sustainability report 2010 -...

SustainabilityReport 2010

Indesit Company S.p.A.

Registered office Viale A. Merloni, 47I - 60044 Fabriano (AN)

Fiscal code/ VAT number no. 00693740425Ancona company register no. 85792Share capital: euro 102,759,269.40 fully paid-up

Tel.: +39 0732 6611www.indesitcompany.com

1

Table of contents

Reading guide 2

INDESIT COMPANY AND SUSTAINABLE DEVELOPMENT 3Sustainability management tools 5Sustainability governance 6Stakeholders 7Important subjects 8The steps of Sustainability 8

ECONOMIC PERFORMANCE 9The reference economic context 10The creation and distribution of the generated wealth 10

SOCIAL PERFORMANCE 12

Human resources 13 Human Value Chain 14People 14Training 17Personnel assessment and professional development 19Communication activities 20Remuneration 20Health and safety 21Relations with trade unions 25

Relations with customers 27A combination of quality and innovation to satisfy customers’ needs 27Relations with dealers and end users 28

Relations with suppliers 31Quality and transparency in purchase processes 31

The community and the territory 34

ENVIRONMENTAL PERFORMANCE 36

Innovation and protecting the environment 38Environmental challenges underlying innovation 38Eco-effi ciency in production 41The logistical processes 42The recovery of products and materials 43The active role in promoting care for the environment 44Environmental indicators 45

GRI CONTENT INDEX 47

Reading guideThrough the Sustainability Report, published each year, Indesit Company intends to communicate its approach to sustainability to its stakeholders and provide a complete and balanced representation of the values, strategies and performances achieved in economic, environmental and social areas.

The Sustainability Report 2010 is drawn up according to the “Guidelines for sustainability reporting” defined by the Global Reporting Initiative (GRI-G3) in 2006; this standard represents the best practise recognised at international level on the subject of sustainability reporting. With the objective of gradually broadening the extent of the information supplied, in 2010 the Group achieved application level B and complemented the document with additional sustainability indicators.

Furthermore, the process of refining the sustainability reporting and monitoring tools used was continued, allowing the reformulation of some data entered in last year’s document in a way to improve its reporting.

Unlike the previous year (when the Group arranged two sustainability documents, an informative one and a more technical one), in 2010 Indesit Company decided to report its sustainability performance in a single document that, while remaining communicative, clear and easy to use, integrates all the information requested by the international guidelines of the GRI-G3. In addition, communication on sustainability continued to be supplemented by the Group’s economic-financial and institutional information. Indeed, this Report has been included in the on-line version of the Annual report.

The data and information included in the Report refer to the year ending on 31 December 2010 and to some significant projects created in the first few months of 2011. They also concern the Parent company Indesit Company S.p.A. and the companies it controls; for more details please consult the consolidated financial statements. Any scope limitations are specified in the document.

For the purpose of maximum reliability of the reported information, the inclusion of directly measurable values was privileged, thus avoiding the use of estimates as much as possible. Where necessary, estimates are based on the best methodologies available or on sample surveys and their use is specified within the individual indicators.

Finally, no significant events or changes occurred in the measurement methods, which may notably influence the comparability of the information contained in this document with that in the Sustainability Report 2009.

Sustainability Report 3

INDESIT COMPANYAND SUSTAINABLE DEVELOPMENT

“In any industrial initiative,economic success has no value

if it is not combined withcommitment to social progress”

Aristide Merloni, 1967

4 Sustainability Report

Quality, energy savings and the protection of the environment meant not just as the natural environment but also as the social context we work in, are part of the Group’s continuous commitment to improving the products, processes and environmental and energetic performance, as a priority in terms of economic competitiveness and customer satisfaction.

Based on these principles, Indesit Company, in addition to respecting all the legislative provisions and other regulatory requirements applicable, has defi ned the new Quality, Energy and Environment policy, which is inspired by the following improvement criteria:

Improvement criteria expressed in the Quality, Energy and Environment PolicyIncrease the satisfaction of the parties concerned by:

• maximising the Quality of the entire life cycle of the product range focusing on excellence, which can be achieved and measured by exceeding customer expectations

• minimising the environmental and energy impact of both products and the industrial sites while guaranteeing their improved integration on the territory, through the use of system technologies and techniques aiming to reduce the infl uence on the environment and by optimising the use of energy sources, recyclable materials and products

Improve process effi ciency by: • maximising the effi ciency of resources• optimising processes through the search for a continuous development

of technologies that may contribute to improving the Quality of life of all the parties concerned i.e. Consumers, Customers, Employees, Suppliers, Shareholders, Local Communities

• training personnel and spreading a culture of continuously improving performance

Spread a Culture of Quality, energy savings and respect for the environment by:

• maintaining and improving its Quality Management System based on ISO 9001:2008

• implementing and positioning Environmental Management Systems for all the plants, in compliance with the regulatory model ISO 14001:2004

• implementing the energy management system according to EN 16001 in the plants with a signifi cant energy impact

• periodic internal and external communication, also in order to inform the parties concerned, of the main initiatives, innovations and achievements achieved and to contribute to the common growth of the Quality and Environment culture

Promote and broaden communication tools to:

• disclose useful information to encourage the parties concerned to cooperate and integrate

• disclose information concerning Quality, the Environment and Energy both internally and externally to the Group

“Innovative”, “Respectful”, “Ambitious”, “Genuine” and “In touch with others” are the 5 values that inspire Indesit Company and the guiding principles followed to direct the company choices, together with the mission and the strategic approach. Respect of these principles is essential to implement the improvement criteria also stated in the new Quality, Energy and Environment Policy.

The objectives periodically agreed with the employees and assigned and defi ned according to the “Performance Management System”, concerning Quality, Business or the Environment, must always be pursued in consideration of these values, to guarantee the full compliance of the social and ethical choices of the Group.


Sustainability management toolsThe Group is aware that its business and, therefore its economic and fi nancial performance, are correlated to the risks and opportunities created by trends regarding sustainability. In particular, the growing attention dedicated to the subject of climate change and the need to reduce energy consumption and the impact on the environment constantly pushes the Group to invest in research and development activities for the production of more and more eco-friendly household appliances and in the adoption of production systems respecting the ecosystem.Indesit Company regularly assesses the impact that climate change may have on its business, from the risks of damaging the plants due to the intensifi cation of extreme weather to the impact deriving from future stricter legislation.

Certifi cations

All the Group plants are certifi ed according to standards ISO 14001 and ISO 9001 and in 2010 the Albacina plant obtained the certifi cation according to the standard EN 16001.The Group has extended the implementation of the standard OHSAS 18001 to another 12 sites, reaching in 2010 a total of 35 certifi ed sites. Currently the certifi cation concerns all the plants, logistical warehouses and most of the offi ces. Only some small commercial offi ces are excluded.

In order to responsibly and systematically manage its impact, the Group has created a system to manage the main Key Performance Indicators (KPI). The system is monitored by the Energy and Environment Committee, which each month assesses the objectives and results achieved; furthermore, the environmental indicators are discussed and assessed at the business review meeting (BRM).

InnovationBecause every activity undertaken features the creativity and initiative of the people who search and apply innovation in everything they do.RespectBecause Indesit Company acts carefully and responsibly towards its consumers, dealers, employees, suppliers, shareholders, the communities where it works and the environment in its broadest sense.AmbitionBecause the ability to improve every day spurs the enthusiasm and passion for excellence and leadership.Contact with othersBecause a constant relationship with all those involved allows the Group to listen to their needs, offering the answers and solutions required to obtain the best results.GenuinenessBecause Indesit Company works in an open, transparent and authentic manner, doing business simply, dynamically and fl exibly.

Indesit’s values

To be a European leader that manufacturers technological solutions that are compatible with the environment, to deliver quality time to people day after day

Indesit’s mission

People at the centreValuing human resources and develop the individuals’ professionalism, respect for the physical, moral and cultural integrity of each person, the promotion of equal opportunities and diversities.Respect for workers’ rightsRespect for the fundamental rights of workers the world over, in light of the principles stated in the conventions of the International Labour Organisation (ILO) on abolishing child labour, on the principles of trade union freedom, worker organisation, collective negotiation, developing equal opportunities.Adoption of a “participating model” in industrial relations to serve as a tool for communication, involvement and organisation of shared objectives.Creation and distribution of added valueSuccess in production and market competition through the creation and equal distribution of value to stakeholders.Respect for and protection of the environmentSustainable development as the result of a proactive approach towards environmental issues and the constant commitment in pursuing objectives that respect the needs of future generations.Innovation and qualityAttention to research and development for continuous innovation within the company processes.Permanent trainingA permanent training system to promote the growth of skills and individual professionalism.Correctness and transparencySatisfaction of stakeholders’ expectation through the clear and transparent communication of strategies, activities, results and decisions.IntegrityThe assumption of a morally fl awless behaviour in every activity, avoiding any form of corruption and violation of laws and ethical principles.

Indesit’s business principles


Indesit adheres to the most common international standards on sustainability

• Since 2006 it has adhered to the Global Compact, the initiative supported by the UNO to promote and encourage respect for some universal principles regarding human rights, labour, the environment and the fi ght against corruption.

• In 2009 it signed the Charter for Equal Opportunities and equality at work, an initiative promoted by Fondazione Sodalitas and other associations , obliging the signing companies to respect a series of principles on equal opportunities.

• It signed the Code of Conduct developed by the CECED — Associazione Produttori di Apparecchi Domestici e Professionali — which obliges all the associated companies to act as “responsible subjects”, promoting correct and sustainable working conditions, social responsibility and quality of the environment.

• Indesit Company respects the international conventions of the ILO (International Labour Organisation) and undertakes to promote and distribute responsible management practises of workers also at the suppliers.

Sustainability governanceIndesit Company adopts measures aiming to prevent, as much as possible, the occurrence of events which may jeopardise the rights of the stakeholders, be they employees, customers, suppliers, shareholders, investors, communities or future generations. The prudential approach adopted by the Group in the management of the economic, social and environmental aspects is founded on the strict respect of the regulations applicable in the countries where it works and on additional specifi c activities developed to guarantee the stakeholders.

The Company has a Corporate Governance system conforming to the principles contained in the self governance code of the listed companies issued by Borsa Italiana. Furthermore the Group has adopted its own Organisational model pursuant to Leg. Decree 231/2001 on the subject of administrative responsibility of the bodies and has adjusted its fi nancial communication system to Law 262/2005 (Savings Law), in order to guarantee its adherence to international best practices.

StakeholderEngagement

Planning& Policy

Reporting& Auditing Accounting

CEOEnergy &

Environment Committee

Marketing Supply Chain Technical &Industrial

Quality &Environment

InternationalTechnical

Affairs

Finance &Accounting

HumanResources

ExternalCommunications

& CSR

Chairman

SustainabilityUnit

Social responsibility management sistem


During 2009 and in the fi rst months of 2010, in particular, the processes and activities at risk pursuant to Leg. Decree 231/2001 were redefi ned in light of the regulatory and organisational development of Indesit Company S.p.A. This has led to the approval of a new Code of Conduct, also translated into English, which states the behaviours expected from all the recipients as regard to Business Ethics and the Organisational Model in the version updated to include the most recent legal standards.The Code of Conduct, an integral part of the Organisational Model, is applied to the entire Group, in line with the provisions of local legislation and, in any case, in such a way to guarantee a suitable level of risk coverage concerning the crimes provided for by Leg. Decree 231/2001, in all the geographic areas.Following the approval of the Organisational Model and the Code of Conduct, activities were concentrated on integration and the improvement of the Group procedures, as well as on the information and training of employees on the content of the above mentioned documents.Still in 2010, activities were begun aiming to obtain a wider knowledge of and adhesion to the new Code by suppliers and customers, also following auditing activities that revealed room for improvement on the subject.Finally, within the annual audit plan, which was defi ned on the basis of a risk-assessment process, “Business Ethics Compliance” audits were included, aiming to assess the Internal Control System of the main subsidiaries of the Group. It is worth underlining that the main risk types considered within the subjects of Risk Management concern, inter alia, the environmental risks.

StakeholdersIndesit Company undertakes to establish an open and transparent dialogue with its stakeholders. Communication provides an opportunity to state their legitimate expectations, generate benefi ts in terms of improving risk management, strengthen trust towards the Group and identify new strategic opportunities.The reference stakeholders were identifi ed through the methodology proposed by AA 1000 SES (AccountAbility 1000 Stakeholder Engagement Standard) and, in line with this approach, in 2010 some dialogue activities took place. Worth mentioning are the conventions with suppliers within the framework of the annual Supplier Award, and the customer satisfaction survey.

