2015 SUSTAINABILITY REPORT SUMMARY THE COMMITMENT TO SUSTAINABILITY

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1 2015 SUSTAINABILITY REPORT SUMMARY THE COMMITMENT TO SUSTAINABILITY

2 ENVIRONMENTAL LEADERSHIP TOTAL WEEE HANDLED BY ECODOM (t) ,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90, ,000 ECODOM IS A STORY OF CONTINUAL IMPROVEMENT IN ENVIRONMENTAL PERFORMANCES. THE AIM IS TO MAXIMISE THE RECOVERY OF SECONDARY RAW MATERIALS AND MINIMISE ENVIRONMENTAL RISK, BENEFITING MEMBER PRODUCERS AND THE COMMUNITY CO 2 EMISSIONS AVOIDED (t CO 2 eq.) 0 200, , , ,000 1,000,000 1,200, Ever since it started operations in 2008, Ecodom has based its relationship with its logistics and treatment suppliers on strict environmental and social standards, clearly defined contracts, and a financial compensation mechanism which safeguards treatment plants during downturns in the raw material market. What s more, although it is Italy s largest Compliance Scheme in terms of volumes processed, Ecodom has always maintained a streamlined, efficient organisation. Ecodom has also constantly worked to reinforce awareness of the need to recycle in a wide variety of ways: from the work of art I Temp(l)i cambiano [The Times/Temples are Changing] by Michelangelo Pistoletto to support for projects organised by environmentalist and consumer associations, and from surveys conducted with leading research institutes through to the annual publication of its Sustainability Report. Last but not least, Ecodom also plays an active role in Europe by participating in the work of the WEEE Forum, and in particular in the WEEELabex project on treatment quality

3 OUR PRIORITIES The situation in Italy faces the Compliance Schemes that deal with WEEE with a major challenge every day: that of ensuring the highest possible level of environmental protection in a regulatory context which unfortunately does not oblige all those engaged in WEEE treatment to comply with appropriate quality standards. The failure to issue the treatment quality decree required under Legislative Decree 49/2014 means that WEEE is still ending up in the hands of organisations that cut environmental corners to maximise profits. The market for the secondary raw materials produced by WEEE treatment is extremely volatile: in 2015, for example, the price of iron plummeted, creating serious difficulties for recyclers. If the opposite occurs, with significant rises in the price of secondary raw materials, WEEE becomes a tempting prospect for the parallel market of organisations which operate to poor environmental standards. To overcome the risks intrinsic in a context of this kind, since its very first year in operation Ecodom has always constantly pursued these four objectives: 1. EFFICIENCY FOR ECODOM, THIS MEANS PROMPT COLLECTION OF WEEE FROM COLLECTION FACILITIES AND CONTINUAL OPTIMISATION OF THE TRANSPORT AND TREATMENT CHAIN, IN ORDER TO REDUCE COSTS FOR CONSUMERS. 2. CIRCULAR ECONOMY ECODOM S OPERATIONS MAKE A MAJOR CONTRIBUTION TO THE TRANSITION FROM THE LINEAR TO THE CIRCULAR ECONOMY, THANKS TO THE VERY HIGH WEEE RECYCLING RATES. 3. TREATMENT EXCELLENCE ECODOM ENSURES THAT ITS LOGISTICS AND TREATMENT SUPPLIERS OPERATE IN ACCORDANCE WITH REGULATORY REQUIREMENTS AND THE HIGHEST ENVIRONMENTAL STANDARDS. In addition to documentary verification of WEEE processing authorisations, Ecodom performs regular audits to check that treatment procedures maximise the recovery of materials with no dispersal of pollutants. 4. EXPERTISE ECODOM S EMPLOYEES ARE SELECTED FOR THEIR SKILLS, WHICH ARE CONSTANTLY MAINTAINED THROUGH AN ANNUAL TRAINING PLAN AGREED WITH THE CONSORTIUM DURING PERFORMANCE ASSESSMENTS.

