Company Assessed : PGM LOGISTICA SRL

Corporate Social Responsibility (CSR) Assessment Report

Company Assessed : PGM LOGISTICA SRL

CSR engagement: Advanced

Size: SmallCountry (company headquarters): ItalyPresence in Risk Countries: NoCategory/Industry: Other transportation support activities

Overall Score:January 2016

70/100

Pierluigi GAVERINI ©Copyright EcoVadis™ 22/01/2016 15.04.41 – All rights reservedwww.ecovadis.com │ +33 (0) 1 82 28 88 88

[email protected]

Ecovadis Assessment Report - January 2016

Page: 1/30

http://www.ecovadis.com

mailto:[email protected]

TABLES OF CONTENTS

1. Score Overview

2. Supplier Scorecard Objectives

3. Assessment Process

4. Ecovadis Methodology

a. Four themes with 21 criterias

b. Seven management indicators

c. Scoring Scale

5. How to understand company Scorecard

a. Quantitative information: score & activated criteria

b. Qualitative information: Strengths & Improvement Areas

6. Theme: Environment

7. Theme: Labor Practices & Human Rights

8. Theme: Fair Business Practices

9. Theme: Sustainable Procurement

10. 360° Stakeholder Information

11. Specific Comments

12. Contact us

ABOUT CORPORATE SOCIAL RESPONSIBILITY (CSR)

Corporate Social Responsibility (CSR) is the continuing commitment to behave responsibly by integrating social and environmental concernsinto business operations. CSR goes beyond regulatory compliance to focus on how companies manage their economic, social, andenvironmental impacts, as well as their relationships with stakeholders (e.g. employees, suppliers, government).

ABOUT THE ASSESSMENT

The EcoVadis methodology framework assesses the policies and measures put in place as well as the reporting published by companies withregards to environmental, labor practices & human rights, fair business practices and sustainable procurement issues. The assessmentconducted by CSR experts is made on the basis of the company answers to a survey which is dynamically adapted to their country, sectorand size, on the basis of supporting documentation, and on public and stakeholder (NGOs, trade unions, press) information.

ABOUT ECOVADIS

EcoVadis operates the 1st collaborative platform allowing companies to assess the environmental and social performance of their supplierson a global basis. EcoVadis combines technology and Corporate Social Responsibility (CSR) expertise to deliver simple and reliable supplierscorecards, covering 150 purchasing categories and 21 CSR criteria.

This document cannot be reproduced or distributed unless otherwise specified in EcoVadis contractually granted license right. No part of this document may be modified in wholeor in part and in any form prior express written permission of EcoVadis. EcoVadis does not warrant the accuracy, reliability, completeness of the information, content, text,

graphics provided on this document.

EcoVadis Assessment for PGM LOGISTICA SRL - January 2016


[email protected]


Page: 2/30



CSR PERFORMANCE

Environment ENV 80

Labor Practices LAB 70

Fair Business Practices FBP 60

Sustainable Procurement SUP 60

BENCHMARK

Benchmark is done on all suppliers of the same businesscategory on the EcoVadis database

Corrective Action Plan in progress

1. Score Overview

The overall and theme scores summarize the CSR performance of PGMLOGISTICA SRL on a scale of 1 to 100.

Legend

Outstanding Advanced Confirmed Partial None

The grey bars on this graph represent the benchmarks. Benchmarks comparea company’s overall score and theme scores to other companies operatingwithin the same industry. Here the Benchmark on over 150 suppliers.NOTE:

The top and bottom 5% of performers are excluded to ensure statisticalrelevance.ENV : EnvironmentLAB : Labor Practices & Human RightsFBP : Fair Business PracticesSUP : Sustainable Procurement

This graph depicts the distribution of overall scores for several thousandcompanies on the EcoVadis platform. PGM LOGISTICA SRL has an overall scoreof 70 and the company is ranked alongside 2% which have Advanced CSRengagement.

The red dot represents the average of all suppliersThe blue diamond refers to company position

PGM LOGISTICA SRL has been identified as Gold regarding their approach toCSR management. To achieve this recognition, a company must have anoverall score of [62-100].

The Corrective Action Plan (CAP) is an interactive tool shared betweensuppliers and buyers. It helps to develop Action Plans, a starting point for aneffective dialogue on actions taken by the supplier to improve their CSRperformance. PGM LOGISTICA SRL has a CAP in place and is working onimproving their CSR management system.

OVERALL SCORE 70/100



[email protected]


Page: 3/30



2. Supplier Scorecard Objectives

UNDERSTAND:

Get a clear picture of the company’s CSR performance. With a score on four CSR themes (environmental, labor practices &Human Rights, fair business practices and sustainable procurement), that highlight the company’s strengths and possible areas forimprovement.Know the company’s positioning compared to their industry sector peers. On which theme is this company better positionedthan their peers? How is this company positioned in comparison to their sector average?Identify sector specific initiatives. What are the main international CSR regulations and sector initiatives specific to the industrysector of the company?

COMMUNICATE:

Meet client needs. More and more companies raise questions about their supplier’s environmental and social performance. Thisassessment allows to demonstrate company commitment.Leverage a unique communication tool. Directly share the assessment results with all clients.

3. Assessment Process



[email protected]


Page: 4/30



4. Ecovadis Methodology is based on

A. Four themes with 21 criteria

The EcoVadis methodology takes into account 21 CSR criteria which are contained under four themes: ENVIRONMENT, LABOR, FAIRBUSINESS PRACTICES, and SUSTAINABLE PROCUREMENT. The methodology and criteria are in line with international CSR standardsincluding the Global Reporting Initiative, United Nations Global Compact, and ISO 26000.

B. Seven management indicators

The EcoVadis assessment evaluates a company CSR management system by looking at seven management indicators. The four themesand their subsequent 21 CSR criteria are assessed on the basis of the following management indicators that a company has in place.

Policies (weight: 25%)

1. Policies: Mission statements, commitments, principles, objectives and/or policies issued by the company.2. Endorsement: Endorsement of CSR external initiatives, principles and/or active participation to international/sector CSR initiative.

Actions (weight: 35%)

3. Measures: Concrete actions put in place to support commitments, objectives and deployment of policies (e.g. training, manualprocedures).

