UNIONE NAZIONALE INDUSTRIA CONCIARIA - Euroleather

UNIONE NAZIONALE INDUSTRIA CONCIARIA

UNIONE NAZIONALE INDUSTRIA CONCIARIA

INTRODUCTIONThe Italian tanning industry transforms a waste product producedby the food industry into a high added value product, knownworldwide for its quality and style, and strategic for fashion. UNICis the entrepreneurial Trade Association and represents the Italiantanning industry.The Italian tanneries are international leaders and export approximatelytwo thirds of the 3.8 billion Euros turnover, producing68% of the European production and more than 17% ofworld production.The UNIC “group” of companies includes trade fairs, innovation,fashion, standardisation, credit and publishing.The Report prepared this year represents the seventh editionsince 2003 and illustrates the data of the surveys performed in thecompanies, and describes the general environmental and socialsituation.The scenario reflects a category that is firmly rooted in the territory,and with the continuous investments made, has achievedan excellent environmental impact that is evolving and unparalleled.This is combined with a deep sense of social responsibility towardsthe workers, communities and administrations.The Italian tanning industry is comprised of small and mediumsizeenterprises, and addresses the cyclic periods of difficulty, likethe present period, with determination, without foregoing theproduction of wealth and progress.Quality, innovation and sustainability, these represent the valueswhich have always guided the Italian tanning industry’s growth.2

INTRODUCTIONpart ONEpart TWOpart THREEpart FOURappendixCONTENTS06 ITALIAN TANNING INDUSTRY - trend in 200912 The tannery - production process and environmental aspects18 ENVIRONMENTAL BALANCE19 the sample21 chemical products consumption23 energy consumption26 water supplies and discharges31 water treatment cost34 waste production and managment37 waste: management cost39 atmospheric emission42 atmospheric emission: costs44 enviromental managment system45 final considerations52 SOCIAL RESPONSIBILITY53 survey results55 industrial relations57 training activities58 accidents60 CORPORATE GIVING64 TECHNOLOGICAL AUDITS68 UNIC TANNING CODE OF CONDUCT70 THE TANNERIES WHICH COLLABORATED4

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ITALIAN TANNING INDUSTRYtrend in 2009The Italian tanning industry comprised 1,385 companiesat the end of 2009 and employed 16,994 persons, overall.The decrease corresponded to approximately 3% for bothindicators compared to the previous year, whereas, the variationis greater if the full period of the economic crisis isconsidered (between -5% and -7%).With reference to production, the loss recorded last yearwas substantial: -11.9% in terms of the volume of sq.m.(-17.2% tons of sole leather) and -16.1% referred to the overallvalue. Reference is made to 126 million square metresof finished hides and 32 thousand tons of sole leather, correspondingto a total of 3.8 billion Euros, in absolute terms.The trend over the 12 month period reflected seasonaldownturns in turnover which were constant, on average duringthe first three quarters of the year (estimated at around20%) and reflected a marked improvement in the loss duringthe last quarter (approximately -4%).Therefore, the sector survived the economic crisis duringthe 2008-2009 two-year period with a significant negativeresult in terms of production (-28% in value, -25% in sq.m.-32% sole leather), substantially uniform between the domesticand international market (-27% referred to exports,-33% referred to apparent domestic sales ), but significantlylower with regard to employment (-7%). This different levelemphasises the significant efforts made by the tanneries tomaintain the workforce in the sector and the level of professionalismachieved.regional dataMore than 90% of Italian tanning is grouped into districtsand each district has special features in terms of productionand industrial characteristics (Fig. 1).The most important tanning centre in terms of turnoverand employment (50% of the national total) is located in Veneto,in ‘valle del Chiampo’ in the Province of Vicenza, wheremedium-small size enterprises co-exist with large industrialgroups; the main production specialisation involves large bovinehides intended to be used in padded furnishing, footwearand leather goods.Whereas, the area that has the largest number of tanningcompanies is in Tuscany in the S. Croce sull’Arno, Ponte adEgola and Fucecchio area (Provinces of Pisa and Florence).Large bovine hides and small-size hides (calves) are mainlyprocessed in this context, characterised by a high degreeof craftsmanship and flexibility, intended to be used in thefashion industry, and corresponding to an annual turnovertable 1 - Production by Italian tanning industry - volume and value (2008 - 2009)2009 % Variation 2008/2009Volume Value Volume Value(Euros/million)Tanning industry production (‘000 sq.m.) 126,215 3,631.3 -11.9% -16.0%Sole leather (tons) 32,522 198.6 -17.2% -18.2%TOTAL PRODUCTION n.c. 3,829.9 n.c. -16.1%Source: UNIC 20096

figure 2 - Production by type of animal% incidence by volume(2009 m 2 )figure 3 - Production by sectors of intended use% incidence in terms of volume(2009 m 2 )The volumes procured from all the principal macroareascited decreased in 2009, with the sole exceptions ofOceania (increased by 5%) and Latin America (substantiallystable). Imports from the European Union and fromthe African-Middle East area dropped by more than 20%.In addition to the fall in domestic tanning demand, a majorcontribution to these dynamics was made by the Chinesebuying activities in the two areas, for example, Chinesebuying in Europe doubled compared to the previous year.In overall terms, the sector imported raw materials from116 countries.The 2008/2009 variations concerning the volumes importedwere all negative, with regard to the analysis referredto single types, even if less substantial in the case ofraw hides (-11%) compared to the semi-processed goods(wet blue -17%, crust -40%). The losses in value all exceeded30%.international leadershipThe Italian tanning industry maintains an undisputed internationalleadership position and not only from the technologicaldevelopment, stylistic and qualitative aspect ingeneral. In fact, the leadership position is also confirmed bythe figures.In fact, the value of domestic production has an incidencethat corresponds to 68% of the European total andcorresponds to 17% of the world total (Figure 11), despitethe decrease due to the economic situation and the unfairstructural competition by non-EU competitors which profitby engaging in dumping activities (social, environmental andfinancial) and protectionism concerning raw materials (50%of the world’s crude oil is subtracted from free trade). Whereas,in commercial terms, it is estimated that almost onehide in three exchanged between international players is anItalian hide as regards exports of finished hides, whereas, interms of imported raw materials, we absorb 11% of raw hidesand 27% of semi-processed hides on a global level.Goats9.3%Sheep13.6%Calves7.4%Africa andMiddel West7.5%Nafta Area4.5%Former URSSand Balkans Area26.9%Other animals0.4%LatinAmerica0.4%Oceania0.3%FarEast6.5%Bovine (excludingsole leather)69.3%Other3.8%EU50.1%figure 4 - Tanned hide exportsby macro area of destination% incidence in terms of value (2009)Car upholstery4.6%Clothingand gloves5.9%Leather goods17.8%LatinAmerica16.2%Africa andMiddle East8.4%Nafta Area5.4%Furnishing18.7%Oceania9.9%Other4.9%Former URSSand Balkans Area9.0%FarEast0.2%Footwear48.1%Source: UNIC 2009 Source: UNIC 2009Other2.1%Source: UNIC 2009 Source: UNIC 2009EU48.8%figure 5 - Raw material importsby macro-area of origin% incidence by volume (2009)9

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Hides / SkinsBeamhouseThe tanneryTanning (vegetable, sole leather)ChemicalsEnergyTanning(chrome, other metals)Water12

productionprocess andenvironmentalaspectsAir emissionsFinished productsDyeingFinishingWastewaterWaste13

Italian tanning production has now adopted industrialcharacteristics, although maintaining a number of traditionalaspects of handicraft processing which ensure theproduct’s high quality: more and more efficient tanningmaterials and machines, automation of complete operationalsequences, rationalisation of the production processand environmental protection, represent an integral partof the activities of every tannery.An approach referred to as the ‘black box’ can be adoptedin order to identify the environmental aspects of a tannery’sprocesses, in the same way as the other industrialproduction processes. In particular, tannery productioncan be considered to be a process to transform raw materialsand energy into finished products.This transformation is achieved with the input of water,energy and chemical products. The environmental interactionsassociated with the process are mainly representedby water discharges, waste materials and atmosphericemissions. Therefore, the consumption of resourcesor emission is considered to represent an environmentalaspect and as such is managed in the tannery.The tannery’s production cycle comprises a series ofchemical and mechanical treatments which enable decayingorganic matter (raw hides and skins) to be transformedinto a high value added product for footwear, furnishing,clothing and leather goods.A description of the various phases which comprise thetannery operations is provided below, with informationconcerning the main related environmental aspects andregarding the principal actions adopted to prevent and tomitigate them.curingThe raw hides and skins which arrive in the tanneryhave been subjected to a curing process to slow downtheir possible decomposition, maintaining the hides/skinsin the best condition up to the production operations. Thefollowing methods are used most frequently:® chilling: the hides/skins are preserved at temperatureswhich prevent the activities of bacteria, also withthe help of suitable products. This method is only validfor short periods and entails the constant use of means oftransport and refrigerated warehousing;® salting: after flaying, the hides/skins are saturatedwith salt (sodium chloride, NaCl) that prevents the developmentof bacteria and therefore the decompositionreactions;® drying: the hides/skins are dried so that the humiditycontent is fairly low to prevent the bacteria from living andto prevent decaying enzyme reactions.A curing process performed incorrectly can cause freeammonia to develop and bad odours, which do not representa hazard to human health and to the eco-system ingeneral, as such, but influence the quality of life of the inhabitantsliving in the surrounding areas. To avoid the formationof ammonia and unpleasant odours, the raw hides/skins are not exposed to weathering, which speeds up thedecaying processes, but are stored in the tannery, insidecold rooms at temperatures slightly above a 0°C.beamhouse operationsThe beamhouse operations are performed to removefrom the hides/skins all the components which are no longeruseful to the production process (for example: preservationsalt, hair, portions of subcutaneous tissue), to relaxthe collagen structure and favour the penetration of thevarious tanning agents. The first beamhouse operations(soaking, liming/unhairing) are performed in the drums;these are large cylindrical containers which are similar toindustrial washing machines, where the hides/skins aretreated with water, normally added with chemical productsor enzymes which favour washing and unhairing thehides/skins. The hides/skins are then treated with machinerythat eliminate the subcutaneous tissue (fleshing) andin some cases are cut lengthwise, obtaining two or morelayers (splitting) before passing on to the next processingoperations. At this point, the cycle continues again insidethe drums where the hides/skins are washed to removethe residues of the chemical products used in the limingand to achieve optimum tanning conditions.14