Consumersand dealers

Suppliers

ShareholdersLenders

Public administration

The community and future

generations

Personnel


Important subjectsIndesit Company carried out an analysis to defi ne the important issues to be dealt with in the Sustainability Report, weighing the subjects deemed signifi cant for the sector and the Group with the expectations of its stakeholders. The main subjects were identifi ed through a matrix that uses as variables the signifi cant economic, environmental and social impacts for the Group and their infl uence on the assessments and decisions of stakeholders. The assessm ent was conducted on a three level scale: low, medium, high.The subjects identifi ed as important were classifi ed into risks and opportunities in order to channel the monitoring and mitigation actions (for the risks) and adopt improvement and development plans (for the opportunities).

The steps of Sustainability• 1998. The Jonathan-Indesit Company project was established with the aim of reintegrating youths with a

criminal record back into society.• 1999. It is the year of a new generation of “intelligent” and easy to use household appliances that are

able to communicate with each other and with the telecommunication networks in a domestic automation system.

• 2000. The debut of the Quality System, which has the aim of involving the entire company to improve the qualitative procedures in all the company processes.

• 2001. Indesit Company presents the fi rst sustainability report of the sector and wins the Oscar for its fi nancial reporting standards.

• 2002. Oscar for online fi nancial communication.• 2003. The Code of Conduct signed with the social partners to protect workers’ rights wins the fi rst edition

of the “Sodalitas Social Award”.• 2004. Indesit Company creates the Riciclette using recycled material from old refrigerators.• 2005. Launch of Aqualtis, the washing-machine that embodies all the latest eco-friendly technologies and

functions.• 2006. The international framework agreement that guarantees non discrimination by gender, race, religion

and opinion is awarded the fi rst edition of “Etica&Impresa”. The Group receives the Oscar 2006 for corporate governance.

• 2007. Indesit Company is recognised by Etica Sgr as one of the most committed companies to social responsibility in Europe and wins the “Intellectual Capital Value” prize for its commitment in developing human capital.

• 2008. The Group enforces a strict Code of Conduct providing for behaviour to be adopted that fully respects all the stakeholders.

• 2009. Indesit signs the Charter of equal opportunities and equality at work and obtains the certifi cate of compliance of the Health and safety in the workplace Management System with the international standard OHSAS 18001.

• 2010. The Health and Safety Award and the Green Award is established to make the Group plants aware that they standout for the best performance in health and safety and the environment. Indesit Company receives the “Imprese per l’Innovazione 2010” prize in the Large Company category.

Personnel• Training• Equal opportunities• Communication and

dialogue• Industrial relations• Health and safety

Consumers• Product innovation• Customer satisfaction• Transparent communication

Environment• Climate change• Eco-sustainable product

development• Monitoring of direct and

indirect impacts

Community• Support for community• Respect for human rights• Compliance with legislation

Suppliers• Partnership and fair dealing• Supply chain monitoring

Shareholders• Economic perfomance• Business integrity

Opportunities

Risks

High

Medium

Low Medium HighInfl u

ence

s on

sta

keho

lder

ju

dgem

ents

and

dec

isio

ns

Signifi cant economic, social and environmentalimpacts by Indesit Company

Material issues matrix Issues of concern to stakeholders


ECONOMIC PERFORMANCE


The reference economic contextAfter a particularly diffi cult period, 2010 saw a two-speed global recovery: on the one side stand the advanced economies with a moderate rate of consumption, unemployment rates still high and strong pressure on the euro, on the other side there are most of the emerging markets with a buoyant recovery in production fed by a strong increase in the demand for goods and services.The situation in the household appliance sector was not notably different compared to this global scenario. In Eastern Europe, a signifi cant recovery was recorded as a consequence of the optimal performance of the two fundamental markets for the Group in this area: Russia and the Ukraine In the other eastern countries, the demand for household appliances still features contrasting trends: an annual growth is recorded in Poland and Turkey, while the demand is decreasing all the other countries, with some signs of recovery emerging in the last quarter only in Hungary and Slovakia.In Western Europe, a moderate growth in demand for household appliances was recorded, also in this case resulting from contrasting trends in terms of the yearly performance and the geographic distribution, which saw an increase in Northern Europe, Great Britain, Germany and Italy and a drop in the Iberian Peninsula and France.The retail prices recorded a slight drop both in Western and Eastern Europe, with a global trend worsening in the second half.

The creation and distribution of the generated wealthThe processing of added value refers to the Group’s ability to create wealth and share it among its various stakeholders.The tables and graphs below show the results of the added value formation process (meant as the difference between the gross production value and the intermediate costs of production) and the distribution of the same added value among the Group’s stakeholders through the reclassifi cation of data in the consolidated income statement.

Added value created(thousands of euro)

648,322

779,245

2009 2010

Distribution Added Value2010

To Personnel

To the Public Administration

To the Lenders

To Shareholders

Held in the company

To the Community

0.1%

60.0%

8.9%

3.3%

4.0%

23.7%


Added value created (thousands of euro) 2010 2009 2008Value of production 2,962,680 2,542,345 3,232,365

Revenues from typical production 2,892,195 2,526,059 3,213,662

Revenues from atypical production 70,485 16,285 18,703

Intermediate costs of production (2,203,568) (1,863,450) (2,452,217)

Gross characteristic added value 759,112 678,895 780,148

Accessory and extraordinary components 20,133 5,428 34,637

Gross global added value 779,245 684,322 814,786

Distributed added value (thousands of euro) 2010 2009 2008 To Personnel 467,430 428,404 526,997

Non-employee personnel 19,547 12,248 30,821

Employees 447,883 416,157 496,176

To the Public Administration 69,724 48,289 55,054

Direct taxes 59,658 33,332 38,941

Indirect taxes 17,422 20,796 20,446

Grants (7,356) (5,838) (4,333)

To the Lenders 25,535 30,292 44,448

Capital charges 25,535 30,292 44,448

To Shareholders 30,950 15,475 23

Dividends 30,950 15,475 23

Held in the company 184,754 160,543 186,743

Reserve variation 58,782 18,022 55,899

Amortisation 125,972 142,521 130,844

To the Community 852 1,319 1,520

Donations 852 1,319 1,520

Distributed added value 779,245 684,322 814,786

Note: As the previous years Indesit Company’s value added was calculated using the method proposed by “Gruppo di studio del Bilancio Sociale” (GBS).


SOCIAL PERFOMANCE


Human resourcesPersonnel assessment and development

Health and safety of workers

• After the creation of the “Best People Fit” project, aiming to find the best company positions for the employees, in 2010 the “People at First” project will be developed, aiming to provide the best working conditions for each employee.

In 2010 the performance assessment tools continued with the review process aimed at improvement, with special focus on assessing potentials and leadership.

The development was started of new functional tools to create a new system to monitor and assess the company positions.

Most of the positions and professions in the company were mapped and described.

Development of a new IT system to replace paper-based management of MBO with an integrated and centralized process.

Analysis of the sales incentive structure and mapping of Employee Benefi t insurance at global level.

• Guarantee a pipeline of excellent people to provide the Group with continuous quality and business skills.

• Implementation of a new assessment system for the company positions (broadbanding).

• Development and implementation of the new “Performance Appraisal System” to assess the resources.

• Creation of a new Employer Brandingstrategy to improve the international perception of the company in the next three years.

• Introduction into the MBO system of environmental indicators for manufacturing activities to reduce energy consumption, water consumption and waste production.

• Increasing global approach of policies for total rewarding of employees, also through external market references.

• Consolidation of global variable incentive processes favouring a higher degree of centralized governance.

… we willWe said … … we did …

2009

201

0

2011

• Consolidation of the OHSAS 18001 health and safety management system through the monitoring of improvement plans and management review processes.

• Focus of training activities on specific risk areas.

• Better understanding of the risks deriving from industrial activities to improve accident indicators.

• Monitoring and reduction of the acoustic impact in plants and improvement of the ergonomics of workstations, in order to reduce the risk of professional illnesses.

• Implementation of the plan to remove asbestos from the Group sites within two years.

Extension of the sites included in the OHSAS 18001 certification, reaching a total of 35 certified sites (12 more than 2009).

Performance of training activities on specifi c risk areas.

Improvement of the analysis and understanding of the risks from non industrial activities that have led to a reduction in the accident frequency index compared to 2009.

Start of the project to reduce the possible causes of professional illnesses particularly linked to noise. During 2010 the number of workstations with noise levels above 85 decibels was reduced by 80%.

Start of the asbestos removal plan that decontaminated more than 60% of the Indesit owned roofs concerned.

• Strengthening of preventive actions with the aim of increasing the managed near misses by at least 20% and improving the frequency and severity accident indicators by at least 10%.

• Implementation of a safety awareness and training campaign.

• Total asbestos decontamination of the sites owned by Indesit.

• Activities aiming to reduce the risks of professional illness linked to ergonomic and muscle-skeletal problems.

• Definition of a programme to further reduce significant accident risks.

• Programme to optimise the working conditions in terms of comfort (temperature, light, noise).


2009

201

0

2011


The Human Value ChainIndesit Company’s main objective is to be seen by the market and by the people who work for it as a “quality organisation” that constantly manages its resources by placing people at the centre of its organisation and its business. It is for this reason that the Group provides all the tools that are useful to value and develop its employees in terms of knowledge, skills and innovative spirit.Relations with the human resources are managed with a view to defi ning and maintaining the Human Value Chain, i.e. a value creation chain that goes from the so-called talent attraction to the resource leaving the Company.

PeopleIn 2010, Indesit employed more than 16,000 employees in 16 production plants (14 in 2011, following the process of corporate reorganisation), located in Italy, Poland, UK, Russia and Turkey, and 24 commercial sites.

Employees by rank 2010 2009 2008Management 125 129 128

White collar 5,128 5,062 5,257

Blue collar 10,807 11,103 11,954

Total 16,060 16,294 17,339

Furthermore in 2010, 565 temporary staff were employed, and apprenticeships were offered to 56 young workers.In the relations with its resources, the Group provides stable and long-lasting contracts. At 31 December 2010, in line with the previous year, 80% of employees were hired with contracts of an indefi nite duration, while 20% with a defi nite duration.

Human Value Chain

Organisationand managementof work andsystems

Industrial relations

Employerbranding,recruitmentand equalopportunities

Compensationand Benefi ts

Healthand safety

Personal developmentand Training

Internal communication


Employees 2010 2009

no. % no. %Full-time total 15,739 98.0% 16,066 98.6%

Part-time total 321 2.0% 228 1.4%

Total 16,060 100% 16,294 100%

Part-time men 22 7% 30 13%

Part-time women 299 93% 198 87%

Average age of employees 2010 2009 2008Management 46.0 45.5 44.0

White collar 39.5 39.5 39.2

Blue collar 38.9 38.6 38.5

Average 39.1 39.0 38.8

RecruitmentIn compliance with the principles of equal opportunity, non discrimination and protection of diversity, the recruitment plan of Indesit Company envisages a diversifi ed search and selection process according to the level of experience of the fi gures required (graduates, junior, senior).The professionals currently required to cover the positions are identifi ed among the resources already available within the organisation or, in case of absence of specifi c skills, from the external market. In this case, the search may take place by relying on companies specialised in recruiting, through the web portal JoinIn, consulting the corporate databases or searching graduates also thanks to the direct cooperation with leading universities.

The professional areas2010

Innovation & development

Marketing & sales

Support functions

Industrial area

4%

4%

68%

24%

Contract types2010

Indefi nite duration

Defi nite duration

20%

80%

Employees by gender and rank2010

Blue collar

White collar

Management

Men

Women

65% 66%

89%

35% 34%

11%

Geographic origin30%

Italy

30% 30%

Russia

27% 26% 27%

Poland

17% 18% 19%

UK

17%15% 14%

Outside the EU

1% 2% 1%

Other EU

1% 1% 1%

France

2% 2% 2%

Turkey

5% 6% 6%

2008

2009

2010


For graduates and the junior profi les in particular the selection takes place through group assessments and subsequent technical and motivational interviews with the managers of the Company areas concerned with the recruitment; after hiring, an orientation and training period of two years is envisaged for the development of basic managerial skills.

Regarding resignations, 1,798 employees left the Group in 2010, 5.3% of which were male and 3.1% female, generating a turnover rate equal to 8.4%.

Seniority of the employees (years) 2010 2009 2008Management 11.3 10.7 10.4

White collar 10.6 10.7 10.3

Blue collar 10.1 9.9 10.0

Average 10.3 10.2 10.0

Indesit has adopted an international, inter-functional and functional job rotation policy as a tool for professional development and to encourage a mutual exchange of know-how among the various international units in the Group. On the one side this approach offers expatriate and seconded personnel the possibility of gaining signifi cant international experience for their professional development, and on the other side encourages the distribution of know-how and the growth of local skills. According to this policy, the expatriation generally last an average of 2 years and may involve both senior management and more junior fi gures. In 2010 the quantity of seconded personnel or personnel located abroad equalled 2% of personnel and includes white collar and management.During the initial acquisition phase or when starting up a new site, resources from other countries are normally expatriated or seconded; the percentage of these resources progressively decreases as the structure becomes integrated within the Group, thus favouring the development of local managers and specialists. This is because, for as much as possible, Indesit prefers to privilege the recruitment and development of resources from the community of the country where it works.