4. Coverage: Level of deployment/dissemination of measures and concrete actions put in place throughout the company to supportcommitments and/or policies.

5. Certifications: Certifications received for the management system and/ or labels received for the products/ services delivered.

Results (weight: 40%)

6. Reporting/ KPI: Quality and level of reporting readily available to stakeholders7. 360°: Controversies, condemnations or positive developments reported by stakeholders (NGOs, Trade Unions, Press) having an

impact on the company's CSR performance.



[email protected]


Page: 5/30



5. How to understand company Scorecard

The overall score can be better understood by looking at quantitative information - theme scores, activated criteria - and qualitativeinformation - strengths & improvement areas.

A. QUANTITATIVES INFORMATION: SCORES & ACTIVATED CRITERIA

THEME SCORES: Like the overall score, theme scores are on a scale of 1 to 100.

ACTIVATED CRITERIA: Each of the four themes - ENVIRONMENT, LABOR, FAIR BUSINESS PRACTICES, and SUSTAINABLEPROCUREMENT- have specific criteria associated to them. It is important to note that not all 21 criteria are activated for everycompany and some criteria have more weight than others in the overall assessment. The weights for the criteria are determinedbased on the CSR risks faced by the company according to their industry of operation and their country of operation(s). For moreinformation see Appendix: category profile.

Non ActivatedIf criteria are not activated, this means that the specific associatedissue is not relevant or has very low CSR risk for the company

Medium ImportanceMedium importance criteria are the issues where there is some CSRrisk, but it is not the most pressing criteria.

High ImportanceHigh-importance criteria are the issues where the company facesthe greatest CSR risk.

Only in Risk countriesCriteria classified as Only in Risk Countries are activated only if thecompany has significant operations in one or more risk country.

B. QUALITATIVE INFORMATION: STRENGTHS & IMPROVEMENT AREAS

Qualitative information provides more details and insights into the theme scores. For each theme the company is assigned Strengths (theelements of the CSR management system that are positive) and Improvement Areas (the elements of the CSR management system thatneed to be improved). The strengths & improvement areas are divided according to the 3 management indicators - Policies, Actions,Results – and are also classified by level of importance/priority (i.e. Priority.)

Green check marks indicate the Strengths Alert signs indicate the Improvement Areas

Improvement Areas are a focus point for improvement. The EcoVadis Corrective Action Plan Tool allows companies to improve their CSRperformance on specific improvement areas. It is an interactive tool shared between suppliers and buyers. It supports the development ofAction Plans, a starting point for an effective dialogue between buyers and suppliers on actions taken by a supplier to improve their CSRperformance.

Each improvement area is given a priority levelwhich can be used to set up corrective actionplans.

Priority Level

High

Medium

Low



[email protected]


Page: 6/30



C. THE SCORING SCALE



[email protected]


Page: 7/30



6. ENVIRONMENT

The environment theme takes into account both operational factors (e.g. energy consumption, waste management, etc.) and productstewardship (e.g. product end of life, customer health and safety issues).

ENVIRONMENT: SCORES

CSR PERFORMANCE

Environment ENV 80




WEIGHT of the Theme ENV 2 out of 8 -> 25% of the global score

Themes are weighted according the CorporateSocial Responsibility (CSR) risks associated tothe company industry of operation and countryof operation(s). The theme weights influence theresulting overall score.

BENCHMARK

This benchmark shows the company overall score incomparison to the scores of industry sector peers on theEcoVadis platform. The top and bottom 5% of performersare excluded to ensure statistical relevance.

DETAILED SCORE BENCHMARK

The theme benchmark is a more detailed comparison ofthe company’s theme score in comparison to othercompanies operating within the same industry. NOTE:Benchmark is only activated when they are at least 3suppliers to compare with.

ENVIRONMENT: ACTIVATED CRITERIA

Non Activated Medium Importance High Importance Only in Risk countries

Note: Not all 21 criteria are activated for every company and some criteria have more weight than others in the overall assessment. Theweights for the criteria are determined based on the CSR risks faced by the company according to their industry of operation and theircountry of operation(s).

ENVIRONMENT: STRENGTH & WEAKNESSES

Note: The number of alert signs or checks next to a strength or weakness does not represent the performance of the company; ratherthey indicate the level of importance of each individual strength and/or weakness

This icon informs that the company has a Corrective Action Plan (CAP) in place associated to a particular weakness. The CAP is aninteractive tool shared between suppliers and buyers. It helps to develop Actions to improve the supplier’s CSR performance.



[email protected]


Page: 8/30



ENVIRONMENT:POLICIES

Priority Strength or Weakness Additional Definition CAP

No supporting documentation or only basic policy onsome relevant issues [ i.e. materials, chemicals & waste]

More Information • The company has either no supporting documentation onpolicies, or only provided evidence of basic policy statements thatdo not cover all the major environmental issues the company isconfronted with.

Guidance • A standard environmental policy integrates commitmentsand/or operational objectives on the main environmental risksthe company faces. It is communicated to internal and externalstakeholders through a formal dedicated document (e.g. QHSEPolicy). A standard environmental policy contains qualitativeobjectives/commitments specific to those issues. The policyshould also incorporate some of the following elements: scope ofapplication, allocation of responsibilities, quantitative objectives(i.e. on energy consumption & GHG emissions and materials,chemicals & waste management), and review mechanisms.

No endorsement of external CSR initiatives or principles(e.g. Global Compact)

More Information • The company declares it is not a signatory or does not publiclyadhere to any external CSR principles, charters, codes of conductor international guidelines. There is no evidence of publicadherence to an external CSR initiative or membership in avoluntary CSR initiative within the company's supportingdocumentation.

Guidance • Such initiatives can encompass many CSR issues (e.g. GlobalCompact principles), or focus on a single issue (e.g. CarbonDisclosure Project). They can be intergovernmental (e.g. OECDGuidelines for Multinational Enterprises), multi-stakeholder (e.g.Accountability), business-led (e.g. Responsible Care), cross-sector (e.g. Ceres principles) or sector-specific (e.g. CleanClothes Campaign).