4 OUR COMPLIANCE SCHEME In the pursuance of its mission on behalf of its member Producers, Ecodom operates within a close-knit fabric of relationships involving widely differing organisations: logistics and treatment suppliers, the Local Authorities and Dealers which collect WEEE, national and local government bodies, environmentalist and consumer associations, companies which handle WEEE collection on behalf of Local Authorities, national and international organisations which bring together and coordinate the Compliance Schemes as well as environmental experts and research institutions. FOUNDER MEMBERS ORDINARY MEMBERS PARTNERS WEEE HANDLED EMPLOYEES COLLECTION FACILITIES SUPPLIERS The core of Ecodom s operations centres on the WEEE generated by households, for which the Consortium assures the correct treatment: R1 (refrigeration and air-conditioning) R2 (large white goods) R3 (TV sets and VDUs) R4 (consumer electronics and small appliances). The Ecodom staff (16 people at the end of 2015) are the crucial factor in the provision of a skilled, efficient service to Consortium members. On the basis of the quantities of Electrical and Electronic Equipment placed on the market each year by the member Producers, the WEEE Clearing Centre assigns the Compliance Schemes the collection facilities from which they are to collect WEEE: in 2015 Ecodom served 3,917 of them throughout Italy. Ecodom uses 48 suppliers (10 of them providing only logistics, 9 only treatment and 29 logistics and treatment), all strictly selected and constantly monitored, right across Italy.

5 OUR OPERATIONS IN FIGURES 29 MEMBER COMPANIES 16 STAFF 78,265 TONNES OF WEEE MANAGED 3,917 COLLECTION FACILITIES MANAGED 48 1,796 FOR R1 AND 2,060 FOR R2 SUPPLIERS MANAGED HOURS OF TRAINING TOTAL PER CAPITA ECODOM 31.4% 68.6% SHARE OF WEEE MANAGED IN ITALY YEAR 2015 OTHER COMPLIANCE SCHEMES 49.3% 50.7% SHARE OF R1 WEEE MANAGED IN ITALY YEAR % 37.6% SHARE OF R2 WEEE MANAGED IN ITALY YEAR % 64.1% 31.4% 68,715 OF THE ITALIAN WEEE SYSTEM 321,500 GJ OF ENERGY SAVED R1 REFRIGERATION AND AIR-CONDITIONING 99.87% 810,469 LEVEL OF SERVICE (TRANSPORT PUNCTUALITY) MARKET SHARE R2 LARGE WHITE GOODS TONNES OF SECONDARY RAW MATERIALS RECYCLED TONNES OF CO 2 AVOIDED ECODOM IS ITALIAN LEADER BOTH IN TERMS OF TOTAL QUANTITY OF WEEE HANDLED AND MARKET SHARE IN CATEGORIES R1 REFRIGERATION AND AIR-CONDITIONING refrigerators, freezers, air-conditioners R2 LARGE WHITE GOODS washing-machines, dishwashers, extraction hoods, ovens, water-heaters AS AN ADDITIONAL SERVICE TO ITS MEMBERS, ECODOM ALSO HANDLES WEEE IN CATEGORIES R3 TV SETS AND VDUS R4 SMALL APPLIANCES small appliances, consumer electronics, IT devices, light fittings

6 MATERIALS RECYCLED 47,076 1,489 TONNES OF IRON TONNES OF COPPER 6 EIFFEL TOWERS WHAT WE RECYCLE Thanks to Ecodom s operations, in 2015, 68,715 tonnes of secondary raw materials, including IRON (60.2% of total), PLASTICS (10.2%), ALUMINIUM (2.1%), COPPER (1.9%) and GLASS (1.1%), were recycled and returned to production cycles. 16 STATUES OF LIBERTY 8,000 TONNES OF PLASTIC 3.2 MILLION GARDEN CHAIRS 1,657 TONNES OF ALUMINIUM MILLION CANS WHY IS RECYCLING WEEE IMPORTANT? THE IMPORTANCE OF RECYCLING WEEE LIES NOT SO MUCH IN THE WORTH OF THE SECONDARY RAW MATERIALS PRODUCED AS IN THE REDUCTION OF THE ENVIRONMENTAL IMPACTS CAUSED BY THE RELEASE INTO THE ENVIRONMENT OF THE POLLUTANTS CONTAINED IN WEEE AND THE SAVING ON THE ENERGY COSTS INVOLVED IN THE EXTRACTION OF VIRGIN RAW MATERIALS. The main environmental problem caused by incorrect management of WEEE is the dispersal into the atmosphere of the ozone-depleting gases contained in the refrigeration circuits and polyurethane foams of refrigerators, air-conditioners and freezers. Moreover, the energy consumption needed to obtain secondary raw materials from WEEE, and the consequent greenhouse emissions, are considerably less than the amount required to produce the same amounts of virgin raw materials.