Equal opportunitiesIndesit’s commitment is focused on the integration and protection of the diversity. The respect for the fundamental rights of people is shown through the participation to conventions of the World Labour Organization (reported in the internal code of conduct) and the signing, since 2009, of the Charter of equal opportunities and equality at work, an initiative promoted by Fondazione Sodalitas, AIDAF, AIDDA, Impronta Etica, UCID and Uffi cio Nazionale Consigliera di Parità, with the participation of the Ministry for Labour, Health and Social Policies and the Ministry for Equal Opportunities.

Recruitment and discontinuationby rank 2010

Blue collar

White collar

Management

Number of discontinuations

Number of recruits

1,489

1,252

229

10

308

4

Recruitment and discontinuationby contract type 2010

Number of discontinuations

Number of recruits

1,0071,082

791

482

Defi nite duration

Indefi nite duration


In line with the two previous years, women represent more than a third of Indesit Company’s employees. Female personnel in the Group is not only protected through the normal application of all legal provisions, but also by facilitating part-time employment for working mothers. Furthermore, one of the Company’s main objectives is to invest as much as possible to increase female presence in management, which to date is 11%.

Employees by age, genderand qualifi cation 2010

Below 30 30 to 50 Above 50men women men women men women

Management – – 76% 14% 94% 6%

White collar 50% 50% 67% 33% 72% 28%

Blue collar 71% 29% 63% 37% 80% 20%

Total 65% 35% 64% 36% 75% 25%

Regulations on the employment of protected categories vary from country to country. In some contexts, a specifi c report cannot always be found for these categories due to the absence of a regulation on protection or for privacy reasons.In compliance with the specifi c local regulation, the Group encourages the employment of the protected categories or implements specifi c actions provided for by law in order to comply with them.Especially in Italy, Indesit has drawn up and signed with the competent offi ces suitable conventions aiming to encourage the entry in the Company of workers with disabilities according to law 68/99. In Russia, to respect the recruitment rate for protected categories, in line with local regulations, the Group also uses forms of valorisation for the value chain elements from the industrial district, assigning jobs to suppliers who employ protected categories.

TrainingThe management of the training activities in 2010 continued along the path started the year before, based on the centrality of the people involved directly in the training process.The foundations were laid in order to improve the tools used for the training of employees through the drafting of training plans which depend on both organisational needs and on the needs of employees.Personnel training is structured based on:

• the corporate objectives stated in the strategic lines of the Medium Term Plan;• the programmes envisaged by the compulsory institutional training;• employees’ requests expressed through the Performance Management System (PMS).

Employees have about 23 classroom courses and a wide range of on-line courses available. In parallel, in addition to the “corporate” modules such as language and health and safety courses, the institutional training system offers four specifi c programmes aiming at the:

• entry of new resources (In-Indesit), • introduction to operations of the company (Induction), • development of young people with high growth potential through the study and simulation of corporate

processes from the conception of the idea to the sale (In-Tune),• development of the business acumen of staff with an average experience through the performance of

business games (Inspire).

Female occupation

10%

Management

11% 11%

White collar

34% 34%35%34% 34%34%34% 34%35%

TotalBlue collar

2008

2009

2010


Furthermore, in 2011 a fi fth course was added to the four programmes dedicated to younger managers and senior managers, which envisages the study of the successful corporate cases in order to stimulate new ideas to improve the company area of competence.

Language Label for “English On The Move For Key People”,an innovative English course.

In 2010 Indesit Company was awarded the European Language Label, a European certifi cation on the quality and effectiveness (content and methods) of the training courses that give a decisive contribution to the linguistic cultural level in European countries.

Total training 2010 2009Employees involved 6,770 5,400

Total hours 128,550 87,000

Total hours – including training-on-the-job 211,279 432,000

The training activities carried out in 2010 involved more than 6,700 employees for a total of 128,550 hours, excluding the training on the job: both the number of employees and the hours were greater than in 2009.Training is provided through classroom training (60%), e-learning (1%) and training-on-the-job (39%).In 2010 the Company obtained the approval of loans for training equal to about 1.3 million euro.

Among the subjects dealt with during the training sessions, health and safety is the leading subject (35%). One of the objectives for 2011 is to allow the entire personnel to follow on-line courses on this subject with a certifi cate being issued at the end.As regards training on aspects regarding corruption, almost all the managers and relevant positions attended courses regarding the model for organisation according to Leg. Decree 231/01 (which includes, inter alia, the protocols necessary to prevent corruption crimes) and all the new recruits attended training courses on the Group’s new Code of Conduct, the new version of which was approved by the Board of Directors in March 2010.In the future, this training is expected to be extended to white collar employees through on-line instruments.

Training by rank2010

5%

69%

Management

White collar

Blue collar

26%

Training by subject2010

Occupational integrationprograms

Relational training

Technical training

Foreign language training

Health and safety training

Training on D.Lgs. 231/10

Managerial training

3%

19%

15%

8%

35%

1%

19%

Average hours of trainingby rank

Blue collar

White collar

Management

2010

2009

14 14 12

84

5

72


Personnel assessment and professional developmentIn 2010, the employee assessment system was based on the use of three main key processes: the Performance Management System, the Human Resources Review and the Community Development.

• The Performance Management System – PMS provides continuous feedback to employees on their performance as well as assistance for the development of each resource within the organisation. The system identifi es the professional and managerial development targets, the training plans and the strengths and improvements of each resource involved. The PMS is used by more than 3,200 employees and is arranged into two main phases: the fi rst, which is performed at the beginning of the year, envisages for the manager and the associate to meet to discuss the performance of the previous year and set the objectives for the year in progress; subsequently, an initial formal check is carried out, during which the “business needs” are reassessed also based on the feedback received on the performance up to that moment.

• The Human Resources Review (HRR) is an annual process that involves about 800 employees and assesses professional performance with respect to the growth potential of the individual within the organisation. The results of the HR Review are presented to the managers of the Human Resource Committee with the aim of ensuring managerial continuity and suitable human capital for the current and future tasks of the Group.

• The third important development lever is the Communities, which are defi ned on the basis of the potential managerial characteristics or technical skills of the individual members and the PMS and HRR matched results. The Communities involve around 600 people and there are six of them: two based on potential, two based on managerial characteristics and two based on specialist technical skills. The six Communities group homogeneous populations for which training courses and specifi c professional growth are envisaged, which are built around the peculiarities of the single clusters.

Personnel assessment

In 2010, the performance of 70% of employees was assessed. The objective for 2011 is to reach 100%.

In 2010 the performance assessment tools continued with their review process aimed at improvement and integration towards a single system (Performance Appraisal System). The objective, among the most important for 2011, is to assess the entire employed population (approx. 5,000 people) through three separate levels (advanced, standard, basic) dedicated to specifi c company fi gures (top and senior manager, middle management, other employees).

Objective - Best Employer of Choice

Employer branding was started with the aim of further improving the international perception of the Company in the next three years, in order to enhance the brand’s attractiveness and reputation and make the Company one of the top places in Europe where people would like to work.

The Employer branding plan envisages the participation in job fairs, web publications and communication, the creation of special projects (e.g. a campus program), relations with the leading Universities and Business Schools.

Another initiative being developed to improve the professional and organisational development is the creation of a new system for the monitoring and the assessment of Company positions: tools are being implemented that measure and classify the weight of the single organisational position based on certain parameters (such as possessed skills and knowledge, number of people managed, etc.); furthermore, processes of homogenisation of the job titles and the profi les and tasks related to them are being carried out in every country where Indesit works. The results obtained with the abovementioned activities will be useful also in the recruitment phase.


Communication activitiesIndesit Company has implemented some internal communication processes based on interactive, dynamic and transnational systems that are able to involve personnel coming from very different geographical and cultural contexts.Among the main tools used: the Insight portal, the house organ Flashnews, the WebTV and the Communication campaigns. The integrated use of these tools is aimed at reaching objectives such as:

• raise internal awareness of the Company’s reputation; • strengthen the visibility and perception of the personnel in managing the human resources, their

development and information activities; • contribute to the knowledge of the personnel about company strategies;• increase the value proposition of the Employer Image by improving the perception of its products.

Indesit Web TV Channel

Indesit WebTV Channel is another important tool to involve personnel which requires large number of skills to be joined together in terms of technologies, communication, personnel and cost management, know-how, pro-activity and team working.

The project constitutes a unique opportunity to better understand the products, services and internal initiatives.

A year of Insight

In 2010 the Insight portal celebrated a year of successful active personnel participation. During the year, were launched some new features for the portal.

Insight was set up with the aim of developing a common Company identity and contribute to distributing Group value and it represents the main channel of internal communication, inspired by the principles of the social network, offering a wide range of cooperation tools designed to encourage new social approaches in the working environment.

RemunerationIndesit Company has always invested in the economic and personal wellbeing of its employees, offering competitive wages and salaries and all the conditions possible to ensure equal opportunities in the Company. The fundamental principles which underlie the remuneration policy are transparency, compliance with regulations and the specifi cations in the Code of Conduct, the valorisation of the objectives achieved in a pay per performance logic, retention and motivation of a qualifi ed workforce able to create a competitive advantage and refl ect the Company’s values.The basic wages do not vary between men and women, but depend on the role and the responsibilities covered by the person, in a way to refl ect the necessary experience and skills, the level of excellence shown and the general contribution made to the business without any discrimination of race, age, religion or personal or social conditions.

In many countries, the Group’s minimum wage is defi ned by national or regional regulations or, in those without specifi c legal regulations on the subject, the wage may be defi ned by collective negotiation between representative organisations and employers.A mapping of 96% of the workforce revealed that the entrance wage of blue and white collar employees is greater than the minimum set by local legislation.

Relation between remuneration upon entry into Indesit and minimum local remuneration - 2010 Blue collar White collar

Mature markets 113% 120%

Developing markets 174% 267%

The Group also defi ned an annual incentive system based on Management By Objectives for about 4% of personnel; the incentive scheme assigned varies according to the importance of the role covered with respect to the impact on the business. The parameters of the plan are generally quantitative performance indicators; indicators on specifi c projects are rarely used and also these are measured for their economic impact on the business.


In addition to the economic aspects, among the MBOs also the aspects linked to the health and safety are included, such as the index of severity and frequency of accidents and the level of exposure to noise. Furthermore, in 2011 environmental indicators will be introduced for manufacturing activities, related to the reduction in the energy consumption, water consumption and waste production.

In 2009 Indesit introduced the Long Term Retention Plan (L-TRI Plan) with the purpose of encouraging the internal retention of a specifi c number of managers while promoting the improvement of the fi nancial and managerial results in the long term. The managers who also participate in a long term incentive plan currently represent 8% of those included in the annual incentive plan.

The variable incentive systems are structured in a way to consider the elements of sustainability in the long period. In general, the importance of the weight of the short term fi xed remuneration within the management’s overall remuneration package is such that the creation of a medium-long term value can be focused on.

BenefitsWithin the Group’s Total Rewarding Policy, a series of benefi ts complement the remuneration offer. In consideration of the specifi c elements of the labour market, the legislation and the government logics of local social protection, the benefi ts were studied with the aim of providing additional support to employees and their families.

On this point, the internal guidelines determine common elements for many employees, including part-time and temporary workers, according to the specifi c features of the reference countries: e.g. the canteen, transport or extraprofessional accident insurance service. In some cases, conventions have also been established for the use of childcare and services aiming to meet family needs.Instead, the weight of the role covered determines the participation of some categories of employees in specifi c non monetary incentive programmes such as, for example, the car and specifi c insurance coverage.

Health and safetyHealth and Safety conditions at work are crucial elements to achieve excellence in corporate activities. For this reason the Group has tools (policies, procedures, responsibilities) that protect health and safety at every facility, complying with the reference regulations of each country.

Within this management, the Health and Safety Department works to achieve the objectives of:• promotion of a strong sense of personal responsibility for the company health and safety policies;• guarantee of a centralised governance of the entire Group on applicable regulatory developments;• development of a system to manage health and safety issues;• functional coordination guarantee among all the bodies operating in this fi eld;• implementation of environmental policies in close cooperation with the Environmental Department.