Environmental policy on some relevant issues [ i.e.energy consumption & GHG ]

More Information • The company has formalized statements, commitments, andoperational objectives on the management and mitigation of itsenvironmental footprint, focusing on some material issues. Theexisting policy does not cover all the major environmental issuesthe company is confronted with.

Guidance • A standard environmental policy integrates commitmentsand/or operational objectives on the main environmental risksthe company faces. It is communicated to internal and externalstakeholders through a formal dedicated document (e.g. QHSEPolicy). A standard environmental policy contains qualitativeobjectives/commitments specific to those issues. The policyshould also incorporate some of the following elements: scope ofapplication, allocation of responsibilities, quantitative objectives(i.e. on energy consumption & GHG emissions and materials,chemicals & waste management), and review mechanisms.



[email protected]


Page: 9/30



ENVIRONMENT:ACTIONS


ISO 14001 certified More Information •The company has provided a valid ISO 14001 certificate thatcovers all of its operations.

Guidance •The ISO 14001 standard belongs to the ISO 14000 series, afamily of environmental management standards developed by theInternational Organization for Standardization (ISO) designed toprov ide an in ternat iona l ly recogn ized f ramework fo renvironmental management, measurement, evaluation andauditing. The standard serves as a framework to assistorganizations in developing their own environmental managementsystem and is based on the continuous Plan-Do-Check-Act cycle.

Reduction of energy consumption through innovativeequipment

Waste management measures in place

Measures implemented to recycle toners & ink cartridges

Measures to recycle paper/carton waste

Measures to opt imize transport or reduce CO2emissions from transport

More Information • The company has implemented specific measures to optimizetransportation or to reduce the amount of CO2 emissions relatedto transportation.

• Examples might include devices to optimize route planning,provis ion of l ive traf f ic information to dr ivers, carboncompensation options and multimodal transportation plans (i.e.the transportation of goods uti l iz ing differing means oftransport).

ENVIRONMENT:RESULTS


Standard reporting on environmental issues More Information •There is evidence of formal reporting implemented regarding themanagement and the mitigation of the company environmentalfootprint from its supporting documentation, including keyperformance indicators (KPIs), statistical figures or associatedconcrete actions.

Guidance •Reporting items are standard in terms of quality and quantity,do cover the main issues, are meaningful enough, and areregularly updated. Examples of key performance indicatorsinclude total electricity consumption, electricity consumed per kgof product or per unit produced. Comprehensive reporting onenvironmental issues will additionally have KPIs reported in aformal public document available to stakeholders, and will be incompliance with the Global Reporting Initiative guidelines or otherexternal CSR reporting standards.

Reporting on electricity consumption More Information •The company has reported KPIs with regard to electricityconsumpt ion e i ther through formal documentat ion orquestionnaire declaration.

Guidance • The company reports on electricity consumption from facilities,plants, property or assets that are owned or controlled by thecompany. Examples of key performance indicators include totalelectricity consumption, electricity consumed per kg of product orper unit produced.



[email protected]


Page: 10/30



7. LABOR PRACTICES & HUMAN RIGHTS (LAB)

The labor theme takes into account both Labor Practice issues (e.g. health and safety, working conditions, etc.) and Human Rightsissues (e.g. discrimination, child labor, etc.).

LABOR & HUMAN RIGHTS: SCORES

CSR PERFORMANCE

Environment ENV 80




WEIGHT of the Theme LAB 4 out of 8 -> 50% of the global score


BENCHMARK




LABOR & HUMAN RIGHTS: ACTIVATED CRITERIA



LABOR & HUMAN RIGHTS: STRENGTH & WEAKNESSES





[email protected]


Page: 11/30



LABOR PRACTICES & HUMAN RIGHTS:POLICIES


Standard policy on a majority of labor or human rightsissues

More Information • A s tandard labor and human r ights po l i cy inc ludescommitments and/or operational objectives on the main laborand human rights risks the company faces.

Guidance • A comprehensive labor and human rights policy includescommitments and/or operational objectives on the majority oflabor and human rights risks the company faces, and integratesquantitative objectives (i.e. targets) on those risks. It is alsomandatory for the policy to incorporate some of the followingelements: scope of application, allocation of responsibilities,and/or a formal review process. Policies are deemed exceptionalwhen all labor practice and human rights issues are covered byqualitative and quantitative objectives, in addition to all of theaforementioned elements.




No quantitative target on labor & human rights issues More Information • Company policy does not contain quantitative targets on laborand human rights issues.

Guidance • Quantitative objectives or targets on labor and human rightsissues are considered as fundamental elements of comprehensivepolicy mechanism. They provide a monitoring framework thathelps establish whether policy objectives are being met, andhighlight the progress towards set goals. Some examples ofspecific targets on this topic include quantitative objectives onhealth & safety indicators (i.e. accident frequency and accidentseverity rates), quantitative objectives on percentage ofemployees trained on discrimination and quantitative objectiveson number of employees covered by social benefits. As policyelements, targets can be expressed in absolute or relative termsand must have a valid future deadline (i.e. by 2020 we commit totrain 100% of employees on discrimination).



[email protected]


Page: 12/30



LABOR PRACTICES & HUMAN RIGHTS:ACTIONS


Joint labor management health & safety committee inoperation

Training of relevant employees on health & safety risksand best working practices

Disciplinary measures enforced on discrimination issues More Information •The company has implemented disciplinary measures onviolations of the company's discrimination policies.

Guidance • Companies may establish formal procedures or mechanisms fordealing with policy violations, e.g. disciplinary measures, warningprocesses, up to conditions for employment termination.

Specific measures on discrimination issues

Monitoring of employee satisfaction

Official measures to promote work-life balance More Information • The company has implemented working practices thatacknowledge and aim to support the needs of staff in achieving abalance between their home and working lives. Examples of worklife-balance measures include: the possibility to work from home,to work part time, flexible-time schedules, childcare facilities atwork, in-house services.

Employee health & safety detailed risk assessment

Company specific health care program for employees More Information • The company has implemented a specific health care programfor employees covering private medical treatment.

• Some examples of areas it could cover include drug treatmentof cancer, health assessments, dental care, surgical proceduresand treatment of conditions relating to alcohol and substanceabuse.

