Consolidated Non-Financial Statement pursuant to articles 3 and 4 of Legislative Decree no. 254 of 2016
sustainability
report
2021

sustainability
report
2021

Our sixth edition of the Sustainability Report comes at the end of a special and remarkable 
year. The path out of the COVID-19 pandemic for our economic and social system had a 
major impact on the trajectory of the company, which managed to relaunch its commercial 
capability, along with its determination to invest in growth and development.
The decision to take the company off the stock market should be interpreted in this sense, 
as the starting point of the owners’ desire to guide the Group towards its future path 
with ever greater willingness and commitment. Although this exit freed us from reporting 
obligations, we still wished to report on our activities, goals and results with regard to 
sustainability, continuing a commitment that remains central to our corporate mission.
Indeed, corporate responsibility and sustainability are among the cornerstones of this 
mission. This led to: 
a) continued investment in thin slabs, a product that is highly sustainable and in which we 
have been one of the pioneering ceramic companies;
b) a renewed commitment to provide products for healthy and safe environments with 
our unique Protect® antibacterial technology;
c) the launch of an ambitious Sustainability Plan, which includes a series of important initiatives 
and goals to achieve in the medium term, covering 3 fronts: Planet, Prosperity and People.
People continue to be one of the mainstays of our entrepreneurial work. Starting with 
the care and protection of our employees, as well as with the development of relations 
with the communities and areas in which we operate. What happened during the Covid 
emergency severely tested our beliefs and models, as well as the true depth of our 
responsibility in our approach to business.
Although there are still many uncertainties at a global level, we are emerging from this year 
with a lot of hard work and an even stronger awareness that our roots are solid and our 
vocation for responsibility is strong, allowing us to face the crisis with a sincere and 
natural priority for people, while safeguarding the continuity of our business. In other 
words, social and economic responsibility, attention to our employees, their health 
and their families.
Letter
to stakeholders

The emergency has exposed the growing need to promote development models that 
are increasingly focused on people’s well-being and on strengthening a sense of 
community. Panariagroup has responded quickly and decisively, leveraging the strength 
and experience gained from almost 50 years of history faced with a great spirit of 
resilience and with the ability to respond to changes, adapting and evolving with a focus 
on sustainability. In the meantime, the company has continued to invest in its own 
development with significant industrial and plant interventions, aiming to renew itself 
and become increasingly better equipped for future challenges. This has been our way of 
dealing with this phase, together with all our employees, whom we thank for the passion, 
commitment, reliability and dedication to the company that they have continued to 
demonstrate even at such difficult times. This is all achieved with a consistently high level 
of performance in environmental terms, as well as stable relations with our employees, 
which has always been one of our key strengths. 
This new edition of the Sustainability Report also illustrates, in an even more incisive 
way, how we approach our commitment to the Global Compact and the SDGs 
established by the United Nations in order to strengthen our mission as a company 
that plays a leading role not only economically but also socially and environmentally, 
while also featuring a wealth of data and information designed to provide an in-depth 
representation of our daily work.
Panariagroup increasingly wishes to be the driving force behind a shared development 
project: we will tenaciously pursue this ambition, adapting and responding to constantly 
changing scenarios and continuing to raise our responsibility to new levels.
Emilio Mussini
President of Panariagroup

1
P. 11 SUSTAINABILITY FOR PANARIAGROUP
1.1 NOTE ON METHODOLOGY
1.2 OUR APPROACH TO SUSTAINABILITY
1.3 SUSTAINABLE DEVELOPMENT GOALS (SDGS): PANARIAGROUP’S CONTRIBUTION
1.4 PARTICIPATION IN THE UN GLOBAL COMPACT
1.5 THE GROUP’S STAKEHOLDERS AND RELATIONSHIP CHANNELS
1.6 MATERIALITY ANALYSIS
1.7 SUSTAINABILITY GOALS
2
P. 43 THE GROUP
2.1 GROUP PROFILE	
2.2 HISTORY
2.3 PANARIAGROUP WORLDWIDE
2.4 THE GROUP’S VALUES AND PRINCIPLES
2.5 ORGANISATIONAL STRUCTURE AND GOVERNANCE
2.6 SUSTAINABILITY RISK MANAGEMENT
2.7 INTEGRITY AND COMPLIANCE
P. 6
P. 8
OUR COMMITMENT
2021 HIGHLIGHTS
3
P. 69 ECONOMIC RESPONSIBILITY
3.1 THE GROUP’S ECONOMIC RESPONSIBILITY
3.2 GENERATED AND DISTRIBUTED ECONOMIC VALUE
3.3 2021 FINANCIAL RESULTS
3.4 INVESTING IN INNOVATION
3.5 STRATEGY AND FISCAL TRANSPARENCY
4
P. 95 PRODUCT RESPONSIBILITY
4.1 PRODUCT QUALITY, DESIGN AND SUSTAINABILITY
4.2 OUR BRANDS
4.3 INNOVATION AND TECHNOLOGY
4.4 CUSTOMER SATISFACTION
4.5 SYSTEM CERTIFICATIONS
4.6 PRODUCT CERTIFICATIONS

5
P. 113 ENVIRONMENTAL RESPONSIBILITY
5.1 ENVIRONMENTAL RESPONSIBILITY
5.2 MANAGEMENT OF NATURAL RESOURCES
5.3 RAW MATERIALS
5.4 THE PRODUCTION PROCESS
5.5 ENERGY AND EMISSIONS
5.6 WATER
5.7 WASTE MANAGEMENT
5.8 PACKAGING
6
P. 137 SOCIAL RESPONSIBILITY
6.1 OUR EMPLOYEES
6.2 TRAINING AND DEVELOPMENT
6.3 HEALTH AND SAFETY IN THE WORKPLACE
6.4 RELATIONS WITH LOCAL COMMUNITIES	
6.5 RESPONSIBLE SUPPLY CHAIN MANAGEMENT
8
P. 183 GRI CONTENT INDEX 
9
P. 190 INDEPENDENT AUDITOR’S REPORT
7
P. 159 ATTACHMENTS
7.1 	ENVIRONMENTAL DATA
7.2 	HUMAN RESOURCES DATA
7.3 SUPPLY CHAIN DATA
index

6
Human resources
Support for innovation
We have invested around 109 million euros  
in innovation over the last 5 years
Low water impact
Water consumption intensity 0.02 m3 per 
m2 of tiles
Attention to waste and 
water consumption
We recovered more than 70,000 tons of 
production waste and 430,000 m3 of water
97% of our employees have a 
permanent contract
Close relationship with 
the local areas
Aproximately the 90% of our expenditure
is made on local suppliers.
our
commitment

PANARIAGROUP - SUSTAINABILITY REPORT 
7
1. In 2021, through photovoltaic systems installed at the Fiorano Modenese, Finale Emilia and Sassuolo plants, the Group avoided 129 tCO2, calculated based on gross country 
electricity generation using location-based methodology, a figure that is down from 2020. In order to calculate the equivalent number of trees, the potential absorption of a 
tree (such as a tall tree species) was considered to be between 20 and 50 kgCO2/year (Source: www.reteclima.it).
* The figure only refers to the Italian Business Unit. An evaluation is under way for implementation in the U.S. Business Unit as well.
Energy saving
Waste management
Eco-friendly packaging
We bought more than 870 tons of recycled 
plastic for industrial use*
Products for quality
of life
Emission reduction1
In 2021 we offered our Clients a wide range 
of eco-friendly ceramic slabs (47 collections) 
and antibacterial surfaces (81 collections)
Our energy consumption index
is 0.141 GJ for m2 of tiles.
9 tCO2e for 1,000 m2 of tiles, 129 tCO2 
avoided over the course of the year
The Group avoided emitting a quantity 
of CO2 into the atmosphere equal to the 
absorption of almost 4,000 trees 
98% of waste recovered along the 
production chain.

8
2021 highl
2. Net of leasing liabilities.
3. The intensity values are calculated based on the m2 of tiles produced during the year, which amounted to 24,365,161 m2 in 2021 and to 20,179,156 m2 in 2020.
4. The data relating to the Health and Safety of contractors only include the category of staff leasing workers and not other types of external staff who work at the 
Panariagroup Group’s sites and/or under the Panariagroup Group’s control, in view of their significance and of the availability of this data over which Panariagroup does not 
exercise direct control.
environmental
GJ/m2
0.140
0.141
0.009
0.009
  >  2021
  >  2021
  >  2020
  >  2020
social
%
97
97
n.
1,724
1,690  >  2021
  >  2021
  >  2020
  >  2020
economic
  >  2021
  >  2021
  >  2020
  >  2020
3.2
(5.8)
41.8
37.5
tCO2/m2
MILLION EUROS
NET RESULT 
MILLION EUROS 
EBITDA
ENERGY INTENSITY3
EMISSIONS INTENSITY
3
SCOPE 1 + SCOPE 2 
(LOCATION-BASED)
PERMANENT 
EMPLOYEES
EMPLOYEES

PANARIAGROUP - SUSTAINABILITY REPORT 
9
ights
0.009
0.010
%
98
98
%
100
100
  >  2021
  >  2021
  >  2021
  >  2020
  >  2020
  >  2020
77.0
47.8
23.8
26.9
%
71
71  >  2021
  >  2021
  >  2021
  >  2020
  >  2020
  >  2020
  >  2021
  >  2021
  >  2021
  >  2020
  >  2020
  >  2020
100.4
87.6
105.9
109.2
21.8
19.4
tCO2/m2
MILLION EUROS
NET FINANCIAL 
POSITION2
MILLION EUROS
NET WORKING CAPITAL
MILLION EUROS
INVESTMENTS
EMISSIONS INTENSITY
3
SCOPE 1 + SCOPE 2 
(MARKET-BASED)
WASTE SENT FOR 
RECYCLING
RAW WASTE RECYCLED 
IN THE PRODUCTION 
PROCESS
RECORDABLE
WORKPLACE
INJURY RATE – 
CONTRACTORS4 
RECORDABLE 
WORKPLACE
INJURY RATE – 
EMPLOYEES
EMPLOYEES COVERED 
BY COLLECTIVE 
BARGAINING 
AGREEMENTS

10

PANARIAGROUP - SUSTAINABILITY REPORT 
11
sustainability 
for 
Panariagroup
1

Sustainability is a living, changing principle and the 
actions that it inspires change with it,
turning our company into a better one. 
This belief has been central to our mission for years: to 
grow and to create well-being in harmony with people 
and the environment, with great willingness, passion 
and love for our work. To achieve this ambition, we 
want to generate sustainable value for our shareholders, 
employees and business partners while respecting 
the environment and society, to continue to invest in 
research and innovation, and to meet the aesthetic 
requirements and well-being expectations of our 
customers by offering products that comply with the 
highest quality standards and respond to new market 
demands.