In order to continuously improve and govern the aspects linked to health and safety, about 30 parameters identifi ed on the subject are monitored each month and constitute an integral part of the review processes.In 2010 this strong commitment was strengthen with the extension of the OHSAS 18001 certifi cate to 35 sites of the Group (12 more than in 2009). In addition, the performance of the health and safety level improvement plans was monitored through a three year audit of the plan: in 2010 15 new facilities were monitored according to the set verifi cation procedures.The other activities carried out had the aim of: training on specifi c areas in order to improve risk management, the health and safety problem management in the logistics and service fi elds, the reduction of risks associated to professional illness and the removal of asbestos from the sites.In particular, concerning the prevention of professional illnesses and the elimination of risk factors, at each Group site a noise reduction project was started to contain the noise level below 85 decibels in all the areas by 2011. Over the year the commitment of the dedicated noise teams and specialists reduced by 80% the number of workstations with noise levels greater than the identifi ed limit.Always in 2010, a programme was started to remove asbestos from all the Indesit sites within two years. The project, managed through daily environmental monitoring and with the aid of independent Health and Safety Coordinators, in 2010 invested more than 8 million euro and concerned an area of more than 220,000 msq (a surface equalling approx. 30 football pitches): all the activities were managed without discontinuing site operations.


Finally, to minimise the possibility of accidents, Indesit Company, as well as introducing solutions based on the ex-post monitoring of the performance obtained over the year, always applies a preventive logic in order to identify those hazardous situations that may facilitate the occurrence of accidents and the areas of the sites where these may be generated.

The performance attainedDuring 2010, each area of the industrial and non industrial sector monitored the trend of accidents and their causes. The main results of this monitoring were as follows:

• in the industrial sector, the frequency index decreased by 18%. Also the gravity index decreased, though to a lesser extent (5%);

• in logistics and service, the frequency index signalled an improvement of about 10%, while the gravity index remained unchanged.

Industrial sector - Accident index by geographic areaFrequency index - industrial sector 2010 2009 2008Italy 8.02 7.30 11.30

Poland 3.67 6.70 29.40

Russia and UK 1.18 1.50 1.80

Total 4.41 5.40 11.70

Severity index - industrial sector 2010 2009 2008Italy 0.29 0.23 0.34

Poland 0.15 0.21 0.35

Russia and UK 0.09 0.12 0.08

Total 0.18 0.19 0.24

Non industrial sector - Accident index by geographic areaFrequency index - non industrial sector 2010 2009 2008Total 10.3 11.4 n.d.

Severity index - non industrial sector 2010 2009 2008Total 0.47 0.47 n.d.

Note: it is specifi ed that the indexes only consider the accidents that caused more than 3 days of lost work.Note: the data collected derives directly from the OHSAS 18001 certifi cate company monitoring system.Note: number of accidents in year/number of hours worked in year x 1,000,000.Note: number of days absence due to accident in year/number of hours in year x 1.000.

Italy

Poland

Russia and UK

Industrial sector:accidents by geographic area 2010

9%

23%

68%


Concerning the monitoring of the causes that generate or may generate accidents, it emerged that the main reasons for the events that led to the accident or created situations of possible accident (near misses) were the incorrect use of equipment and system and behavioural aspects. During 2010 a” behavioural survey” was carried out involving 180 resources from fi ve different countries belonging to key safety positions: Employers, Managers, Persons in charge, Worker Representatives (RLS) and the person responsible for the prevention and protection service to compare different points of view and the different assessments on how the various safety aspects are managed in Indesit. The results let us draw a rich and interesting picture, allowing the activation of a series of development activities mainly pertaining to communication and behaviour.Indesit Company also pays constant attention to the risk factors that may lead to professional illnesses, activating projects aiming to eliminate or reduce them: the noise reduction initiatives and the elimination of asbestos are two notable examples.During 2010 the rate of professional illness (calculated as the total number of cases of professional illness/total number of hours worked x 200,000) equalled 0.09.

Poland: the Radomsko plant records no accidents for the second years running

Health and Safety Award In 2010 Indesit Company established the “Health and Safety Award” to award plants which stood out

in terms accident frequency and severity. The Radomsko plant (dishwashers) won the fi rst award for not having recorded any accident in 2009

and 2010. The plants of Radomsko (washing-machines) and None reached second and third place, respectively.

Of the total absences recorded in 2010, only 2% concerned accidents, while most of the lost hours concerned sickness (47%) and paid meetings/permits (39%). The employees on parental leave correspond to 2% of employees.

Note: data expressed in hours and concerning 99% of the population.

Severity index

Severity index - industrial sector

Severity Index - non industrial sector

0.47

0.19

0.47

0.18

2009 2010

Frequency index

Frequency Index - industrial sector

Frequency Index - non industrial sector

5.40

11.4

4.41

10.3

2009 2010

Illness

Accident

Strike

Meetings and paid permits

Unpaid permits

Absences by type 2010

47%

39%

11%

2%1%


Health and safety trainingEach Group site is obliged to devise a training plan on health and safety issues based on the content of the Management System adopted.In total, in 2010 more than 38,000 hours of health and safety training were provided to approx. 8,000 Group employees (25% more people than 2009). The reduction in training hours compared to 2009 (amounting to approx. 72,000) is fi rstly due to the intense training activity carried out in 2009 following the implementation of the OHSAS 18001 management system.Training activities were performed in compliance with the regulations in force in the various countries where the Group works and the requirements established by OHSAS 18001, especially concentrating on the following aspects:

• risk assessment;• awareness of the specifi c risks of the site;• personal protection equipment;• fi rst aid;• forklift trucks;• health and safety aspects for managers;• auditor training;• training of new employees.

Spreading a culture of health and safety outside work, involving and raising awareness among employees’ families and the communities that are close to the Company’s situation through initiatives where employees’ families and local schools take part are all very important factors for Indesit.The Children for Safety project implemented in the Polish sites of Łodz and Radomsko, for example, allowed employees’ families to participate in plant visits; as part of the programme, young people were involved in some games and were photographed wearing accident protection equipment; the best pictures were printed on posters and used for the safety campaign within the plants.In the UK local schools were involved: after some lessons on prevention, the children created pictures and slogans and then displayed them in the plant. In Turkey, a day of games and prizes was dedicated to families and their children to increase awareness on health and safety in the workplace, while in Russia an awareness campaign was organised on the risks in the various points of the plant with the aid of posters and photographs by the employee’s children.

Committees for health and safetyCommittees for health and safety were established at a local level according to the provisions of the Indesit Health and Safety in the Workplace Management System (SGSSL).They constitute a body with decision-making powers that operates at individual site level with the task of promoting health and safety condition improvement programmes for all the workers and approving the results of the local management of the SGSSL. These committees fully represent all the employees who work at the site: the Legal representative for the Site’s Health and Safety aspects (employer), managers, work representatives, Human Resource managers and the various operating departments, offi ces and laboratories as well as the Manager of the Prevention and Protection Service are all involved. The tasks of the committee are defi ned in a specifi c SGSSL procedure that also sets the minimum frequency of meetings. This frequency is quarterly, but in some cases the organisations meet the committee on a monthly basis.


Relations with trade unionsIndesit Company has structured an industrial relation system aiming to maintain correct and transparent relations with employees, which are all covered by collective Group or company agreements, and with the trade union bodies.Indesit respects the indications provided for by law and contained in national and international agreements concerning organisational changes. In case of company transfers, in addition to the minimum notice set by Italian law, to be given in writing to the trade union representatives at least 25 days beforehand and containing the reasons for the company transfer and the juridical, economic and social consequences for the workers, the Company starts talks with the trade unions well in advance in order to identify the best solution possible. In any case, the Group works in compliance with local regulations and the signed trade union agreements.In advance compared to the reception of Directive 45/94/CE by Italian law, Indesit has established the European Company Committee (CAE), where also the worker representatives from countries that are not part of the European Union take part (Russia and Turkey).The Committee’s regulations, as part of the trade union information and consultation issues, also cover fundamental changes concerning the organisation, the introduction of new working methods and new production processes that signifi cantly affect the Group as a whole, as well as the reduction of the dimensions or closure, production transfers, mergers with companies or production units that have an important employment impact with transnational repercussions.In case of plant closure, the Group activates a Redundancy Management model that envisages a series of initiatives in favour of the employees involved, ranging from job training activities (training or consultancy aiming at outplacement) to direct incentives, granting of contributions to companies that hire Group employees.An example of application of this philosophy to manage relations with trade unions and workers lies in the complex management of the joined production plants in Italy at the end of 2010.

The social responsibility in the reorganization of production

Just as for the experience of the Kimmel Park plant in the UK, which ended with in the reemployment of 90% of the people concerned by the reorganisation, following the decision to divest the Italian sites of Brembate and Refrontolo, in December 2010 Indesit reached an agreement with the Ministry of Economic Development, the local bodies, the industrial unions and trade union representatives to start the fi rst experience in Italy of a policy to relocate 510 workers working in the two plants. The agreement, in addition to investments for 120 million euro allocated to innovation and development projects in Italy, focuses on the creation of regional technical committees established for there-industrialisation and replacement of the personnel with a view to protecting the employmentand professionalism of the workers from the closed production sites.

The effectiveness of the operation, though still underway, is shown by the hundreds of employment offers received by the Company: these offers are selected and then published in the notice boards of the plants. Furthermore, among the conditions agreed with the trade unions, there is the vicinity of the site where work is offered and an entry level that is in line with the professional path of the worker.

With reference to the plan, between relocation and re-industrialisation, an interest was shown for about 330 workers.

Indesit Company has good industrial relations, consolidated by the sharing of, involvement and participation of employees in corporate choices, in a way to ensure a healthy company climate and avoid confl ict with employees.During 2010 a decrease in the total strike hours was recorded, Company strikes in particular.

Strike hours and rates* 2010 2009 2008Strike hours 33,720 35,054 23,069

– national strikes 13,761 7,818 21,744

– company strikes 19,959 27,236 1,325

* Figures refer to Italy only.


For the sake of complete information, it is worth noting that during 2010, 72 court cases were started with employees. The increase compared to the previous years is linked above all to the greater number of disputes for work relations.

Disputes with employees by subject* 2010 2009 2008Professional level/tasks/contributions 19 15 9

Biological, moral, professional illness, accident damage 16 14 10

Disciplinary procedures, redundancy, damage from redundancy, reintegration at work 7 8 5

Work relations 30 11 10

Total 72 48 34

* Figures refer to Italy only.

Respect of human rightsThe entire responsible internationalisation and globalization process of Indesit Company is driven by the awareness of its effect on the wellbeing of the communities in which the Company works. This responsibility means respecting the fundamental employment standards established by the International Labour Organization and the conditions necessary to protect the natural environment.In 2001, Indesit Company was the fi rst company to sign an agreement with the trade union organisations FIM/CISL, FIOM/CGIL and UIL/UILM and with the Federazione Internazionale Sindacati Metalmeccanici, undertaking to respect fundamental human rights and the principles established by some of the main ILO conventions, in all its plants.The international framework agreement envisages a commitment by the Group to have its direct suppliers adopt these principles; each year the trade union representatives who signed the agreement are provided with a list of the top three hundred suppliers. In this fi eld, Indesit Company sends all its new suppliers its Code of Conduct that contains the principles listed above, asking them to sign it.In particular, as part of the conventions on the elimination of child labour and forced labour, the Group undertook, towards the signing trade union organizations, to:

• promptly intervene to remove any situations of non conformity, through monitoring and control systems implemented by the National Joint Commission envisaged by the company agreements;

• impose sanctions towards those suppliers whose conduct damages the principles contained in the conventions on child and forced labour, in order to obtain, for the worst cases, the withdrawal from the contract;

• monitor the compliance of the principles set in the Group’s production units.

The respect for workers’ rights The respect for workers’ rights

In 2001 Indesit Company signed an agreement with the trade unions, envisaging the observance and implementation of the following ILO conventions:

• no. 182 – prevent child labour; • no. 29 – no form of forced labour, slave labour or involuntary work; • no. 138 – not allow children under 15 years of age or younger than the compulsory school age in

force in the countries concerned, to be admitted to employment; • no. 87 – encourage trade union freedom; • no. 98 - encourage the right of workers and employers to freely and independently negotiate

agreements of a defi nite and indefi nite duration; • no. 111 – not to discriminate based on race, religion, political opinion, social origin; • no. 100 – equal remuneration for men and women workers for work of equal value; • no. 135 - not to discriminate or intimidate worker representatives.


Relations with customers

A combination of quality and innovation to satisfycustomers’ needsIndesit Company has always considered innovation as a priority for development, to create value and to achieve sustainable growth. It concerns the entire product life cycle: environmental care, ease of use, ergonomics, fl exibility and design are all factors driving the development of new products. Each year the Group allocates about one third of its investments to research and development, relying on an open innovation model that includes suppliers, manufacturers of goods correlated to electric household appliances, Italian and international Universities and Research Centres, to develop innovative technologies and processes.Indesit’s commitment to continuous innovation is confi rmed by the growing rate of fi led patents, which stands at around 30% a year.

