Environmental Aspects

In the current context of climate change, the increase in demand for water resources is highlighting how, in a growing number of countries, large quantities of water may no longer be available at low cost.

The efficient management of water and its safeguard are therefore crucial for sustainable development and our sustainability strategy.

Safeguarding water, including through virtuous management of water discharges, is one of the main commitments in our Policy and is also one of the aims of the communication/awareness project, aimed at promoting virtuous and eco-sustainable day-to-day behaviour.

At the level of individual shipyards, as part of the environmental management systems, we continuously oversee the measures implemented to ensure the optimization of water quantity and quality.

We are committed to:

• Implement and maintain our management systems compliant with the ISO 14001 standard;
• Conduct regular monitoring of water withdrawals;
• Monitor water consumption during the production cycle, planning and implementing specific water-saving maintenance actions
• Promote efficient water management practices by minimising fresh water withdrawals, limiting wastewater discharges and minimising losses
• Develop technologies to conserve water;
• Raise awareness among employees and third parties to develop responsible behaviour towards the sustainable use and conservation of water;
• Ensure compliance with applicable local, regional, national and international legislation;
• Develop Group-wide reduction targets.

With reference to the last point, in the Sustainability Plan 2023-2027 we set the following reduction targets at Group level with respect to 2021:

• -3% water withdrawal by 2025
• -10% water withdrawal by 2027
• -12% water withdrawal by 2030

In 2020, an analysis of water stress areas was conducted through the Aqueduct Water Risk Atlas software. From the analysis, the Ancona, Castellammare di Stabia and Palermo shipyards were found to be within water stress areas and, as a result, a series of meters were installed to monitor their water consumption. In 2023, we are also committed to installing water meters at the Monfalcone, Marghera, Muggiano, and Riva Trigoso sites, as well as to further enhancing the monitoring system in Ancona and Castellammare di Stabia. This intervention will allow us to continuously and more accurately analyse water consumption at these sites, including through remote reading of values using the Energy Sentinel platform, thus enabling us to analyse daily trends, identify the areas with the highest water consumption and any anomalies. Once these in-depth analyses have been completed, it will be possible to take any necessary corrective actions to contain consumption and reduce waste.

Procurement of raw materials has a strategic role for our activity. Over the years, we consolidated the process of material selection and procurement, based on which the environmental impact of materials in their entire life cycle is assessed at the design stage.

As best described in the section on eco-design, even while preparing specific contractual techniques, and consequently those needed for the procurement process, we work to identify materials for the interiors that, though possessing the same technical, qualitative and compliance characteristics, are also environmentally compatible.

The main raw materials present in the Group’s production cycle are:

• iron for the hull;
• copper for the electric wiring and automation;
• steel, iron, plastics and other iron and non-iron alloys for the piping installed on board;
• welding materials;
• paint products.

In line with the contents of the Policy regarding the use of chemical products, the supply choices, where there are equivalent technical characteristics and/or compatible performances, continue to be oriented towards products with a lower environmental impact.

With regard to paint products, which are quantitatively most present in shipbuilding production, the involvement of suppliers has enabled new low-solvent or water-based products to be introduced into the design specifications.

We promote responsible waste management.

The criteria identified for managing processing residues and waste disposal are included in the Company guidelines, which are incorporated and detailed in the procedures of each production unit for managing the site’s specificities.

The layout of the production cycle, characterized by specific sequences of the processing phases, makes it possible to optimize the choice and introduction of the materials used upstream and, therefore, to organize the waste sorting and collection methods correctly.

Waste produced by our activities is delivered to authorized sites according to its classification and recovery destinations are favoured and maximized.

In 2022, in Italy the portion of waste sent for recovery, which stands at 84% of total waste produced, was consolidated.

In pursuing the commitments set out in our Policy with regard to the supply choices of chemical and paint products, as well as eco-design choices, we promote the use of materials with a lower environmental impact that favour sustainable waste management both during the shipbuilding phase and during operation and end-of-life.

We promote a model of sustainable mobility management that concretely affects the reduction of greenhouse gas (GHG) emissions, leading to a change in established habits with a greener perspective.