The quantities of water consumed during thebeamhouse operations are proportional to theweight of the hides/skins treated. The water dischargedis laden with dissolved substances whichinfluence the quality of the water; the beamhouseoperations mainly influence the parameters ofthe water discharges, for example: the chemicaloxygen demand (COD), suspended solids, chlorides,sulphides and organic Nitrogen. The water istreated (possibly differentiated for some baths)to reduce the pollutants to values which do notrepresent risks to the environment. The hair canbe recovered in special grids to be subsequentlyreused as felt. Some innovative technologies enablethe hair to be removed with enzymes and torecycle the unhairing baths, with a decrease in thewater consumption and pollutant emissions. Thefleshing operation produces fleshings that mustbe treated like a solid residue in the same way asthe waste produced by trimming. All the varioustypes of waste products are collected separatelyin the tannery to enable the waste products concernedto be transferred to the correct destination.The fleshings, the hair and the trimmings aretransferred for re-use with various destinations inthe industrial sector and in the agricultural andlivestock sectors.tanningThe hides/skins are subjected to the actual tanning phaseafter having been subjected to the treatments designedto eliminate the excess substances, change the pH valuesand prepare the collagen fibres. Tanning is performed byusing substances which fix themselves irreversibly to thehide/skin fibres and prevent decomposition, rendering thefibres stable and long-lasting, without changing their naturalproperties. Various types of tanning exist and theirrespective phases are very different depending on theprocesses and the product’s intended use: mineral tanning(mainly performed using chrome salts), vegetable tanningand organic and mixed tanning. The most widespreadtanning is chrome tanning performed in tanning drumswith the tanning product in a bath that has an acid pH.The vegetable tanning system used most frequently forsole leather foresees immersing the hides/skins in a seriesof successive pits containing solutions of tannin extractsat increasing concentrations. The process time can evencorrespond to 30 days. The production of sole leather inItaly uses mainly a mixture of chestnut, mimosa and quebrachotannins. Vegetable tanning is characterised by adiffusion process from a solution (tanning bath) to the solidphase (hides/skins) that is maintained until a balanceis reached and that treats the hide/skin’s entire thickness.The treatment is performed in pits with the hides/skinsflowing counter current: when the hides/skins enter the15

finishing: conferringthe final externalappearanceThe dyed leather is suitably dried during setting-outoperations, when the excess water is removed and dryingis achieved mainly by suspending the leather in air.The leather is then lightly moistened and subjected tomechanical operations designed to soften it, stretch it andstandardise the surface area. Furthermore, in some casesit is subjected to surface buffing, to produce a velvet finishsurface with “nap” that varies in length. This operation canalso be performed on dry leather which has only been tannedand is then subsequently dyed. The actual finishingconsists of applying a surface film that has a varying thicknessand transparency, made using chemical substancesof various kinds, depending on the article to be produced.The various application technologies for the finishing includethe technology that is used most frequently and correspondsto the spray system using compressed air. Theleather is positioned on a mobile conveyor that has an adjustablespeed, the leather receives the necessary quantityof covering mixtures through spray guns which generallymove in a circular motion during the transition.The last operation, involves trimming the finished leatherbefore delivery to the customer, to eliminate allthe parts which have flaws and the parts which cannotbe used. As regards the sole leather the soles can be cutusing special shears at the customer’s request.The finishing operations, and in particular thesurface application of products by spraying usingcompressed air influence the quality of the atmosphericemissions, in particular, with reference todusts and volatile organic compounds (VOC). Allthe emissions originating from buffing and from thespray cabins on the finishing lines are transferred tofilters and scrubbers of various kinds which ensurecompliance with the legal limits. In some cases thescrubbers use water as a purifying agent: in this casethe water is replaced periodically and transferred tothe water treatment facility to maintain the plant’sefficiency. Furthermore, in recent years, many solvent-basedfinishing products have been graduallyreplaced with equivalent water-based products andthis solution has contributed significantly to improvingthe quality of the atmospheric emissions. Lastly,the leather trimmings which are created in the finalcontrol and selection phase are collected separatelyand reused to produce other smaller leather goods orleather fibre board.17

24%Tuscany37%figure 1 - Sample structure:percentage compared to the numberof companiesfigure 2 - Sample structure:percentage compared to the numberof employeesCampania24%Campania21%Other Regions18%Other Regions17%Veneto21%Tuscany37%Veneto41%Campania21%Other Regions17%Tuscany21%Veneto41%Tuscany21%Source: UNIC 2009Source: UNIC 2009the sampleThe tanneries which gave their contribution to the preparationof this seventh edition of the Environmental Reportare mainly located in the various Italian productiondistricts. The selection criteria used to identify the companiesin the sample have tried to follow the structure ofthe sector on a national level, in terms of the geographicaldistribution, value of production and the number of employees.Figures 1, 2 and 3 describe the breakdown of the samplecompared to the total number of companies and employeesand in relation to the turnover. An increase inthe number of companies located outside the district canbe noted for this year (mainly in Lombardy) representing17% of the total number of employees in the sample and10% of the value of production.figure 3 - Sample structure:percentage compared to the valueof productionCampania19% 21%Other RegionsOther 17% Regions10%TuscanyTuscany 21%25%Veneto41%Veneto46%Source: UNIC 2009Campania19%Other Regions10%Tuscany25%Veneto46%Other Regions19

20%18%16%14%12%10%8%6%4%2%0%15%14%12%11%9%8%6%5%3%2%0%figure 4 - Sample representativeness comparedto the value of production: 2003 - 200911.7%17.4%11.8%11.1%16.8%2003 2004 2005 2007 2008 2009% Value of production Average valuefigure 5 - Sample representativeness comparedto the number of employees: 2003 - 20096.4%9.2%6.6%9.7%16.4%14.2%2003 2004 2005 2007 2008 2009% Number of employees Average value11.8% 14.4%9.7%Source: UNIC 2009Source: UNIC 2009table 1 - Sample representativenessVALUE OF PRODUCTIONSAMPLE TOTAL %Veneto 287,063,289 1,990,003,000 14.4%Tuscany 156,552,155 1,030,542,000 15.2%Campania 122,451,918 374,069,000 32.7%Other Regions 63,804,076 435,328,000 14.7%Totale 629,871,438 3,829,942,000 16.4%EmployeesSAMPLE TOTAL %Veneto 1.005 8,474 11.9%Tuscany 511 4,518 11.3%Campania 525 2,119 24.8%Other Regions 406 1883 21.6%Totale 2,447 16,994 14.4%Source: UNIC 2009As illustrated in Table 1, the 33 tanneries which collaboratedrepresent 16.4% of the National value of productionin 2008, with an incidence at the local level that varies from14.4% referred to Veneto to 32.7% referred to Campania.With regard to the number of employees, the sample represents14.4% of the employees at a national level.Figures 4 and 5 illustrate the trend of the Sample representativenessreferred to the Environmental Report interms of the value of production and the number of employeesin the various editions of the Report.The figures indicate how the representativeness referredto 2009 in relation to the first factor is slightly lowerthan last year’s edition (16.4% compared to 16.8% reportedin last year’s edition), whereas with reference to thenumber of employees the 14.4% measured this year representsthe maximum value found in the seven editionsof the report.20

The European legislation (DIR 67/548 EEC) duly adoptedat a national level classifies a number of preparations as hazardouswhen handled and used in production. 31% of theproducts used in the tanneries in the sample are included inthis category (36% in 2008, 33% in the last edition). It is importantto specify that this classification does not imply thehazardous nature of the leather product as such, but that thetanning operators need to take precautions during the hanchemicalproducts consumptionThe structure of the raw hides needs to be modified in orderto be transformed into finished leather, so that the structureis no longer putrescible, giving the leathers concerned themechanical and aesthetic properties desired. This requires anintense activity to be performed on the dermis macro-molecules,achieved by the use of specific chemical products, transportedin water or applied over the surface. A wide varietyof chemical products are used in the tannery and the rangeof products is evolving continuously. For the third year thesurvey included in the Report analyses the subject of the consumptionof chemical products based on specific investigations.This year the survey was supplemented with an analysisof the uses and the contexts of use of the chemical productsdesigned to provide useful information concerning the assessmentfor the applicability in the tannery of the provisions setout in regulation 1907/2006 EC, known as REACH (Registration,Evaluation, Authorisation and Restriction of Chemicals)and which came into force on 1st June 2008.The results show that the production of one m 2 of finishedleather requires the use (on average) of approximately 2.25kg of chemical products (1.97 kg/m 2 in the last edition of theReport).dling and storage of the products concerned.As highlighted in Figure 6, the tanneries have organisedthemselves to achieve the objective of ensuring the greatestenvironmental compatibility of the chemical products used.The main activities designed to achieve this aim includes theselection of products which pollute less, the experimentationand industrialisation of processes with a lower impact, the managementof safety information relating to the chemical productsused, training the personnel, the correct managementduring handling and maintenance of the storage areas.In this latter survey it appears evident that the selection ofnew products which are more compatible, based on tests andexperiments performed in the tannery, represents the mostimportant activity to reduce the consumption of chemicals.figure 6 - Chemical products management: characteristic activities 2007-2009200938.5%13.2%16.3%16.0%16.0%200833.0%13.9%18.7%12.3%12.1% 9,9%200752.5%5.1%6.8% 10.4%23.8%9.9% 9,9%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%0.9%Selection of new products with greater environmental compatibility (tests and experiments)Safety data sheets managementPersonnel trainingSafe management of chemical products storage and handlingMaintenance of chemical products storage areas and tanksOtherSource: UNIC 200921

The characteristic activities highlighted in the surveyare performed mainly by the technical staff in the tannery(77.0% of the total expenditure), in collaboration withthe suppliers. In fact, using an innovative product in theproduction stage means the product has been tested thoroughlybased on experiments, and sometimes may entailthe use of dedicated equipment and machinery. Thestructure of the costs of the specific activities is illustratedin Figure 7.table 2 - Chemical products: summary dataINDICATOR 2007 2008 2009Total chemical products consumed/year (kg) 39,933,154 47,385,877 50,355,922Total chemical products consumed/year (kg/tannery) 1,479,006 1,692,353 1,525,937Products containing substances classified as hazardous (%) 36% 33% 31%Chemical products per product unit (kg/m 2 ) 1.84 1.97 2.25Costs to reduce chemical products/turnover (%) 0.14% 0.13% 0.08%Costs to reduce chemical products/unit product (€/m 2 ) 0.04 0.05 0.02Source: UNIC 2009figure 7 - Chemical products management: costs structure 2007 - 2009200977,0%16.5%5.4%1.1%200868.9%21.1%1.5%7.6%0.9%200730.7%50.0%3.5%0.5% 14.5%0.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Services Amortisation/depreciation Other22Source: UNIC 2009

energy consumptionThe tanneries use mainly electric energy and heat. Theelectric power is used to operate the machinery and plants,while the heat serves to reach the process temperatures insome phases of the processing, to heat the process water andthe work environments. While the electric power suppliesare very diverse, with a generation mix of suppliers that isequally variable, the heat energy is obtained mainly by burningmethane gas or other fossil fuels. However, the tanneryis not a high energy intensive industry.Specific conversion factors enable the energy contributionsof each different source to be summed. It has beendecided to express the values measured in Tonnes of OilEquivalent per 1,000 square metres of leather produced(TOE/1,000 m 2 ) in order to calculate the average overallconsumption per unit produced.Figure 8 shows that the energy consumption perproduct unit over the eight years surveyed has changedsignificantly, varying from a maximum value ofapproximately 2.4 TOE/1,000 m 2 (measured in 2002)to a minimum value of 1.09 TOE/1,000 m 2 (measuredin 2007). Slightly higher figures were measuredover the last two year period, with the value referredto 2008 corresponding to 1.17 TOE/1,000 m 2 andthe value referred to 2009 corresponding to 1.25TOE/1,000 m 2 . The variation in the unit energy consumptionis mainly due to the energy requirementsof the production processes, but it is also influencedby the development of processes having a lowerenergy consumption and by the variable mix of rawmaterials processed and the increased efficiency ofthe machinery and plants.figure 8 - Energy consumption per product unit2002 - 2009 (TOE/1.000m 2 )32.4021.601.4011.301.20 1.201.091.171.2502002 2003 2004 2005 2006 2007 2008 2009Source: UNIC 2009Annual valuesAverage value23