Active preventive measures for stress and noise

Transparency (process & criteria communicated to allemployees) on remuneration system

Company-specific pension plan for employees

Provision of skills development training More Information • The company has implemented vocational training andinstruction, which include skills development training, educationpaid for in whole or in part by the company, with the goal toprovide opportunities for career advancement (Source: GlobalReporting Initiative G3).

Measures to prevent on-site substance use More Information •The company has implemented measures to prevent onsitesubstance abuse

Guidance • Some potential measures include the development of asubstance abuse policy, training through websites, seminars, ora refresher course, testing programs and disciplinary measures.



[email protected]


Page: 13/30



LABOR PRACTICES & HUMAN RIGHTS:RESULTS


Basic reporting on labor practices & human rights issues More Information • There is some evidence of formal reporting on labor practicesor human rights issues in the supporting documentation. It mayinclude\ key performance indicators (KPIs), or statistical figures.However reporting elements may be limited in terms of quality orquantity, may not cover the main issues, or reporting is notregularly updated.

Guidance • Based on the information provided for the assessment,reporting does not cover a major portion of relevant issues (i.e.reporting is available for only 1 relevant issue).

• To improve the quality of reporting, KPIs could include injuryrates, number of employees covered by social benefits, numberof employees trained on discrimination, or the % of employeescovered by collective bargaining agreement just to name a few.For more information on the specific labor and human rightsrelated KPIs please refer to GRI G4 KPI list.

Reports no lost-time accidents

Reporting on number of average training hours peremployee



[email protected]


Page: 14/30



8. FAIR BUSINESS PRACTICES (FBP)

The fair business practice theme focuses primarily on corruption and bribery issues, but also takes into account anti-competition andresponsible marketing depending on the industry of operation.

FAIR BUSINESS PRACTICES: SCORES

CSR PERFORMANCE

Environment ENV 80




WEIGHT of the Theme FB 1 out of 8 -> 12% of the global score


BENCHMARK




FAIR BUSINESS PRACTICES: ACTIVATED CRITERIA



FAIR BUSINESS PRACTICES: STRENGTH & WEAKNESSES





[email protected]


Page: 15/30



FAIR BUSINESS PRACTICES:POLICIES


Basic policies on anti-corruption & bribery More Information • The company has issued value statements, commitments,and/or operational objectives on anti-corruption and briberyissues, which either lack specificity at issue level, do not cover themajor business ethics issues the company is confronted with, arenot consolidated into a formalized policy document, or lackorganizational elements (e.g. review process, dedicatedresponsibilities, scope of application).

Guidance • A standard ant i corupt ion & br ibery po l icy inc ludescommitments and/or operational objectives on the maincorruption & bribery risks the company faces. It is communicatedto internal and external stakeholders through a formal dedicateddocument. A standard anti-corruption & bribery policy alsocontains qualitative objectives/commitments specific to thoseissues. The policy should also incorporate some of the followingelements: scope of application, allocation of responsibilities,quantitative objectives, and review mechanisms.




Policy on client data protection & privacy More Information • The company has issued a formal policy that integratescommitments and/or operational objectives on respect on dataprotection and privacy issues.

• There are at least qualitative objectives/commitments withspecificities on the main issues.

• Data protection and privacy relates to areas that includebuilding audit trails to ensure data protection, encrypting data ona hard disk drive, and training employees on data protection.

• The policy might also incorporate some of the followingelements: scope of application, allocation of responsibilities,quantitative objectives, and review mechanisms.

• The policy is contained in a dedicated policy document or in adedicated section of a larger purpose document such as a Codeof Ethics/Conduct.



[email protected]


Page: 16/30



FAIR BUSINESS PRACTICES:ACTIONS


Web-based or in-person training program on mainbusiness ethics issues

Disciplinary measures enforced on business ethicsissues

More Information •The company has implemented disciplinary measures onviolations of the company's business ethics policies.

Guidance • Employees can report on violations of the company businessethics policy (e.g. on corruption, conflict of interest, anti-competit ive pract ices) through anonymous and securecommunication channels. In addition, disciplinary measures areoutlined (e.g. warnings, suspensions, including termination).

Measures to protect customer or client data fromunauthorized access or disclosure

Specific approval procedure for sensitive transactions(e.g. gifts, travel)

More Information • The company has implemented a verification process forsensitive transactions.

Guidance • Sensitive transactions involve payments and cash transfersparticularly for operations exposed to high risk of corruption andbribery. Some examples are: gifts, entertainment and travel, newinvestments.

Whistleblowing procedure on corruption & bribery issuesin place

More Information •The company has implemented a formal whistle blowingprocedure which encourages employees (and externalstakeholders) to report potential violations of the company'scorruption and bribery policies.

Guidance • Employees can report on areas such as violations of thecompany's corruption and bribery policies (e.g. on gift giving,conflict of interest, fraud, corruption) through anonymous andsecure communication channels.



[email protected]


Page: 17/30



9. SUSTAINABLE PROCUREMENT (SUP)

The sustainable procurement theme focuses on both social and environmental issues within the company supply chain.

SUSTAINABLE PROCUREMENT: SCORES

CSR PERFORMANCE

Environment ENV 80




WEIGHT of the Theme SUP 1 out of 8 -> 12% of the global score


BENCHMARK




SUSTAINABLE PROCUREMENT: ACTIVATED CRITERIA



SUSTAINABLE PROCUREMENT: STRENGTH & WEAKNESSES





[email protected]


Page: 18/30



SUSTAINABLE PROCUREMENT:POLICIES


No supporting documentation or only basic sustainableprocurement policy on environmental issues

More Information • The company has either no supporting documentation onenvironmental issues in the supply chain, or only providedevidence of basic policy statements that lack clear commitment toperformance improvement.

Guidance • A standard sustainable procurement policy on environmentalissues in the supply chain includes commitments and/oroperational objectives designed to improve performance ormitigate risk. It is communicated to internal and externalstakeholders through a formal dedicated document.

Sustainable procurement policies on social issues More Information • The company has issued formal policies that integratecommitments and/or operational objectives on the main socialissues it is confronted with in its supply chain.

