePolicythroughouttheNovamontsitesandpublishingitonthewebsite(www.novamont.com)•Mater-BiopolymerTheQASSPolicyconfirmstheimportanceof:-Periodicallyreviewingitspolicyandcommunicatingittoallofthepeoplewhoworkfortheorganizationoronbehalfof

MATERIAL TOPIC

MATERIAL TOPIC

MANAGEMENT TOOLS

10.Promotingsustainability

Thecommitmenttospreadingknowledgethatwillmakeamoresustainablefuturepossible,alsoforthegenerationstocome.Anycorrelatedimpacts,positiveornegative,mayhaverepercussionsinsideandoutsidetheGroup.

N°ofstudentsinvolvedintheprojectScuola@Novamont

it,andmakeitavailabletothepublicandtoanyonethatrequestsit.•Mater-BiotechTheQASSPolicyconfirmstheimportanceof:-ConsultingandinvolvingallpersonnelandexternalcollaboratorsontheQASSPolicy,tomakethemresponsibleforachievingcommongoals,andcommunicatingwiththerelevantpartiesinvolvedoverthedevelopmentandimprovementofthemanagementsystem.Forageneraldescriptionoftheintegratedpolicies,turntothesection“Processescommontoallrelevanceclasses”.



RESOURCESThehumanandfinancialresourcesformanagingthematerialtopicsofthisrelevanceclassareallocatedto:•StrategicPlanningandCorporatecommunications•EcologyofproductsandEnvironmentalCommunications•Quality,EnvironmentandSafety.•InstitutionalRelationsandAssociations•BusinessCommunicationsandSpecialProjects.

COMPLAINT MECHANISMSThemechanismsbywhichanycomplaintscanbemadeaboutthetopicsofthisrelevanceclassaredevelopedinaccordancewithwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.ComplaintscanalsobemadethroughNovamont’sCustomerService,whowillforwardthemtotheappropriatecompaniesandfunctions.

SPECIFIC ACTIONSTheNovamontGroupconsiderscommunicationtobeanessentialaspectofitsactivities,and,tothisend,activatesallofthenecessaryinstruments.TheSustainabilityReportisconsideredtobeoneofthepivotalelementsofthiscommunicationstrategyandisusedtocommunicatetoallcategoriesofstakeholder.TheReport,therefore,isintendedforbothinternalandexternalstakeholders.ForageneraldescriptionoftheSustainabilityReport,turntothesection“Processescommontoallrelevanceclasses”.MATERIAL

TOPIC

Responsibilities:Theresponsibilityformanagingthematerialtopicsoftheclass“TransparencyandCommunication”fallson:•StrategicPlanningandCorporatecommunications•EcologyofProductsandEnvironmentalCommunications•Quality,EnvironmentandSafety•InstitutionalRelationsandAssociations•BusinessCommunicationsandSpecialProjects•thefunctionsandcontactpeopleintheassociatedcompanies.

disclosure

disclosure

disclosure


GRI STANDARDS


GRI STANDARDS


GRI STANDARDS







170 171170 171170 171170 171170 171170 171170 171


170 171

Relevance Class: SAFEGUARDING AND MAKING THE MOST OF THE TERRITORY

11.Safeguardingandmakingthemostoftheterritory

Protectingtheresourcesoftheterritory,collaboratingwithandrespectinglocalcommunities,toachievethedevelopmentofproductionchainsthatareintegratedintotheterritoryandthecommunity.Anyrelatedimpacts,positiveornegative,mayhaverepercussionsinsideandoutsidetheGroup.

413-1:Operationswithlocalcommunityengagement,impactassessments,anddevelopmentprograms

POLICIESNovamont,Mater-BiopolymerandMater-BiotechissueIntegratedPoliciesforQuality,theEnvironmentandSafety,andkeepthemupdated.Novamont’sQASSPolicyconfirmsthevariouscommitments,including:-Developingsolutionsthatcanguaranteeenvironmental,socialandeconomicadvantagesforthesystem,astheprinciplefocusoftheorganization.Itisincorporatedintoallaspectsofourbusiness,startingwiththeproductsthemselves,theproductionprocessanditsmaintenance,thesupplychain,eveninvolvingourwayofcommunicatingandinteractingwiththecommunity.Novamont’sstatementsonitsrelationswiththelocalcommunity,astheGroupleader,alsocoverthetwosubsidiariesForageneraldescriptionoftheintegratedpolicies,turntothesection“Processescommontoallrelevanceclasses”.

COMMITMENTSThecommitmentsundertakenforthematerialtopicsofthisrelevanceclassareproducedfollowingwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.Furthermore,thecompaniesintheGroupdeclare,intheircodesofethics,thattheymakeinvestmentsthatrespectthelocalcommunitiesandpursueimprovementstotheimpactoftheiractivitiesontheenvironmentandthelandscape.