The structure of the energy consumption has remainedvirtually constant during the seven years surveyed, as illustratedin Figure 9. Electric power and methane gas alwaysrepresent more than 95% of the total requirements,with low-sulphur content oil, LPG and automotive DieselOil covering the remaining portion.In the 2009 survey, the main activities performed in thetannery to reduce the energy consumption (Figure 10)are represented by the development of processes whichachieve a energy saving (49.7% of total expenditure) andby the selection/purchase of high-efficiency machineryand plants (39.5%). Consistently, the main cost items arerepresented by personnel and depreciation (respectively,corresponding to 68.2% and 15.1% of the total).figure 9 - Breakdown of energy consumption: comparison 2002 - 2009200920082007200649.1%52.6%54.6%51.9%46.8%42.7%41.5%42.7%2.6%2.4%0.8%2.1%1.5%2.3%3.1%3.3%Furthermore, as can be noted in the Table 3, the incidenceover turnover of the costs to reduce energy consumptionshas remained virtually constant over the 2007-2009 three-year period, representing an overall valuebetween 0.03% and 0.04%.2005200452.6%54.8%43.3%38.8%1.3%5.1%2.8%1.3%200350.1%44.5%0.9%4.5%200251.4%45.1%2.1%.4%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Electric power Methane gas Automotive diesel oil OtherSource: UNIC 200924

20072.4%12.5%84.4%figure 10 - Reduced energy consumption: characteristic activities 2007 - 20090% 10% 20% 30% 40% 50% 60% 70% 80% 902009200820079.9%10.4%2.4%12.5%15.0%49.7%84.4%71.0%39.5%0.9%3.6%0.7%Selecting energy suppliers with production mixeswhich privilege renewable energyDeveloping processes with higher energy savingSelecting and purchasing high energy efficiency machineryInstalling renewable energy generating plantsOther0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Source: UNIC 2009200920082007figure Selecting 11 - Reduced energy suppliers energy with production consumption: mixes cost structure 2007 - 2009which privilege renewable energyDeveloping processes with 68.2% higher energy saving6.7% 10.0% 15.1%Selecting and purchasing high energy efficiency machineryInstalling renewable energy generating 0.5% plantsOther 43.8%8.0%47.7%1.4%15.0% 4.3%52.7%26.6%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Depreciation OtherSource: UNIC 2009table 3 - Energy consumption, summary dataINDICATOR 2002 2003 2004 2005 2006 2007 2008 2009Energy consumption per unit product (TEP/1.000m 2 ) 2.40 1.60 1.30 1.20 1.20 1.09 1.17 1.25Electric Power over total consumed (%) 51.4% 50.1% 54.8% 52.6% 51.9% 54.6% 52.6% 49.1%Methane gas over total consumed (%) 45.1% 44.5% 38.8% 43.3% 42.7% 41.5% 42.7% 46.8%Costs to reduce energyconsumptions/turnover (%) - - - - - 0.04% 0.20% 0.10%Costs to reduce energyConsumptions/unit product (€/m 2 ) - - - - - 0.01 0.06 0.01Source: UNIC 200925

water supplies and dischargesWater is used in the tannery mainly as a mean to achievethe chemical transformation of hides/skins through the useof products carried in solution. In fact, processing raw hides/skinsis developed via a series of phases performed in anaqueous environment. Therefore, water consumption andwater treatment represent the most important environmentalaspects in tanning.The companies have adopted various water supply systemsin order to meet the water needs, for example, thesesystems include artesian wells and connections to industrialand civil plants. At the same time, consortium facilities havebeen created in the main districts to treat the water discharges.As is illustrated clearly in Figure 12, the specific consumptionper product unit, expressed in litres consumed per m 2of leather produced is aligned over the eight years surveyedon an average value that is slightly higher than 118 l/m 2 . Theminimum value was recorded in 2007 (108.57 l/m 2 ) and themaximum value was recorded in 2002 (136.0 l/m 2 ). The va-lue referred to 2009 (118.36 l/m 2 ) is very close to the average(118.38 l/m 2 ).The data was measured by the companies included in thesample by reading the meters of the internal wells and/or of theindustrial aqueducts and therefore represents a precise value.Various activities are performed in the tannery to reducethe water consumption.The most significant of these activities are represented bythe development of processes which entail the reduced useof water resources and selecting/purchasing high-efficiencymachinery. The costs associated with these two activities(Figure 13) represent approximately 90% of the expenditurefor the characteristic activity based on the structure representedin Figure 14.Approximately 95% of the water consumed in the tanneryis transferred to the water treatment facility. The residualportion remains as humidity in the leather, evaporates or iscontained in the waste materials transferred to the treatmentprocess.The majority of the water discharged by Italian tanneriesis treated in centralised and consortium water treatmentfacilities, developed specifically for the needs of the tannerywaste products. A quota of less than 10% of the nationaltanneries manage the water treatment activity directly, sincenot located in production districts, mainly discharging intothe public sewer system.The companies which are connected to centralised watertreatment facilities, however, pre-treat the water in theplant, in order to remove the large residues and perform aninitial separation of the pollutants.Therefore, the analysis of the sector’s water treatment activitybecomes more complete with the direct involvement ofthe centralised water treatment facilities. This edition of theReport illustrates the data referred to the main centralisedwater treatment facilities for the sixth time (2004–2009).The water treatment facilities involved in the 2009survey treated the water of 739 tanneries distributedamong the Veneto, Tuscany and Campania Regions.14012010080604020136.00figure 12 - Water consumption per product unit2002 - 2009 (l/m 2 )121.70109.94121.79113.33108.57117.33118.36118.3802002 2003 2004 2005 2006 2007 2008 2009Annual valuesAverage valueSource: UNIC 200926

figure 13 - Reduced water consumptions: characteristic activities 2007 - 2009200964.0%24.0%12.0%200840.0%35.0%25.0%200736.0%54.0%9.0%1.0%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Development of processes ensuring greater water saving or recycleSelection and purchase of high-efficiency water consumption or water recycle machineryWater consumption accountingOtherSource: UNIC 2009figure 14 - Reduced water consumptions: costs structure 2007 - 2009200960.5%9,2%9.2%9.8%11.3%200855.4%3.1%40.3%1.2%200719.7%25.1%1.3%38.1%15.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Services Depreciation OtherSource: UNIC 200927

200920082007200620052004figure 15 - Water entering the water treatment facilities 2004 - 20090.7%51.0%44.9%3.4%52.6%45.3%2.1%1.2%52.7%40.5%5.7%52.6%40.0%4.4% 3.0%52.6%40.0%4.3% 3.1%52.6%40.8%5.4% 1.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Industrial - tannery Civil Other Industrial non-tannerySource: UNIC 2009Figure 15 illustrates how the water entering the tannerywater treatment facilities during the six years surveyedis also represented by civil water that corresponds to valuesclose to 40%. This fact confirms how the facilitieswhich were constructed for industrial requirements byprivate initiatives have acquired a significant public utilityover time.In addition to civil water, the consortium water treatmentfacilities treated mainly tannery water during the2004–2009 period (always exceeding 50% of the inputover the entire period considered) and smaller quotas ofother waste materials or industrial waste in the liquid statewhich were transported by road.Furthermore, the concentrations for the following mainparameters were considered in the waste materials at theentry point and at the discharge point of the facilities inorder to provide precise data concerning the efficiency ofthe water treatment processes:® Suspended Solids® Chemical Oxygen Demand (COD)® Chlorides® Sulphates® Total nitrogen® Ammonia® Chrome III® Sulphides28

® Suspended Solids(TSS - Total Suspended Solids)This parameter indicates the quantity of undissolvedsolids, normally measured in milligrams/litre(mg/l) which can be separated byfiltration from a liquid sample. Tannery wasteproducts are mainly due to undissolved chemicalproducts or decay residues of hides/skins duringthe wet operations. These solids can be removedfrom the waste products (with a positive effectalso on the COD) by means of chemical and physicaltreatments.® COD (Chemical Oxygen Demand)The value is expressed in milligrams ofoxygen per litre (mgO 2 /l), and represents thequantity of oxygen required for the completeoxidation of the organic and inorganic compoundscontained in the waste products. Therefore,this represents an index that measuresthe pollution level of the water due to the organicresidues of hides/skins (hair and dermis)and chemical products not depleted in the processbaths (for example: ammonia, surface activeagents, sulphides, organic acids, organicsolvents, tannins, resins, aldehydes, colouringagents, fats, etc.). The COD is controlled inthe water treatment by combining physicalactions (for example: filtering/screening, etc.)with chemical and biological processes.® Sulphate(SO 4= )The presence of high concentrations of sulphatescan cause various problems, first of all,a reduced self-purifying capacity of the receivingbody of water. Sulphates have an oxidising actionthat subtracts oxygen from the decompositionprocesses of the other pollutants. In addition,sulphates are responsible for increasing thewater’s salinity and the consequent increase ofthe osmotic potential that represents a fundamentalparameter for aquatic life. Sulphates arecontained in a vast range of chemical productsin the tannery and decreasing their respectivecontent can also be achieved by substituting traditionalchemicals with alternative products.® NitrogenThis represents one of the key parameterswhen assessing the pollutant load because Nitrogenexercises its action at both the chemical andbiological level, by intervening directly on themetabolism of the living organisms. Nitrogen isgenerally expressed in terms of TKN: Total KjeldhalNitrogen, namely, the concentration of totalorganic Nitrogen deriving from the breakdownof proteins and urea. Due consideration mustalso be taken of the portion of Nitrogen that derivesfrom ammonia (NH 3 ) and from ammoniumsalts (NH 4+ ) which are used in the processes inaddition to the TKN, in order to determine thetotal Nitrogen content in the waste products.The water treatment activity mainly entailsbiological processes acting on the nitrification/denitrification balance.® Chlorides (Cl-)The chlorides contained in the tannery dischargesare entirely of mineral origin and arereferable to the refresh phase that dissolves thepreserving salt, the ammonium chloride that maybe used in the decalcination/maceration processand the use of sodium chloride and hydrochloricacid in the pickle and in tanning.Their presence is not considered to cause particularconcern, except for the influence that ahigh salt load can cause on the water’s osmoticpotential, on the water’s organoleptic characteristicsand possible corrosion phenomena on thepipes, associated with the water’s higher electricconductivity.® Chrome (III)Basic chrome sulphate (CrOHSO 4 ) is a tanningagent that is able to fix itself irreversiblyto the collagen fibres, preventing the fibres fromdecaying without changing their softness, flexibilityand the original fibrous structure and itis very widely used in the tanning industry forthis reason. The chrome does not have particulartoxic characteristics in its trivalent state ofoxidation.The technologies available to the sector enablea significant portion of the chrome contained inthe depleted tanning baths to be recovered usingchemical and physical treatments, reducing theconcentrations entering the water treatment systems,which complete their removal.® Sulphides (S = )Sodium sulphide (Na 2 S) is used in the initialprocessing phases, in particular, to removehair from hides/skins which have hair. The environmentalimpact is mainly due to its potentialtoxicity in certain environmental conditions, toits contribution to the COD value and, less impactingbut more evident, the characteristic badodour transferred to the water.The sulphides are largely eliminated (morethan 99%) using traditional chemical, physicaland biological treatment systems. A furtherpossibility of removing sulphides is representedby intervening on the process by adopting, forexample, enzyme unhairing processes to achievethe total or partial substitution of the sulphideand replenishing the depleted baths and reusingthem.Industria conciaria italiana - 29