“Companies for Innovation 2010” award

Indesit Company received the award in the Large Company category “for the systematic and integrated management of innovation, successfully being used as a competitive lever to improve quality and customer satisfaction”.

To ensure the quality and safety of its products, Indesit pays the utmost care to all the regulations governing the sector and the whole production chain.In particular:

• prior to entering the production phases, all the products must obtain the Quality and Safety certifi cate issued by international bodies;

• for the whole production cycle, automatic controls are performed on electric and gas circuits, in a way to immediately fi lter and correct any defect and thus obtain the issue of the safety certifi cate for 100% of the products;

• prior to placement on the market, surveys on sample products are carried out through a series of checks, including those concerning product safety (CSQ). In addition, inside the plants, suitable areas are available for early failure trials, aiming to check the correct operation of the product for a simulated life of about 1 month, and reliability trials, aiming to simulate the operation for a period equal to 3-5 years, through continuous cycle tests that last around 12 weeks.

For particularly innovative projects, Indesit specifi cally analyses the safety of the project through the “Safety FMEA” technique where all the phases of the product life cycle are analysed in order to make sure that no hazardous situations or conditions for people are present. Only if this analysis is successful is the production release issued.

• Progressive renewal of CRM (Customer Relationship Management) systems with the purpose of simplifying customer management and further integrate company processes.

Establishment of a new call center in Portugal and broader coverage area in the Ukraine and Poland.

Assessment survey for call centers in the main countries where the Group works.

Organisational actions to improve technical assistance.

• Continuation of the country coverage plan through professional call centers and additional ease in websearch.

• Facilitation of independent understanding and problem-solving by customers through the continuous updating of the information available on the websites.

• Availability of technicians and ever more innovative user communication tools.


2009

201

0

2011


In 2008 the Group started the “Fifty Project” with the objective of constantly improving quality. The project is arranged into two areas: Fifty Service, which aims to improve the effi ciency of the Corporate Service, and Fifty Product, which is aimed at improving the overall quality of the products. The improvement plan, which starts with the identifi cation of the critical aspects of the processes that affect product quality, gave impressive results: in 2010, compared to the previous year, an average reduction equal to 7% was recorded in the fault level of all the products. This percentage rose to 12% for washing machines, which the output of the Fifty project was fi rst applied to. To obtain these results, 14 projects were defi ned, which affect 6 corporate processes: Product Development, Process Control, Traceability, Discontinuity Management, Service Processes and Continuous Improvement.

Ambient Assisted Living Vision: FOOD Project

Indesit Company is developing the “Food Project” to Ambient Assisted Living Vision and “Design for all” criteria. The aim is to defi ne and develop systems of connection (including the internet) and domestic appliances (especially in the kitchen) that are easy to use for people with motorial problems (such as the old and disabled).

The project is being conducted in collaboration with various government agencies and universities and other research organizations (national and international) and will cost around 3.3 million euro over the next three years. It will also enjoy synergy with the main traditional technologies (eg. smart energy) to produce high value-added services.

Relations with dealers and end usersThe Group continues to develop cooperation projects with the dealers, who constitute the fi rst point of contact between Indesit Company and the end user. A transparent sales policy was adopted towards them to create long standing relations, achieve prompt problem-solving techniques and fi rst class professionalism. The Group, in addition to meeting distributors at leading industry fairs, organises events that focus on dealers in the individual markets where they are.The quality of the relations with dealers is fundamental also to identify and remedy any risks for the health and safety of end users, implementing recovery actions for faulty products to be activated in every market: all the products are traceable to a certain production batch, allowing us to quickly intervene on any quality issues. Through the information material provided with the products, Indesit Company also supplies useful information on correct use, precautions to take and tips for best performance. In order to ease the customers’ product selection process, all the household appliances are fi tted with energy labels containing information to guide customers thought the purchase.

Post-sales customer careIndesit Company has direct contact with the end users of its products through various channels, ranging from web sites and call centers to customer care services. In this fi eld, the Group adopts a management policy aimed at ensuring a directing contact between the company and the consumer.In the awareness that the Group’s post sales service provides more in-depth support to customers that a generic service or a distributor, Indesit has developed an effi cient post sales assistance system, both for the contact phase with the customer and for the technical assistance phase.

Call center activities in 2010

• 6 million calls received (data referred to Italy, UK, Holland, France, Hungary, the Czech Republic, Portugal and Slovakia)

• 95% of calls answered (over total inbound calls) • 70% of calls in 15 seconds (excluding the initial message) • 16% call avoidance (customers who do not call back within 7 days)


In addition to setting up a new call center in Portugal and enhancing the coverage area of those already existing in the Ukraine and Poland, in 2010 the Group began a detailed survey on the real appreciation customers have for the main call centers (Italy, UK and France) and a benchmark through the Center for Customer-Driven Quality at Purdue University, Indiana (USA). These assessments showed that, despite the signifi cant differences found, the performance in terms of effectiveness and effi cacy is at the maximum level in the industry.

Concerning the solution of the problems raised by customers, the Group continued to invest in call avoidance, i.e. solving the problems raised by customers directly through the support of the call center personnel via telephone, thus avoiding sending a technician to the customer’s home. This process was made possible by the adoption, in each country with a call center, of a problem-solving platform developed according to a fault-and-solution tree logic. The same logic was used to develop the section of the company site focusing on fast problem-solving.

With the aim of offering a constantly improved service, actions were started for the development of internal skills, which was made possible by the new skill mapping tools, and the organisation, featuring the following new elements:

• the rationalisation of the structure of the assistance centres in almost every country, with the purpose of maximising the focus of technicians on the Indesit Company’s customers;

• the opening of a new centre directly managed by Indesit for the area of Turin;• the moving, in France, from the direct management of 50% of customers to more than 90%, by

developing a technical assistance network directly managed and coordinated by the Group with the possibility of obtaining information in real time on faults, solutions, technical designs and spare part availability.

Dialogue and communication activitiesEvery year since 2002 Indesit Company has analysed the customers’ level of satisfaction with the call center service and post-sales technical assistance.Customer satisfaction and customer loyalty are monitored on monthly basis in 16 markets where the Group has a technical assistance network, through the assessment of the main factors infl uencing customer relations:

• the contact phase, where the customer calls the Indesit technical assistance service;• the technical intervention phase, when the technician works at the customer’s home.

In 2010 the results of the survey, based on 56,000 telephone interviews, were positive, reaching a score of 79/100 for both phases. This is a very good score according to the research company which conducted the benchmark.

Consumer remarks to top management

A section dedicated to contacts with the top management has been available on the Indesit Company Corporate site since 2009, thus confi rming the importance given to communication and discussion with consumers. Customer remarks are considered an important contribution for continuous improvement.

Together with the survey concerning customer satisfaction, the Group constantly monitors and classifi es the complaints in all the European countries.The customer service is committed to solving customers’ issues right from the fi rst contact, which takes place via telephone, mail or letter and activates specifi c procedures to address all the issues to the company areas concerned to solve the problem with a quick turnaround. Around 90% of the complaints received are solved in less than seven days.


Note: to monitor customer satisfaction, Indesit Company uses the TRI*M methodology (TRI*M Index). This index is calculated through the weighted sum of the opinions expressed by the interviewees about the Group on 4 basic aspects of “customer acquisition”: 2 concerning “Satisfaction” and 2 concerning “Loyalty”. The exact value of the TRI*M Index is placed within a tachometer where the 3 performance bands are highlighted. All the values that fall in the green area exceeding 72 are considered positive.

Customersatisfaction

Customer loyalty

Advantage(over the other companies)

Overallsatisfaction

Customersatisfaction

Managementof word of mouth

Strength of the connection created with the customer

Recognised added value compared to the competition

Recommendability

TRI*M CALL CENTER

TRI*M ASSISTANCERepurchase/Reuse


Relations with suppliers

Quality and transparency in purchase processesIndesit’s behaviour towards the supply chain is aimed at transparency, cooperation, compliance with legal previsions, attention to its needs and caring for the environment and pays the utmost attention to establishing relations with suppliers who share the same principles in a way to ensure stable relations and the creation of a mutual advantage over time.The Group is committed to using management practises that directly and indirectly make its partners aware of the adoption of responsible behaviours.

Social responsibility when selecting partnersThe supplier selection criteria were defi ned also based on suppliers’ social and environmental responsibility policies. In line with its Code of Conduct, Indesit only establishes relations with companies that follow the regulations foreseen; among these, the observance of the rules in relations with the Public Administration, the regulations on confi dentiality and the compliance with the ILO Convention assume particular importance in spreading socially responsible practises. The Group selects its suppliers by assessing objective elements such as quality, innovation, costs and services, but also considers ethical values such as:

• respecting human rights and every legal regulation of the Countries where it works, and environmental standards in particular;

• the adoption, in conducting business relations, of a correct, transparent and loyal behaviour inspired by good faith.

* 2010 percentages based on a sample of 436 suppliers of Direct Materials.

These ethical values are expressed in the Code of Conduct, whose acquisition, reading and understanding represent an important aspect in the supplier qualifi cation process. The formalisation of this step may take place with the supplier signing the Indesit Company Code or, in case the supplier has its own code, through

• Continue the self-assessment request plan towards existing suppliers.

• Continue the plan to request the signing of the General Conditions of Supply, with the aim of obtaining the participation of the highest number of suppliers also in 2010.

121 new Self Assessments were obtained on Suppliers of Direct Materials (Components and Raw Materials), which are added to the existing ones.

32% suppliers of Direct Materials signed the General Conditions of Supply, accounting for 38% of Indesit’s turnover.

• Obtain another 100 new Self Assessments from Suppliers of Direct Materials.

• Extension of the Self Assessment tool also to Suppliers of Finished Products, Installations and Logistics.

• Obtain the signing of the CGdF by a number of suppliers representing at least 50% of Indesit’s turnover.

… we willWe said … … we did …2009

201

0

2011

Certifi ed suppliers*

ISO 9001

82% 81%73%

EMAS

1% 1% 1%

SA 8000

1% 1% 2%

OHSAS

4% 5% 5%

ISO 14001

23% 24% 22%

2010

2009

2008


a declaration of adopting principles, guidelines and internal procedures that are substantially in line with the provisions of the Group’s Code of Conduct. In any case, Indesit does not begin or continue any relation with suppliers who expressly refuse to respect these principles or that do not respect legal standards that may lead to administrative responsibilities pursuant to Leg. Decree 231/01.

During the selection process, all new suppliers are assessed on environmental (compliance with environmental regulations), ethical (compliance with the Code of Conduct) and safety-related (compliance with health and safety standards) issues through a self-assessment based on a questionnaire made available to them in the supplier section of the company website. By fi lling in the checklists, each supplier certifi es the respect of the organisational, process and technical aspects as well as the compliance of environmental and worker safety regulations and the observance of the ethical standards defi ned by Indesit.

The selection of suppliers is guided by social responsibility criteria

In 2010, 121 suppliers completed the self-assessment questionnaire on ethics, the environment and safety. These were added to those who had already responded in previous years.

In 2010 all the new suppliers fi lled in the self-assessment form for the issues of Ethics, Environment and Safety, while for the existing suppliers the plan to request the compilation of the questionnaire continued.During the supplier qualifi cation processes in 2010, no human rights issues were identifi ed.

Suppliers are obliged to respect certain quality standards, which the Group monitors through periodic direct checks carried out by the Supplier Quality department. During the audits the aspects were analysed concerning the quality of the organisation, the production processes and the compliance with the technical specifi cations requested.

Indesit awards strategic suppliers

Indesit Company assigns the “Supplier Award 2010”. Fabriano hosted the fourth edition of the convention that each year the Group dedicates to its best industrial partners. During the event, Indesit awarded the two best suppliers with the Supplier Award 2010, assigned to the companies that excel in terms of quality and environment.

Relations with suppliers and the valorisation of the local economyIndesit Company’s purchase policy is also based on the development of local suppliers, meaning those located in a strategic territorial position for the Group’s production units. The creation of a short production process has the objective of economically and socially developing the resident communities in the territories where Indesit does business, and creating a consolidated productive fabric to rely on for corporate development plans.In 2010 the value of the supply amounted to around 1.5 billion euro, almost entirely from suppliers residing in Europe.