7 2015 PROJECTS AND PROGRAMMES WEEE AWARENESS-RAISING WITH THE UNC Ecodom s partnership with the Italian National Union of Consumers (UNIONE NAZIONALE DEI CONSUMATORI - UNC) derives from the knowledge that the correct disposal of WEEE depends to a large extent on consumers. In October 2015, we published three articles in the UNC newsletter informing consumers about what WEEE is, how to get rid of it correctly and the benefits obtained from its correct disposal. WEEE IN PRISON This project, which has been running since 2009, aims to create effective ways of increasing the social inclusion and aiding the return to work of detainees, helping them to acquire skills they can use on the job market and overcome their social disadvantages. In 2015 we supplied about 2,800 washing machines to Bologna Prison and about 3,400 to Ferrara, as part of a scheme involving ten or so inmates. SpreK.O. / CITTADINANZATTIVA For the second consecutive year, we played an active part in the three days of information and education intended to combat the disposable culture, organised by Cittadinanzattiva at Spoleto. THE WEEE FORUM AND THE FIGHT AGAINST THE ILLEGAL TRADE IN WEEE On 25 November 2015, in partnership with another compliance scheme, we sponsored a workshop at which Pascal Leroy, General Secretary of the WEEE Forum, presented the study COUNTERING WEEE ILLEGAL TRADE (CWIT), which revealed that in Europe about two thirds of the WEEE generated is not dealt with correctly. ITALIAN LESSON IN WEEE FOR THE RUSSIAN FEDERATION From 20 to 22 April 2015, an interministerial delegation from the Russian Federation visited Milan on a fact-finding mission to study the Italian WEEE management system. The visit, its organisation handled by Ecodom, enabled the guests to view the various phases around which the WEEE System is structured and to hold discussions with Ceced Italy and the WEEE Clearing Centre on the potential for applying the Italian model in the Russian situation. VENDOR RATING AWARD The award assigned to the Consortium in the Small Enterprise category by the COMPRAVERDE-BUYGREEN Forum underlines its adoption of appropriate environmental, economic and social sustainability criteria in its purchasing and supplier qualification processes. SUSTAINABLE DEVELOPMENT FOUNDATION Ecodom joined the Foundation in order to make an active contribution to its research into topics relating to the Green Economy.

8 SCENARIOS All Ecodom s operations are focused on environmental protection; it is therefore fundamentally important to measure its effectiveness in pursuing this aim, especially from the point of view of energy use and greenhouse gas emissions. To do this, it is necessary to compare the consumption and emissions really derived from the Consortium s activities with those generated in a hypothetical scenario in which WEEE management takes place without Ecodom. POSSIBLE SCENARIOS THE TWO SCENARIOS WERE DEFINED WITH THE INVOLVEMENT OF STAKEHOLDERS WITH THE RELEVANT SPECIALIST KNOWLEDGE, IN ORDER TO IMAGINE A SITUATION WHICH, ALTHOUGH HYPOTHETICAL, IS ACTUALLY POSSIBLE. SCENARIO A CURRENT SCENARIO (PROPER WEEE MANAGEMENT) In the current scenario both the energy consumption and emissions directly generated by Ecodom s operations (transportation of WEEE from the Collection Facilities to the treatment plants and the treatment itself) and those arising from the upstream activities (collection of WEEE) and the downstream processes (transportation after treatment, industrial recycling, incineration and disposal) were calculated. SCENARIO B PARTIAL WEEE MANAGEMENT It was assumed that if Ecodom did not exist, 50% of the quantity of WEEE handled by Ecodom in 2015 (78,265 tonnes) would be dealt with by organisations which aim solely to maximise profits and the other 50% by the plants currently used by Ecodom itself, which however would operate with an ozonedepleting gas recovery performance equal to that measured by Ecodom during its first year in activity. THE BENEFITS GENERATED BY ECODOM S OPERATIONS The difference (in energy consumption and emissions) between scenario B and scenario A provides a measurement of the environmental benefits deriving from Ecodom s action: 810,469 CO 2 EMISSIONS AVOIDED equivalent to the annual CO 2 absorption of a forest the size of the Italian province of Lecco (810 kmq). 321,500 GJ ENERGY SAVED equivalent to the annual consumption of a town with a population of 75,000.

9 Via Giuseppe Ungaretti, Saronno (Varese) Italy tel fax For further operation: Methods and operations consulting: Ecosistemi S.r.l. Advertising design, graphics and pagination: BCV associati srl Photography: Mario Guerra, Francesco Radino

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