Once again, the data referred to 2009 confirm the trendshighlighted throughout the period surveyed. The watertreatment processes developed are confirmed to beextremely efficient for the majority of the pollutants.In fact, as is clearly illustrated in Figure 16, the reductionlevels are near to or exceed 90% for all the parameters,except for chlorides and sulphates, which still representtreatment problems which have not been completelysolved at an international level.1009080706050403020100figure 16 - Removal level of water pollutants 2002 - 2009Suspended Solids COD Chlorides Sulphates Total Nitrogen Ammonia Chrome III Sulphides2002 2003 2004 2005 2006 2007 2008 20092002 2003 2004 2005 2006 2007 2008 2009Suspended Solids 98.0% 97.8% 96.5% 99.1% 98.7% 97.0% 97.8% 98.8%COD 90.0% 95.8% 95.1% 97.6% 97.5% 97.0% 97.4% 98 %Chlorides 10.0% 5.4% 6.2% 25.7% 25.9% 31.0% 24.9% 39.1 %Sulphates 13.0% 11.7% 15.3% 16.5% 16.0% 17.2% 15.2% 27.9 %Total Nitrogen 82.0% 91.9% 94.0% 90.9% 90.7% 89.5% 89.5% 94 %Ammonia 84.0% 93.3% 89.4% 98.3% 98.1% 98.5% 96.7% 98.7 %Chrome III 97.0% 98.8% 98.5% 99.1% 99.1% 99.0% 98.6% 99.3 %Sulphides 91.0% 99.0% 99.0% 99.9% 99.9% 99.9% 99.9% 99.8 %Source: UNIC 200930

figure 17 - Improvement of water discharges: characteristic activities 2007 - 20091.1%20090.6%20080.7%6.5%0.5% 0.3%2007 11.4%0.9%0.4%18.6%0.7%1.5%90.9%87.1%78.9%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Processes development with lower water polluting effectsUse of products with lower water polluting effectsManagement and maintenance of internal water treatment plantWater analysisExternal centralised water treatment facilitySource: UNIC 2009water treatment costThe surveys performed over the 2007-2009 three-yearperiod have enabled the internal costs of the tanneries tobe measured (sustained for water treatment and to improvethe discharges) and to analyse the expenditure ofthe consortium structures.Almost all of the environmental costs associated withthe water discharges sustained by the tanneries are representedby the management of the water treatment facility.In fact, the external water treatment and the management/maintenanceof the water treatment facilities withinthe plant represent the largest portion of the specificcosts (Figure 17) and during the period considered thewater treatment services absorb quotas which are close to90% (Figure 18).figure 18 - Improvement of water discharges: costs structure 2007 - 20091.8%2009 5.5% 0.5%91.6%0.6%0.7%2008 5.9% 12.1%72.6%8.7%3.5%200789.1%3.2%3.4% 0.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Services Amortisation/DepreciationSource: UNIC 2009Industria conciaria italiana - 31

3%figure 19 - Water management costs/turnover 2002 - 20092%2.05% 1.97%2%1%1%1.43% 1.58% 1.63% 1.71%1.58%1.20%1.65%0%2002 2003 2004 2005 2006 2007 2008 2009Source: UNIC 2009Water treatment costs/Turnover (%)Average valuetable 4 - Water: summary dataINDICATOR 2002 2003 2004 2005 2006 2007 2008 2009Water consumed per product unit (l/m 2 ) 136.0 121.7 109.9 121.8 113.3 108.6 117.3 118.4Water management costs/turnover (%) 1.43% 1.58% 1.63% 1.71% 1.58% 1.54% 2.05% 1.97%Water management costs/product unit (€/m 2 ) 0.61 0.52 0.56 0.59 0.54 0.41 0.61 0.46Source: UNIC 2009The incidence of the water management costs over turnoverincreased significantly during the last two year period. Infact, the values referred to 2008 and 2009 (2.05% and 1.97%of turnover, respectively) correspond to levels which are distinctlyhigher than the period average (1.65%), reflectingincreases which exceed 40% of the value referred to 2002(1.43%).Furthermore, by considering the values illustrated in Table4 it can be noted that even if the trends during the 2002-2009 period reflect a marked decrease in the unit water consumption,there was a corresponding progressive increase inthe incidence of water management costs over turnover; thistrend was only inverted in 2009, albeit to a limited extent.Approximately 90% of the turnover generated by thecentralised water treatment plants is spent on the operatingcosts of the various water treatment processes.The analysis of the cost breakdown referred to the centralisedwater treatment facilities over the 2004–2009period (Figure 20) confirms that the disposal and transferof sludge and waste materials produced by the watertreatment processes to authorised plants representsthe main expenditure factor. In fact, percentages varyingfrom 34.8% to 48.9% of the turnover are allocatedto this item. Energy represents the second expenditureitem for the consortium water treatment facilitieswith quotas which vary between 14.9% and 21.7% oftotal costs.32

figure 20 - Cost breakdown of centralised water treatment plants 2004 - 20091.2%2009 7.1% 15.9% 7.6% 7.9%21.7%28.2% 9.2% 1.2%0.1% 1.4%2008 8.9% 14.1% 5.4%0.4%16.4%48.9%0.8%4.8%2007 9.9% 13.3% 5.6% 6.6% 16.1%39.7%6.9% 0.6%Chemical productsDepreciation1.1%0.4%Other significant costs2006 9.5% 12.2% 5.1% 8.8% 17.8%37.0%6.9% 1.1%PersonnelWater treatment plant energy1.1%0.4%External downstream plants2005 9.9% 12.9% 5.2% 8.9% 17.2%37.0%6.3% 1.1%MaintenanceSludge disposal1.1%0.4%Analysis2004 10.3% 15.0% 7.5% 9.5% 14.9% 34.8%5.4% 1.1%Other waste materials0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Source: UNIC 2009figure 21 - Composition of waste materials produced by centralised water treatment plants 2004 - 2009WATER TREATMENT PLANTSWHICH COLLABORATED:CONSORZIO AQUARNO SPAS. Croce sull’arno (PI)www.depuratoreaquarno.itACQUE DEL CHIAMPO SPAArzignano (VI)www.acquedelchiampospa.itCONSORZIO CONCIATORI DI FUCECCHIOPonte a Cappiano (FI)www.ofnelson.it/ccf/ita.htm20092008200720062005200454.6%58.1%53.9%55.0%46.1%88.4%29.2%23.0%30.3%30.1%37.5%1.1%13.3% 1.8%0.1%10.1% 1.4%0.6%17.5% 0.8%0.8%14.0% 1.0%0.7%13.3% 0.9%0.5%14.6% 1.3%Recovered sludgeDisposed sludgeFertilisersScreened materialOther waste materialCONSORZIO CUOIODEPURPonte a Egola (PI)www.cuoiodepur.itMEDIO CHIAMPO SPAMontebello Vicentino (VI)www.mediochiampo.itImpianto di depurazione di SolofraCOGEI Srl – Solofra (AV)0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Source: UNIC 200933

waste productionand managmentThe waste generated in the tannery originates mainlyfrom the hides which enter raw or semi-processedand which must be stripped of all the solid componentswhich are not required in the finished product. Therefore,the tannery processes designed to achieve thisobjective generate waste materials which are collectedin a solid form, or are contained in the wastewater andgenerate sludge in the water treatment phase.figure 22 - Breakdown of typical waste materials produced by tanning activity 2002 - 200920092008200726.0%31.0%35.3%16.3%15.6%16.3%26.5%27.4%28.2%18.7%13.2%8.5%12.5%12.8%11.6%Therefore, the waste materials which are generatedby the tannery vary in nature depending on the productionphase from which they originate and therefore canhave different final uses.200618.7%19.2%34.2%18.5%9.5%As illustrated in Figure 22 the shavings, scraps andtrimmings together with the fleshing (Classified as anAnimal By-product, in accordance with the applicablelegislation disciplining the subject), represent more than40% of the waste materials produced throughout the periodsurveyed. In addition to these, the majority of thewaste originates from the sludge (from approximately18% to 26% of the total).20052004200317.8%27.4%33.3%18.1%35.4%21.4% 16.5%25.1%20.6%20.0%28.0%11.3%8.7%6.7%9.7%The tanneries which deliver the wastewater to centralisedwater treatment facilities also transfer to thesefacilities the portions of dissolved waste products whichgenerate the sludge. The production of sludge by thewater treatment plants is illustrated in Figure 21 above.The tanning liquids containing Chrome are transferredto centralised recovery facilities by tanks (and aretherefore covered by the national legislation that disciplineswaste management). The recovered Chromeobtained is mixed with other Chrome purchased “fresh”and re-used in the production process. This process hasbeen improved over the years and is now commonly usedin many tanneries, thanks to the availability of a centralisedfacility. Other tanneries use an internal process torecover the Chrome.200222.1%17.5%31.2%19.1%10.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Sludge Shavings, scraps and trimmings FleshingTanning liquids Other + unsorted materials Source: UNIC 200934