Together for a sustainable global economy 
Transparency towards our stakeholders
We are the only Italian company in the ceramic industry to have voluntarily joined the UN Global 
Compact and we have been promoting its 10 fundamental principles since 2018.
We report our sustainability performance annually, in accordance with GRI Standards, offering 
transparent disclosure to all our stakeholders and subject to limited assurance by a third party.
Our commitment to People and the Planet
We have aligned ourselves with the 2030 Agenda for Sustainable Development, identifying the 
most significant SDGs in relation to the impact we generate on the local area.
in evidence

14
Note on methodology	
1
1
This document constitutes the Sustainability Report of the Panariagroup Group (hereinafter 
also “Panariagroup” or “Group”).
The Sustainability Report contains information to the extent necessary to ensure knowledge 
of the business activity, of its performance, of its results and of the impact of its activity, with 
regard to the issues considered relevant by the Group, with reference to the 2021 financial 
year (from 1 January to 31 December).
The selection of the aspects and indicators used to define the content being reported was 
carried out through a materiality analysis that considers the issues relevant to the Group 
and its stakeholders. In 2021, this analysis was updated with the involvement of financial 
institutions, as stakeholders, and of the Group’s Top Management. For details on the 
conducted activities, please refer to the “Materiality Analysis” section of this document.
The Panariagroup Group’s 2021 Sustainability Report has been prepared in accordance 
with the “Global Reporting Initiative Sustainability Reporting Standards” set out by the 
GRI - Global Reporting Initiative, according to the “In accordance - Core” option.
The scope of reporting of data and economic-financial information corresponds to that 
of Panariagroup Industrie Ceramiche S.p.A.’s consolidated financial statement as at 
31 December 2021. With regard to qualitative information and quantitative data relating 
to human resources, including health and safety in the occupational aspects, companies 
using the full consolidation method in the consolidated financial statement are included in 
the reporting scope5. With regard to qualitative information and quantitative data relating 
to environmental aspects and other social aspects, the Group companies that manage 
production sites are included and, limited to the other social aspects, Panariagroup 
India Industrie Ceramiche Pvt Ltd, while the companies with only commercial offices and 
Montanari Ceramiche S.r.l., a ceramic retail outlet, are excluded, as they are not considered 
relevant to ensuring understanding of the Group’s business activity and its impact.
Panariagroup oversees sustainability
issues through policies and actions
aimed at ensuring their monitoring and
management.
5.	In 2021, as in 2020, all Group companies are consolidated using the full method.

PANARIAGROUP - SUSTAINABILITY REPORT 
15
With regard to changes in the Group’s size and scope of consolidation, it should be noted 
that, during 2021, active operations began at Gres Panaria Central Europe Gmbh, a 
company based in Hamburg (Germany), with 4 employees as at 31 December 2021 that 
promotes the Group’s products on the German, Austrian and Swiss markets.
There were no significant changes in the Group’s ownership structure and supply chain. 
Information relating to the reference period is compared with that of the previous year, 
where available. When data relating to the previous period is restated, this is expressly 
indicated. In order to ensure the reliability of the data, use of estimates has been limited as 
much as possible. When estimates are used, they are accordingly indicated and are based on 
the best available methods.
Starting from the issues considered relevant, in line with previous years, an evaluation was 
made of the risks associated with sustainability issues connected to the Group’s business, 
which relate in particular to the following aspects: management of climate change and 
environmental risks, as well as risks linked to respect for human rights, occupational 
health and safety, and active and passive corruption. For more details, please refer to the 
“Sustainability Risk Management” section.
The Group oversees sustainability issues through policies and actions aimed at ensuring 
their monitoring and management. The Group has developed a strong and constant 
commitment to the management and monitoring of environmental aspects, through the 
adoption of certified management systems (ISO14001, EMAS) in the Italian and Portuguese 
plants and the preparation of the AIA Report required by the Integrated Environmental 
Authorisation (IEA) for the Italian plants. Besides this, activities and goals are defined 
for energy efficiency and for the reduction of the use of raw materials and, in general, 
of environmental impact in the production cycles. For more details, please refer to the 
“Environmental Responsibility” chapter of this document.
The Group recognizes the intrinsic value of each person and constantly works to ensure 
their well-being and consideration, through decentralized management based on the 
Group’s operational hubs, of issues relating to human resources management. Particular 
attention is paid to aspects relating to occupational health and safety, for which the Group 
has implemented an integrated Quality, Environment, Hygiene and Safety management 
system aimed at ensuring the protection of its workers through continuous monitoring of the 
main indicators, protection of employee well-being and professional development. For more 
details, please refer to the “Social Responsibility” chapter of this document.
The Group also ensures the protection of human and workers’ rights throughout the 
value chain. To this end, back in 2018 the Group adopted its own Code of Ethics and 
Code of Business Conduct for suppliers, through which it defined the principles and values 
underpinning its daily operations and the entire value chain. With a view to ever-increasing 
control of its supply chain, in 2019 the Group embarked on a process to integrate ESG 
(Environmental, Social and Governance) criteria into the supplier selection and evaluation 
process, which achieved its initial results in 2020 and 2021.

16
In terms of anti-corruption, ethics and business integrity, the Parent Company Panariagroup 
Industrie Ceramiche S.p.A. adopted the 231/01 Management and Organisation Model in 
2009, which is constantly updated, and it has extended the role of the Supervisory Body 
of the Italian Parent Company to the companies in foreign markets. For more details, 
please refer to the “Integrity and Compliance” section of this document.
The process of integrating sustainability issues within the Group’s value chain continued in 
2021 with the formalisation of the first Panariagroup Sustainability Plan, through which 
the Group made a concrete commitment to achieving ambitious goals in the medium 
term. For more details, please refer to the “Our Sustainability Plan” section of this document.
Panariagroup’s 2021 Sustainability Report was approved by the Board of Directors of 
Panariagroup Industrie Ceramiche S.p.A. on 29th of April. Deloitte & Touche SpA undertook 
a voluntary limited examination (“limited assurance engagement” according to the criteria 
of ISAE 3000 Revised) of the document, according to the procedures indicated in the 
Independent Auditor’s Report included in this document.
For information on the Sustainability Report, please contact: sustainability@panariagroup.it.

PANARIAGROUP - SUSTAINABILITY REPORT 
17

18
Our approach to sustainability
Panariagroup’s mission is to develop and create well-being in harmony with people and 
the environment, with great willingness, passion and love for our work. In order to achieve 
these goals, the Group aims to generate sustainable value for its Shareholders, employees 
and commercial partners, respecting society and the environment. The Group has a strong 
focus on research and innovation and aims to meet the highest expectations in terms of well-
being and aesthetics, for both professional and private Customers, in architecture and in the 
construction industry.
Always at the vanguard in skilfully combining beauty, quality and sustainability, Panariagroup 
works every day to reduce the environmental impact of its plants, demonstrating its 
commitment to ecosystem conservation and to researching the best housing comforts. This is a 
vital and essential commitment for those who, like Panariagroup, create products that millions 
of people all around the world encounter in their daily life, at home or in public places.
In practice, acting responsibly means including sustainability among the aspects to take into 
consideration in the company’s daily choices, from the purchase of raw materials to the sale 
of the final product. 
This involves paying attention to the entire production chain and to the actors affected by it: 
employees, suppliers, consumers, Customers, local communities, associations and all those 
entities whose interests intersect with those of the company.
In this context, the Group has been and remains constantly committed to the development 
of new management systems, procedures and policies that carefully consider respect for 
the environment and for the society that surrounds it, of which it is an integral part.
Furthermore, for the Group, the principle of acting in compliance with sustainability 
principles also embraces aspects not directly linked to environmental policies. The Group’s 
management strategies include policies and practices that analyse and regulate the 
company’s impact on both the economy and society.
From a social point of view, the Group has contributed with perseverance and dedication to 
increasing the prosperity of the areas in which it operates and of the people with whom 
it interacts. In this regard, through its production plants and its commercial offices, the 
Group has actively promoted employment.
Even during the economic crisis involving most of the Countries in which the Group 
operates, Panariagroup has always been committed, with regard to its own employees, to 
maintaining employment levels, offering safe workplaces and paying attention to the well-
being and welfare of employees.
Even in the face of the COVID-19 emergency, Panariagroup successfully managed 
this unique situation by implementing an approach that confirmed its corporate 
Responsibility profile. 
The company has managed the health emergency by prioritizing its staff, their health 
and safety and that of their families. From the outset, the Group has worked to create 
special committees and to draw up security protocols that set out stricter guarantees than 
those provided for in the agreements with institutions and social partners, both in the initial 
lockdown phase and in the subsequent one.
1
2

PANARIAGROUP - SUSTAINABILITY REPORT 
19
The need to guarantee continued operations presented a challenge that the Group 
has faced with commitment and determination through transparent and constant 
communication, both within the company and externally, the expansion of smart working 
methods and full readiness to provide its employees with all the tools and equipment 
necessary for business continuity, conditions that have enabled the Group’s staff to carry 
out their work as efficiently as possible.
Panariagroup has gone beyond what is required by the current scenario and, in line with 
its principles and values, it has demonstrated continuous solidarity towards its employees. 
In this spirit, the Group has launched extraordinary initiatives, such as the creation of 
a Solidarity Fund for the employees most affected by redundancy measures, the 
organisation of a collection of basic necessities and support for staff with special 
family needs.
Determined to act and look to the future, the Group has responded to the emergency 
context with a proactive and courageous approach, focusing on safety, solidarity and 
timely reorganisation of its operations in order to ensure business continuity.
However, the company has also continued its work on sustainability issues on various fronts 
and with different stakeholder categories, first and foremost employees, with whom, in all 
business units, it has conducted significant communication and liaison activities.
Once again, Panariagroup’s new Sustainability Report not only answers the need to 
show stakeholders the company’s activities, social commitment and efforts to reduce its 
environmental impact, but also the need to integrate, with growing awareness, aspects 
of sustainability in the company’s strategic decisions, in order to create increasing value 
for people and the areas in which it operates. In order to come to responsible decisions, 
it is therefore necessary to have a thorough understanding of the company’s positive and 
negative impact and this report is a fundamental step for Panariagroup towards this goal.

20
Sustainable development  
goals: Panariagroup’s   
contribution
The Sustainable Development Goals – SDGs – are a set of 17 goals defined within 
the United Nations with the aim of guiding Countries and organizations around 
the world on a path towards reducing inequality, promoting economic prosperity 
and social development, and protecting the environment. Each goal includes 169 
specific targets and together they make up the core elements of the 2030 Agenda for 
Sustainable Development.
In order to confirm its commitment to promoting a business model that integrates 
economic, social and environmental responsibility in all the Group’s aspects and 
activities, in 2021 Panariagroup formalised its first Sustainability Plan, identifying 
a set of goals, structured around different “pillars” (People, Planet and Prosperity), 
to be achieved in the medium to long term. The goals to which the Group has made a 
concrete commitment have been defined in consideration of the sustainable development 
guidelines recognised internationally by the 2030 Agenda and they represent a tangible 
and measurable commitment that the Group makes to all its stakeholders. For more details 
on the Panariagroup Sustainability Plan, please refer to the following section.
In view of its own scope of action, Panariagroup identified the most significant SDGs 
in relation to its impacts on the local area and it correlated these Goals to its own 
material issues in order to make the existing link between sustainable development 
and corporate action more explicit. These SDGs constitute the guideline with which the 
Sustainability Plan was formalised, which necessarily takes into consideration what is set 
out in the UN framework. 
This activity has also been conducted in consideration of the “Linking the SDGs and the 
GRI Standards” document, a guide updated in September 2020 by the Global Reporting 
Initiative, which supports organizations in correlating the targets of each of the 17 SDGs with 
GRI Standards disclosures.
 
