2018 Integrated Report

Sofidel Group

Let's build a better world, together.

Go to Sofidel

Letter to stakeholders

2018 was a very challenging year for the tissue industry.
The year was characterised by a sharp increase in the cost of the raw material, cellulose, and by increases in the cost of energy and transport.

Emi Stefani President Sofidel Group
Luigi Lazzareschi CEO Sofidel Group
01

Group profile

From its headquarters in Porcari (Lucca), Sofidel coordinates the work of 17 companies in Europe and the United States. It has more than 6,300 employees, production capacity of 1,308,000 tonnes and Group net sales of € 1,706 million compared to € 1,697 million in 2017. Read more

52

Years in business

13

Countries in the world

Over

6,300

Employees

1,706

million euro
Group net sales

498 TJ

Total production of energy from renewable sources

58,959

Hours of training

17

Companies

-18.3 %

Reduction in Carbon Intensity compared to 2009

02

SIGNIFICANT EVENTS DURING THE YEAR

Articles on Sofidel productivity and sustainability

Read more

Sofidel’s largest, most modern and sustainable production plant in the world started up in Circleville, Ohio

Read more

Announcing the new greenfield investment in Oklahoma

Read more

Poland and Spain: growth in Europe along internal lines

Read more

CEO Luigi Lazzareschi was a special witness at the Select USA Investment Summit 2018, Washington D.C.

Read more

At the 50th anniversary of the Club of Rome

Read more

In Milan with WWF Italy and the Giangiacomo Feltrinelli Foundation for the protection of natural capital

Read more

Sofidel is a main partner of WWF Italy for Earth Hour 2018

Read more

An award for Regina Blitz in the United Kingdom

Read more

3SAward 2018: given in the United States to the most sustainable suppliers

Read more

CEO Luigi Lazzareschi in the Paper International Hall of Fame

1 / 10
03

Sustainability

To ensure lasting social and environmental benefits for all stakeholders throughout the value creation chain, Sofidel strives to
minimise its environmental impact and maximise economic and social benefits for the creation of shared value for all its stakeholders.
Sofidel’s sustainable growth strategy is fully in tune with the aim of building an inclusive, sustainable and resilient future for the planet and its population, pursued by the United Nations (UN) through the 17 Sustainable Development Goals (SDGs) included in its 2030 Agenda.

Sustainability strategy

Materiality analysis and dialogue with stakeholders

climate action
affordable and clean energy
good health and well-being
clean water and sanitation
responsible consumption and production
life on land
partnerships for the goals
04

Strategy and businessmodel

The Sofidel Group is now present in 13 countries throughout the world and has reached a production capacity of over a billion tonnes per year.
In the last twenty years the market has undergone a radical transformation, and the Sofidel Group has met the challenges posed by its own growth
in a new and constantly changing context with a careful and measured strategic planning process.
The Group’s business activities have gone through four major strategic growth phases.

1966 - 1990

Phase 1

Creating a solid production
base in Italy

1990 - 2007

Phase 2

Internationalisation in Europe

2007 - 2015

Phase 3

Acquisitions in Europe

2015 - 2020

Phase 4

Increase in production capacity in Europe and progressive increase in US presence

05

Group economic and financial performance

Read more

06

Product

The Sofidel Group only produces and markets tissue paper, i.e. the paper used for hygiene and domestic purposes in and outside the home - toilet paper,
all-purpose absorbent paper, paper napkins, paper handkerchiefs, facial tissue, towels, etc.
Group companies oversee the whole production process from manufacture of the tissue and processing through to the finished product.
The whole production chain features constant respect for the principles of sustainability, the basis of the entire Sofidel value creation system.

07

Operations

Governance

Sofidel is governed by a Board of Directors (BOD) consisting of members of the controlling families elected by the Shareholders’ Meeting. The BOD currently consists of three men and three women with an age range that extends from 50 to 90... Read more

The environment

Actions to improve and promote the Sofidel Group’s environmental sustainability were taken in 2018 following the guidelines contained in both the Code of Ethics and the Sustainability Charter, i.e. the main documents that define the rules of conduct and the commitments to be assumed in the field of environmental and social protection... Read more

Suppliers and the supply chain

The Sofidel Group’s strategic goal is to have a supply chain with no reputational risk. This goal has been broken down into two lines of action:
- assessment of supplier sustainability strategies and performance;
- adoption of a sustainable purchasing model. Read more

08

People

  • Management of human capital
  • Company well-being
  • Staff composition and distribution
  • Types of contract
  • Personnel characteristics
  • Turnover
  • Human rights, protected categories and equal opportunities
  • Pay and incentives
  • Staff training and development
  • Health and safety
  • Industrial relations

Management of human capital

The Sofidel Group’s approach to the management of human resources focuses on the development of its employees andintegration into the company organisational culture, essential elements for the contribution of increasingly decisive factors, such as innovation and flexibility, for company competitiveness in a globalised market...

Read more
09

Markets & corporate brands

Read more

10

Methodological note

The eighth edition of the Sofidel Group’s Integrated Report has been prepared according to specific principles and methodologies set out in the most recent standards published in 2016 by the Global Reporting Initiative (GRI Standards - Core option), integrated, as in the previous reporting year, with the guidelines of the International Integrated Reporting Committee (IIRC)18, better known as the IR framework.

The GRI Standards represent the main global reference standards for an organisation’s or an enterprise’s Sustainability Reporting. This Report has been prepared
in accordance with the principles of balance, comparability, accuracy, timeliness, reliability and clarity as set forth in the GRI.

Read more