Suppliers by geographic area

50%

Italy

48%44%

France Poland

10% 10%12%

UK

7% 5% 4%

Other EU

13%16% 17%

Outside the EU

8% 8% 9%

Turkey

5% 7%

1%1%7%

1%

Russia

6% 5% 7%

2008

2009

2010


Communication tools and dialogue with suppliersIndesit Company uses various cooperation tools to maintain a transparent and long-standing relationship with its partners.The Suppliers section on the institutional site www.indesitcompany.com was enhanced to increase the quality of information and make browsing more simple and intuitive. In particular, the steps and requirements were explained for a potential supplier to apply, and the process fl ow and some supporting documents were published. Furthermore, the “Legal notes” page was implemented where, in addition to the Code of Conduct, also the information on privacy and information regarding the model for organisation according to Leg. Decree 231/2001 adopted by Indesit S.p.A. will be attached.In 2010 the Supplier Collaboration Portal was also implemented, as a web portal where the Group exchanges all data and information with its suppliers.Suppliers may directly access and use various on-line services in real time (e.g., mandatory delivery programmes and forecasts, forwarding of shipment bills, checking the status of invoices, etc.) with a clear benefi t in terms of effi ciency of the processes, speed and reliability of the data exchanged.Over the last two years, Indesit has invested a great deal of energy and resources in this project and at the end of 2010 the important objective of migrating suppliers equal to 70% of its turnover on the portal was reached.The positive feedback from the various suppliers already activated clearly confi rms the correct policy of continuously investing in tools of this type also in coming years.

The REACH Portal for suppliers

Following the European REACH (Registration, Evaluation, Authorisation of Chemicals) regulations, Indesit Company has defi ned an action plan that envisages the complete assessment of the substances used in the processes and the implementation of an information exchange system with suppliers of materials containing substances subject to Reach. Thus for this area the following was arranged:

• the REACH Portal (as a development of the Suppliers Portal that has been available for years and is accessible to Suppliers via the internet);

• an email address ([email protected]) to receive answers from experts on the regulations. The Portal is used to inform suppliers of the publication of a new SVHC (Substances of Very High

Concern) list and invite them to declare the presence of these substances in their products. Based on the information received, Indesit Company intervenes to make sure that all the activities and actions required by the Regulations are complied with.

Indesit Company has also established a permanent work group which deals with the management of all the operational aspects and created a “REACH” Intranet section, managed by the REACH work team which facilitates the exchange of internal information and documents.


Indesit Company shares with the territory and communities where it works, an approach founded on respect and correctness in the relationship with institutions and the civil society. These links provide opportunities of mutual development while highlighting the social needs that need to be dealt with and to which commitment and resources must be dedicated. Supporting the territory through social initiatives, transferring best sustainability practises to citizens and communicating with other companies are activities of certain interest for Indesit, which considers social responsibility as an integral part of its mission, values and strategies.Reported below are some of the initiatives of 2010.

The Jonathan Project in 2010Indesit Company continues to support the Jonathan project, established 12 years ago in cooperation with the Associazione Jonathan Onlus, with the aim of reintegrating young people with social problems and a criminal record back into society through the use of innovative and educational tools.

In 2010 the project continued in various directions:

In PolandThe Project was extended with different methods also to the Group plants in Lodz, Poland, with the involvement of the Polish Ministry of Justice and the Fondazione Ja and Małgosia, active in reintegrating youths back in to society, and the support of the Municipality and the Italian Embassy. The programme is founded on two important elements: a specialised training programme at the plants in order to allow young people to fi nd a job; and the use of sport as a recreational activity and a useful tool to motivate and stimulate the same young people in their free time.

The Regata dei tre GolfiSailing becomes a development tool to rediscover the values of discipline, respect for the rules, living in a society and personal responsibility in the name of solidarity.Participation in the Regatta, which was held in May with the departure of a considerable fl eet and a nonstop route, for the young people of the Jonathan Communities has meant greater cooperation, self confi dence in facing every diffi culty and overcoming fear, getting to know themselves, a sense of belonging and responsibility towards a team, following the rules of conduct and respecting roles, passion for boats and the discovery of working activities connected to them.This experience inspired the book “Il viaggio. Quando le api vanno a vela…” by S. Ricciardi and V. Morgera, which reports part of the written and photographed material collected during the sailing experience of 2010.

I giorni buoniThe documentary by the director Andrea Barzini, created with contributions from the Province of Naples and Indesit Company, opens a window onto a world unknown to many and gives a blunt picture of the daily life of many young people who live at the margins of society: told are the stories of young people subject to precautionary measures in the communities managed by the NPO Associazione Jonathan onlus and the recounts of those who, in different ways, work for the project every day. I buoni giorni won the 3rd Naples Human Rights Cinema Festival for the section “Naples past, present and … future?”.

The community and the territory

• Initiation of the procedures to extend the Jonathan project also to Poland and the UK by involving the Ministry and non profit organisations active in youth reintegration into society.

The Jonathan Project was also extended to Poland, with the involvement of the Polish Justice Ministry and the Fondazione Jas and Małgosia, active in reintegrating youths back into society, the support of the Municipality and the Italian Embassy.

• The Jonathan project will continue with the participation in the Regata dei Tre Golfi 2011.

• Within the CRESCO project, Indesit will play an active role in the training activities of the Municipalities involved in the initiative.


2009

201

0

2011


Support for the areas hit by natural calamitiesIndesit supports the towns in Veneto that were hit by the fl ood of autumn 2010 by donating household appliances to some families in the region and through considerable assistance in purchasing new appliances and repairs, in terms of labour and spare parts.Also abroad, the Group assisted with a donation of household appliance the humanitarian organisation “Habitat of Humanity”, which created a project aimed at families hit by the disastrous fl ood of Dorohoi in northern Romania. The intervention of the association not only envisages the reconstruction of the houses affected, but also includes technical assistance and support through the distribution of useful materials and tools for the reconstruction works.

Supporting equal opportunities in RussiaIndesit led the way in starting charity projects in favour of two humanitarian organisations at Lipetsk: “Belaya Trost”, which assists the blind, and the “Russian Diabetes Association”, which helps diabetic children and adults. Some of the most innovative products of the Group were delivered to the people with serious health problems and diffi cult living conditions.The prize received as Best Company in the Lipetsk Region shows the effectiveness of the social commitment of the company.

Tennis4CambridgeshireIndesit also works on sports, aware of the social and educational importance that sport covers in society. The company participated in the promotion and sponsorship of “Tennis4Cambridgeshire” and in a partnership that allowed children aged 5 to 10 to play tennis with the support of professional trainers inside their school. The initiative ended with an interschool competition held in July.

CRESCO ProjectTogether with another 22 companies, Indesit participates in the CRESCO Crescita Compatibile project, promoted by the Fondazione Sodalitas and created in synergy with the Polytechnic of Milan with the contribution of the Lombardy Regional board. The initiative aims to create a network of towns, the so-called CRESCO Islands, to build an alliance in the territory among local administrations, companies and citizens to implement sustainable public policies and create models to be replicated. There are three fundamental aspects which the project focuses on: energy, water, waste, recycling and disposal, sustainable mobility. On these subjects the companies, in cooperation with the local administrators, undertake to make citizens and students aware of the adoption of a daily conduct that truly contributes to the intelligent use of the natural resources and the reduction of the environmental impact.

Clean up: think clean to live betterIndesit Company participated in the Clean up project, a show dedicated to recycling and protecting the environment organised by Ecodom. A multimedia trip inside the world of the WEEE (Waste from Electrical and Electronic Equipment), to get to know the life cycle of the household appliances that are part of our daily lives: from washing-machines to refrigerators, from dish-washers to computers, from ovens to microwaves and mobile phones.Waste becomes the leading actors in a show for schools: an educational project to make young people aware of protecting the environment and the importance of a correct disposal process.


ENVIRONMENTAL PERFORMANCE


Sustainability of products

• Continue the development of the high energy efficiency product range (refrigerators, freezers, cooking hobs and burners, tumble dryers and washing-machines).

In all the business lines (cold, cooking andwash/dry), innovative products have been developed, which are more efficient and eco-friendly.

• Monitor the environmental impact of the product range in use.

• Development of new energy efficiency products:

– extension of the product range with class A models;

– development of the temperature manager of the containers, which only uses the energy necessary for the set cooking.

• Development of the LUCE ecological oven.

… we willWe said …

2009

201

0

2011

… we did …

Sustainability of processes

• Complete the certifi cation of all the plants of environmental importance by 2010.

• Reach the following quantitative objectives of environmental nature:

-3% of electricity consumption;

-2% of gas consumption; -3% of water consumption; -5% of CO2 emissions into

the atmosphere.• Restore the flow via rail

between Italy and the UK.

100% of plants of environmental importance are certified according to ISO 14001.

Environmental indicators reached the following results:

-4% of electricity consumption per piece manufactured;

-8% of methane consumption per piece manufactured;

-9% of water consumption per piece manufactured;

-19% of CO2 emissions per piece manufactured.

The flow via rail for shipments to the UK was not restored due to the unprofitability of the service, also as a consequence of the unsuitable infrastructure.

• Reach the following quantitative objectives of environmental nature:

-2.3% of electricity consumption per piece manufactured;

-3% of CO2 emissions per piece manufactured;

-3% of water consumption per piece manufactured;

-2.6% of waste production per piece manufactured;

-1.2% of CO2 emissions derinving from the manufacturing of one piece and its utilization for the fi rst year.

• Extension of the ISO 14001 certification to non production sites.

• Integration of the quality, environmental and safety management systems.

• Integrated and multisite third party audit.

… we willWe said …2009

201

0

2011

… we did …


Innovation and protecting the environmentIndesit Company has consolidated an environmental culture that it shares with its stakeholders, in the absolute conviction that respecting the environment is not only a fundamental value but a strategic factor of competitiveness and sustainability in the business model.

The Group has adopted an approach to managing environmental impacts generated along the entire life cycle of the household appliances, from design up to the end of the product’s life.

Environmental challenges underlying innovationFor Indesit Company innovation in favour of the environment has always been a priority for development, to create value and achieve sustainable growth. The output of this commitment has been acknowledged over time also through prestigious international awards.

An area of great development in the environmental fi eld is the search for solutions for domestic automation, a recent evolution of the eco sustainable route of products started some time ago with the launch of the fi rst digital washing-machine able to connect to the network and with the development of the smart tag technology, thanks to which washing-machines and refrigerators apply the most suitable treatment based on the type of wash or food. Many of these innovative functions have bought signifi cant reductions in water and energy consumption: the washing-machines and dish-washers of the new platform will consume, in the average 15 years of life, more than 60% less energy that those of the old platform, and refrigerators 75% less.

Intelligent household appliances on the Green train of Legambiente

Indesit Company and its intelligent household appliances are also on the Green train of Legambiente, where visitors discover environmental problems, and especially their solutions. In the third carriage the ecological house of the future consists of a system of household appliances interconnected one to the other and to the internet to contribute to the reduced and optimised use of green energy: this is the functional principle of Green@home.

Inside the house you will also fi nd eco-tips given by the Group to explain to the consumer the best way to use the household appliances to save energy and other resources and cut bills.

The ecosustainable management

of the life cycle of household appliances

Raw materialsand supply

Innovationand design

Eco-friendly production processes

Disposal and recycling

Awareness and promotion of care for

the environment

Logistics

Use and consumption reduction


As a member of the ZigBee Alliance, the international organisation consisting of more than 250 companies dedicated to the development and implementation of the standard for wireless connectivity, Indesit took another step forward to absorb and contribute to defi ne the most suitable protocol to guarantee interoperability among household appliances and other devices created by different manufacturers. More generally, the continuous commitment to research and development led the Group to use more smart technology inside its products: today the electronic range is equal to 70% of the entire household appliance production.

Within the smart grids, in 2010 Indesit developed a series of important projects in the main countries where is works. In the UK, for example, in recent years the fi rst domestic test has started to be carried out on large scale intelligent refrigerators fi tted with DDC (Dynamic Demand Control) technology that allows consumption to be adjusted on the basis of the energetic availability of the network, thus directly contributing to the balance between energy supply and demand and indirectly to a reduction in the emissions of CO2. With the project, which involves a team of about 30 people with an investment of more than 1 million euro only in the fi rst experimental phase, Indesit intended to check the effectiveness of the DDC technology through the installation and monitoring of 1,200 refrigerators fi tted with this technology at as many English families.Based on the initial results collected, it is estimated that, should this initiative be extended to all English refrigerators/freezers, an annual reduction of more than 2 million tons of CO2 could be achieved.

With the Energy@home project, Indesit Company developed a system consisting of the best last generation household appliances which, through refi ned software installed experimentally, are interconnected wirelessly and to the Internet via a gateway. These connections allow, through a continuous exchange of information between the household appliances and the applications available on the Internet, “remote” coordination and functional logics of operation to be achieved.Household appliances will provide users also with data on their electric consumption at any time of operation and will be able to adjust themselves to avoid overloads of the energy requested at home; furthermore, they will help users choose the type of cycle, providing information on the related cost as well as an ecological score from 1 to 10, also in order to educate consumers in making a knowledgeable use of their products.The system will advise the user on the time when it is best to start the appliance according to energy prices, and on the times when there is more renewable energy or CO2 free energy available.