1
3
Panariagroup sustainable goals are 
defined by taking into account the 
internationally recognized guidelines 
of the Agenda 2030 and the 17 SDGs - 
Sustainable Development Goals.

PANARIAGROUP - SUSTAINABILITY REPORT 
21
Although not included within the SDGs identified as most significant, Panariagroup also considers Goal 16, “Promote 
peaceful and inclusive societies for sustainable development, provide access to justice for everyone and build effective, 
accountable and inclusive institutions at all levels”, a priority. This is because of the importance of this Goal for the private 
sector: Panariagroup is conscious that it plays an important role in promoting the principles of ethics and transparency 
by incorporating them into its business model and conducting constant monitoring of its supply chain, while promoting 
lawfulness in the Countries where it operates.
For the correlation of the SDGs with the Group’s material issues, please refer to the “Materiality Analysis” section in this chapter.
SDGs
target SDGs
Ensure healthy lives and promote 
well-being for everyone at all ages
3.8: Achieve universal health coverage, including financial risk protection, access 
to quality essential health care services, and access to safe, effective, quality, and 
affordable essential medicines and vaccines for everyone.
Ensure inclusive and equitable 
quality education and promote 
lifelong learning opportunities for 
everyone
4.4: By 2030, substantially increase the number of young people and adults who 
have relevant skills, including technical and vocational ones, for employment, 
decent jobs and entrepreneurship.
Ensure availability and sustainable 
management of water and 
sanitation for everyone
6.3: By 2030, improve water quality by reducing pollution, eliminating dumping 
and minimizing the release of hazardous chemicals and materials, halving the 
proportion of untreated wastewater and substantially increasing recycling and safe 
reuse globally. 
6.4: By 2030, substantially increase water-use efficiency across all sectors and 
ensure sustainable withdrawals and supply of freshwater to address water scarcity 
and substantially reduce the number of people suffering from water scarcity.
Ensure access to affordable, 
reliable, sustainable and modern 
energy systems for everyone
7.2: By 2030, increase substantially the share of renewable energy in the global 
energy mix. 
7.3: By 2030, double the global rate of improvement in energy efficiency.
Promote a sustained, inclusive and 
sustainable economic growth, full 
and productive employment and 
decent work for everyone
8.2: Achieve higher levels of economic productivity through diversification, 
technological upgrading and innovation, including through a focus on high-value 
added and labour-intensive sectors. 
8.4: Improve progressively, through 2030, global resource efficiency in consumption 
and production, and endeavour to decouple economic growth from environmental 
degradation in accordance with the 10-year Framework of programs on sustainable 
consumption and production with developed Countries taking the lead. 
8.5: By 2030, achieve full and productive employment and decent work for all 
women and men, including for young people and persons with disabilities, and 
equal remuneration for work of equal value.
Build resilient infrastructure, 
promote inclusive and sustainable
industrialization and foster 
innovation
9.1: Develop quality, reliable, sustainable and resilient infrastructure, including 
regional and trans-border infrastructure, to support economic development and 
human well-being, with a focus on affordable and equitable access for everyone. 
9.4: By 2030, upgrade infrastructure and retrofit industries to make them 
sustainable, with increased resource use efficiency and greater adoption of clean 
and environmentally sound technologies and industrial processes, all countries 
taking action in accordance with their respective abilities.
Make cities and human 
settlements inclusive, safe, 
resilient and sustainable
11.6: By 2030, reduce the adverse per capita environmental impact of cities, 
including by paying special attention to air quality and municipal and other waste 
management.
Ensure sustainable consumption 
and production patterns
12.2: By 2030, achieve sustainable management and efficient use of natural 
resources. 
12.5: By 2030, substantially reduce waste generation through prevention, 
reduction, recycling, and reuse.
Take urgent action to combat 
climate change and its
impacts
13.1: Strengthen resilience and adaptive ability to climate related hazards and 
natural disasters in all Countries.

22
	
	
The inception of the 		
	
	
	
	
Sustainability Plan 
In 2021, we formalised our first Sustainability Plan, which was strongly supported by the 
company and was the result of the excellent work of all the people at Panariagroup who 
took part in this ambitious project.
The Plan, which will be disclosed in the coming months, is consistent with our 
sustainability path, which, over the years, has led us to develop a strong sensitivity and 
awareness concerning issues related to corporate responsibility models.
Panariagroup for People, the Planet and 
Prosperity  
Drawing on the principles of the United Nations and the sustainable development 
guidelines set out in the 2030 Agenda, the Sustainability Plan consists of three “pillars”: 
People, Planet and Prosperity. Each of these expresses our ambitions and the model 
we want to adopt in order to achieve goals beyond the ordinary.  
	
People, the pillar devoted to our employees, protecting their health and 	
	
well-being, valuing their talents and increasing their satisfaction.
	
Planet, the pillar dedicated to our manufacturing operations, through 	
	
which we strive to reduce our environmental impact and safeguard the 	
	
Planet’s resources.
	
Prosperity, the pillar devoted to our idea of sustainable development, 	
	
involving customers, suppliers and internal sustainable innovation 	
	
processes.
sustainability is part 
of our DNA
sustainability 
plan

PANARIAGROUP - SUSTAINABILITY REPORT 
23
OUR COMMITMENT TO PEOPLE,
PLANET AND PROSPERITY
•	 Promote health and safety protection and minimise 	
	 occupational accidents.
•	 Value the talent and special features of our 	 	
	 employees.
•	 Achieve the highest levels of satisfaction for our 	
	 employees, promoting their physical and mental 	
	 well-being.
Panariagroup for People
Panariagroup for the Planet
•	 Promote a culture focused on protecting water 	
	 resources by increasing efficiency and reducing    	
	 water use in production processes.
•	 Optimise energy consumption and increase clean 	
	 energy production.
•	 Reduce direct and indirect emission impacts        	
	 while developing awareness of the impact of    	
	 climate change.
•	 Exploit production waste and reduce the 	
	
	 environmental impact of our packaging.
Panariagroup for Prosperity
•	 Be a benchmark in the industry for innovation, 	
	 developing new solutions with sustainable features 	
	 and promoting responsible production models.
•	 Promote sustainability values and principles along 	
	 the supply chain.
•	 Ensure full customer satisfaction.
•	 Promote sustainable urban development.
•	 Invest in young talent.
•	 Preserve economic sustainability.

24
Participation in the UN 
Global Compact
To date, of the around 20,000 signatories to the UN Global Compact worldwide, 
Panariagroup is the only company in the ceramics industry, in Italy, to have voluntarily 
joined the initiative, and since the 2018 Sustainability Report it has been reporting 
annually on the activities carried out to promote its 10 Principles (Communication on 
Progress), in line with its commitments.
The Global Compact encourages companies around the world to create an economic, 
social and environmental framework to promote a healthy and sustainable world economy 
that guarantees everyone the opportunity to share the benefits. To this end, the Global 
Compact requires participating companies and organisations to share, support and apply, 
within their sphere of influence, a set of fundamental principles relating to human rights, 
labour standards, environmental protection and the fight against corruption. Panariagroup, 
by participating in the UN Global Compact, embraces these fundamental principles and 
welcomes international discussion of crucial issues, confirming its relevance with respect to 
its development policies.
1
4
Scope
Global Compact
Principles
Global Compact 
Requirements
Panariagroup Reference
Statement of continued support 
by the chief executive officer 
(CEO)
Letter to Stakeholders (p. 4)
Human Rights
1. Promotion and respect of 
universally recognized human 
rights in their respective spheres 
of influence
2. Guarantee of not being, 
directly or indirectly, complicit in 
violations of human rights
Assessments, policies, goals and 
initiatives implemented 
Risk of Human Rights  
violations (p. 62-63)
Introduction of a Code of 
Ethics and of a Code of 
Business Conduct for the 
Group (p. 66-67)
Performance indicators
GRI 102-16 (p. 66-67)
GRI 414-1 (p. 154-155)

PANARIAGROUP - SUSTAINABILITY REPORT 
25
Scope
Global Compact
Principles
Global Compact 
Requirements
Panariagroup Reference
Work
3. Support for workers’ 
freedom of association and 
recognition of the right 
to collective bargaining 
agreements
4. Elimination of all the forms 
of forced and compulsory 
labour
5. Effective abolition of child 
labour
6. Elimination of all the 
forms of discrimination in 
employment and professional 
occupation
Assessments, policies, goals and 
initiatives implemented
Introduction of a Code              
of Ethics and of a Code of 
Business Conduct for the   
Group (p. 66-67)
Initiatives described in the 
“Social Responsibility” chapter  
(p. 140-157)
Performance indicators
GRI 102-8 (p. 168-169)
GRI 102-41 (p. 143; 178)
GRI 202-1 (p. 179)
GRI 202-2 (p. 178)
GRI 401-1 (p. 172-173)
GRI 401-3 (p. 174-175)
GRI 404-1 (p. 145; 178)
GRI 405-1 (p. 170-171)
GRI 406-1 (p. 141-142)
Environment
7. . Support for the preventive 
approach to environmental 
challenges
8. Development of initiatives 
that promote greater 
environmental responsibility
9. Incentivisation of 
the development and 
dissemination of technologies 
that respect the environment
Assessments, policies, goals   
and initiatives implemented 
Environmental risk (p. 60-62)
Adoption of an integrated 
quality, environment and 
health and safety system 
and of ISO 14001 and EMAS 
certified management systems 
(p. 124-125)
Initiatives described in the 
“Environmental Responsibility” 
chapter (p. 116-135)
Performance indicators
GRI 301-1 (p. 180)
GRI 302-1 (p. 126-128; 160)
GRI 302-3 (p. 8-9; 126; 167)
GRI 303-3 (p. 163)
GRI 303-4 (p. 164)
GRI 305-1 (p. 128-129; 161)
GRI 305-2 (p. 128-129; 161)
GRI 305-4 (p. 8-9; 126; 167)
GRI 305-7 (p. 161)
GRI 306-3 (p. 132-133; 165-166)
GRI 307-1 (p. 67)
GRI 308-1 (p. 154)
GRI 414-1 (p. 154) 
Fight against 
corruption
10. Commitment to fighting 
corruption in all its forms, 
including extortion and 
bribery
Assessments, policies, goals  
and initiatives implemented 
Risk of active and passive 
corruption (p. 64)  
Adoption of the 231/01 
Organization and Management 
Model and its extensions in 
foreign companies (p. 66)
Introduction of a Code              
of Ethics and of a Code of 
Business Conduct for the   
Group (p. 66-67)
Performance indicators
GRI 102-16 (p. 66-67)
GRI 205-3 (p. 66)

26
The Group’s stakeholders 
and relationship channels 
Stakeholders play a fundamental role in Panariagroup’s sustainable growth. Through their 
involvement and through consideration of their needs, the Group maintains a constant 
vision towards the different contexts in which it operates, working hard to consider their 
expectations, perceptions and priorities within the decision-making processes and in the 
definition of economic, environmental and social goals.
In its Sustainability Report, Panariagroup has identified the individuals or groups of 
individuals who have a relationship with the Group and its activities, through an analysis 
that considered the following variables: tension, influence, responsibility and dependence.
This exercise was carried out taking into consideration the principles of the GRI Standards.
The result of this careful analysis of all the actors who gravitate around Panariagroup led to 
the identification of the stakeholders shown in the following chart.
1
5
Through the involvement of the 
stakeholders and consideration of 
their needs, the Group can pursue its 
economic, environmental and social 
targets in a shared and effective way.