RESOURCESThehumanandfinancialresourcesformanagingthematerialtopicsofthisrelevanceclassareallocatedtothefollowingNovamontfunctions:•GroupOperationGeneralManagement•AgroDepartment•InstitutionalRelationsandAssociations•Quality,EnvironmentandSafety.TheNovamontfunctionsinterfacewithoneanotherandcollaborateactivelywiththespecificfunctionsofMater-BiopolymerandMater-Biotech.

COMPLAINT MECHANISMSThemechanismsbywhichanycomplaintscanbemadeaboutthetopicsofthisrelevanceclassaredevelopedinaccordancewithwhatisdescribedinthesection“Processescommontoallrelevanceclasses”.Furthermore,theQuality,EnvironmentandSafetyfunctionsmonitoranycomplaintsfromthelocalcommunity.

GRI413:LocalCommunities2016

MATERIAL TOPIC

disclosure

MANAGEMENT TOOLS

SPECIFIC ACTIONSTheNovamontGroupactivatesinstrumentstocreatevirtuousrelationswiththeterritoryinwhichitssitesarelocated,andguaranteeahighdegreeofintegrationofitsactivitieswiththeeconomicandlocalentities.Theinstrumentsthatareactivatedare:-programmeagreementswithmanufacturerassociations,foractivatingvirtuousproductionchains-sponsorshipoflocalevents-environmentalteachingactivities,atalllevelsofeducation-maintenanceofhighlevelsofemployment-implementationofhighlevelsofenvironmentalchecksandchecksonthesafetyoftheactivities.

Responsibilities:Theresponsibilityformanagingthematerialtopicsoftherelevanceclass“Safeguardingandmakingthemostoftheterritory”fallson:•GroupOperationGeneralManagement•AgroDepartment•InstitutionalRelationsandAssociations•Quality,EnvironmentandSafety•thefunctionsandcontactpeopleinthesubsidiaries.


GRI STANDARDS


172 173172 173172 173172 173172 173172 173172 173


172 173

175175175175175175174 175175174

Gricontent

index

175175175175175175175175

gristandards

gristandards

MATERIAL TOPICS

IDENTIFIED BY NOVAMONT

S.P.A.

MATERIAL TOPICS


S.P.A.

disclosures disclosuresPAGE

numbersPAGE

numbers

GRI101:Foundation2016

GRI102:GeneralDisclosures2016

GRI103:ManagementApproach


GRI201:EconomicPerformance2016

GRI205:Anti-corruption2016

GRI206:Anti-competitiveBehavior2016

GRI307:EnvironmentalCompliance2016

GRI419:SocioeconomicCompliance2016

Valueandstabilityofthecompany

102-1Nameoftheorganization102-2Activities,brands,productsandservices102-3Locationofheadquarter102-4Locationofoperations102-5Ownershipandlegalform102-6Marketsserved102-7Scaleoftheorganization102-8Informationaboutemployeesandotherworkers102-9Supplychain102-10Significantchangestotheorganizationandtoitssupplychain102-11PrecautionaryPrincipleor approach102-12Externalinitiatives102-13Membershipofassociations102-14StatementfromtheChiefExecutiveOfficer102-15Keyimpacts,risks,and opportunities102-16Values,principles,standards,andnormsofbehavior102-18Governancestructure102-40Listofstakeholdergroups102-41Collectivebargainingagreements102-42Identifyingandselectingstakeholders102-43Approachtostakeholderengagement102-44Keytopicsandconcernsraised102-45Entitiesincludedintheconsolidatedfinancialstatement102-46DefiningreportcontentandtopicBoundaries102-47Listofmaterialtopics

1524-27

2021-23

182118-19

19

7838

70,96

3,76,155113-114

11

42

45,46

18316831

31

32-332

30-33

32-33

3032-33

2222

30

175-18135

162-163

160-161

39

46

46

45

45

102-48Restatementsofinformation102-49Changesinreporting102-50Reportingperiod102-51Dateofmostrecentreport102-52Reportingcycle102-53Contactpointforquestionsregardingthereport102-54ClaimsofreportinginaccordancewiththeGRIStandards102-55GRIcontentindex102-56Externalassurance

103-1ExplanationofthematerialtopicanditsBoundaries103-2Themanagementapproachanditscomponents103-3Evaluationofthemanagementapproach


201-1Economicvaluegeneratedanddistributed

205-1Operationsassessedforrisksrelatedtocorruption205-2Communicationandtrainingaboutanti-corruptionpoliciesandprocedures

206-1Legalactionsforanti-competitivebehavior,anti-trust,andmonopolypractices

307-1Non-compliancewithenvironmentallawsandregulations

419-1Non-compliancewithlawsandregulationsinthesocialandeconomicarea

176 177176 177176 177176 177176 177176 177176 177

GRI content index

176 177

gristandards

gristandards

MATERIAL TOPICS


S.P.A.

MATERIAL TOPICS


S.P.A.