A comparison of the data referring to the 2002-2009period highlights how the breakdown of the waste producedcan vary significantly over the years. The respectiveweight of the individual categories of waste depends,above all, on the types of raw material processed.The tannery must implement internal separate collectionand storage procedures in order to permit the re-useand recovery of the waste materials produced, avoidingmixing among the different types of waste materialswhich would render the materials unusable by the specialisedcompanies which operate downstream.As illustrated in Figure 23, the value identified during2009 represents a historical maximum with 97% of thewaste collected in a separate form; however, it is importantto note how these percentages have never droppedbelow 91% of the waste produced. In addition to thetypes of waste materials described previously, a remainingquota comprises packing (wood, plastic or othermaterials) and ferrous materials which are, however,reusable and other mixed waste materials originatingfrom different processing phases and from the maintenanceprocess. The unsorted material is of various kindsdepending on the companies and on the types of organisationand production.74% of the waste produced was subsequently reused/recycledduring 2009 (Figure 24). Considering the entire periodsurveyed it can be noted that the percentages of re-useonly dropped below 70% in the surveys referred to 2003 andto 2004. This environmental performance is guaranteed bythe joint organisation of the tanneries and the water treatmentfacilities downstream that enables significant quantitiesof waste to be recycled and recovered, also through thedevelopment of highly specialised, specific technologies.figure 23 - Separate collection: comparison referred to 2002 - 2009figure 24 - Final use of waste materials 2002 - 2009100%90%80%70%60%50%40%30%20%10%0%6% 9% 6% 5% 5% 7% 4% 3%94% 91% 94% 95% 95% 93% 96% 97%2002 2003 2004 2005 2006 2007 2008 2009100%90%80%70%60%50%40%30%20%10%0%31%24% 26%33%27% 28% 27%43%69%76% 74%67%73% 72% 73%57%2002 2003 2004 2005 2006 2007 2008 2009Separate collection tanneriesUnsortedFor recoveryFor disposal+ other separate collection activitiesSource: UNIC 2009 Source: UNIC 2009Industria conciaria italiana - 35

waste: management costThe waste management costs per square metre of leather producedreflected a historical maximum in 2009 corresponding to an incidenceof 0.84% of turnover and approximately Euro 0.2 per product unit.The increase appears to be related to the parallel increase in theunit production of waste materials per square metre of leather produced.Therefore, it would appear that no substantial action was takenon the unitary tariffs concerning waste management in 2009.figure 27 - Waste management costs/Turnover 2002 - 20091%1%0.84%1%1%0.58%1%0.55% 0.56% 0.58%1%0.54%0%0.47%0% 0.39% 0.37%0%0%0%2002 2003 2004 2005 2006 2007 2008 2009Source: UNIC 2009Waste material costs/turnover (%)Average valuetable 5 - Waste materials: summary dataINDICATOR 2002 2003 2004 2005 2006 2007 2008 2009Waste materials/product unit (kg/m 2 ) 2.16 1.79 1.93 2.16 2.08 1.66 1.83 2.10Separate collection (%) 94% 91% 94% 95% 95% 93% 96% 97%Waste transferred to recovery (%) 69% 57% 67% 73% 72% 72% 76% 74%Costs of waste turnover (%) 0.39% 0.37% 0.47% 0.58% 0.55% 0.56% 0.58% 0.84%Costs of waste product unit (€/m 2 ) 0.120 0.100 0.110 0.174 0.166 0.150 0.172 0.198Source: UNIC 200937

Figure 28 and Figure 29 illustrate the subdivision ofthe costs for the characteristic waste management activitiesand their structure. The expenditure sustainedto transfer the waste to authorised external facilities representsthe largest relative portion of costs for the characteristicactivity, also referred to 2009, confirming thetrends over the entire period surveyed, involving the activitiesconcerning separate collection and the selectionof suppliers. As confirmation of this, the external wastedisposal services represent 90% of the total expenditureassociated with waste management.figure 28 - Waste management: characteristic activities 2007 - 20093.5%2009 3.0% 0.9%89.5%2.1% 1.0%20081.9%8.0% 4.3% 6.2%77.1%3.5% 0.9%2007 2.9% 1.6%90.8%2.2% 0.6%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Separate collection of wasteManagement and maintenance of collection and storage areasSelection of suppliers privileging recoveryTransfer to authorised disposal facilitiesAdministrative management of waste materialsWaste materials analysis and characterisationOther (specify)Source: UNIC 2009figure 29 - Waste management: costs structure 2007 - 2009200910.0%0.2%89.8%200815.1%2.5%0.4%68.1%13.9%20076.3% 2.4%89.5%1.5% 0.1%0.2%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Services Depreciation OtherSource: UNIC 200938

atmospheric emissionThe main parameters which influence the quality ofthe air originating from the tannery are represented byVolatile Organic Compounds (VOC), Dusts and HydrogenSulphide. The atmospheric emissions transferredoutside the tannery using specific extraction plants aregenerated in different phases of the process, both in thetanning drum and during the surface treatments of leatherconcerned.In addition, heating plants are used to produce heatwhich emit Nitrogen Oxides (NOx) and Sulphur (SOx),in addition to Carbon Dioxide (CO 2 ), naturally, duringthe combustion.® VOCVolatile Organic CompoundsSubstances emitted during the spray finishingprocess of leather in limited concentrations andin large volumes of air which are then transferredto scrubbers (lamella filters and scrubbers). Thetechnological solutions to reduce the pollutioncaused by VOC focus on substituting solvent-basedproducts with equivalent water-based products, inorder to reduce the source of pollution.® DustsSubstances produced by a number of mechanicaloperations, for example, shaving and grinding,connected to specific extractor/removal devices toreduce the concentration; the dust is produced inthe form of particles of coloured pigments containedin the products, also in the finishing spraycabins.® H 2 S - Hydrogen SulphideA gas with a characteristic smell of rotten eggs.The gas originates mainly from the calcinationwaste materials and originates in the decalcinationdrums due to the change in the values ofpH. These drums are connected to the extractorsystems to limit the emission of the gas in the environment,the extractor systems use caustic sodasolutions which combine with the H2S and removemore than 95% of the gases emitted.® NOx e SOxNitrogen Oxides and SulphurCombustion by-products in the heating plants.Their concentration in the emissions depends onthe oxidation of the Nitrogen present in the airand the quantity of Sulphur in the fuels used. Theheating plants which use traditional fuels (dieseloil and low sulphur content oil) are now graduallybeing converted to cleaner solutions (methanegas).Industria conciaria italiana - 39

Figure 30 illustrates the characteristic values for anumber of atmospheric pollutants expressed in g/m2 andcalculated according to the following formula:POLLUTANT PER PRODUCT UNIT(g/m 2 ) = CA (Kg/year)/P * 1,000figure 30 - Atmospheric parameters per unit product 2002 - 2009 (g/m 2 )1.982.032.112.042.052.032.042.102.42where:AL = annual loadsP = production in m 21.421.631.451.461.71The polluting loads were calculated as follows:CA [Kg/y] = C [mg/Nm 3 ] * F[Nm 3 /h] * h [hours worked/y]/10 61.221.05where:C = concentration at the stackF = overall flow rate of plants which emit the pollutanth = sum of the hours worked in one year0.600.760.770.710.740.800.870,80Source: UNIC 2009The emissions were found to be virtually constant duringthe period surveyed.It was also possible to monitor the consumption ofsolvents per unit product referred to 2009, since thetanneries included in the sample implemented a specificphysical accounting system. In this way it was possibleto calculate an “average emission factor”, expressed ingrams of VOC consumed per unit product (g/m 2 ). Theresultant value is slightly greater than 50 g/m 2 , a valuethat confirms the measurements made in previous years.0.050.050.050.050.05Dusts NOx SOx H 2S2002 2003 2004 2005 2006 2007 2008 20090.040.06In addition, the data collected by the Province of Vicenzais also shown (Table 5, Figure 31), refers to theVeneto tanning centre: the figures reflect the trend forthe consumption of solvents during the 1996/2009 period,compared to the production of the same districtexpressed in m 2 . The trend for the consumption of solventsdecreased (-71%) from 1996 to 2008, compared tothe trend of production illustrated in the figure.40

figure 31 - Production/solvents consumption ratio 1996 - 2009, Arzignano district60%40%20%0%-20%-40%-60%-8.0%-71.0%-80%1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Solvents consumption -% variationSkins production -% variationSource: Provincia di Vicenzatable 6 - Production/solvents consumption ratio1996 - 2008, Arzignano districtSolvents consumption Leather productionValue in kg Viar. % Value in m2 Viar. %1996 18.439.000 0 125.326.000 01997 17.128.000 -7% 128.350.000 2%1998 15.295.000 -17% 132.856.000 6%1999 13.489.000 -27% 143.422.000 14%2000 12.852.000 -30% 165.221.000 32%2001 12.756.000 -31% 160.766.000 28%2002 11.467.000 -38% 170.983.000 36%2003 9.751.000 -47% 167.902.000 34%2004 8.795.000 -52% 174.391.000 39%2005 7.987.000 -57% 162.676.000 30%2006 7.344.000 -60% 165.514.000 32%2007 6.648.000 -64% 150.858.000 20%2008 6.132.000 -67% 135.021.000 8%2009 5.300.000 -71% 115.000.000 -8%Source: UNIC 200941

atmospheric emission:costsThe activities associated with managing and reducingthe atmospheric emissions are illustrated in Figure 32referred to the 2007–2009 three-year period. The reductionof emissions in the tannery is achieved thanksto the selection and purchase of efficient machinery, thedevelopment of processes with a reduced impact, as wellas maintaining the removal plants and the analyses.The structure of the associated costs concerns thefollowing activities with the related importance that wasgreater in 2009:® Processes developed with loweratmospheric pollution® Use of products causing lower atmosphericpollution® Selection and purchase of high-efficiencymachinery in relation to atmospheric emissions® Management and maintenance of scrubbers® Analysis of atmospheric emissionsPersonnel, consumables, and amortisation/depreciationrepresent the expenditure categories with a relativelygreater importance during the survey period.table 7 - Atmospheric emissions: summary dataINDICATOR 2002 2003 2004 2005 2006 2007 2008 2009Dusts (g/m 2 ) 0.60 0.76 0.77 0.71 0.74 1.22 0.80 0.87NOx (g/m 2 ) 1.98 2.03 2.11 2.04 2.05 2.03 2.04 2.10SOx (g/m 2 ) 0.80 1.05 2.42 1.42 1.63 1.45 1.46 1.71H 2 S (g/m 2 ) 0.05 0.05 0.05 0.05 0.05 0.004 0.04 0.06Emission costs/turnover (%) 0.1% 0.10% 0.10% 0.10% 0.12% 0.11% 0.11% 0.08%Emission costs/ unit product (€/m 2 ) 0.049 0.042 0.030 0.038 0.035 0.028 0.034 0.019Source: UNIC 200942

figure 32 - Improved atmospheric emissions: characteristic activities 2007 - 2009200918.8%16.7%19.4%25.6%19.5%200813.2%22.1%17.0%40.5%7.2%200725.0%20.7%18.1%26.3%9.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Processes developed with lower atmospheric pollutionUse of products causing lower atmospheric pollutionSelection and purchase of high-efficiency machinery in relation to atmospheric emissionsManagement and maintenance of scrubbersAnalysis of atmospheric emissionsOther (specify)Source: UNIC 2009figure 33 - Improved atmospheric emissions: costs structure 2007 - 2009200957.0%13.6%8.8%11.0%9.6%200841.8%3.2%9.3% 1.6%43.1% 1.0%200744.5%10.2% 4.4% 3.4%32.8%4.7%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Services Depreciation OtherSource: UNIC 2009Industria conciaria italiana - 43