PANARIAGROUP - SUSTAINABILITY REPORT 
27
our stakeholders
Shareholders, financiers
and investors
Employees and 
trade unions
Representative
Trade associations
Local communities
Developers, architects
and interior designers
Consumers
Public institutions
Customers 
(distributors)
Suppliers

28
Panariagroup maintains a constant level of communication with its stakeholders, 
bearing in mind their mutual needs. In this regard, the Group strives daily to foster 
active and continuing relations through various methods involving the different 
corporate functions.
In recent years, for example, the Group decided to step up its listening activities, 
involving its employees through the completion of a questionnaire and in the 
participation in specific focus group sessions in order to identify opportunities for 
improving working life within the company and sustainability aspects. 
In the early months of 2022, as part of the periodic update of the materiality analysis, the 
Group also involved the financial institutions with which it deals on a daily basis, surveying 
their needs and expectations in relation to sustainability issues and examining the existing 
relationship between credit processes and ESG aspects. 
Through these initiatives, Panariagroup is constantly renewing its commitment to 
its stakeholders, in the belief that, by listening to them, we can build a better working 
environment together and, at the same time, help the company to make the best strategic 
decisions.
Despite the challenging scenario connected to the spread of COVID-19, Panariagroup has 
continued to pursue its dialogue with all its stakeholders, continuing to engage with them 
in promoting responsible and transparent communication in order to enhance intangible 
capital made up of people, relationships and ideas. The following table shows the 
methods of interacting with the Group’s stakeholders, divided into individual categories.
Panariagroup maintains a constant level
of communication with its stakeholders,
bearing in mind their mutual needs.

PANARIAGROUP - SUSTAINABILITY REPORT 
29
stakeholder
methods
Shareholders, lenders and 
investors
•	 Shareholders’ Meeting
•	 Publication on the Group’s website of all financial and non-financial information 
required by current regulations
•	 Daily contact related to operations and specific meetings with the Group’s lenders
•	 Communication activities through media of the corporate results and key initiatives
Consumers
•	 Commercial relations in the Group’s shops
•	 Presence at events (e.g. Milan Design Week)
•	 External communication (website, social media, digital campaigns, press releases)
•	 Online consulting
Public institutions
•	 Participation in data collection through surveys for statistical purposes
•	 Compliance with the documentary requirements of national and local legislation
•	 Constant collaboration with the institutions responsible for issuing authorizations 
and environmental certifications
Customers (distributors)
•	 Daily report from the Group’s commercial offices
•	 Participation in the main trade fairs
•	 Visits organized at the Group’s offices
•	 Newsletter and direct communication
•	 Webinars and online presentations
Employees and trade unions
•	 Newsletters for employees
•	 Notice boards and signage stands at the plants and sites
•	 Training activities and regular refresher activities for employees
•	 Regular meetings with employees’ representatives
•	 Periodic management meeting to update managers 
•	 Communication through HR Portal
Suppliers
•	 Activities to select suppliers and to evaluate performance in terms of quality, 
sustainability and cost of the service
•	 Regular meetings and audits of suppliers carried out by the Group’s Purchasing 
Department
•	 ESG Risk Analysis on suppliers in Italy and Portugal
Representative/trade 
associations
•	 Membership of Confindustria Ceramica (Italy) and APICER (Portugal) and 
participation in the relevant technical committees on environment and safety
•	 Membership of the US Green Building Council
•	 Participation as an ordinary member in Green Building Council Italia
•	 Participation as an associate member of ASSOPOSA (National association of 
ceramic tile layers and installers)
Local communities
•	 Sponsorship and donation of contributions aimed at the socio-economic 
development of the areas in which the Group operates
Developers, architects and 
interior designers
•	 Presence of a function dedicated to building a structured and continuous 
relationship with developers, architects and interior designers
•	 Technical seminars organized at external sites for compulsory training (training 
credits)
•	 Seminars in the Group’s showrooms with the participation of experts
•	 Participation in fairs and events aimed at the target audience
•	 Visits organized at the Group’s offices
•	 Newsletter and direct communication
•	 Webinars and online presentations

30
Materiality analysis
In 2021, in light of the periodic updating of the shortlist of materiality issues subject to 
reporting, the Group decided to renew its materiality analysis through direct involvement of 
financial institutions, as Group stakeholders, and Panariagroup Top Management.
In accordance with the GRI Sustainability Reporting Standards, Panariagroup carried out this 
analysis with the aim of updating the relevance of priority sustainability issues for the Group 
and its stakeholders. As such, the analysis was conducted in order to identify the aspects 
which reflect the significant economic, environmental and social aspects for the organization 
and which have a major influence on stakeholder evaluations and decisions.
The map of the relevant issues identified in previous years was confirmed and re-evaluated 
by the Group’s Top Management and its stakeholders through the sharing of an online 
survey, in which participants were first asked to attribute a relevance score from 1 to 5 for 
each issue, and then to evaluate the 5 sustainability issues considered most relevant, i.e. 
on which Panariagroup should focus its sustainability strategy, and the 5 least relevant 
ones, taking into consideration their knowledge of the Group’s context and business. This 
activity involved more than 20 financial institutions in Italy, Portugal, the U.S. and India, and 
Panariagroup’s Top Management with 13 participants. The results that emerged from the 
activities described above have been aggregated with the results that emerged in previous 
years and incorporated into the 2021 materiality matrix.
1
61
6
materiality matrix
2021
importance for the stakeholders
importance for Panariagroup
Integrity and
compliance
Waste management and the circular economy 
Water resources management 
Combatting climate change 
Responsible supply chain 
management
Protection of brands and reputation
Well-being and responsibility 
towards employees
Customer satisfaction
Product quality and design
Health and safety in the workplace
Sustainable innovation 
Employee training and development 
Relevant
Relevant
Very relevant
Very relevant
Legend
Environmental responsibility
Social responsibility
Product responsibility
Governance e compliance
Economic performance
Economic performance

PANARIAGROUP - SUSTAINABILITY REPORT 
31
In line with the analyses conducted in past years, the materiality matrix confirms the 
central importance, for both the Group and its stakeholders, of Health and Occupational 
Safety, Sustainable Innovation and Customer Satisfaction. Although the issues 
“Product Quality and Design” was considered slightly less relevant by stakeholders, 
it remains a fundamental cornerstone of the Group’s business model. It should also 
be noted that the issue “Combating Climate Change” has become significantly more 
relevant to stakeholders due to an increasing awareness of climate challenges and the 
need to develop activities geared towards a low-carbon economy. Finally, the issue 
“Economic Performance” has been symbolically placed outside the materiality matrix, as 
it is considered an essential element and prerequisite for the proper management of all 
sustainability issues and the Group’s activities in general.
These issues relate to aspects of primary importance that are fully consolidated in the 
corporate operations and they recall the strategy implemented thus far by the Group, 
which has invested heavily in these areas. With regard to the issues considered material 
for the Group and its stakeholders published in the 2020 edition of the Sustainability 
Report, it should be noted that the issues “Energy Resources and Emissions 
Management” and “Waste and Wastewater Management” have been changed to 
“Combating Climate Change” and “Waste Management and Circular Economy”, 
respectively.
Below is a breakdown of the issues that emerged as material and the correlation with the 
most significant SDGs identified by the Group in terms of impact on the local area:
material
issues
description
relevant
SDGs  
Product quality and 
design
Adoption of certifications, procedures and systems to ensure the 
highest product quality standards and continuous design innovation, 
in order to respond in an increasingly comprehensive and effective 
way to the different needs and demands of the market. Extension of 
BIM (Building Information Modelling) to all products offered by the 
Group.
Economic performance
Responsible management of the Group’s economic and financial 
resources in order to ensure the resilience, stability and continuity 
of business operations with the aim of creating value in the short, 
medium and long term for all stakeholders.
Occupational health 
and safety
Use of management systems related to the occupational Health and 
Safety of workers. Regular interventions and investments to minimise 
the risk of accidents within the plants and to ensure an adequate 
and comfortable workplace. Constant monitoring of accident rates 
and development of training and awareness-raising initiatives 
to consolidate a culture of accident prevention, monitoring and 
management.
Sustainable innovation
Development of activities and policies aimed at enhancing the 
innovative and sustainable features of the products offered by the 
Group. Increased research and development activities in order to 
ensure the continuous improvement of processes and products, with 
a focus on the reduction of environmental impact and new market 
requirements.

32
material
issues
description
relevant
SDGs  
Customer satisfaction
Business management with the aim of ensuring full Customer satisfaction. 
Adoption of systems and procedures to monitor satisfaction and 
any complaints related to health and safety issues, labelling, product 
information and marketing activities.
Well-being and 
responsibility towards 
employees
Adoption of staff management policies and development of activities 
in order to ensure employee well-being, protection of workers’ rights, 
diversity and equal opportunities. Interaction, dialogue and collaboration 
with unions aimed at ensuring that the Group listens to employees’ 
needs.
Employee training and 
development
Strengthening of employees’ technical, managerial and organisational 
skills through the adoption of multi-year training plans and the 
definition of career, development and professional growth paths. Staff 
incentive policies and systems and talent attraction.
Combating climate 
change
Adoption of policies to efficiently monitor and manage energy 
consumption and emissions, including with a view to climate change 
mitigation and adaptation. Minimisation of the direct impact produced by 
corporate activities by increasing the share of self-produced electricity from 
renewable sources, reducing energy intensity and emission indices and 
developing “carbon neutrality” plans. 
Water resources 
management
Adoption of policies for monitoring and efficient management of water 
resources, including in relation to water-stressed areas. Implementation 
and use of water recovery and reuse systems in production cycles.
Development of initiatives and activities with the goal of increasingly 
reducing water consumption and requirements for corporate activities.
Integrity and 
compliance
Conducting business activities in line with the principles of ethics, 
integrity and transparency, in compliance with applicable laws and 
any specific regulations. Adherence to national and international 
principles and guidelines that include areas of social and environmental 
responsibility. A commitment by the Group to combat active and 
passive corruption through implementation of policies, procedures and 
mechanisms for reporting potential irregularities or illegal behaviour 
and training activities on specific regulations (e.g. monopoly, anti-
competitive behaviour, anti-money laundering). Adherence to national 
and international principles and guidelines that include areas of social 
and environmental responsibility.
Protection of Brands 
and reputation
Adoption of multi-brand commercial strategies that enhance 
the distinctiveness of the Group’s Brands on the market and that 
comprehensively meet the needs of a diversified Customer base.
Waste management 
and circular economy
Responsible management of hazardous and non-hazardous waste 
related to the Group’s business activities and promotion of conscious 
management methods and practices, such as: overall reduction of 
waste, with particular reference to plastic waste, adoption of sorting 
and recycling models, and total recovery of raw and cooked waste from 
production.
Responsible supply 
chain management
Promotion of transparency with the Group’s business partners and 
adoption of environmentally responsible procurement practices 
(including a focus on suppliers of raw materials that carry out activities 
and processing with a high environmental impact on their local areas), 
social issues and respect for human rights. Implementation of strategic 
supplier evaluation and monitoring systems based on social and 
environmental criteria, as well as on the quality of their services and 
products.