In Italy a digital company car-pooling service provides and encourages an alternative sustainable solution for employees’ home/work journeys by sharing the use of private cars. The system, also by means of a software application for smartphones or tablets, makes it easy to for employees to get in touch with each other, certify the results in terms of energy and environmental savings and access a reward system that encourages participation in the initiative and helps to change established habits. In parallel, an option has been implemented in the same digital system to certify home/work journeys by bicycle and on foot, and here too access a reward system. Restrictions to contain the spread of COVID-19 have led to a temporary suspension of the car-pooling digital service.

For business trips, the company policy promotes the use of public transport whenever possible and does not involve excessive travel difficulties, thus limiting the use of cars. With a view to reducing the travel of employees for work, we are also investing in increasingly high-performance technologies that have improved the use and use of video and teleconferencing.

Employees can apply for full or partial reimbursement of their season ticket for urban public transport or train travel, for themselves and/or for their tax-dependent family members through the Welfare Portal.

With a view to sustainable mobility, it is worth mentioning that the various Italian production plants have electric charging stations for the batteries of company vehicles. With regard to the fleet of company cars for business and personal use, as with the fleet of service vehicles, the gradual replacement of current vehicles with hybrid cars, including PHEVs (Plug-in Hybrid Electric Vehicles) is underway. As regards the subsidiaries, both Fincantieri Marine Group and Vard have a travel policy and adopt multiple measures to reduce travel and consequently the impacts.

During 2022, business travel increased compared to the previous two years, as, partly due to the vaccination campaign carried out by the institutions and facilitated by the company, restrictions on public transport were progressively reduced/removed (as opposed to restrictions on entry into the various countries).

We are committed to measuring and monitoring the greenhouse gas (GHG) emissions related to our activities in order to verify the effectiveness of the mitigation strategies implemented by the Group and to demonstrate our commitment in the fight against climate change.
 
In 2022, our total greenhouse gas (GHG) footprint from direct emissions from sources owned by or under the control of the Group (Scope 1), indirect emissions from electricity consumption (Scope 2) and other supply-chain indirect emission (Scope 3) amounted to more than 23 million tonnes of carbon dioxide equivalent (tCO₂e).

Since 2017, thanks to energy efficiency measures, such as relamping, and the progressive purchase of electricity from renewable sources, we have reduced Scope 2 by 70%, calculated according to the mark-based method.

In line with our aim to play a leading role in the decarbonisation of the shipping industry, during 2022 we expanded our Scope 3 emissions reporting to include CO₂ emissions from “Employee commuting” and “Use of sold products”, as required by the Greenhouse Gas Protocol reporting standard. Furthermore, the Scope 3 data have been integrated following the expansion of the reporting in the "Upstream transport and distribution" category, of the transport of ship sections of Fincantieri S.p.A. and VARD group, and the improvement of the calculation of the category "Purchase of goods and services" which includes the emissions deriving from the materials used for the ships under construction in the reference year of Fincantieri S.p.A. and Fincantieri Marine Group.

The 2021 data have been shown on a like-for-like basis to allow for for uniformity of the reporting perimeter.

We are also committed to reducing other polluting gas emissions. For this reason we have activated a monitoring and timely reporting system for certain polluting gases.

With a view to continuous improvement, the VARD group continues to research new approaches to contain and minimize the impact of emissions resulting from industrial activities. The group's commitment is also demonstrated by its participation, since 2008, in the Confederation of Norwegian Enterprises' NOx-Fund, whose primary objective is to reduce emissions of NOx.

Fincantieri's production sites are individually subject to environmental permits that prescribe specific limits on the maximum consumption and total emissions of volatile organic compounds (VOCs) into the atmosphere. Compliance with these limits is pursued, even when production volumes are increasing, by planning a gradual replacement of the products used with alternatives with a lower solvent content and by adopting appropriate system measures to reduce emissions. The areas dedicated to sandblasting and painting activities are equipped with abatement equipment, most of them with a post-combustion system that eliminates VOCs released during processing.

The increase in nitrogen oxide (NOx) emissions is the result of the upgrades and commissioning of plant facilities at US sites, which have led to an increase in natural gas consumption.