• The importance of issues covered by the policies may varyaccording to the industry or sector.

• It is contained in a formal pol icy document ( i .e. CSRProcurement Guidelines).

• There are at least qualitative objectives/commitments withspecificities on the main issue areas.

• The policies might also incorporate some of the followingelements: scope of application, allocation of responsibilities,quantitative objectives (i.e. number of suppliers audited orcertified) , and review mechanisms.

• A comprehensive policy covers both environmental and socialissues in the supply chain.

• It includes formal mechanisms to communicate, review andamend policy and describes a clear allocation of responsibilities aswell as quantative targets (i.e. planned KPIs).



[email protected]


Page: 19/30



SUSTAINABLE PROCUREMENT:ACTIONS


On-site audits of suppliers on environmental or socialissues

More Information •The company's supporting documentation demonstratesevidence of on-site supplier audits on environmental and/ orsocial issues through audit reports or third party auditcertificates.

Guidance •Evidence of internal/external on site audits is recent enough (i.e.less than 12 months). Audits can be announced or unannouncedand are systematically conducted at least for suppliers mostexposed to CSR risks. External audits are carried out by crediblethird party auditors and recognized environmental and/or socialauditing standards are utilized (e.g. SMETA, EICC). Audits aredirectly conducted via field visits, i.e. on the suppliers' operationalsites and/or business premises.

Regular supplier assessment (e.g. questionnaire) onenvironmental or social practices

More Information • The company demonstrates evidence of suppl ier CSRassessments (in-house, 3rd party, or self-assessments) throughchecklists or questionnaires to verify compliance with its own pre-defined set of CSR requirements.

• CSR assessment questionnaires can be inhouse driven orsupported by a third-party organization, and include questionson environmental (including regulatory issues), social and ethicalissues.

• CSR assessment can also consist in checklists, online forms

• Assessment can be conducted by the client, a reliable thirdparty, or by the supplier itself.

Integration of environmental, social and health & safetycriteria when purchasing products

More Information •Environmental, social and health & safety criteria are formallydescribed as an integral part of the selection process in productprocurement.

Guidance •CSR criteria can be integrated in calls for tenders to ensure thatthe environmental and social impact of the purchased product isminimized. Some potential examples of such criteria includeecolabels, detailed product characteristics, external third partycertifications (FSC, PEFC, ISO 14001), CSR performance scores.

Integration of environmental or social factors whenpurchasing services

More Information •Environmental or social factors are systematically taken intoconsideration during the the selection process of suppliers ofservices.

Guidance • Suppliers could be asked to demonstrate their proactivemeasures that go beyond regulatory compliance or certificationsuch as ISO14001 or OHSAS18001. They could also be asked todisclose their performance or score on CSR or health and safetyor environment management assessments. Some specific topicssuch as control of child labor, use of ecolabelled products,detailed product characteritics could also be covered.

Integration of social or environmental clauses intosupplier contracts

More Information • The company's contractual agreements with subcontractorssystematically contain a binding clause that requires thosesuppliers to comply with international CSR standards or todemonstrate a proactive CSR approach.

• Such contract clauses can contain defined measures that theclient can impose in case CSR clauses are not respected (e.g.contract termination).

• Some specific issues covered in supplier contracts can includechild labor, conflict minerals, REACH and RoHS.



[email protected]


Page: 20/30



10. The 360° WATCH: stakeholders' information

360º WATCH

12/2015 No records found for this company on Compliance Database

.

06/2015 Logistics-ecological: PGM logistics delivers the goods with zero emissions (IT)PGM Logistics, the first beverage distribution company operating in Bergamo with 100% electric vehicles, will handle the logistics ofHeineken Italy for the area under its jurisdiction. http://www.impresamia.com/logistica-ecologica-pgm-logistica-consegna-le-merci-emissioni-zero/

The 360° is a web based tool to collect stakeholders insight on a company‘s CSR approach and impacts. A corporate stakeholder is a partythat can affect or be affected by the actions of the company and the achievement of its objectives (i.e. employees, clients, suppliers).

Note: If a strength or weakness is activated on the 360°, this is an indicator that the 360° has had an impact on the score.

Only legitimate stakeholder sources are selected:

Governmental organizations (i.e. government environmental protection administrations, anti-trust agencies, customers protectionagencies)CSR networks and initiativesTrade unions and employers’ organizationsInternational organizations (i.e. UN, ILO, UNEP, …)NGO’s (i.e. Greenpeace, Clean Clothes Campaign, Transparency international, UFC, …)Research institutes and reputable press (CSR Asia, Blacksmith Institute, …)



[email protected]


Page: 21/30



11. SPECIFIC COMMENTS

Specific comments are key points which indicate some specific characteristics of the company CSR evaluation and will help to betterunderstand the company’s performance.

Since the last evaluation, the overall score has increased thanks to the implementation of additional measures. Since the last evaluation, the overall score has increased thanks to the publication of additional CSR reporting. The company is not included in any compliance-related watch lists or sanction lists.



[email protected]


Page: 22/30



MORE INFORMATION

For more information, please refer to our website (http://www.ecovadis.com) where you can also connect to the EcoVadis platform.

If you have any questions or problems, do not hesitate to contact us:

By email at: [email protected] phone : +33 (0) 1 82 28 88 88

Provided under contract for exclusive use of subscriber: Pierluigi GAVERINI - 22/01/2016

This assessment is valid for 12 months only.



[email protected]


Page: 23/30



APPENDIX : CATEGORY PROFILE

A Category Profile offers practical insights into the key sustainability issues which are applicable to the company industry of operation. Itprovides a link to major regulations, sector initiatives, and eco-labels.

The company industry of operation has been determined based on International Standard Industrial Classification of AllEconomic Activities (ISIC), which is a compilation of all global economic activities published by the United Nations StatisticalCommission.

The International Standard Industrial Classification of All Economic Activities (ISIC) main purpose is to provide a set ofactivity categories that can be utilized for the collection and reporting of statistics according to such activities.

International Standard Industrial Classification of All Economic Activities, Rev.4, United Nations, New York, 2008

It is possible that a company has operations in more than one category, but EcoVadis classifies companies based on their main area ofoperation.