PANARIAGROUP - SUSTAINABILITY REPORT 
33
material
issues
reconciliation with
GRI topics
scope of impact
Where the impact occurs
Involvement of the Group
Product quality and 
design
•	 GRI 416: Consumer health and 
safety (2016)
•	 GRI 417: Marketing and labeling 
(2016)
Group
Caused by the Group
Economic performance
•	 GRI 201: Economic Performance 
(2016)
•	 GRI 202: Market presence (2016)
•	 GRI 207: Tax (2019)
Group
Caused by the Group
Occupational health and 
safety
•	 GRI 403: Occupational health 
and safety (2018)
Group employees and 
contractors 6
Caused by the Group
Sustainable innovation
•	 N/A
Group
Caused by the Group
Customer satisfaction
•	 N/A
Group
Caused by the Group
Well-being and 
responsibility towards 
employees
•	 GRI 401: Employment (2016)
•	 GRI 405: Diversity and equal 
opportunity (2016)
•	 GRI 406: Non-discrimination 
(2016)
Group
Caused by the Group
Employee training and 
development
•	 GRI 404: Training and education 
(2016)
Group
Caused by the Group
Combating climate 
change
•	 GRI 302: Energy (2016)
•	 GRI 305: Emissions (2016)
Group and electric and 
thermal energy suppliers
Caused by the Group and 
related to the Group through its 
commercial relations
Water resources 
management
•	 GRI 303: Water and effluents 
(2018)
Group
Caused by the Group
Integrity and compliance
•	 GRI 205: Anti-corruption (2016)
•	 GRI 206: Anti-competitive 
behaviour (2016)
•	 GRI 307: Environmental 
compliance (2016)
•	 GRI 419: Socioeconomic 
compliance (2016)
Group
Caused by the Group
Protection of Brands and 
reputation
•	 N/A
Group
Caused by the Group
Waste management and 
circular economy
•	 GRI 306: Waste (2020)
Group
Caused by the Group
Responsible supply chain 
management
•	 GRI 204: Procurement practices 
(2016)
•	 GRI 301: Materials (2016)
•	 GRI 308: Supplier environmental 
assessment (2016)
•	 GRI 414: Supplier social 
assessment (2016)
Group and Suppliers
Caused by the Group and which 
the Group contributes to
As required by GRI reporting standards, the table below shows the scope of the impact 
of each material issue. The aim is to understand which plants, areas or entities within 
Panariagroup have the greatest impact in terms of the material issues identified in the 
materiality matrix.
6.	 The data relating to the Health and Safety of contractors only include the category of staff leasing workers and not other types of external staff who work at the Panariagroup 	 	
	
Group’s sites and/or under the Panariagroup Group’s control, in view of their significance and of the availability of this data over which Panariagroup does not exercise 	
	
	
direct control.

34
Sustainability goals
Below are the goals declared in the 2020 Sustainability Report, with their relative 
progress, and the new sustainability goals that the Group defined in 2021 looking 
ahead to 2022.
1
7
business issues
goal
target
progress
Industry 4.0: adherence to digitization incentives 
(art. 3 of Legislative Decree no. 145 of 23 
December 2013, as replaced by art. 1, paragraph 
35 of the 2015 Stability Law and amended in the 
2017 Budget Law)
2018
The goal was partially completed and broken down 
into multiple goals in 2020 (plant interconnection 
and CE line certifications), identified below by 
the designation “Industry 4.0”. In 2021, the 
interconnection process went ahead for the Finale 
Emilia plant.
Installation of new plants at the Italian Business 
Unit, in particular no. 1 sorting line at the Toano 
plant, no. 1 sorting line and no. 1 drying room at 
the Fiorano Modenese plant.
2018
The goal has been achieved.
Installation of a new sprayer in the Finale Emilia 
(Italy) plant, featuring greater energy efficiency.
2020
The goal has been achieved.
Industry 4.0: installation of a system of plant 
supervision and interconnection with the production 
lines in the plants of Finale Emilia and Toano (Italy), 
Aveiro and Ílhavo (Portugal).
2020
The goal has been partially achieved: the system 
is active in the Toano plant, while it is nearing 
completion for the other plants.
STATED GOALS IN THE 2020 
SUSTAINABILITY REPORT

PANARIAGROUP - SUSTAINABILITY REPORT 
35
business issues
goal
target
progress
Installation of new load compensators for the kilns 
in the Fiorano Modenese (Italy) plant, enabling 
increased filling of the kilns and consequent higher 
productivity and reduction of electricity and gas 
consumption.
2020
The goal has been achieved.
Installation of a new lapping line and of a new 
packaging line at the Finale Emilia site, enabling 
the processing and management of large formats 
(up to 180 cm side).
2021
The goal has been achieved.
Complete renovation of a production line at the 
Fiorano Modenese plant through the installation 
of a new press for forming large-format slabs, a 
multi-level dryer, a sorting line and a packaging 
line with an increase in production capacity and 
optimization of energy consumption.
2021
The goal will be completed in 2022.
Alteration of the internal structure of the Fiorano 
Modenese plant with consequent improvement 
of the logistics and production organization and 
purchase of new laser-guided systems for the 
automatic handling of large-format plates, with 
consequent optimization of the productivity of the 
internal processing lines (grinding and lapping).
2021
The goal will be completed in 2022.
Installation of a new pressing, drying and decoration 
line at the Aveiro plant, with a consequent increase 
in the production capacity of large-format tiles 
(up to 120x120 cm) and optimization of energy 
performance.
2021
The goal will be completed in 2022.
Reorganization of the layout of the sanding and 
grinding department at the Ílhavo plant in order 
to optimize internal logistics and installation of 
soundproofing systems to improve noise levels.
2021
The goal will be completed in 2022.
Replacement of a kiln at the Finale Emilia plant 
with a new plant featuring high production capacity 
and performance optimization in terms of energy 
consumption.
2022
The activities to achieve the goal are in line with the 
deadline.

36
quality and environment
goal
target
progress
Total replacement of fluorescent neon lights with 
installation of LED and magnetic induction lighting 
systems at the Toano plant (Italy) to significantly 
reduce electricity consumption.
2018
The goal has been achieved.
Partial replacement of fluorescent neon lights 
and installation of LED and magnetic induction 
lighting systems in the Ílhavo and Aveiro 
(Portugal) plants, in order to obtain significant 
electricity reductions.
2019
The goal has been achieved.
Launch of the campaign to replace lead-acid 
batteries with lithium ones, which have a longer 
life and which are less polluting, for automatic 
vehicles for handling finished products.
2019
The goal has been achieved.
Industry 4.0: achievement of CE line certifications 
in the plants in Finale Emilia and Toano (Italy).
2020
Certifications were obtained for the two lines in 
the Finale Emilia plant. The remaining activities are 
being completed. 
Inclusion of hybrid cars in the Italian Business Unit’s 
Car Policy.
2020
The goal has been achieved.
Replacement of 50% of the Portuguese Business 
Unit’s car fleet with hybrid cars.
2020
Goal temporarily suspended for internal evaluation. 
Optimisation of the filter dust recovery and 
treatment system in the Fiorano Modenese plant.
2020
The goal will be completed in 2022.
Further development of activities for the eco-
friendly improvement of packaging with the 
replacement of “white” strapping (made of 
virgin plastic) with “green” strapping (made of 
regenerated plastic) in the plants of the Italian 
Business Unit.
2021
Goal postponed to 2022.
Implementation of dedicated internal logistics 
software (VMS) aimed at optimizing the 
management of material handling, resulting in 
lower fuel consumption and less pollution.
2021
The hardware has been purchased; the 
implementation phase is ongoing.
Installation of a continuous seismic monitoring 
system at the Fiorano plant.
2021
The goal has been achieved.
Creation of a service model dedicated to active 
participation in projects related to the 110% Bonus 
for energy upgrading of Italian real estate.
2021
The goal has been achieved.

PANARIAGROUP - SUSTAINABILITY REPORT 
37
quality and environment
goal
target
progress
Total replacement of fluorescent neon lights 
with installation of LED and magnetic induction 
lighting systems at the Lawrenceburg plant (United 
States), in order to significantly reduce electricity 
consumption.
2021
The goal has been achieved.
Request for accreditation on the EcoVadis platform 
to obtain a sustainability performance evaluation.
2021
Cancelled in favour of other priorities.
human resources 
goal
target
progress
Creation of a reward system for employees who 
distinguish themselves in activities related to 
sustainability issues, “sustainability award”, at the 
Italian and Portuguese business units.
2021
The goal has been achieved. It is planned to be 
extended to the U.S. Business Unit.
Improvement of activities to listen to staff in the 
Italian Business Unit (e.g. climate analysis, etc.).
2021
The goal has been achieved. It is planned to be 
extended to the U.S. Business Unit.
Creation of Scholarships dedicated to the children 
of employees in the Italian Business Unit.
2020
Goal postponed to 2023.
Free and optional offer of a specialist consultation 
service (example: posturologist, nutritionist, 
psychologist) in the Italian and Portuguese 
Business Units.
2021
Goal postponed to 2022.
Planned investments of €0.5 million for 
interventions to reduce the risk of manual handling 
of loads (manipulators, automatic loaders) in the 
Italian Business Unit.
2021
The goal will be completed in 2022.
Planned investments of €0.7 million for 
interventions related to the safety and 
environmental comfort of employees 
(soundproofing systems and systems to reduce 
airborne dust) in the Italian Business Unit.
2021
The goal will be completed in 2022.
Support for professional and academic training 
of employees of the Portuguese Business Unit, in 
collaboration with a specialised external centre.
2021
The goal has been achieved.
Extension of the skills management and 
development system, already implemented for the 
Aveiro (Portugal) site, to the Ílhavo (Portugal) site.
2021
Ongoing activity.

38
local community
goal
target
progress
Establishment of a Solidarity Fund for which all 
employees of the Italian Business Unit are eligible.
2021
Goal temporarily suspended.
governance
goal
target
progress
Improvement of the access control system at the 
Italian Business Unit’s sites, through installation of 
dedicated IT supports.
2018
The intervention at the Fiorano Modenese site is 
scheduled for completion by the end of 2022.
customers
goal
target
progress
Development of stakeholder engagement for 
Customers in the Italian Business Unit.
2020
The goal will be completed in 2022.
Implementation of the VIS service in the U.S. 
Business Unit to monitor supply quality in real 
time and give customers fast and comprehensive 
feedback, improving the after-sales service.
2021
The goal has been achieved.
human resources 
goal
target
progress
Development of a healthcare programme with 
ARC Healthcare (prevention, risk assessment and 
personal support programme for chronic diseases) 
in the U.S. Business Unit.
2021
The goal has been achieved.
Development of training activities through the 
dedicated learning management system platform 
in the U.S. Business Unit.
2021
The goal has been achieved.