enviromental managmentsystemEnvironmental Management is more and more integratedwith the tannery’s overall management; the Environmental Managementactivities are performed in the Company and the mainaim is to prevent pollution and improve the Company’s environment,but does not include the direct management of the mainenvironmental aspects. The main environmental managementactivities defined above include the following:® Identification and assessment of the significantenvironmental aspects® Training personnel concerning EnvironmentalManagement practices® Implementation and certification of theEnvironmental Management System® Environmental product certificationThe adoption of Environmental Management Systems in thetannery which are more and more precise and advanced formsthe basis for a constant growth of the Company’s performance,corresponding to the performance monitored in recent years.A number of the tanneries included in the sample are certifiedUNI EN ISO 14001 and other tanneries comply with the EMASregulation. In both cases the tanneries have implemented anEnvironmental Management System and the correspondingcompliance has been verified by a third-party body. An EnvironmentalManagement System envisages that the tannerycomplies fully with the legislation as the starting point for itsactions designed to achieve the on-going improvement of itsperformance. Furthermore, it is important to note that the typicalactivities of an Environmental Management System are alsoperformed in tanneries which are not certified, as an integralpart of their own overall management system. In addition, EnvironmentalProduct Certificates have recently started to be distributed,developed specifically to meet the needs of tanneriesand their customers (Refer to information box).The characteristic activities of an Environmental ManagementSystem, limited to the planning and control phase, are presentedin Figure 34, below. In addition, as can be inferred in Figure 35,personnel, consultancy services and services represent the mostsignificant portion of the costs associated with this specific activity.figure 34 - Environmental Management System: characteristic activities 2007 - 200920092008200720092008200716.8%24.8%26.7%30.5%24.7%19.1%43.8%49.8%50.7%6.5%0.2%0.1%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Identification and assessment of significant environmental aspectsTraining personnel concerning environmental management practicesImplementation and certification of the environmental management systemEnvironmental product certificationOther41.4%63.2%61.7%0.8%34.8%0.4%0.2%16.5%22.5%6.1%15.7%.20.0%9.2%6.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Personnel Consumables Consultancy services Services Depreciation Altro0.2%2.7%figure 35 - Environmental Management System: costs structure 2007 - 20093.4%Source: UNIC 20090.2%0.5%Source: UNIC 200944

final considerationsThe absolute value of the average environmental expenditureper tannery (Figure 36) increased further inthe 2009 survey. On average, each tannery spends approximately€ 615,985. This figure ranks second only comparedto the situation that emerged in 2005 (€ 635,848).A number of indicators, in particular, the indicatorsconcerning the consumption of chemical products, waterconsumption and the production of waste materials showedpositive variations in 2009, with a loss of efficiencypartly due to the variation in the types of incoming rawmaterials, to major production subdivisions and smallerorders, which are typical symptoms of the difficult economicsituation being experienced. In general terms, itcan be noted that the environmental performance of thetanneries, however, remains high throughout the period.figure 36 - Total environmental costs 2002 - 2009 (e)1,000,000900,000800.000700.000635.848577.122597.248512.751 615.984 600,000580.580500,000 600,208 570.240400,000535.235300,000200,000100,00002002 2003 2004 2005 2006 2007 2008 2009Total environmental costsAverage valueSource: UNIC 2009table 8 - Total environmental costs 2002 - 2009 (e)2002 2003 2004 2005 2006 2007 2008 2009Total environmental costs 600,208 577,122.3 570,239.8 635,848.3 597,248.0 535,235.0 512,751.30 615,984.56Water management costs 450,398 444,047.8 420,414.1 468,784.5 440,326.1 342,095.0 344,531.47 398,364.13Waste materials management costs 123,051 101,503.1 116,714.1 130,142.6 122,242.0 115,972.9 95,424.10 165,516.13Atmospheric pollution costs 20,190 21,939.8 18,255.5 20,355.9 19,120.1 21,849.2 18,593.73 15,956.13Other environmental costs 6,569 9,631.5 14,856.1 16,565.3 15,559.7 55,317.9 54,012.03 36,148.17Source: UNIC 2009Industria conciaria italiana - 45

Table 9 and Figure 37 illustrate the distribution ofthe environmental costs referred to 2002–2009. Waterand waste materials are confirmed as representing theaspects with the greatest impacts from the economicpoint of view. The relative importance of the tanneryresidues management factor increased up to approximately27% of the total in the 2009 survey. This result is tobe partly attributed to an increase in the quota of wastematerials produced per square metre of finished leather,and partly due to the greater attention paid by tanneriesto this specific aspect that also has the effect of the relativeincrease in costs.200920082007figure 37 - Environmental costs: distribution 2002 - 200964.7%26.9% 2.6% 5.8%67.2%18.6% 3.6% 10.6%63.9%21.7% 4.1% 10.3%An increase in the incidence of environmental costs onturnover and on the total operating costs was recordedagain this year. The values recorded (3.13% and 3.27%,respectively) represent the maximum values, althoughthe increases were more limited compared to 2008. Theoverall increase in the incidence on turnover and totaloperating costs compared to the values referred to 2002,therefore corresponded to 64.9% and 55.8%, respectively.20062005200467.8%68.9%73.2%23.6%23.4%21.2%5.1%4.0%3.2%3.5%3.7%2.4%2003200276.4%75.0%18.0%20.5%3.9%3.4%1.7%1.1%Water management costsWaste management costsAtmospheric pollution costsOther environmental costs0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Source: UNIC 2009table 9 - Environmental costs: distribution 2002 - 20092002 2003 2004 2005 2006 2007 2008 2009Water management costs 75.0% 76.4% 73.2% 68.9% 67.8% 63.9% 67.2% 64.7%Waste materials management costs 20.5% 18.0% 21.2% 23.4% 23.6% 21.7% 18.6% 26.9%Atmospheric pollution costs 3.4% 3.9% 3.2% 4.0% 5.1% 4.1% 3.6% 2.6%Other environmental costs 1.1% 1.7% 2.4% 3.6% 3.4% 10.3% 10.5% 5.8%Source: UNIC 200946

figure 38 - Incidence of environmental costs/turnover 2002 - 20094%3%3.11% 3.13%3%2.47%2%2% 1.90% 2.07% 2.23% 2.49% 2.34% 2.48%1%1%0%2002 2003 2004 2005 2006 2007 2008 2009Incidence on turnoverAverageSource: UNIC 2009figure 39 - Incidence of environmental costs/total operating costs 2002 - 20094%3%3%2%2.10%2%1%1%2.33% 2.39% 2.63% 2.47% 2.58% 3.25%3.27%2.63%0%2002 2003 2004 2005 2006 2007 2008 2009Incidence on total operating costsAverageSource: UNIC 200947

Lastly, as is customary, Figure 40 illustrates the trendsfor the value of production and the incidence of environmentalcosts on turnover index-linked to 2002. The mirroredtrend of the two curves is always apparent. Theincidence of environmental costs increases as the valueof production decreases.It is important to note in this context that over theyears the Italian tanning industry has created mediumlargesize operating structures with the aim of reducingits inherent environmental aspects. For example, theconsortium water treatment facilities which participatedin this year’s survey employ 356 persons, overall, whileservicing approximately 739 tanneries. It is thereforeevident that maintaining large centralised structures entailsthe existence of a component of fixed maintenancecosts which therefore corresponds to a rigid structure ofthe environmental costs.The 3.13% incidence of environmental costs on turnoveris partly due to the fact that Italian tanneries are requiredto address the most demanding, complicated and“fragmented” legislation in the world. This correspondsto a loss of competitiveness on the international markets,above all, in the absence of policies which enhancereciprocity in relation to the emerging and competitorcountries which are not subject to any cost associatedwith minimising the impact and depollution.figure 40 - Trend for environmental costs / turnover - value of production 2002 - 200980%63.7%60%64.9%40%30.9%20% 8.9%0.0%22.9% 30.5% 17.4%0%-18.9%-14.0%-26.2%-20%-13.6%-12.5%-38.1%-21.4%-40%2002 2003 2004 2005 2006 2007 2008 2009Incidence over turnover index Value of production indexSource: UNIC 2009All this, if not adequately addressed, can have negativeeffects on a sector that has experienced a major crisisand that despite everything continues to produce wealthand progress, demonstrating a virtuous conduct fromthe environmental point of view, which should be rewardedand encouraged.The efforts made should be acknowledged in orderto safeguard the survival of the category, also througha series of measures to encourage environmental investmentsand to acknowledge the costs supported byassigning a tax credit in relation to the environmentalexpenses sustained.48

partTHREE51

SOCIAL RESPONSIBILITYSteadily increasing commitment and attention are dedicatedto ethical and social aspects by the companiesoperating in the sector in order to strengthen and enhancethe relationship with the supply chain and the localcommunity.The situation that emerges from the analysis of the informationcollected shows a sector that is firmly rootedin the territory and constantly committed to combiningindustrial growth with the well-being of its personnel, thesustainable growth of the territory and improving the qualityof life of the local communities, also in collaborationwith the local administrations.The tannery sector has its own Code of Conduct from1999 that represents an important statement of its sensitivityin relation to social ethics, this Code of Conduct wascompletely rewritten at the end of 2008 to give the companiesoperating in the leather sector an important toolwith which to communicate the commitment to protectworkers and the environment and to guarantee the qualityand safety of the products (in the Annex).The information concerning the social aspects was processedon the basis of the information provided by a numberof sample companies involved in the environmentalbalance, referred to the 2009 financial year, supplementedby the information provided by labour consultants thatoperate within the territory. This has enabled the data ofthe social portion of the report to be referred to a sampleof 197 companies which employ approximately5,600 persons.The following indicators were considered:® Organisational structure® Type of employment contract® Age brackets® Seniority classes® Level of academic qualifications® Territorial origin® Structure of industrial relations® Workers who are Trade Union members® Unemployment benefit systems® Disciplinary measures® Incentives and benefits for workers® Training activities® Membership of inter-professional funds® Frequency of accidents® Ratio of serious accidents® Average duration of accidents® Actions taken to minimise health risksand occupational safety® Association policy and existenceof internal self-regulation systems® Initiatives implemented at the local level® Relationships with the communityand solidarity initiatives52