HomeLab: the house of future

To seize the opportunities offered by the recent evolutions in the sector of domestic environments, in 2011 Indesit created the HomeLab consortia together with the other players of the household line (Ariston Thermo Group, Loccioni Group, SPE, Guzzini, Elica, MR&D) and the Polytechnic University Institute of the Marches in order to develop strategies and technologies for the creation of effi cient houses with a lower environmental impact.

The reduction of consumption and the environmental impact of productsOne of Indesit’s main objectives is to create highly energy effi cient products, in a way to contribute to the strengthening of its competitive advantage in the market and the Group’s sustainable reputation. In recent years Indesit Company, aware of the impact that the use of household appliances has on the emission of greenhouse gases and consequently on climate change (the energy impact generated by usage is actually 80% of the total impact), has defi ned a strategy based on the development of highly energy effi cient products.In 2010, Indesit continued to achieve impressive results in the high performance product mix:

• 72% of refrigerators sold belong to the A energy class or superior, 24% to classes A+ and A++;• 68% of washing-machines sold are in class A and 32% in class A+ or above;• all the dishwashers sold belong to class A at least; in 2011 Indesit Company will launch a new 10 litre

model in class A+.


The Quadrio refrigerator range was enlarged to include some class A+ models that accounted for about 20% of the total sales volumes.

The current built-in Hotpoint-Ariston freezer range has 75% A+ class codes and the remaining 25% is A class.

The launch of the new Planar Technology burner is underway across Europe: the fi rst fl at gas burner is installed on the new Scholtès cooking hobs, allowing a reduction of up to 20% in gas consumption and cooking time.

The Energy Saver system was introduced which, by intelligently combining factors such as the optimal use of water and an effective mechanical action of the drum, reduces the consumption of washing-machines by up to 70% compared to a standard cycle.

Hotpoint 7 kg class A+++ washing-machines and 9 kg class A++ washing-machines have been launched, which guarantee higher energy effi ciency with optimal washing results.

Cold

Cooking

Washing

The new 90 cm induction hob was launched. In addition to guaranteeing maximum ergonomics, it excels in respecting the environment by exploiting the energetic effi ciency of the induction. The launch, planned in the UK, was also extended to Italy and France.


Eco-efficiency in productionOne of the main areas to control environmental impacts is the productive phase. For this reason for some time now, the Group has been using various tools to control the environmental impact within its production plants, such as the environmental management system certifi cation (ISO 14001) and the energy certifi cation (EN 16001).

Green Award to virtuous plants

In 2010 Indesit Company established the “Green Award” to reward those plants that stand out for having drastically reduced water and energy consumption and waste. The fi rst and second prize were awarded to the cooking and refrigeration plants of Lodz, while the third to the washing plants in Radomsko.

Regarding the effi cient use of energy and energy savings, in 2010 the Albacina plant obtained the certifi cation according to the EN 16001 standard, which encourages the development of an energy policy that, by comparing and analysing consumption, consider useful information to put effi ciency monitoring plans into practise.

Another interesting initiative taken in 2010 was the permission to use the platforms of the car park of the Teverola-Carinaro site to create a photovoltaic plant consisting of 6,886 panels that cover about 11,500 m2 for a power equalling more than 1,546 kWp. The energy expected to be produced from this plant is about 2,000 MWh/year.

All the actions taken with regard to the effi cient use of resources have led to a reduction in 2010 of consumption per unit (i.e. per product manufactured) of water and energy consumed, with a consequent lowering of CO2 emissions per unit from 12.03 to 9.7 kg.In 2010 production activities led to the production of more 54,000 tons of waste. Also in this fi eld, the trend to decrease the quantity of waste produced per appliance was confi rmed.

Unit energy consumption (GJ/piece)0.126

10.000.130

12.030.1259.70

Emissions of CO2 units (kg/piece)

2008 2009 2010 2008 2009 2010

4.49

0.147

0.1594.19

0.151

0.1644.15

0.127

0.150

Unit abstraction and disposal of water (m3/piece) Unit product disposal (kg/piece)

2008 2009 2010 2008 2009 2010

Abstraction per product unit (m3/piece)

Discharge per product unit (m3/piece)


Indesit Company has been committed for some time to using recycled materials for the manufacture of its devices, pursuing the dual aim of reduction of the environmental impact and saving on supply costs. Based on the type of household appliance, the Group focuses on searching for solutions to replace virgin materials with recycled or recyclable materials. In many cases, positive results were obtained in terms of both process feasibility, without any problem occurring along the production line, and products’ mechanical properties.In the future, the aim could be to identify a solution to recycle the waste obtained directly during production and increase the chemical resistance of some parts, thus allowing a reduction in used materials.

Note: the percentage is calculated on the raw material used and does not include semi-fi nished materials.

The logistical processesAnother important environmental impact issue lies in the activities of transportation of the products from the production plants to the sales markets.Indesit Company’s transportation policy has always been oriented towards the search for intermodality and the implementation of effi cient logistical solutions with a reduced environment impact. Nevertheless, in 2010 objective diffi culties were found in fi nding suitable transportation services and infrastructure. This led to an additional slowdown of the programmes originally aiming to move the traffi c from the road to the rail system. Currently, about 84% of transportation is via road and 14% via sea, while only 2% is via rail or with intermodal solutions.

Transportation by mode 2010 2009 2008

Emissions from transportationby mode(tons/piece)

2010 2009 2008

Intermodal rail 1% 1% 2% Intermodal rail 7.5 11.2 n.d.

Intermodal sea 1% 2% 1% Intermodal sea 2.2 2.2 n.d.

Sea 14% 17% 14% Sea 9.1 9.1 n.d.

Train 0% 1% 4% Train 8.9 1.9 n.d.

Road 84% 79% 79% Road 5.1 4.6 n.d.

Total 100% 100% 100% Total 5.5 5.0 n.d.

The emissions from transportation generated unitary emissions of CO2 into the atmosphere equal to 5.5 tons, an increase of 9% compared to 2009.The choices made on the mixture of means within the fl eet used by the Group in 2010, instead, resulted in an additional movement towards less polluting Euro 4 vehicles.

Material recycled 2010

Materials originating from recycling

Virgin materials

Carbonsteel

Stainless steel Aluminium and aluminium alloys

6%

94%

60%

40%

95%

5%


The recovery of products and materialsIndesit’s environmental challenge is not limited to the management of the effects generated by the operation of its products; rather it concerns the entire life cycle of the product, from production to disposal.In this sense, the participation in the Ecodom consortium — Italian Consortium to Recover and Recycle household appliances — allows the pursuit of the objective of creation of an effective system of recovery and recycling of products and packaging that, if disposed of as normal waste, would discharge notables quantities of precious materials that are damaging for the environment (e.g. iron, aluminium, copper, steel, plastic and glass). In addition to creating benefi ts for the saving of raw materials, these activities allow signifi cant advantages for the environment in terms of reduction in the quantities of discharged waste and lower energy consumption and emission of greenhouse gases into the atmosphere due to disposal.The use of materials deriving from the disposal of old appliances for the creation of new products also allows Indesit Company to close the cycle of waste, giving life to the recovered materials.

Ecodom’s results in 2010

The treatment of waste collected by the consortium at a national level gave the following results: • 58,340 tons of iron • 1,655 tons of copper • 2,876 tons of aluminium • 7,500 tons of plastic

Compared to 2009, an increase of 17% was recorded over the total quantity, and emissions into the atmosphere were avoided for about 1.8 million tons of CO2. Ecodom estimates that the use of raw materials deriving from waste disposal means an energy saving of about 181 million kWh compared to what would be required to obtain the same quantity of “virgin” raw materials.

The minimisation of the consequences on the natural environment is completed with some initiatives started for the recovery of product packaging. Particularly important in this aspect was the project started in the UK, where the Group offers its customers the service of immediate collection of the materials with which the delivered products are packaged. Once collected, unlike what happened in the past, the materials are separated, treated in a specifi c way and subsequently sent to the Repackaging Area of the Raunds distribution centre, where they are used to replace damaged packaging.

The recovery of packaging in Great Britain

The project started in Great Britain allowed the recovery of: • 322 tons of polystyrene foam • 134 tons of polythene • 112 tons of cardboard • 76 tons of wood The reuse of these materials for new packaging allowed a saving of 10,000 packaging sets.

Fleet breakdown

Euro 1 e 2

Euro 3

Euro 4

Euro 5

2008 2009 2010

2% 2%

94%24%

44%

94%

24%

42%

94%

39%

31%

30%32%30%


The active role in promoting care for the environmentThe active participation in the main category associations in the countries where it works allows the Group to have constant communication with the institutions, protect the interest of the sector and monitor the evolution of the regulations in force in the countries where is works.

During 2010 Indesit played an active role within CECED for the promotion of the following initiatives:• alongside CECED Europa, in distributing and communicating the new energy label (also through the site

www.newenergylabel.com), to provide more clarity and transparency to customers, and in fi rst place to trade;

• within CECED Italia and in cooperation with AIRES (Associazione Italiana Retailer Elettrodomestici Specializzati), in starting a communication project aimed at distributors.

The European energy label is designed to provide consumers with recognisable, accurate and comparable information on the energy consumption of the household appliances, regarding their performance and basic features. This allows consumers to determine how effi cient a product is and estimate the potential reduction in energy costs.It is the same for all the household appliances of the same category. This allows consumers to easily compare the distinctive characteristics of a device, such as energy consumption, water consumption or capacity. All the information contained in the label is based on the standard test set forth by European legislation.

Indesit Company also provides suitable information on the correct use of products both in the “user manual” at the time of purchase, and in specifi c sections of the web site. All the household appliances marketed by the Group are fi tted with stickers containing information concerning health and safety during use, while in the user manuals all the provisions and precautions to be respected are shown in more detail.

Indesit’s commitment to associations

• CECED Italia, the Italian association of manufacturers of domestic and professional equipment that sets among its main objectives the contribution to raising the awareness of institutions and citizens concerning environmental protection, energy saving and consumer protection;

• Ecodom, the consortium of manufacturers of household appliances established with the purpose of avoiding the discharge of pollutants or harmful substances for the ozone and maximising the recovery of materials (steel, aluminium, copper, plastic) to be re-entered into the production processes, of which Indesit Company is the president company.


Environmental indicators

Raw materials used (tons) 2010 2009 2008Direct materials 735,226 n.d. n.d.

Steel 279,063 n.d. n.d.

Aluminium and aluminium alloys 17,892 n.d. n.d.

Paper and cardboard 7,332 n.d. n.d.

Concrete 114,388 n.d. n.d.

Ceramic 47 n.d. n.d.

Electrical components 39,431 n.d. n.d.

Glass fi bre 2,000 n.d. n.d.

Road 8,491 n.d. n.d.

Wood 13,029 n.d. n.d.

Alloys 1,035 n.d. n.d.

Plastic 150,156 n.d. n.d.

Foamed PUR 32,000 n.d. n.d.

Copper 12,704 n.d. n.d.

Electronic cards 3,579 n.d. n.d.

Enamel 2,500 n.d. n.d.

Glass 32,000 n.d. n.d.

Paints and solvents 10,000 n.d. n.d.

Other chemicals 8,414 n.d. n.d.

Other 1,165 n.d. n.d.

Auxiliary materials 20,778 n.d. n.d.

Lubricants 20,778 n.d. n.d.

Total materials used 756,004 n.d. n.d.

Materials originating from recycled material (%)

Carbon steel 6% n.d. n.d.

Stainless steel 60% n.d. n.d.

Aluminium 95% n.d. n.d.

Note: estimated data.

Energy consumption (GJ) 2010 2009 2008Methane 568,556 544,267 674,070

LPG 16,411 12,785 9,543

Diesel – 64,134 173,256

Total direct consumption 584,967 621,187 856,870

Electrical energy 701,238 654,398 840,726

– from renewable sources 29% n.d. n.d.

Thermal energy 318,269 311,360 328,882

Total indirect consumption 1,019,507 965,758 1,169,608

Total energy consumption 1,604,474 1,586,945 2,026,478

Total consumption per product unit (GJ/piece) 0.125 0.130 0.126

Electricity consumption per product unit 0.054 0.057 0.052

Methane consumption per product unit 0.043 0.047 0.042

Water abstraction (m3) 2010 2009 2008From wells or superfi cial water 1,612,944 n.d. n.d.

Public supply 336,493 n.d. n.d.

Total abstraction 1,949,437 1,889,579 2,378,144

Abstraction per product unit (m3/piece) 0.150 0.164 0.159


Water disposal (m3) 2010 2009 2008Discharged directly effl uents 1,561,751 n.d. n.d.Effl uent sent to treatment (indirectly discharged) 104,461 n.d. n.d.

Total discharge 1,666,212 1,738,105 2,203,052

Discharge per product unit (m3/piece) 0.127 0.151 0.147

Emissions of greenhouse gases 2010 2009* 2008CO2 produced (t) 126,908 138,339 149,538

CO2 per product unit (kg/piece) 9.70 12.03 10.00

Note: CO2 emissions were calculated based on electrical energy and methane consumption.