[email protected]


Page: 24/30



CRITERIA ACTIVATION BY THEME:

Each category faces specific CSR issues and risks based on their industry of operation. The below chart shows the criteria activated for thecompany category name : Other transportation support activities.

Environment

Energy Consumption & GHG

Water

Biodiversity

Local Pollution

Materials, Chemicals & Waste

Product Use

Product End-of-Life

Customers Health & Safety

Sustainable Consumption

Labor Practices

Employee Health & Safety

Working Conditions

Social Dialog

Career Management & Training

Child & Forced Labor

Discrimination

Fundamental Human Rights

Fair Business Practices

Corruption & Bribery

Anti-competitive Practices

Responsible Marketing

Sustainable Procurement

Suppliers & Environment

Suppliers & Social

Non Activated Medium Importance High Importance Only in Risk countries Noteworthy Practices

KEY CSR ISSUES

This section shows a qualitative explanation of the key CSR issues and risk pertaining to Other transportation support activities.

Key CSR Issues ENVIRONMENT

Energy Consumption & GHG

Definition: Energy consumption (e.g. electricity, fuel, renewable energies) used during operations and transport.Greenhouse gases direct and indirect emissions including CO2, CH4, N2O, HFC, PFC and SF6. Also includesproduction of renewable energy by the company.

Sectorial issues: At a global level, the movement of freight accounts for roughly a third of all the energyconsumed by transport (IPCC, 2007). World wide, 33% of trade related emissions come from internationaltransport(1). Direct emissions from other transportation and support activities do not contribute a significantamount towards this global total. However, the indirect GHG emissions from this sector are very significant. Othertransportation service activities can be seen as being at the top of the logistics pyramid, therefore having greatinfluence over the governance and efficiencies along the chain of transportation activities. The main impact onenergy consumption companies working in this sector can make is through the consolidation or freight whichallows maximum space to be utilized in each shipment(2). The monitoring of CO2 emissions ensures transparencyand sets the foundation for reduction management(3). Specifically, companies can reduce their C02 output usingless intensive options such as rail and shipping as well as managing internal energy consumption by choosingalternative, renewable technologies for company buildings and warehouses, for example.

Materials, Chemicals & Waste

Definition: Consumption of all types of raw materials and chemicals. Non-hazardous and hazardous wastegenerated from operations. Also includes air emissions other than GHG (e.g. SOx, NOx).

Sectorial issues: Support transport activities normally consume a certain amount of resources as well asproducing a variety of waste. Companies in this sector use paper as their primary working material. Other inputsinclude use of chemicals (for cleaning and hygienic purposes), use of paper, plastics for packaging, woodenpallets, cardboard boxes and other office IT. All those inputs will ultimately impact the environment throughresource depletion and waste generation whether hazardous or non-hazardous. In order to to mitigate thoseimpacts, companies in this sector may take action by shifting more and more to digital forms of communicationand/or using recycled paper for office use, train employees about efficient use of paper, implementation of wastemanagement policy such as reducing, reusing and recycling.

Sustainable Consumption

Definition: Programs implemented to promote the sustainable consumption of their own products or servicesamong their customer base. This criteria includes the positive/negative indirect impacts of the use of products andservices.

Sectorial issues: Many consumers in the countries of the Organisation for Economic Co-operation andDevelopment (OECD) are becoming increasingly sensitive and aware about environmental sustainability.Consumption levels and environmental footprints are already high and achieving sustainable consumption requiressubstantial improvements in resource use and waste management. A Deloitte study found that consumerbehavior is still principally dictated by price, quality and convenience, rather than by origin of products andsustainability content.



[email protected]


Page: 25/30



LABOR PRACTICES

Employee Health & Safety

Definition: Deals with health and safety issues encountered by employees at work i.e. during operations andtransport. Includes both physiological and psychological issues arising from, among others, dangerousequipment, work practices and hazardous substance.

Sectorial issues: The accident frequency rate in 2012 for transport activities in France for instance was 29.6 witha severity rate of 1.9 and is higher than the average of other activities(4). Main risks come from transportationand support activities related to road accidents, handling of hazardous and heavy lifting in warehouses or duringtransport. Also hazards that pose threats to physical safety of workers include mechanical/machine hazards,electrical hazards, ergonomic hazards such as repetitive motion, awkward posture and excessive force; or risk of awork-related motor vehicle accident. Measures to monitor employees driving practices, awareness/training, workrelated risk analysis of employees on health and safety issues or use of personal protective equipments canminimize the health and safety risks for employees.

Working Conditions

Definition: Deals with working hours, remunerations and social benefits granted to employees.

Sectorial issues: Transportation and logistics companies pay lower wages than companies in many otherindustries. That is the case all over the world. The Global Wage Report from the ILO lists transport as one of themain sectors where low-wage employment is concentrated (5). Within the transportation and support sector,there are significant variations in salary levels differing between the job sectors. In this multifaceted industry, jobprofiles range from pilots and seafarers to truckers and rail drivers, freight forwarding agent, customer agents,etc. The working conditions vary enormously, and so do the corresponding wages and benefits. Companies willneed to accurately allocate compensation levels and benefits for both men and women. Some measures mightinclude: holiday pay, health insurance, competitive salary compared to others in the industry and outstandingpension scheme, among others. Implemented, these can to improve employees’ work/life balance by reducing theconsequences the job has on their life outside of work.

Social Dialog

Definition: Deals with structured social dialogue i.e. social dialog deployed through recognized employeerepresentatives and collective bargaining.

Sectorial issues: Disputes resulting from poor labor relations can have serious detrimental effects on the sector.This can either be a caused by individual suppliers or it can escalate to national issues, for example when portsand harbors are blocked or closed. For instance, poor labor relations at French ports have made Antwerp(Belgium), into France's largest port(6). However, companies through their own procurement and internal bestpractices can mitigate many of these risks(7). Also, a structured communication system with unions is one of themeasures that can be implemented.

Career Management & Training

Definition: Deals with main career stages i.e. recruitment, evaluation, training and management of layoffs.