PANARIAGROUP - SUSTAINABILITY REPORT 
39
new goals
Installation at the Finale Emilia site of a new dry-grinding line, equipped with innovative 
automation in order to improve efficiency and production yields, and of a new sorting 
line, which can process and handle large formats (up to 180 cm side).
Implementation of new automatic vehicles for the handling of fired material at the Finale 
Emilia site, required to manage increased production volumes.
Increased large-format slab storage capacity at the Fiorano Modenese site through 
reorganisation of the semi-finished products warehouse, in order to optimise the 
processing cycle and customer response speed.
Complete revamping of a kiln at the Fiorano Modenese site through optimisation of the 
cooling system aimed at reducing the risk of defects in the fired material.
Implementation of a new production line for large formats at the Aveiro plant with the 
installation of a press, a horizontal dryer, and a glazing line equipped with an innovative 
digital printer.
Installation, at the Ílhavo plant, of a system for recovering fumes from the kilns during the 
firing stage inside the sprayer, resulting in energy savings and reduced CO2 emissions.
Optimisation of the sprayer control panel at the Lawrenceburg plant, in order to increase 
efficiency and reduce energy waste.
Installation of a new transformer and of a distribution board at the Lawrenceburg plant, 
in order to optimise the efficiency of the entire plant’s electricity consumption.
business issues
2022 Target

40
quality and environment
Identification of customer categories against which to measure satisfaction (target).
Increased investment in raising customer and consumer awareness of Sustainability.
2022 Target
customers
Launch of a process to map the use of recycled plastic material in foreign BUs and 
subsequent evaluation of dedicated activities and goals.
Study of new solutions, through a dedicated corporate function, for the optimisation 
of palletisation schemes at production plants and external suppliers, with the aim of 
reducing the use of wood (Italian BU).
Study for the creation of new photovoltaic infrastructure and restoration of the efficiency 
of existing photovoltaic systems at Italian BU sites.
Further increase of plug-in hybrids in the car fleet and installation of charging stations.
Further extension of PROTECT technology to most of the products offered in Brand 
catalogues.
Increased number of Panariagroup products subjected to Life Cycle Assessments (LCAs) 
and periodic renewal of EPDs (Environmental Product Declarations) of Panariagroup 
sites.
Gradual expansion of the range of products/application solutions included in BIM 
(Building Information Modelling)
2022 Target
Study for the selection of an integrated supplier evaluation platform, which also takes 
ESG criteria into consideration and enables the development of a “vendor rating” (Italian 
BU).
2022 Target
supply chain

PANARIAGROUP - SUSTAINABILITY REPORT 
41
Evaluation of a platform for monitoring skills and training.
Implementation of flexible working tools (e.g. definition of a smart working policy/
model).
Strengthening of the dialogue with local educational institutions (especially Technical 
Institutes) and implementation of training courses.
Definition of a Group RSPP (Prevention and Protection Service Manager).
human resources
2022 Target

42

PANARIAGROUP - SUSTAINABILITY REPORT
43
2
the Company

We are committed to constant evolution, starting 
in Italy and opening up to the world, driven by the 
continuous pursuit of excellence in terms of both 
quality and cutting-edge technology.
Our contribution to the SDGs
Integrity and compliance
The chapter’s material topics

Our customers
Reliability and trust
Around 10,000
63%
51% EU
32% U.S.
17% REST OF THE WORLD
of our customer relationships have lasted for at least 3 years.
in evidence

46
2
1
Group profile 
 
 
 
 
 
With around 1,700 employees, a network of around 10,000 Customers7, 6 production 
plants (3 in Italy, 2 in Portugal and 1 in the U.S.) and a turnover of €402 million in 2021 (+ 
13% compared to 2020), Panariagroup is one of the leading producers of ceramic tiles 
for floor and wall coverings and is positioned in the high-end and luxury segment of the 
market. 
6
1,690
21.8
402
Production 
plants
Employees
Million € 
invested
2021 turnover in 
million €

PANARIAGROUP - SUSTAINABILITY REPORT
47
7. Customers with a sales level over €1,000 were considered.
24
9
130
Million m2 
produced
Brands
Countries
Sales in over 
over

48
2
2
History
A path of constant evolution, driven by the Group’s desire to confirm itself as a 
cutting-edge business group, not only from a technological perspective.
2010
2012
2016
2005
2008
2009
In 2005, Panariagroup acquired a 
second company in Portugal: Novagrés, 
now Love Tiles, a leading brand in the 
production of large format monoporosa 
coverings and floors in glazed 
porcelain stoneware. The process of 
internationalisation continued in 2006 
with the acquisition of the brand and 
main assets of Florida Tile Industries, 
a historical brand in the United States 
in the production and distribution of 
ceramic material. In December 2006, the 
two Portuguese companies Novagrés 
and Margrès merged into Gres Panaria 
Portugal, maintaining the identity of the 
two brands. Furthermore, a new company 
named Panariagroup USA Inc. was 
established to control the Florida Tile and 
Lea North America companies.
Blustyle Ceramica was created in 
2008 to offer the market an agile and 
innovative model in terms of both its 
products and distribution approach. 
The company gradually flourished and 
today it is an official Brand in the Cotto 
d’Este family, from which it draws all its 
high-quality characteristics featured in 
products with a traditional thickness.
After years of successful 
commercialization of laminated 
porcelain stoneware, a revolutionary, 
high-performance material, the result 
of state-of-the-art technology, in 2009 
Panariagroup installed the first production 
line for this product at the Fiorano 
Modenese plant.
Panariagroup’s expansion continued 
and in 2010 a new sales organisation, 
Panariagroup Trade, was established, 
with the aim of gaining market shares 
in the Middle East, the Far East and 
Oceania. In particular, Panariagroup 
Trade responds to the need to distribute 
the Group’s brands in these areas 
through more targeted commercial 
policies that respect the precise identity 
and peculiar features of each brand. 
In the same year Panariagroup signed its 
first agreement with Microban®, a world 
leader in antibacterial technologies, for 
the creation of products for healthy, safe 
and protected spaces.
The internationalisation process 
continued thanks to a joint venture with 
Asian Granito, a leading company in 
the Indian market. The “Bellissimo” 
brand was launched with the purpose 
of producing and selling luxury ceramic 
products with high value in terms of 
style and technology on the Asian 
market. The Group became even more 
committed to the Indian Business Unit 
in 2019 with the acquisition of 100% of 
the company’s shares.
The certified sustainability reporting 
process officially began with the 
publication of the first Report and 
with the development in subsequent 
years of initiatives aimed at certain 
stakeholder categories (starting with 
employees).

PANARIAGROUP - SUSTAINABILITY REPORT
49
1974
1992
2004
2002
1995
In 1974, Panaria Ceramica was 
founded by a group of entrepreneurs; 
among them there was Giuliano Mussini, 
head of the Mussini family, the current 
major shareholders of Panariagroup 
Industrie Ceramiche S.p.A.
During the 1990s, Panaria implemented 
a strategy of expansion and extension 
of its brands and products through the 
acquisition, in 1992, of Ceramiche 
Artistiche Lea, a company specialised 
in the production of single-fired floor 
tiles, and by founding, in the same year, 
Cotto d’Este, a company created to 
design and market exclusive, high-end 
product lines destined to conquer the 
luxury segment of the market.
In 1995, the Group’s production capacity 
was increased with the construction 
of the technologically advanced 
production site in Toano (Reggio Emilia, 
in the north of Italy), specialized in the 
production of porcelain stoneware. In 
that same year, the Fiordo Industrie 
Ceramiche brand was founded in 
order to strengthen the Group’s leading 
position on the market.
The process of expansion into 
international markets became a 
reality with the acquisition, in 2002, 
of Maronâgrès (today Margrès), an 
important company in the production of 
porcelain stoneware ceramic in Portugal.
2004 was the year of Panariagroup’s 
foundation, following the merger by 
incorporation of all Italian companies in 
Panaria. In the same year, Panariagroup 
decided to become a public company 
and on 19 November 2004 the Group 
was listed in the STAR segment 
of the Italian Stock Exchange. The 
internationalization process continued 
with the foundation, in 2004, of Lea 
North America LLC, a company created 
to oversee the distribution of Lea 
products in the increasingly strategic US 
market. In the same year, Cotto d’Este 
launched Kerlite, the revolutionary line 
of ultra-thin slabs: Panariagroup was 
the first ceramic group to introduce an 
innovation on the market that changed 
the concept of tiles.
2017-2020
The company started work on 
developing an ambitious long-term 
Sustainability plan with initiatives and 
goals related to People, Planet and 
Prosperity. Expansion and upgrading 
work was completed at the Fiorano 
Modenese production site, while major 
technological upgrades were also 
carried out at the Finale Emilia plant. 
In July, the formal procedures leading 
to the company’s exit, on a voluntary 
basis, from Borsa Italiana (so-called 
delisting) were successfully concluded.
Significant progresses were made in terms of 
industrial development with major investments 
in all business units. Strengthening of the 
commitment to laminated porcelain stoneware: 
the third production line was built in Fiorano 
Modenese and the product range was 
expanded with the introduction of new sizes 
and thicknesses. New commercial channels 
were also developed: the Contract & Key-
Account Division was set up. 
The company’s quality assurance was 
progressively strengthened, in particular with 
the introduction of new product sustainability 
certifications (e.g. EPD and Green Guard). 
Finally, Maxa Ceramic Slabs was established, 
the new Panariagroup Brand that focuses on 
providing large-format, high-thickness ceramic 
maxi-slabs for the furnishing accessories and 
interior design segment.
2021

50
Panariagroup actively operates both in Italy and abroad through nine Brands that can 
satisfy a diverse Customer base focused on the technical and aesthetic quality of its 
products: Panaria Ceramica, Lea Ceramiche, Cotto d’Este, Blustyle, Florida Tile, Margres, 
Love Tiles, Bellissimo and Maxa Ceramic Slabs.
The Panariagroup Group consists of the Parent Company Panariagroup Industrie 
Ceramiche S.p.A. with registered offices in Finale Emilia, Modena (Italy), Gres Panaria 
Portugal S.A. with registered office in Ílhavo (Portugal) and Panariagroup USA Inc., which 
owns the Florida Tile Inc. and Lea North America LLC. Companies, with registered offices 
in Delaware (U.S.). The Group also includes Montanari Ceramiche S.r.l., a retail outlet for 
the Group’s ceramic material with registered office in Finale Emilia (Italy), Panariagroup 
India Industrie Ceramiche Pvt Ltd with registered office in Ahmedabad (India), a company 
that markets “Bellissimo” Brand products in India, and Gres Panaria Central Europe 
GmbH, a company with registered office in Hamburg (Germany) that promotes Gres 
Panaria Portugal S.A. products on the German, Austrian and Swiss markets.
The Group’s driving force is its 6 production plants, located in Finale Emilia, Fiorano 
Modenese and Toano, Italy, in Ílhavo and Aveiro, Portugal, and in Lawrenceburg, 
United States. The Group also has two storage and shipping centres in Italy, located in 
Casalgrande and Sassuolo.
Panariagroup has a large and widespread sales network that covers Italy, Portugal, the 
United States, India and over 130 Countries worldwide. In fact, the Group’s sales network 
supplies around 10,000 Customers worldwide, mainly retailers, but also distributors, 
construction companies and customers involved in major projects.
Marketing and distribution at national and international levels of all Panariagroup products 
are coordinated by an organisation of around 1,000 people, including area managers, 
commercial correspondents, sales agents and promoters. Moreover, in the United States, 
the Group directly manages 22 stores located throughout the territory.
Panariagroup  
worldwide
Panariagroup has a large and widespread
sales network that covers
Italy, Portugal, the United States, India
and over 130 countries worldwide.
2
3