GRI103:Managementapproach


GRI301:Materials2016

GRI302:Energy2016

GRI303:Water2016

GRI304:Biodiversity2016

GRI305:Emissions2016

GRI306:Effluentsandwaste2016

GRI407:FreedomofAssociationandCollectiveBargaining

2016

GRI408:ChildLabor2016

GRI409:ForcedorCompulsoryLabor

2016


GRI401:Employment2016

GRI403:OccupationalHealthandSafety2016

GRI404:TrainingandEducation2016

GRI405:DiversityandEqual

Opportunities2016

GRI406:Non-discrimination2016

GRI203:IndirectEconomicImpacts

2016

GRI204:ProcurementPractices2016

Indirecteconomicimpacts

Safetyandwellbeingofcollaborators

Productionchainandproductsustainability

162-163 166-167

90

79

80

82

82

8384

848585

86

87

67,77

76-77

76-77

164-165

65

66

67

69

70

70

68

18,64

67

51,58

56

57



301-1Materialsusedbyweightorvolume

302-1Energyconsumptionwithintheorganization302-4Reductionofenergyconsumption

303-1Waterwithdrawalbysource

304-1Operationalsitesowned,leased,managedin,oradjacentto,protectedareasandareasofhighbiodiversityvalueoutsideprotectedareas

305-1Direct(Scope1)GHGemissions305-2Energyindirect(Scope2)GHGemissions305-4GHGemissionsintensity305-5ReductionofGHGemissions305-7Nitrogenoxides(NOx),sulfuroxides(SOx),andothersignificantairemissions

306-1Waterdischargebyqualityanddestination306-2Wastebytypeanddisposalmethod

407-1:Operationsandsuppliersinwhichtherighttofreedomofassociationandcollectivebargainingmaybeatrisk

408-1:Operationsandsuppliersatsignificantriskforincidentsofchildlabor

409-1:Operationsandsuppliersatsignificantriskforincidentsofforcedorcompulsorylabor

103-1ExplanationofthematerialtopicanditsBoundaries103-2Themanagementapproachanditscomponents103-3Evaluationofthemanagement approach401-1Newemployeehiresandemployeeturnover401-2Benefitsprovidedforfull-timeemployeesthatarenotprovidedtotemporaryorpart-timeemployees401-3Parentalleave

403-1Workersrepresentationinformaljointmanagement–workerhealthandsafetycommittees403-2Typesofinjuryandratesofinjury,occupationaldiseases,lostdays,andabsenteeism,andnumberofwork-relatedfatalities403-3Workerswithhighincidenceorhighriskofdiseasesrelatedtotheiroccupation

404-1Averagehoursoftrainingperyear peremployee

405-1:Diversityofgovernancebodiesandemployees

406-1:Incidentsofdiscriminationandcorrectiveactionstaken

203-1Infrastructureinvestmentsandservicessupported203-2Significantindirecteconomicimpacts.

204-1Proportionofspendingonlocalsuppliers


numbersPAGE

numbers

178 179178 179178 179178 179178 179178 179178 179

GRI content index

178 179

gristandards

gristandards

MATERIAL TOPICS


S.P.A.

MATERIAL TOPICS


S.P.A.

GRI103:ManagementApproach2016


GRI103:Managementapproach2016


GRI103:Managementapproach2016



GRI413:LocalCommunities2016

GRI417:MarketingandLabeling2016

Complianceofproduct

Safeguardingandmakingthemostoftheterritory

Innovation

Regulationcontext

Partnershipsandcollaborations

Transparencyandcommunication

Promotingsustainability

168-169

170-171

170-171

120-121

126-128

172-173

162-163

168-169

168-169

133

50

104-106

110-11297








N°ofeventsthatNovamonttookpartin

N°ofstudentsinvolvedintheprojectScuola@Novamont

413-1Operationswithlocalcommunityengagement,impactassessments,anddevelopmentprograms

%ofworkforceemployedinResearchandDevelopment

N°oflegislativeandnon-legislativedocumentsthatinfluenceorwillinfluenceNovamont’soperatingcontext

N°ofstrategiccollaborationsandprojects417-2Incidentsofnon-complianceconcerningproductandserviceinformationandlabeling417-3Incidentsofnon-complianceconcerningmarketingcommunications


numbersPAGE

numbers

180 181180 181180 181180 181180 181180 181180 181

GRI content index

180 181

ThanksSpecialthanksgotoeveryonewhocontributedtothewritingofthisSustainabilityReport,inthecompanyandamongourpartnersandcollaborators.TheassurancewascarriedoutbyMarcoZomer,onbehalfofSAIGlobalItaliaS.r.l.DraftingthedocumentwasdonebyNovamont’sECOPECfunction,withthesupportofStudioFieschi&Soci(www.studiofieschi.it),underthesupervisionoftheareahead.IllustrationsandgraphicswerebyZillaVisualDesign–www.zillavisualdesign.it.Printedandhand-boundby13Sedicesimi–www.13sedicesimi.com.

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2017 - novamont.com · to do a lot more, with the contributionof numerous partners who, on the one...

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