* The value for 2009 was rectifi ed following a refi nement of the calculation methodology.

Other emissions in the air (t) 2010 2009 2008NOX 34.2 n.d. n.d.

SO2 0.5 n.d. n.d.

CO 41.1 n.d. n.d.

Total dust (PTS) 5.4 n.d. n.d.

Volatile organic compounds (VOC) 104.3 n.d. n.d.

Others 7.7 n.d. n.d.

Total 193.1 n.d. n.d.

Note: Group plant estimated data.

Waste produced (t) 2010 2009** 2008Waste by type

Hazardous 2,543 n.d. n.d.

Non hazardous 51,803 n.d. n.d.

Waste by disposal method

Waste recycled internally* 18,903 n.d. n.d.

Waste recycled externally* 31,519 n.d. n.d.

Discharged waste 3,776 n.d. n.d.

Incinerated waste 53 n.d. n.d.

Energetic value 0 n.d. n.d.

Other 95 n.d. n.d.

Total waste 54,346 48,109 67,200

Waste per product unit (kg/piece) 4.15 4.19 4.49

* Production waste included.

** The value for 2009 was rectifi ed following a refi nement of the calculation methodology.


GRI CONTENT INDEX


Profi le Disclosure Pages Notes1 Strategy and analysis

1.1

Statement from the most senior decision-maker of the organization (e.g., CEO, chair, or equivalent senior position) about the relevance of sustainability to the organization and its strategy

2010>Message of the Chairman, Interview with the CEO

1.2Description of key impacts, risks, and opportunities

Total5-7, 13, 27, 31, 34, 37

2 Organizational profi le

2.1 Name of the organization Total Cover

2.2Primary brands, products and/or services

TotalIndesit Company> Brands&products

Indesit Company manufactures and sells large household appliances, under the primary brands Indesit, Hotpoint and Scholtès

2.3 Operational structure Total RF 122-123

2.4 Headquarters Total Fabriano (AN), Italy

2.5Number of countries where the organization operates

Total

Indesit owns 16 plants (14 in 2011 following the process of corporate reorganizztion) in Italy, UK, Poland, Turkey and Russia and 24 commercial sites

2.6 Nature of ownership and legal form Total CG 8

Indesit Company S.p.A. was established in 1975 by the Household appliance division of Industrie Merloni and listed on the Milan stock exchange since 1987

2.7 Markets served TotalIndesit Company website; 28, 40, AR 9-13

2.8 Scale of the reporting organization TotalIndesit Company; 14, AR 5, 16; CG 8

2.9 Signifi cant changes Total 25, AR 14

2.10 Awards received Total 2010> Awards

3 Report parameters

3.1 Reporting period Total 2

3.2 Date of most recent previous report Total 2

3.3 Reporting cycle Total 2

3.4Contact point for questions regarding the report

Total 63

3.5 Process for defi ning report content Total 8

3.6 Boundary of the Report Total 2

3.7State any specifi c limitations on the scope or boundary of the Report

Total 2

3.8Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations

Total 2

3.9Data measurement techniques and the bases of calculations

Total 2

3.10Any re-statements of information provided in earlier reports

Total 2

3.11Signifi cant changes from previous reporting periods

Total 2

3.12 Chart Total 47


Profi le Disclosure Pages Notes

3.13 Assurance Total

It is specifi ed that the Sustainability Analysis 2010 was not submitted to verifi cation by an auditing company

4Governance, commitments and engagement

4.1 Governance structure Total CG 14-20, 25, 44

4.2Indicate whether the Chair is also an executive offi cer

Total RCG 18

4.3Independent and/or non-executive members

Total CG 15, 44

4.4Mechanisms for shareholders and employees to provide recommendations

Total RCG 27-28

4.5Linkage between compensation for members of the highest governance body and organization’s performance

Total 5, 13, 20, RCG 21

4.6 Confl icts of interest Total

According to the Group’s Code of Conduct, in the section oncerning “Rules of conduct in business”, when conducting any activity, situations must always be avoided where the subjects involved in the transactions are, or may be, in a situation of confl ict of interest. Anyone working in a situation of confl ict of interest is obliged to immediately communicate it to their superior, who shall communicate to the Supervisory Body or the Compliance Offi cer the actions implemented to guarantee that the transactions take place at market prices and conditions or, if this is not possible, it is obliged to interrupt commercial relations with the counterparties. In addition to the provisions of the Code of Conduct, Indesit Company has adopted a specifi c procedure that governs the performance of the transaction with correlated parties

4.7Qualifi cations of the members of the highest governance body

Total CG 21, 39-43

4.8Mission or values, codes of conduct, and principles

Total 5-6

4.9

Procedures for overseeing the organization’s identifi cation and management of economic, environmental, and social performance

Total 5-6, 21

4.10Processes for evaluating the highest governance body’s own performance

Total CG 16-17, 19, 20

4.11How the precautionary approach or principle is addressed by the organization

Total 6, 27

4.12Externally developed, principles, or other initiatives to which the organization subscribes or endorses

Total 6-7, 26



4.13 Memberships in associations Total 43

4.14 List of stakeholder groups engaged Total 7

4.15Basis for identifi cation and selection of stakeholders

Total 7-8

4.16 Approaches to stakeholder Total 8, 20, 28-29, 33

4.17Key topics and concerns that have been raised through stakeholder engagement

Total 8, 20, 28-29, 33

Economic performance

DMA EC Information on the management Total 10-11, 34

EC1 CoreEconomic value generated and distributed

Total 10-11

It is specifi ed that for the purposes of continuity with the previous years, Indesit Company preferred to follow the methodology proposed by the Gruppo di studio del Bilancio Sociale (GBS) for the determination and distribution of the added value

EC2 CoreFinancial implications and other risks due to climate change

Total 5, 38, RF 33-34

EC3 CoreCoverage of the defi ned benefi t plan obligations

TotalRF 40, 55-56, 93-95

EC4 CoreFinancial assistance received from government

Total 11, RCG 9

EC5 AddRange of ratios of standard entry level wage compared to local minimum wage

Total 20All the Group’s operating sites are considered “signifi cant”

EC6 CoreMarket presence Policies, practices and proportion of spending on locally-based suppliers

Total 31-32

EC7 CoreLocal hiring at signifi cant locations of operation

Partial 16

EC8 CoreDevelopment investments and services provided primarily for public benefi t

Total 34-35

Social performance

DMA LA Information on the management Total 14, 21

LA1 CoreTotal workforce by employment type, employment contract, and region

Total 14-15

LA2 CoreTurnover by age group, gender, and region

Partial 16

LA3 Add

Benefi ts provided to full-time employees that are not provided to temporary or part-time employees, by major operations

Total 21

LA4 CorePercentage of employees covered by collective bargaining agreements

Total 25

LA5 CoreMinimum notice period(s) regarding signifi cant operational changes

Total 25

LA6 AddPercentage of total workforce represented in health and safety committees

Total 24

LA7 Core Rates of injury, occupational diseases Total 22-23 No fatal accidents occurred



LA8 CoreEducation, training, counselling, prevention, and risk-control programs regarding serious diseases

Total 24

LA10 Core Hours of training Total 17-18

LA11 Add

Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings

Total 17, 25

LA12 AddPercentage of employees receiving regular performance and career development reviews

Total 19

LA13 Core

Composition of employees per category according to gender, age group, minority group membership, and other indicators of diversity

Total 15-17, RCG 39-44

LA14 CoreRatio of basic salary of men to women by employee category

Partial 20

Human rights

DMA HR Information on the management Total 14, 20, 25-26, 31

HR1 CoreSignifi cant investment agreements that include human rights clauses

Partial 31

HR2 CoreSuppliers and contractors that have undergone screening on human rights

Partial 31-32

HR4 CoreIncidents of discrimination and actions taken

Total

Also in 2010, Indesit’s commitment to protect human rights made it that no episode occurred in connection with discriminatory practises or cases of violation of rights by the local communities where it works

HR5 CoreOperations in which the right to exercise freedom of association and collective bargaining may be at signifi cant risk

Total 26

HR6 CoreOperations having signifi cant risk of child labour

Total 26

HR7 CoreOperations having signifi cant risk for incidents of forced or compulsory labour

Total 26

Impacts on community

DMA SO Information on the management Total 5-7, 34

SO1 CoreManage the impacts of operations on communities

Total 25, 34

SO2 Core Monitoring risks related to corruption Total 7

SO3 CoreEmployees trained in anti-corruption policies

Total 18

SO4 CoreActions taken in response to incidents of corruption

Total

During 2010, no episodes of corruption occurred in the Group. The outcome of the verifi cation procedures activated following remarks originating from the mail box of the OdV or according to other set methods was such not to require additional actions


Profi le Disclosure Pages NotesSO5 Core Public policy positions and lobbying Total 43

SO8 CoreMonetary value and non-monetary sanctions for non-compliance with laws and regulations

–

Product responsibility

DMA PR Information on the management Total 27, 44

PR1 CoreLife cycle stages in which health and safety impacts of products and services are assessed for improvement

Total 27

PR2 Add

Incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products

Total

There were no cases of non conformity with regulations and voluntary codes regarding the impact on the health and safety of the products during their life cycle

PR3 CoreType of product and service information required by procedures

Total 27, 44

PR5 AddPractices relating to customer satisfaction, including results of surveys measuring customer satisfaction

Total 29-30

PR6 CorePrograms for adherence to laws, standards, and voluntary codes related to marketing

Partial

Regarding the conception and development of advertising campaigns and other promotional and sponsoring activities, Indesit Company pays great attention to compliance with regulations, making preventive checks of compliance with the laws in force concerning marketing and advertising

PR8 Add

Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data

TotalNo complaints were received concerning Privacy issues

PR9 CoreMonetary value for non-compliance with laws and regulations

Total

The Group did not receive any fi nes or sanctions due to non compliance with laws and regulations concerning the supply and use of products and services

Environmental performance

DMA EN Information on the management Total 38-44

EN1 Core Raw materials used Total 45-46

EN2 Core Materials used that are recycled Total 45-46

EN3Core Direct energy consumption by source Total 45-46

EN4Core Indirect energy consumption Total 45-46

EN6 AddInitiatives to provide energy-effi cient or renewable energy based products and services

Total 38-40

EN8 Core Total water withdrawal by source Total 45-46



EN11 CoreLocation and size of land adjacent to protected areas and areas of high biodiversity value

Total

Indesit Company does not own or manage plants or operating sites located within protected areas. Concerning the vicinity to protected natural areas, it is specifi ed that the Albacina plant in the town of Fabriano is located a short distance from the Regional Natural Park of Gola della Rossa e di Frasassi

EN12 CoreDescription of signifi cant impacts biodiversity

Total

The production activities carried out in the Albacina plant, located outside the natural park, do not have a signifi cant impact on the biodiversity of the area. Furthermore, the plant has an environmental management system certifi ed according to ISO 14001 and respects all the environmental regulations in force. In particular, the production process does not generate potentially damaging atmospheric emissions for the fl ora and fauna of the park, or the discharge of waste water having qualities (including turbidity and temperature parameters) such to compromise the normal biological cycles of the receiving water bodies

EN16 CoreTotal direct and indirect greenhouse gas emissions

Total 45-46

EN17 CoreOther indirect greenhouse gas emissions by weight

Total 42-43

EN19 CoreEmissions of ozone-depleting substances by weight

Total

During 2010 no leaks of harmful substances for the ozone were recorded in the Group plants and offi ces. The conditioning plants in the offi ces and work places are run by applying the environmental management systems adopted by Indesit Company, which provide for periodic monitoring and maintenance activities aiming to prevent any leakage of harmful substances for the ozone

EN20 Core Other air emissions Total 45-46

EN21 Core Water discharge Partial 45-46

EN22 Core Waste by type and disposal method Total 45-46



EN23 CoreTotal number and volume of signifi cant spills

Total

During 2010 no signifi cant spills of pollutants occurred that may compromise the state of the ground and the subsoil, and the Group did not receive any signifi cant fi nes or sanctions due to non compliance with environmental regulations

EN26 CoreInitiatives to mitigate environmental impacts of products and services

Total 38-40

EN27 CorePercentage of products sold and their packaging materials that are reclaimed

Total 43-44

EN28 CoreSanctions for non-compliance with environmental laws and regulations

Total

During 2010 no signifi cant spills of pollutants occurred that may compromise the state of the ground and the subsoil, and the Group did not receive any signifi cant fi nes or sanctions due to non compliance with environmental regulations

Legenda:AR: Annual Report at 31 December 2010CG: Annual report on corporate governance and the ownership structure as of 22 March 2011

www.indesitcompany.com

sustainability report 2010 -...

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