PANARIAGROUP - SUSTAINABILITY REPORT
51
C E N T R A L  E U R O P E  G M B H
100%
100%
100%
100%
100%
100%
100%
the Group

52
LAWRENCEBURG 
KENTUCKY - USA
HQs PANARIA USA
LEXINGTON
HQs FLORIDA TILE INC.
LEXINGTON
KENTUCKY - USA
ERLANGER
KENTUCKY - USA
DENVER
FORT COLLINS
COLORADO - USA
EUGENE
PORTLAND
OREGON - USA
SEATTLE
WASHINGTON - USA
SALT LAKE CITY
UTAH - USA
DALLAS
TEXAS - USA
BOISE
IDAHO - USA
ATLANTA
GEORGIA - USA
CHESAPEAKE
VIRGINIA - USA
CHARLOTTE
GREENSBORO
RALEIGH
WILMINGTON
NORTH CAROLINA - USA
CINCINNATI
COLUMBUS
DAYTON
OHIO - USA
LAWRENCEBURG
KENTUCKY - USA
HQs LEA NORTH AMERICA LLC
CHARLOTTE
NORTH CAROLINA - USA
LAKELAND
MIAMI
PENSACOLA
TALLAHASSEE
FLORIDA - USA
Plants
Headquarters
Warehouses
Florida Tile Stores
Stores and showrooms
Where we are

PANARIAGROUP - SUSTAINABILITY REPORT
53
FINALE EMILIA (MO)
TOANO (RE)
FIORANO MODENESE (MO)
ITALY
HQs PANARIAGROUP INDUSTRIE CERAMICHE S.P.A.
FIORANO MODENESE (MO)
HQs PANARIAGROUP TRADE
FIORANO MODENESE (MO)
HQs LEA CERAMICHE
FIORANO MODENESE (MO)
HQs MAXA CERAMIC SLABS
FIORANO MODENESE (MO)
HQs COTTO D’ESTE & BLUSTYLE
SASSUOLO (MO)
HQs PANARIA CERAMICA
FINALE EMILIA (MO)
ITALY
FINALE EMILIA (MO)
TOANO (RE)
FIORANO MODENESE (MO)
SASSUOLO (MO)
SANT’ANTONINO DI CASALGRANDE (RE)
ITALY
ILHAVO
AVEIRO
PORTUGAL
HQs GRES PANARIA PORTUGAL S.A.
AVEIRO
PORTUGAL
AHMEDABAD (GUJARAT)
INDIA
HQs BELLISSIMO
AHMEDABAD (GUJARAT)
INDIA
ILHAVO
AVEIRO
PORTUGAL
LOVE TILES & MARGRES
LISBOA 
AVEIRO
PORTUGAL
MONTANARI CERAMICHE STORE
BOLOGNA
ITALY
COTTO D’ESTE SHOWROOM
MILANO
ITALY
HQs GRES PANARIA CENTRAL EUROPE GMBH
AMBURGO
GERMANY

54
Panariagroup’s mission is to develop and create 
well-being in harmony with people and the 
environment, with great willingness, passion 
and love for our work.
The guarantee of a Group that grew from strong family roots in the Sassuolo ceramic 
district to become a major international player, operating all over the world, while 
maintaining an Italian spirit.
We always place people and quality of life at the centre of our attention, with safe, environmentally 
sustainable products, by operating with the utmost respect for those who work with us.
We strive for industrial excellence, from the quality of raw materials to process efficiency, 
in order to achieve products that combine the maximum aesthetic value with the highest 
technical performance.
We constantly invest in research, technologies and state-of-the-art plants to meet every 
architectural and interior design need with innovative solutions, capable of becoming the 
industry benchmark.
The Group’s research and innovation, devoted to product beauty and quality, enable it 
to satisfy all the main market segments with a dedicated and high-quality product range.
The following principles guide all the Group’s daily activities and represent the 
fundamental values underlying its company mission:
The Group’s values and principles
Values
responsibility
reliability
aesthetic quality and excellence
technological leadership
2
4

PANARIAGROUP - SUSTAINABILITY REPORT
55
The following principles guide all the Group’s daily activities and represent the 
fundamental values underlying its corporate mission:
The Group requires compliance with all the rules and provisions, both national and 
international, concerning the fight against money laundering and against active and 
passive corruption.
The Group, in the course of its business activities, acts in compliance with applicable laws 
and regulations, as well as with internal regulations and procedures. Compliance with 
national and international regulations is a binding and essential condition for the Group 
and it requires all its partners, whether they have a permanent or temporary and direct or 
indirect relationship with the Group, to ensure that they follow the principles of conduct in 
the same responsible way in relations with the Group.
Panariagroup is committed to ensuring transparent corporate management, 
communication and information.
responsibility and regulatory compliance
ethics in commercial relations
responsible communication and transparency
Principles

56
Organisational structure and 
governance	
Panariagroup’s organisational model is based on the traditional model, formed of 3 
corporate bodies: the Shareholders’ Meeting, the Board of Directors and the Board of 
Statutory Auditors.
The Shareholders’ Meeting represents all the shareholders. It is the body in charge of 
making decisions, in ordinary and extraordinary sessions, relating to matters reserved to 
its competence by law or by the Articles of Association.
The Board of Directors manages Panariagroup and pursues the primary goal of creating 
value for shareholders, actively working to define industrial strategies and directly 
intervening in all the decisions relating to the most important management matters, 
which fall within the Board’s exclusive remit. With regard to non-financial reporting, the 
Board of Directors ensures that the Sustainability Report is prepared and published in 
a timely manner and in accordance with reporting standards, it approves the Group’s 
materiality matrix and the Report within the same timeframe as the presentation of the 
draft report, and it makes it available to the appointed Auditing Company.
The Panariagroup Board of Directors consists of 6 members. Since its establishment, the 
Board has been led by the Mussini family and it is still chaired by Emilio Mussini, while 
operational management is entrusted to Giuliano Pini, the Group’s Managing Director 
and CEO.
The Board of Statutory Auditors is in charge of monitoring matters such as respect of 
the law and Articles of Association, correct administration standards, the adequacy of 
the company’s organisational structure, internal control mechanisms and the adequacy 
of instructions given to the various subsidiaries relating to information that must be 
provided in order to comply with reporting requirements. Furthermore, it monitors 
compliance with the provisions established by Legislative Decree 254/2016 and reports 
its findings in the annual report to the Shareholders’ Meeting.  
2
5
The Board of Directors pursues
the primary objective of creating value
for shareholders - directly intervening
in all the decisions relating to the most 
important management matters - which 
fall within the Board’s exclusive remit.

PANARIAGROUP - SUSTAINABILITY REPORT
57
full name
role
Emilio Mussini
President
Paolo Mussini
Vice-President
Giuliano Pini
CEO
Andrea Mussini
Administrator
Marco Mussini
Administrator
Daniele Prodi
Administrator
COMPOSITION OF THE BOARD OF 
DIRECTORS AS AT 31.12.21
Following the Company’s voluntary decision to leave Borsa Italiana, it should be noted that 
the committees previously formed within the Board of Directors are no longer in place: 
Control and Risk Prevention Committee, Remuneration Committee and Related Parties 
Committee. The good governance practices gained from the Company’s almost 17-year 
experience at Borsa Italiana remain, however, a legacy the Group will treasure, since they are 
already integrated into its business model.
In order to effectively oversee Sustainability issues, Panariagroup has established a “CSR 
Operating Committee”. The CSR Operating Committee is in charge of choices 
regarding sustainability and corporate social responsibility and is responsible for 
coordinating the reporting process of data relating to this Sustainability Report in terms 
of definition and management of the operational process of non-financial reporting, 
management of collection and consolidation of data and information on the Group’s 
entire scope (Italy, Portugal, U.S., India and Germany) and drafting of the document. The 
members of this committee are representatives of different corporate functions: the Group 
Administration, Finance and Control Department, the Marketing Department and the 
Engineering, Quality and Environment Department.
With regard to the foreign Divisions (Portugal, U.S., India and Germany), local contact 
persons have been identified who deal with the management and supervision of 
sustainability issues and with the non-financial reporting process at local level, in order to 
guarantee direct and active involvement.

58
health
sustainability 
facts

PANARIAGROUP - SUSTAINABILITY REPORT
59
We work to create healthy 
and safe environments. 
This is why we have introduced an 
exclusive antibacterial technology 
for over 10 years. 
Named PROTECT®, 
it eliminates up to 
99.9% of bacteria 
from surfaces and is always active: 
because we care about the health of 
those who choose our products.

60
Sustainability risk 
management	
Panariagroup has an internal control and risk management system in order to identify, 
prevent and manage corporate performance risks as much as possible.
The Group has defined a risk management and internal control system, which, together 
with the policies, procedures and measures adopted and put in place by the Board of 
Directors, executives and other parties in the company, aims to deliver a reasonable 
degree of certainty concerning the fulfilment of goals in the following categories:
•	 effectiveness and efficiency of operations;
•	 reliability of financial and non-financial information, for both third parties and internal 	
	 purposes;
•	 compliance with current laws and regulations and with internal rules and policies.
The Group, aware of the importance of non-financial risks, has identified the main risk 
factors that are internally monitored on a daily basis, as reported below.
Risk related to climate change and environmental risk
The risks stemming from climate change identified by Panariagroup are related to an 
incorrect management of energy sources and emissions, risks related to legislative/
regulatory changes associated with the fight against climate change and physical risks, 
i.e. risks deriving from the progressive change in climate conditions linked to long-term 
changes and extreme weather events that expose the Group to damage or destruction of 
“material capital”, such as industrial buildings, plants and infrastructure, as well as potential 
interruptions to essential supplies and potential contraction of production capacity.
The Group’s plants, located in Italy, Portugal and the U.S., have a sufficient capacity, if 
necessary, to take on the production loads of any sites damaged by extreme weather 
events or natural disasters, mitigating the risks associated with predictable climate change 
and its overall financial implications. The Group also carries out ordinary maintenance 
interventions using the best prevention and protection strategies, including with the 
aim of reducing potential impact on production plants.
2
6
Panariagroup has an internal control 
and risk management system in order to 
fulfill its targets.