2009200820062009200879.0%80.4%83.2%19.3%17.9%15.6%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%1.7%1.7%1.2%Blue-collar workers Office staff Executives and middle management0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Open-ended employmentcontractfigure 1 - Organisational structure 2006 – 2009figure 2 - Contractual types 2006 - 200982.7%87.9%Fixed-term employmentcontract13.1%9.8%4.2%2.3%Other (training, project-related temporary employment)figure 3 - Age brackets 2006 - 2009Source: UNIC 2009Source: UNIC 2009survey resultsThe predominance of professional figures with technicaland production type duties (79% of the workforce) inthe company is confirmed by analysing the organisationalstructure of the companies operating in the sector (Figure1), even if decreasing slightly compared to 2006 (83.2%).Whereas, the low incidence of management and coordinationtype duties (office staff and middle management)is an indicator of the predominance of small and mediumsizecompanies, however, almost always involving familyenterprises, and the tendency to attribute the decisionmakingresponsibilities to personnel in a middle managementposition, but with proven experience.As is clearly shown in Figure 2, the majority of the personswho work in tanneries are hired with an open-endedemployment contract (82.7% in 2009), with fixed-termemployment contracts which represent the second itemin order of importance (13.1%) and other types of contract(training, project-related, temporary employment)corresponding to the remaining quotas.The distribution according to age bracket (Figure 3)shows quite a consistent distribution. The age bracketsbetween 35 and 55 show the largest percentage incidence,with a representativeness of young persons aged under35 that remains above 20% throughout the survey period.Therefore, the tannery sector appears to attract new workersat a constant rate.200923.2%34.3%33.9%8.6%200825.9%35.5%30.6%8.0%200627.7%28.3%29.2%14.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Up to 35 years From 35 to 45 years From 45 to 55 years More than 50 yearsSource: UNIC 200953

As illustrated in Figure 4, more than 50% of the employeeshave worked in a tannery for less than 10 years(63.9% in 2009), with a significant quota of the total remainingfor a large portion of their professional career.The information illustrated in Figure 1 concerning theorganisational structure is reflected fairly accurately bythe analysis of the academic qualifications in the threeyearperiod surveyed (Figure 4). However, the trendtowards a progressive organisational structure for thesector can be noted with an increase in the incidence offigures with a diploma and University degree, and withboth technical and organisational duties.The tanning sector’s firm roots in the territory and thereforeits social and economic importance, in particular,can be noted by the distribution of the workers’ territorialorigin (Figure 6). In fact, a large portion of the personneloriginate from the Province in which the company operates.The workers originating from Non-EU countries continueto be significant in numerical terms.2009200820092008figure 4 - Seniority categories 2008 - 200968.3%21.9% 6.9% 2.9%56.8%18.4% 16.2% 8.8%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%Up to 10 years From 11 to 20 years From 21 to 30 years More than 30 yearsSource: UNIC 2009figure 5 - Level of academic qualifications 2006 - 20093.0% 28.8%68.2%2.3% 24.8%72.9%20062.8%18.3%78.9%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%University degree Secondary education OtherSource: UNIC 2009figure 6 - Territorial origin 2008 - 2009200981.5%9.2%9.3%200874.9%14.5%10.6%0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%54Province Italy / EU country Non - EU countriesSource: UNIC 2009

100%88%75%63%figure 7 - Structure of industrial relations 2009100.0%73.6%industrial relationsThe trade and the social partners have developed aconstructive relationship of exchange and dialogue overthe years, confirmed by the numerous joint actions implementedto protect and develop the sector both at thedomestic and European level.50%38%25%13%0%20093.6%2.5%Source: UNIC 2009The level and the structure of industrial relations wereanalysed in 2009, firstly considering the application of thevarious negotiating tools available to the companies (Figure7). The Tannery National Labour Collective Agreementis applied by all the companies in the sample. A fractionof these companies (73.6% in 2009) integrates the Nationalagreement with supplementary territorial negotiationsand only a small portion with supplementary negotiationsand corporate disciplinary codes.National Labour Collective AgreementTerritorial supplementary concentrationCorporate supplementary concentrationCorporate disciplinary codeA variable percentage between 14.6% and 24.4% of theworkers were members of a Trade Union during the twoyears covered by the survey (Figure 8).figure 8 - Workers with membership in a Trade Union 2008 - 200930%26%23%24.4%19%15%14.6%11%8%4%0%2009 2008Source: UNIC 2009Workers with membership in a Trade Union55

figure 9 - Redundancy arrangements 2009 figure 10 - Disciplinary measures 2009 figure 11 - Incentives and benefits 2009Extraordinaryredundancyfund 3.4%Mobility0.9% Early retirement 0%Solidarity contracts 0.1%Suspension6.7%Other0%Availabilityof accommodation13.6%Other0.9%Flexibleworking hours10.9%Fine40.4%Writtenreprimand52.9%Ordinary redundancy fund95.6%Tax consultancy service74.6%Source: UNIC 2009Source: UNIC 2009Source: UNIC 2009Furthermore, the recourse to various types of redundancy arrangementsavailable to the tanneries were monitored for the 2009 survey.By assessing their distribution based on the number of workers involved(Figure 9), it was found that the ordinary unemployment fund (TemporaryRedundancy Benefits) represented 95.6% of the total, while theother instruments (extraordinary redundancy fund, solidarity contracts,mobility, early retirement) added together, corresponded to less than4%.Corporate relations were also monitored by analysing the disciplinarymeasures (Figure 10) and the incentives and benefits (Figure 11) referredto 2009. The data show a net numerical predominance of activitiesassociated with incentives and benefits compared to disciplinary measures.Figure 10 illustrates the apportionment of the latter, showing that thelesser measures have a much greater relative importance compared tothe rest.As far as benefits and incentives are concerned (Figure 11), the largestproportion is represented by tax consultancy activities in favour ofthe workers, with a significant quota also referring to companies makingaccommodation available for workers originating from distant locations.56

figure 12 - Training activities 2009:division based on the number of initiativesfigure 13 - Training activities 2009: divisionbased on the number of persons involvedtraining activitiesThe training activities performed by the companieswere also monitored during 2009, including mandatorytraining (all the training initiatives envisaged by law or bythe employment contract, for example: training relatedto health and occupational safety, qualifications, apprentices,training contracts, etc.) and also including all theinitiatives designed to achieve higher personnel qualifications,professional growth and refresher courses to enhancethe company, and to involve the workers in relationto corporate policies.As is apparent in Figure 12, the training initiativesperformed by the tanneries involved in the survey focusedalmost equally on the activities envisaged by law andon other activities designed to enhance professionalism.Both types of training were performed within the companyand at outside training organisations.Considering the number of persons involved in the trainingprocess (Figure 13), the majority of cases referred tomandatory training initiatives performed internally.The tanneries are adopting supporting tools more andmore, in order to support the training activities designedfor their own personal, for example: subscribing to interprofessionalfunds which finance the respective activities.In fact, 73.3% of the companies in the sample subscribe tothese funds intended for the workers, while approximately33.3% also subscribe to funds designed for executives(Figure 14).Internal growthof professionalqualificationsExternal growthof professionalqualifications21.4%32.7%100%88%75%63%50%38%25%13%0%Externalmandatorytraining11.2%Internalmandatorytraining34.7%Designed for workersInternal growthof professionalqualifications16.5%Externalmandatorytraining14.8%figure 14 - Subscription to inter-professional funds73.3%200933.3%Designed for executivesExternalgrowth of professionalqualifications3.0%Internalmandatorytraining65.7%Source: UNIC 2009 Source: UNIC 2009Source: UNIC 200957

accidentsThe statistical analysis of accidents represents an importanttool to appreciate the commitment that the sector dedicates tothe prevention/protection of health and the workers’ safety. Forthis reason the analysis was performed on the basis of the dataprovided by INAIL (National Insurance Institute for Industrial Accidents)referred to the 2006-2008 three-year period. The datareferred to 2009 were collected from the sample of tanneries.Three categories of indicators which are commonly used byINAIL or cited in the UNI 7249:2007 standards “Statistics ofoccupational accidents” were processed in order to be able tocompare the data:® Relative frequencytotal number of accidents*1000/number of workers.® Seriousness ratiodays lost/number of workers.® Average durationnumber of days absent from work/number of accidents.The trend for the relative frequency indicator shows a distinctlypositive trend during the period considered, with the valueof the index measured in 2009 slightly higher than 2.3 comparedto the data referred to 2006 and 2007 that exceeded 6.A marked increase can be noted during the period 2006-2009by considering the Seriousness Ratio (Figure 16 days lost/numberof workers), increasing from 1.64 for 2006 to 0.54 referredto 2009.The analysis of the average duration of the time to recoverfrom accidents (Figure 17 average duration in 2009 (days absencefrom work/number of accidents) then reflects a givenconsistency throughout the period considered, with valueswhich vary between approximately 29 and 24 days.The actions adopted by the tanneries to minimise the risks tohealth and workers’ safety include the following: the tanneriesimplemented systems to manage health and occupational safetyin 2009 (Figure 18), adopting practices/procedures to minimiseoccupational risk and implemented projects to reduce/preventaccidents.figure 15 - Relative frequency of accidents during 2006 - 2009(1,000 accidents/number of workers)109876.16 6.33643214.992.3002006 2007 2008 20093211.64total number of accidents*1,000/number of workersfigure 16 - Seriousness ratio 2006 - 2009(days lost/number of workers)1.831.210.5402006 2007 2008 2009Days lost due to accidentsSource: UNIC 2009Source: UNIC 200958

30figure 17 - Average duration 2006- 2009(days absence from work/number of accidents)2828.942526.6223.582324.21202006 2007 2008 2009Source: UNIC 2009Days absence from work/number of accidentsfigure 18 - Actions taken to minimiserisks for workers 2009Projects to reduce/prevent accidents22.2%System to managehealth and occupationalsafety29.6%Practices/proceduresto minimise occupationalrisk48.2%Source: UNIC 200959

corporate givingfigure 19 - Association policy and the existenceof self-regulation systems 2009figure 20 - Initiatives implementedat a local level 2009By analysing the information illustrated in Figure 19 itcan be inferred that all the tanneries are members of industrialassociations, at a national and local level. A fractionof these tanneries are also members of standardisation institutions,technical inter-company workgroups or otherforms of multi-corporate association.The subscription to codes of conduct and other ethicalcodes by some tanneries represents an example of internalself-regulation that is expanding greatly.During the survey special attention was also focusedon the initiatives performed by the companies at a locallevel, to improve local living conditions by participating inprojects shared with territorial entities and organisations(Figure 20). The majority of the activities performed concernedthe participation by tanneries in planning agreementsto develop the territory (approximately 53%) andin district Projects (approximately 41%).In addition, an analysis was made of the companies’commitment concerning social aspects (Figure 21),through donations, and other instruments, for example,with reference to solidarity, culture, education and environmentalrecovery. The actions implemented in 2009concerned mainly Donations or other contributions in favourof no-profit associations and international solidarityinitiatives.Social certification0.0%Subscription to codesof conduct or ethical codes15.0%Membership ofstandardisation institutions,technical inter-companyworkgroups, etc.14.4%Membership of industrialassociations70.6%Other5.6%District projects41.2%Participation in eventsof economic or socialimportancein the territory5.9%Participation in planningagreements to developthe territory52.9%Source: UNIC 2009 Source: UNIC 2009figure 21 - Relationships with the communityand solidarity initiatives 2009Hanno collaboratoSTUDIO BINI - SPALLETTI srlConsulenza sul Lavoro - Servizi alle ImpreseVia San Tommaso n. 1956029 Santa Croce sull’Arno (Pisa)T. 0571.36511 F. 0571.34187www.studiospalletti.itSource: UNIC 2009International solidarityinitiatives22.2%Donationsor other contributionsin favour of localno-profit associations72.2%60