Sectorial issues: Persons working in freight forwarding and other transportation support services have to complywith a range of national and international regulations and laws covering a wide range of topics, ranging fromdangerous goods to tariffs/taxes(8). Both training and review are essential to ensure governance andcompetencies in this area. Several national and international accredited schemes and professional Institutes existand there are a range of International standards and training options available with which companies can fostertheir commitment and invest in training and development of their employees.

Discrimination

Definition: Deals with discrimination issues at work. Discrimination is defined as different treatment given topeople in hiring, remuneration, training, promotion, termination; based on race, national origin, religion, disability,gender, sexual orientation, union membership, political affiliation or age.

Sectorial issues: In line with UN Global compact, businesses should uphold eliminate discrimination in respect toemployment and occupation. Many companies foster diversity by adhering to strict internal policy on discriminationand by ensuring that all employment decisions are made without regard to race, color, ethnicity, national origin,sex, sexual orientation, age, religion, disability, or other status’ protected by law. Discrimination based on genderis most widespread. More particularly in the freight transport and support sector the men/women ratio is widelyunbalanced. The percentage of women in global forwarding and third party logistic companies has significantlyincreased in the recent years but discrimination lawsuits are still being registered(9). Sectoral initiatives werecreated to address this particular issue.

Fundamental Human Rights



[email protected]


Page: 26/30



Definition: Deals with fundamental human rights issues at work. This includes the respect of security, propertyrights, employees privacy rights, civil and political rights, rights to freedom of association and collective bargaining,social and cultural rights (including indigenous people) as well as the prevention of harassment, moral and physicalviolence and inhumane or degrading treatment.

Sectorial issues: Human rights is central to good corporate citizenship and to a healthy bottom line. Manycompanies find strength in their human rights records, others suffer the consequences of ignoring this vital partof corporate life. It is a key performance indicator for corporations working in a risky country. The need tomaintain the human dimension of work, and a company's sense of its social responsibility, is growing rapidly.Harmonizing economic growth with the protection of human rights is one of the great challenges we face today. Itis a challenge which, if met, can harness the great power of economic growth in combination with the principle ofhuman dignity(10). Respect of human rights at work is a basic principle mentioned by several initiatives such asThe Universal Declaration of Human Rights, the OIT principles or the Global Compact principles.

FAIR BUSINESS PRACTICES

Corruption & Bribery

Definition: Deals with all forms of corruption issues at work, including among other things extortion, bribery,conflict of interest, fraud, money laundering.

Sectorial issues: Corruption and bribery issues are major issues for any company, particularly when operating inrisky countries. Regulations such as the FCPA (Foreign Corrupt Practice Act) in the US address these issues andmake it unlawful to make payments to foreign government officials to assist in obtaining or retaining business.According to the World Bank website, corruption in transport projects can account for as much as 5-20% oftransaction costs(11). Corruption and bribery practices can occur in several stages of the implementation andtransportation process. It is particularly sensitive when the company is involved in illegal actions with publicofficials.

Anti-competitive Practices

Definition: Deals with anti-competitive practices including among others: bid-rigging, price fixing, dumping,predatory, pricing, coercive monopoly, dividing territories, product tying, limit pricing, and the non respect ofintellectual property.

Sectorial issues: The nature of competition is for companies the motivation to gain advantage over rivals.However, the boundary of acceptable business practices may be crossed if firms try to artificially limit competition.Such tactics can include merging to gain significant power through price fixing, price dumping, price limiting etc.Over the years, the logistic and support industry has witnessed several cases of cartel activities, such as priceagreements between competitors, thereby harming the price mechanisms in the free market. Many measures canbe implemented including the examination of company mergers by government regulators, performing externalaudits to detect anti-competitive practices, horizontal and vertical restraints agreements(12). One can also referto anti-trust laws, OECD guidelines an EU regulations on anti-competition etc. to implement a strategy inpreventing anti-competitive behavior.

Responsible Marketing

Definition: Deals with consumer and client data protection and privacy as well as truthfulness of marketingmessages, and access to essential services.

Sectorial issues: Cyber-crime is also a particular concern to the shipping and maritime sectors. Ports, shipowners, freight forwarders and logistics companies are all increasingly relying on IT at the core of theirbusinesses. In a recent report KMPG warned that shipping is “decades behind” on cyber security (Lloyd’s List, 6May 2014)(15). Therefore, data privacy is of major importance to freight forwarders and other transportationservices both internally and with regards to their supply chains. Furthermore, provision of data to authorities atany given time for compliance purposes such as customs, is an essential service that an agent or freightforwarder will need to provide in a timely manner in order to prevent buyers from receiving fines for non-compliance.

SUSTAINABLE PROCUREMENT

Suppliers & Environment

Definition: Deals with environmental issues within the supply chain i.e. environmental impacts generated from thesuppliers and subcontractors own operations and products.

Sectorial issues: The potential of sustainable procurement as a policy instrument has been increasinglyrecognized, and over recent years there has been a growing commitment at different levels to integratesustainability aspects in procurement decisions and to use the procurement process to raise awareness andcreate incentives for suppliers to improve their sustainability performance. Transport and support activitiescontribute significantly to environmental degradation through greenhouse gas emissions at a global level.Approaches to improving and enhancing the environmental performance of transportation and support activitiesinclude modal shift, the development of intermodal solutions and adoption of tools for assessing the carbonfootprint of activities and the use of more efficient transport management strategies. Some global Forwardingbusiness units have also developed “Green carrier Scorecards” for its subcontractors for air and ocean freightwhich provides information on the environmental balance sheets and greenhouse gas emissions of shippingcompanies(13).

Suppliers & Social



[email protected]


Page: 27/30



Definition: Deals with labor practices and human rights issues within the supply chain i.e. labor practices andhuman rights issues generated from the suppliers and subcontractors own operations or products.

Sectorial issues: Globalization has profoundly affected how companies are managed strategically andoperationally. New risks and challenges have emerged from new global supply chains. The risks range frominconsistent or poor quality to supply disruptions. Additionally cultural, legal, administrative, linguistic and politicaldifferences arising from cross-boundary networks only complicate things more(14). With regards to non assetbased logistic services, social issues may include, but are not limited to, child labor, working conditions, unclearsupplier labor practices (due to the large number of transportation services and geographical variation ofsuppliers); becoming indirectly involved in human rights violations, acts of corruption and bribery; unknowinglyassisting smugglers in transporting contraband. Checking suppliers and sub-contractors compliance with basiclabor requirements through CSR assessments or audits can lower these risks.

