Environmental impact

MATERIALS USED AND PRODUCT RECYCLABILITY

The group’s main product lines (Aircraft Systems SBU) are characterised by high efficiency ratios and an optimal use of natural resources.

The raw materials used mainly comprise steel, steel alloys, aluminium and aluminium alloys and composite materials.

They must comply with specific composition techniques (STM/SAE/ISI). However, no sector regulations prevent the use of recycled raw materials.

Accordingly, it is estimated that 65% of aluminium and aluminium alloys come from recovered scrap.

With respect to steel, no specific information is available on the percentage originating from minerals.

Most materials used in processing represent a very limited environmental hazard and production scraps and trimmings are always reused or recycled through secondary markets subject to specific controls.

Consequently, the group has identified the chemicals used as the first type of hazardous materials to be monitored. Specifically, paints prevail in terms of quantity.

Paint consumption was monitored using the following indicators:

Hazardous raw materials	m.u.	2018/19	2017/18	2016/17	2015/16	2014/15
Raw materials consumption (paints)	Tonnes	5.9	6.4	5.08	5.6	5.9
Consumption of materials per hour worked[1]	Kg/h	0.05	0.04	0.04	0.04	0.04

The cyanidric products used at the Monteprandone site must be authorised and withdrawals are rigorously monitored through time access to deposits by personnel with a permit to handle toxic gases.

ENERGY SOURCES

The Italian sites mainly use natural gas for central heating and the painting systems.

Conversely, the Canadian site uses electricity also for central heating.

Natural gas	m.u.	2018/19	2017/18	2016/17	2015/16	2014/15
Consumption of natural gas	m3	554,863	548,450	516,363	488,596	503,318
Consumption of gas per hour worked	m3/h	4.88	5.41	4.85	4.49	4.32

Electricity	m.u.	2018/19	2017/18	2016/17	2015/16	2014/15
Total consumption of electricity	Kwh	6,428,572	5,789,581	5,996,104	6,694,215	6,420,574
Consumption of “clean” electricity	Kwh	2,428,575	2,422,525	2,407,554	2,406,987	2,266,110
Consumption of electricity per hour worked	Kwh/h	16.67	15.61	18.33	20.01	16.48

In respect of electricity consumption, Legislative decree no. 102/2014 defines energy-intensive companies as those companies that meet both of the following minimum usage levels in the year:

a) at least 2.4 gigawatts of electricity or at least 2.4 gigawatts of other energy in the performance of its activities;

b) the ratio of the actual overall cost of the energy used in the performance of its activities to turnover calculated pursuant to article 5 of such decree is no less than 3.

The measurement by individual site showed that only the Canadian site is slightly above the threshold in point b). This should be considered in the light of the fact that the Canadian facility uses electricity also for central heating and the electricity used in Canada comes almost exclusively from hydroelectric sources.

WATER

All water used in production processes by the group’s sites is disposed of. Consequently, there are no industrial water discharges. Around 50% of all water used in industrial processes is withdrawn from the well and is recovered by concentration systems that minimise the volume of water required.

Water	m.u.	2018/19	2017/18	2016/17	2015/16	2014/15
Consumption of water (well)	m3	36,789	19,940	15,599	11,642	11,352
Consumption of water (well) per hour worked	m3/h	0.10	0.05	0.05	0.03	0.03
Consumption of water (aqueduct)	m3	18,300	15,923	13,749	13,453	11,092
Consumption of water (aqueduct) per hour worked	m3/h	0.05	0.04	0.04	0.04	0.03

The high consumption of the year is a one-off situation related to works to upgrade the Borgomanero site.

The proportion of well water used routinely covers around half of the group’s overall needs.

WASTE

Scrap and waste from production are identified and separately collected to be subsequently recycled and disposed of.

Waste generation[2]	m.u.	2019	2018	2017	2016	2015
Total annual amount generated	tonnes	424.6	402.8	373.4	480.1	382.0
Total annual amount generated per hour worked	kg/h	1.10	1.09	1.14	1.44	0.98
Annual amount of hazardous waste generated	tonnes	108.04	50.4	46.2	40.3	29.9
Annual amount of hazardous waste generated per hour worked	kg/h	0.28	0.14	0.14	0.12	0.08

The increase in “dangerous waste” in 2018/19 compared to MAG’s normal levels is connected with works carried out to upgrade surface treatment (galvanic) systems at the Borgomanero site.

EMISSIONS

The efficiency level of pollutant emission control systems is ensured by regular maintenance and periodic monitoring of all emissions which confirmed the group is well within the legal ceiling.

Thermal power stations are regularly inspected (NO_x) and cooling and airconditioning systems containing F-gas are subject to maintenance and periodic inspections in accordance with the law.

No ozone depleting substances are used and systems using R22 were modified or are being removed.

CO₂ emission figures of the year are given below. They refer to energy consumption using natural gas (central heating or production processes), electricity, fuel for company cars and helicopters.

CO2  emissions	m.u.	2018/19	2017/18	2016/17	2015/16	2014/15
Use of natural gas, electricity and fuel for vehicles	tonnes	5,293	4,686	4,478	4,868	5,029

EXPENDITURE AND INVESTMENTS

During the year, environmental costs were incurred in connection with waste disposal, consultancies, analysis of emissions and waste water and environmental maintenance.

Furthermore, the various group sites incurred costs related to environmental protection investments.

Environmental investments	m.u.	2018/19	2017/18	2016/17	2015/16	2014/15
Environmental expenditure	€/000	323	217	371	236	179
Impact environmental expenditure/Turnover	%	0.25	0.22	0.36	0.20	0.15
Environmental investments	€/000	627	411	312	112	938
Impact environmental investments/Turnover	%	0.49	0.42	0.30	0.10	0.76

LAND CONSUMPTION

At each of its locations, MAG has chosen to expand its premises by redeveloping the existing structures and, in some cases, redesigning the layout, foregoing solutions involving a relocation to new industrial areas which, especially in Italy, are located on areas that were previously agricultural.

This is the framework underpinning the decisions to transfer to the previously vacant industrial premises at William-Price 5555 – Laval (Quebec, Canada) and for the operational upgrade of the facilities in Borgomanero (Novara, Italy) and Monteprandone (Ascoli Piceno, Italy), which both commenced after the reporting date.

CLAIMS AND LITIGATION

There was no environmental contamination or pollution (underground or above).

No significant environmental litigation is underway.

Furthermore, the group believes that product innovation is a key factor in corporate environmental responsibility, and achieves such innovation by striving for production solutions that improve performance in terms of reducing fuel consumption, improving the conditions of use and, for the future, improving transport in general (see Errore. L’origine riferimento non è stata trovata.).

Within the scope of the environmental compliance procedures, the various risk owners constantly monitor all main risks, in accordance with applicable legislation. No environmental events or claims occurred in recent history as a result of the group’s production activities, and no mid to high risk factors have been identified to date.     

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[1] This figure is the weighted arithmetic mean of consumption per hour worked, calculated for each production site.

[2]The figure refers to calendar years as it is derived from the Environmental declaration form for Italian companies. The 2019 figure is therefore an estimate.