partFOUR63

TECHNOLOGICAL AUDITSThe information outlined below provides an indicationof the innovation needs identified when the technologicalaudits were performed at the companies included in thesample. The survey aims to favour research and developmentprocesses, starting from the requirements of the enterprises.The following steps include activities which aredesigned to present the corresponding offer of know how,developing growth strategies, and creating the conditionsso that competitive growth mechanisms are activated.the methodThe Audit activities are based on a method defined as“Gap Analysis”. The method enables an analysis to be performedthat considers each phase of the overall corporateprocess, identifying for each phase the characteristics ofuse, effectiveness, efficiency, and the value for the mainfactors associated with the strategic growth objectives.Therefore, the aim is to identify the gap between thecharacteristics of each factor considered in the currentsituation of the company under review and the optimumconditions to achieve the objectives set.type of innovationThe innovation requirements identified are classified in4 categories:®product innovation: namely, referredto the characteristics and functionsof the finished product® process innovation: referred to materials,ancillaries and production technologies® organisational innovation:impacts the workflows and the corporateorganisation models® market innovation: referred to the supply chainconcerning its various components.As illustrated in Figure 1 the tanneries have mainly indicatedneeds concerning process and market innovation,reflecting 50% and 28% of the findings, respectively.innovation objectivesThe results illustrated in Figure 2 indicate that the tanneriesinterviewed believe that innovation must necessarilytend towards a mitigation of the environmental impactsgenerated by processing (approximately 29% of thetotal) and to reduce the production costs (approximately21%), tending to increase the quality and performance ofthe hides. Production flexibility, timing, new markets andautomation complete the range of growth objectives associatedwith the innovative process.It is apparent that the innovations requested must reducethe environmental impacts generated by the productionprocesses. Based on an approach that focuses moreon reducing the source of pollution rather than treating thepollution downstream, the tanneries request that the workis to focus on the consumption of chemical products andforms of energy which are associated with the main emissionsinto the atmosphere originating from the tanneries.aspects associatedwith innovationIt is necessary to act mainly on the following aspects toachieve the strategic objectives: machines and plants, productionprocesses, organisation of corporate information,including ICT systems. Instrumentation, environmentalsystems/plants, chemical products, represent the otherfactors indicated by the companies as being of interest.64

figure 1 - Innovation by typefigure 2 - Innovation: objectivesMarket28.1%Product12.5%Reducing environmental impactsReducing costsIncreasing the quality and performance of hides21.4%20.0%29.2%Companyorganisation9.4%Production process50.0%Developing new marketsReducing the time to process the orderAutomation6.2%6.2%10.8%Source: UNIC 2009Flexibility6.2%0% 3% 6% 9% 12% 15% 18% 21% 24% 27% 30%2009Source: UNIC 2009figure 3 - Environmental aspects associated with innovationfigure 4 - Factors involved in the innovation processConsumption of chemical products19.7%Machines and plants26.5%Atmospheric emissions17.6%Production processes22.1%Energy consumptions17.6%Organisation and ICT22.0%Waste materials15.7%Chemical products17.6%Water consumptions15.7%End of pipe plants and technologies5.9%Water discharge13.7%Instruments and controls5.9%0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%0% 3% 6% 9% 12% 15% 18% 21% 24% 27% 30%2009Source: UNIC 20092009Source: UNIC 200965

Appendix67

U NCUNIC TANNINGIntroductiono caThe Company shall conform to the minimum requirements outlinedin this document in order to comply with the (voluntary)UNIC code. The requirements have been extracted from the ILO(International Labour Organisation) agreements which disciplinesocial accountability and transposed for the producers of goodsand services in the leather sector.Periodic controls are foreseen based on scheduled audits andperformed by a qualified third-party body, duly appointed by UNICto verify the compliance with and maintenance of the requirementsprescribed and in order to issue the certificate of compliancewith the UNIC code of conduct. Furthermore, audits are possibleon suppliers/sub-contractors concerning compliance with theclauses which refer to them.3. HEALTH AND SAFETY3.1 ®The Company shall guarantee a place of work that issafe and healthy and shall adopt the appropriate measures toprevent accidents and injury to health during performance ofthe work or thereafter.3.2 ®The Company shall appoint a management representativewho shall be responsible for implementing the safety andhealth factors in the place of work.3.3 ®The Company shall ensure that the personnel receiveregular and documented training related to health and safety,and that such training is repeated for new personnel or reassignedpersonnel and shall verify the effectiveness of the trainingprovided.Social accountability1. WORK PERFORMED BY MINORS1.1 ®The Company shall not use or sustain the use of childlabour (performed by persons less than 16 years old).1.2 ®In particular, the Company must protect minors from situationswhich are potentially hazardous, risky or detrimental tohealth, both inside and outside the place of work, by complyingwith the provisions set out in the applicable legislation.2. COMPULSORY WORK2.1 ®The Company shall not use or sustain “compulsory” workand shall not request the personnel to provide “caution deposits” oridentity documents at the date the employment relationship starts.The term “compulsory” refers to every form of work or service obtainedunder the threat of a penalty or which the person has not offeredto perform voluntarily or that is requested as payment of a debt.4. ENVIRONMENT4.1 ®The Company shall establish and maintain active operatingprocedures and/or practices in order to reduce the environmentalimpacts associated with the Company’s own processingoperations.5. ASSOCIATION AND NEGOTIATIONS5.1 ®The Company shall comply with the right of all personnelto form and become members of freely selected tradeunions and the right to collective negotiations.6. DISCRIMINATION6.1 ®The Company shall not discriminate in the hire, payment,access to training, promotion, dismissal or retirement,based on gender, race, national origin, disability, religion, socialclass, sexual orientation, trade union membership, political affiliation,age.68

CODE OF CONDUCT7. WORKING HOURS7.1 ®The Company shall comply with the laws and theprovisions set out in the applicable National Labour CollectiveAgreement (CCNL) referred to employees of tanning companiesand related sectors with regard to working hours. Theaverage duration of a working week, calculated with referenceto a period of 12 months, in general, shall not exceed 48 actualworking hours. The personal shall be guaranteed a rest periodof at least 24 consecutive hours during a period of 7 days.8. REMUNERATION8.1 ®The Company shall ensure that the remuneration paidalways corresponds to the legal standards and the minimumparameters established in the National Labour Collective Agreement(CCNL) referred to employees of tanning companies andassociated sectors.8.2 ®The Company shall ensure that the breakdown of theremuneration and indemnities is indicated clearly and regularly.9.2 ®The Company shall appoint a management representativewho assures compliance with all the requirements set outin this document, regardless of other possible responsibilities(refer also to 3.2).9.3 ®The Company shall ensure that the operations personnelselect a representative from among their members with theduty of facilitating relationships with the management in relationto matters associated with this document.9.4 ®The Company shall establish and maintain active appropriateprocedures to assess and select suppliers and subcontractorson the basis of their ability to comply with therequirements set out in this document and to provide documentedevidence.9.5 ®The Company shall establish and maintain active proceduresto communicate regularly to all parties concerned thedata and other information concerning the Company’s performancein relation to the requirements set out in this document.9.6 ®The Company shall maintain appropriate documentationto attest compliance with the requirements set out in thisdocument.U NC9. MANAGEMENT10. PROFESSIONALISM9.1 ®The Management shall define a corporate policy thatdisciplines social accountability and the working conditions inorder to ensure:® a) lthe commitment to comply with and to maintain compliancewith the applicable laws and to comply with the acknowledgedinternational agreements;® b) the commitment to foster continuous improvement, inparticular, concerning its own organisational system;® c) its accessibility in an understandable form to all thepersonnel, including directors, executives, and the management;® d) its accessibility by the general public.10.1 ®The Company shall register its financial statementsrelating to its business activities with a public body.10.2 ®The Company shall comply with principles of openness,fairness and transparency when hiring personnel, in itscontractual relationships and in market competition and ensurethe quality of the products and safeguard the consumer.10.3 ®The Company shall demonstrate the respective adequatemanagement based on objective evidence, through correctiveactions in the case of disputes concerning the aspectsset out in this document and for the purposes of their settlement.Moreover, the Company shall prepare preventive actionsto avoid a repetition of such disputes.o ca69

THE TANNERIES® Adelaide S.p.A.Bassano del Grappa (VI)® Camaleonte S.p.A.Santa Croce sull’Arno (PI)® Ambassador S.p.A.Santa Croce sull’Arno (PI)www.ambassadorconceria.it® Carisma S.p.A.Solofra (AV)www.carismaleather.it® Antiba S.p.A.Santa Croce sull’Arno (PI)www.antiba.it® Conceria di Urgnano S.r.l.Loc. Battaina - Urgnano (BG)www.skiver.it® BasmarRino Mastrotto Group S.p.A.Trissino (VI)www.rinomastrottogroup.com® BCN Concerie S.p.A.Santa Croce sull’Arno (PI)www.bcn.it® Dani S.p.A.Arzignano (VI)www.gruppodani.it® Dean S.p.A.Arzano (NA)www.deanspa.it® Bonaudo S.p.A.Cuggiono (MI)www.bonaudo.com® DMD Solofra S.p.ASant’Agata Irpina (AV)www.dmdsolofra.it® Bonistalli e Stefanelli S.p.A.Santa Croce sull’Arno (PI)® Fratelli Guarino Di Donato SncSant’Agata Irpina (AV)® CalbeRino Mastrotto Group S.p.A.Arzignano (VI)www.rinomastrottogroup.com® Gaiera Giovanni S.p.A.Robecchetto con Induno (MI)www.gaiera.it70

WHICH COLLABORATED® Incas S.p.A.Castelfranco di sotto (PI)www.incas.it® Motta Pelli S.r.l.Monza (MI)® La Veneta S.p.A.Arzignano (VI)www.gcveneto.com® Lloyd S.p.A.Santa Croce sull’Arno (PI)® PomariRino Mastrotto Group S.p.A.Almisano di Lonigo (VI)www.rinomastrottogroup.com® Russo di Casandrino S.p.A.Casandrino (NA)www.russodicasandrino.com® Lufran S.r.l.Santa Croce sull’Arno (PI)® Samanta S.p.A.Ponte a Egola (PI)www.samanta.com® M.I.B. S.p.A.Pontirolo nuovo (BG)www.mibfur.com® Sanlorenzo S.p.A.Castelfranco di sotto (PI)® Martucci Teresa S.r.l.Solofra (AV)www.pandora.it® Mesi S.p.A.Caselle Torinese (TO)www.mesi.it® Sciarada IndustriaConciaria S.p.A.Castelfranco di sotto (PI)www.sciarada.it® Settebello S.p.A.Santa Croce sull’Arno (PI)www.settebelloconceria.it® Montebello S.p.A.Montebello vicenitno (VI)www.montebello-tannery.it® Seven Stars Group S.p.A.Solofra (AV)www.sevenstars.itVignola Nobile S.p.A.Solofra (AV)71

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