SOURCES

Sources

1- Anca D. Cristea, David Hummels, Laura Puzzello, Misk G. Avetisyan, 2011, "Trade and The GreenhouseGas Emissions From International Freight Transport" http://www10.iadb.org/intal/intalcdi/pe/2011/07724.pdf

2- Karin Hager & Christoffer Rosenvist, 2012 "Freight consolidation's impact on CO2 emissions andcosts" http://www.plan.se/pdf/exjobb_2012.pdf

3- "COFRET – CO2 Emissions of Freight Transport" http://www.dlr.de/vf/en/desktopdefault.aspx/tabid-2974/1445_r...

4- CTN, 2013, "Risque AT 2012: statistiques de sinistralite tous CTN et par CTN" http://www.risquesprofessionnels.ameli.fr/fileadmin/user_uplo...

5- PWC, 2012 "Transportation & Logistics 2030" http://www.pwc.com/en_GX/gx/transportation-logistics/pdf/pwc-...

6- A.T.Kearney, 2010, "The Future of International Freight" http://www.atkearney.fr/documents/10192/53b247d5-7637-4764-a7...

7- Finnish Freight Forwarders' Association http://www.huolintaliitto.fi/huolintaliikkeidenliitto/en/asso...

8- Bureau of Industry and Security (US Department of Commerce), "Freight Forwarder Guidance" http://www.bis.doc.gov/index.php/compliance-a-training/export...

9- Roland Berger, 2012, "Freight Forwarding SUSTAINABILITY OF BUSINESS MODELS ETHPresentation" http://www.lim.ethz.ch/lehre/fruehjahrssemester/rv_logistikma...

10- Mary Robinson, 2000, "Business and Human Rights: A Progress Report" http://www.ohchr.org/Documents/Publications/BusinessHRen.pdf

11- The World Bank, "Governance and Transport: Developing Frameworks for South Asia" http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/SOUTHASIAE...

12- Hassan QAQAYA & George LIPIMILE, 2008, "The effects of anti-competitive business practices ondeveloping countries and their development prospects" http://unctad.org/en/Docs/ditcclp20082_en.pdf

13- Waltons & Morse LLP, "New Risks: Cyber Security, Shipping and Insurance Litigation" http://www.waltonsandmorse.com/cyberrisks/

14- The European Financial Revoew, 2013 , "The Role of Third Party Logistics Providers (3PLs) in theAdoption of Green Supply Chain Initiatives" http://www.europeanfinancialreview.com/?p=831

15- Dr. Stephen Brammer, Dr. Stefan Hoejmose, Dr. Andrew Millington and NBS, "Managing sustainableglobal supply chains" http://nbs.net/wp-content/uploads/NBS-Executive-Report-Supply...

MAIN REGULATIONS AND SECTORS INITIATIVES

This section provides a list of text references related to major CSR standards, regulations, labels or sector initiatives pertaining to Othertransportation support activities.

Main Regulations and Sectors Initiatives ( = Regulatory)



[email protected]


Page: 28/30



ENV : Euro IV certification

Euro IV sets specific limits to the amount of pollutants released into the environment since 2005http://en.wikipedia.org/wiki/Emission_standard

ENV : Carbon disclosure project

CDP is an international, not-for-profit organization providing the only global system for companies and cities to measure,disclose, manage and share vital environmental information.https://www.cdp.net

ALL : Standard ISO 26000 (International Standard Organisation)

The future International Standard ISO 26000, Guidance on social responsibility, will provide harmonized, glob12y relevantguidance based on international consensus among expert representatives of the main stakeholder groups and soencourage the implementation of best practice in social responsibility worldwide.http://www.iso.org/iso/pressrelease.htm?refid=Ref972

ALL : Standard Global Reporting Initiative's (GRI)

The GRI is a network-based organization, that has set out the principles and indicators that organizations can use tomeasure and report their economic, environmental, and social performance.http://www.globalreporting.org/Home

ALL : United Nations Global Compact (10 principles)

The Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of tenprinciples in the areas of human rights, labour standards, the environment, and anti-corruption:http://www.unglobalcompact.org/AboutTheGC/TheTenPrinciples/in...

FBP : United Nations Convention against Corruption (UNCAC)

The UNCAC is the first leg12y binding international anti-corruption instrument. In its 8 Chapters and 71 Articles, theUNCAC obliges its States Parties to implement a wide and detailed range of anti-corruption measures affecting their laws,institutions and practices.http://www.unodc.org/unodc/en/treaties/CAC/index.html

ADDITIONAL CATEGORY STATISTICS

Critical Category Strength and Improvement areas (% Suppliers)

Strengths

Reporting on number of average

training hours per employee

Policies on major business

ethics issues

Regular supplier assessment

(e.g. questionnaire) on

environmental or social

practices

Supplier CSR charter active

0% 20% 40% 60% 80% 100%



[email protected]


Page: 29/30



Supplier PGM LOGISTICA SRL KPIs

Strengths and Improvement Areas

KPIsEcoVadisSuppliers

Active whistleblowing procedure in place 33%

Audit or assessment of suppliers on CSR issues 24%

Carbon disclosure project (CDP) respondent 7%

Formal code of business ethics 39%

Formal sustainable procurement policy 21%

Global Compact Signatory 12%

ISO 14001 certified (at least one operational site) 35%

OHSAS 18001 certification or equivalent (at least one operational site) 20%

Reporting on energy use or GHG emissions 75%

Reporting on health and safety indicators 77%

Improvement areas

No provision of eco-design

services to clients

No OHSAS 18001 certification

No information on measures

regarding anti-corruption &

bribery

No sustainable procurement

policy

0% 20% 40% 60% 80% 100%



[email protected]


Page: 30/30



Company Assessed : PGM LOGISTICA SRL

Documents

Transcript of Company Assessed : PGM LOGISTICA SRL