2020 was a year of unusual intensity for the group, a year in which it achieved stunning results against a generally challenging backdrop and not without moments of alarm that shaped the management of the emergency, relations with the group’s markets and the protection of employees and contractors and their families.
Never has the possibility offered by the integrated report format of providing the broadest view of our position been as important as this year, providing the multidimensional content that has for some time characterised our corporate disclosure and where the boundaries of the 2019/20 reporting period represent almost a constraint.
Since its inception, the group’s development has been informed by the long-term view required by its sector as a result of its long cycles, high investment levels, resilience over time, and the exploration of technologies to identify industrial applications.
Accordingly, for some years now, the mandatory financial data have been accompanied by information of a strategic, organisational and market nature in order to delineate the features of the group, present the sustainability of its business model, and to gauge the economic and social impact of its operations.
This decision, taken years ago on a purely voluntary basis and which was to some extent trailblazing in its field, saw the group embark on a maturation process, providing context around the mandatory financial data with a consideration of the various points of view of its stakeholders, i.e., all those directly and indirectly involved in MAG’s business project.
We have explored the concept of stakeholder many times in previous editions of this report and in this year dedicated to the rediscovery of myriad historical perspectives, we want to symbolically reiterate the precise origin of the term, which the Stanford Research Institute1 reformulated in its contemporary sense around the mid-1960s.
In the last few years of the nineteenth century the Oklahoma authorities authorised the wagon trains of the pioneers to enter the Western territories, mostly comprised of prairies populated by native Americans, giving them the possibility to claim pieces of land, on the understanding that they went there to stake their claim. The wagon trains took part in actual races where the winners could plant their stake bearing their colours to mark out their new property.
Thus arose the concept of “stakeholder” as a holder of a stake representing a specific claim, not only economic.
A more comprehensive reporting format and method goes back to company culture, in an attempt to respond to a post-modern view of corporate social responsibility through which a balance is pragmatically pursued between ethics and business, polar opposites in the stakeholder paradox2, by acting responsibly.
However, these goals cannot be achieved abstractly without a constant self-evaluation process which includes the measurement and representation of economic conduct in all its facets.
The notion of responsibility in economic conduct naturally evolved over time to assume an external dimension, being those environmental and social practices that bolster a company’s legitimacy and reputation in its dealings with external stakeholders.
In this stage, an entity assimilates the social aspect, deploying a reporting method and style able to foster transparent and comprehensive dialogue with the surrounding context.
The international aspect can also influence how a company presents itself, particularly in cases such as that of MAG, where the geographical scope of the competitive framework is extensive. An integrated reporting system contributes to a sense of real accountability that goes beyond idealistic motivations and individual beliefs.
Throughout MAG’s history, the development of broader spectrum reporting has gone hand in hand with its early adoption of a system of corporate governance on an entirely voluntary basis, to find its own identity.
This has included the investments made since the group’s infancy in advanced IT infrastructure, supporting a comprehensive internal control system and without which the information flows would have remained a pipedream.
A further challenge is the roll out of the risk management and control system pursuant to Legislative decree no. 262/2005, aimed at steadily developing an integrated compliance system commensurate with the group’s size and features. This system ensures compliance with the law but also fulfils a general prevention role which is the primary guarantee for all stakeholders.
This report also includes certain environmental indicators identified in accordance with the recommendations issued by the IIRC3, which have been collected for a multi-year period, showing the environmental impact of the group’s industrial activities in figures and highlighting the group’s awareness of environmental issues.
We have always included the technological aspect in this facet, which is not just innovation and a competitive edge but indirectly represents a contribution to the development of air transport, both in terms of improving transport conditions – for instance, research into noise abatement – and in terms of the structural change to this transport, such as the decrease in the cost of private air transport.
There is a natural technological governance model whereby the opportunities that regularly arise as part of programmes and relationships forged with the main OEMs are accompanied by a vision and ongoing investment in creativity and are combined with emerging technologies – for instance the FET4 – as part of collaborations with research centres and universities.
Business has always been a powerful agent of innovation, driving change by consolidating its competitive edge on the market.
This role has seen MAG forge a network of relationships, mostly with universities and research bodies, facilitating the exchange of knowledge, access to testing facilities and the dissemination of findings beyond the specific area of product of process innovation.
Presenting non-financial information is a form of storytelling about an entire community of people throughout MAG’s various internal and external spheres of interest. Where possible, MAG has sought to avoid using formal terms and expressions that have lost their substance.
With respect to methodology, certain clearly identified sections in the first part of this report include information that the group has provided on a voluntary basis with reference to the GRI G4 Guidelines and the regulatory standards defined at EU level5 and transposed into Italian law by Legislative decree no. 254/2016.
A general overview of how this information is structured shown below:
The 2020 Annual Report includes the DIRECTORS’ REPORT, the Errore. L’origine riferimento non è stata trovata. and the Errore. L’origine riferimento non è stata trovata..
Stanford Research Institute, 1963. Ref. Igor Ansoff, Corporate Strategy, McGraw-Hill, 1965, p. 34, comment by Johanna Kujala. ↩
Kenneth Goodpaster, “The Stakeholder Paradox”, Journal of Agricultural and Environmental Ethics, December 2007, vol. 20, Issue 6, pp. 515-532, Karsten Klint Jensen. ↩
International Integrated Reporting Council ↩
Future and Emerging Technologies (FET), defined by the European Commission as part of the Horizon 2020 programme. ↩
Directive 2014/95/EU of the European Parliament and of the Council of 22 October 2014 amending Directive 2013/34/EU as regards disclosure of non-financial information. ↩