PANARIAGROUP - SUSTAINABILITY REPORT
61
Other environmental risks for the Group are related to the management of water resources 
and waste, or connected to the failure by suppliers to properly manage natural resources 
and to the loss of biodiversity, in particular, in relation to the activities of suppliers of raw 
materials, whose extraction processes could significantly impact the environment.
The Group has adopted an integrated Quality, Environment, Hygiene and Safety 
management system and a system has been developed for the European offices 
in compliance with ISO 9001, ISO 14001 and the EMAS Regulation. As required by 
Legislative Decree no. 152/06 on “Environmental regulations”, the Finale Emilia, Toano 
and Fiorano Modenese plants carry out production activities in compliance with the 
Integrated Environmental Authorisation (IPPC Directive - Integrated Pollution Prevention 
and Control).
General environmental risks are monitored on a daily basis during production and 
storage activities, which are considered the most significant ones for the Group, through 
monitoring tools of the main indicators linked to potential direct impact (including, for 
example, incorrect disposal of hazardous waste, water leaks from production circuits and 
spills in the local area).
With regard to indirect environmental impact, in 2018 Panariagroup drafted its own 
Code of Business Conduct in order to promote, along the entire supply chain of goods 
and services, including suppliers and sub-suppliers (and their employees), the adoption 
of behaviour aimed at protecting the environment, in compliance with standards and 
regulations in Italy and in the Countries of production and delivery, and in line with the 
Group’s environmental protection principles and goals, encouraging its suppliers to reduce 
the environmental impact of their activities and to safeguard natural resources.
FOTO 
TBD

62
In particular, the Code of Business Conduct calls for adoption and respect, as much as 
possible, of:
•	 the precautionary principle, made explicit by principle 15 of the Rio Declaration, 	
	 which requires the implementation of a precautionary approach in order to protect the 	
	 environment;
•	 product life cycle analysis, including packaging;
•	 emission reduction measures;
•	 energy saving strategies and, where possible, the use of renewable energy sources;
•	 provisions for an environmentally friendly logistics chain;
•	 water saving programs.
It should be noted that, in 2019, the Group began a supply chain analysis process – 
based on Environmental, Social and Governance (hereafter also “ESG”) criteria – that has 
considered two variables: supplier risk profile and importance, on the basis of which the 
parties that most expose the Group to indirect risks have been identified. With regard to 
these suppliers, the Group has committed to launching a process to monitor and evaluate 
the controls adopted in the ESG and quality areas, which produced its first results in 2020 
and 2021, limited to the Italian and Portuguese scope.
Risk of human rights violations
Risks related to violations of human and workers’ rights (abolition of child labour, forced 
labour and protection of freedom of association and collective bargaining) and to 
potential cases of discrimination. The Group is particularly committed to mitigating its 
impact in this area, including any indirect impact linked to its supply chain.
Panariagroup is particularly attentive to the management and prevention of such risks, 
through compliance with national and international laws and regulations, as well as 
through Panariagroup’s internal rules within all the Group companies.
Furthermore, in 2018 Panariagroup prepared a Group Code of Ethics that defines 
the principles, values and standards of social and environmental responsibility that 
guide daily business actions. This code demonstrates the company’s commitment to 
implementing policies aimed at developing a culture of strong values in terms of ethics, 
justice and respect for human rights, inspired by the conventions of the International 
Labour Organization (ILO) and the OECD Guidelines for multinational companies, as well 
as by its participation in the UN Global Compact. 
With regard to indirect social impact, Panariagroup’s Code of Business Conduct 
promotes the adoption of behaviours aimed at protecting human rights, in 
compliance with national and international laws and regulations in production and 
delivery Countries, as well as in line with the principles inspired by the ILO Conventions, 
the OECD Guidelines and the UN Global Compact. This Code requires the following 
principles to be respected:
•	 abolition of all forms of exploitation of child and forced labour;
•	 respect for the diversity and religious, political and sexual orientation of individuals;
•	 respect for rights of association, worker representation and collective bargaining 	
	 agreements.
Finally, it should be noted that, back in 2019, the Group began a supply chain analysis 
process - based on Environmental, Social and Governance (hereafter also “ESG”) 
criteria - that enabled it to identify the suppliers that most expose the Group to indirect 
risks in terms of respect for human rights. With regard to these suppliers, the Group is 
conducting a process to monitor and evaluate the measures adopted in the areas of 
quality and ESG.

PANARIAGROUP - SUSTAINABILITY REPORT
63
Risk of failure to protect occupational health and safety
Risks related to the Group’s activities which, as a result of failure to comply with laws and 
internal regulations, may lead to accidents involving staff and contractors who work at the 
Group’s sites and/or under the Group’s control.
At Panariagroup’s plants, offices and points of sale, maximum protection of the health 
and safety of all workers is guaranteed both through the full application of the national 
regulatory requirements of all the Countries in which it operates and through an internal 
management system that includes procedures and tools to avert potential risks, to protect 
all workers from these risks and to constantly monitor the real occupational situation.
Panariagroup has adopted an integrated Quality, Environment, Hygiene and Safety 
management system aimed at ensuring occupational protection and safety. In particular, 
for the European offices, a system compliant with ISO 9001 and ISO 14001 standards has 
been developed, which is also compliant with UNI-INAIL Guidelines for the Italian offices, 
with the aim of developing and implementing internal procedures to prevent, monitor and 
manage occupational accidents and incidents.
The Code of Business Conduct, aimed at the entire supply chain of goods and services, 
extends the Group’s commitment to occupational health and safety throughout the value 
chain.

64
Risk of active and passive corruption  
Risk related to behaviour or negligence that may lead to the occurrence of cases of 
corruption along the entire value chain.
Since 2009, the Parent Company Panariagroup Industrie Ceramiche S.p.A. has adopted 
its own Organisation, Management and Control Model 231/01, together with a 
Code of Ethics, as a guarantee of the principles and values of ethics and integrity, 
with particular attention to the issues of active and passive corruption along the entire 
value chain. In 2019, the information flows to the Italian Parent Company’s Supervisory 
Body were extended to include the Portuguese and the U.S. Business Units, in order 
to extend their supervision and control of corporate, IT (cyber risk), environmental and 
health and safety matters (for further details, please refer to the following “Integrity and 
Compliance” section).
Furthermore, Panariagroup’s Code of Business Conduct requires its commercial 
partners to:
•	 avoid any possible conflict of interest in business relations; 
•	 fight corruption in all its forms; 
•	 adopt responsible and transparent communication. 
COVID-19 risk
In 2020, the pandemic of the virus known as COVID-19 emerged globally, significantly 
impacting health, economy and society.
This phenomenon cannot be said to have come to an end. Nevertheless, the vaccination 
campaign has made a significant contribution to reducing the adverse effects, both in 
terms of hospitalisations and deaths.
At present, in the main markets in which the Company operates, there are no significant 
economic effects resulting from the continued pandemic, but we cannot exclude the 
possibility that new variants of the virus may cause consequences in the future that could 
lead to a return to a state of emergency.
Panariagroup has taken prompt actions 
to contain the spread of COVID-19 
providing basic information and 
distributing individual protection 
equipment.

PANARIAGROUP - SUSTAINABILITY REPORT
65
Moreover, Panariagroup believes that having successfully dealt with this situation in 
the past, despite the fact that it was a completely new situation at the time, provides 
reassurance as to the Company’s ability to implement effective countermeasures in the 
event of a new wave of the virus.
In this respect, it should also be noted that the Group’s management has taken prompt 
action to ensure that the Company and its subsidiaries have access to the support 
measures introduced by the governments of the Countries in which they operate.  
Russia-Ukraine conflict risk
The Russia-Ukraine conflict, which began in early 2022, is having significant 
consequences on the European economy, including the ceramics sector.
In particular, the main expected impacts relate to: 
•	 reduced turnover in the areas affected by the war;
•	 a further surge in gas and electricity costs;
•	 suspended supplies of Ukrainian clay, which constituted 20% of the supply of mixture 	
	 materials for the parent company Panariagroup Industrie Ceramiche S.p.A.
The rising cost of energy factors potentially has extremely significant effects in view of 
the high energy and gas use for the sector. This risk is mitigated by the current high 
demand, which permits most of the cost increase to be passed on in sales prices. 
Moreover, the Parent Company, in early 2022, carried out price fixing and financial 
hedging transactions that reduced the variability of these costs for the current financial 
year. However, in the event that gas and electricity prices exceed certain economic 
thresholds, this may also lead to a decision to temporarily suspend manufacturing 
activities, as was already the case at the Italian and Portuguese plants in early 2022.
Finally, with regard to the shortage of mixture materials, the Group has alternative 
supply sources in other Countries, such as Germany, Turkey and Portugal and 
competent internal resources to study new mixture formulations that can guarantee the 
products the same technical and aesthetic features, without a significant impact on unit 
production costs.
For further related risks identified by the Group, please refer, for details, to the “Risk 
Management” section of the Management Report within the Consolidated Financial 
Statements as at 31 December 2021.

66
Integrity  
and compliance	
Ethics and compliance have always been one of the most important issues for both the 
Group and its stakeholders. Panariagroup has always been particularly sensitive to the 
need to ensure integrity, fairness and transparency in all corporate activities, thus 
guaranteeing the protection of its reputation and image in the market and among all 
stakeholders.
Panariagroup endeavours to ensure maximum compliance with national and international 
regulations. In 2009, Panariagroup Industrie Ceramiche S.p.A, the Group’s Italian 
Parent Company, adopted the Organization, Management and Control Model 
pursuant to Legislative Decree no. 231 of 8 June 2001. The adoption of the Model is a 
valid tool for raising awareness among all those working in the name and on behalf of 
Panariagroup and for guaranteeing the principles and values of fairness, integrity and 
ethics throughout the value chain. 
The Parent Company, alongside the adoption of the Model, has appointed a Supervisory 
Body (hereinafter also “SB”), responsible for performing control tasks regarding the 
observance, efficiency and effective application of the Model and its related internal 
procedures with a view to prevention and to updating the Model. The SB informed all 
the relevant functions that one of the main legislative changes which, in 2020, affected 
Legislative Decree 231/01 was the inclusion of Tax Crimes, pursuant to Legislative 
Decree 74/2000, as predicate offences. This made it necessary to update the Model 
following analysis of the types of offence and of the risk profiles of their commission. The 
SB took steps, with technical and legal support, to map risks and identify the protocols 
and safeguards necessary to protect the Company from the commission of such offences 
and to draft a new special part of the Model.
Mapping and analysis of risk areas represent a cornerstone of the modus operandi 
of Panariagroup, which, focusing on prevention, has adopted specific internal 
procedures and tools with the aim of monitoring, as well as preventing, cases of violation 
of regulatory compliance with a view to protecting human rights, workers and corporate 
reputation.
In 2019, the information flows of the foreign companies (in Portugal and the U.S.) 
were extended to the Italian Parent Company’s SB, in order to extend its supervision 
and control of corporate, IT (cyber risk), environmental and health and safety matters. 
Procedures inspired by the Parent Company’s 231 Model have therefore been adopted 
in the subsidiaries, as well as a compliance program to which subsidiaries must adhere, 
ensuring a constant flow of information that promptly reports risk situation details 
to the Parent Company. The Parent Company’s Supervisory Body has therefore 
extended its internal monitoring and verification role to the subsidiaries with respect to 
the matters mentioned above, with the possibility of directly carrying out specific control 
actions on the individual Departments, Functions, Local Areas and Group companies.
2
7

PANARIAGROUP - SUSTAINABILITY REPORT
67
Furthermore, Panariagroup formalised a Code of Ethics identifying the set of values, 
behavioural regulations and principles of corporate ethics that Panariagroup 
embraces, orienting its decision-making processes around these values. With regard 
to ethics and integrity in business conduct, the Group:
•	 requires compliance with both national and international anti-money laundering rules 	
	 and regulations;
•	 is committed to combating all forms of active and passive corruption by promoting a 	
	 culture of legality in all corporate contexts;
•	 is committed to maintaining ethical behaviour in business relationships with third 	
	 parties. 
The rules of conduct stated in the Code of Ethics, which the work of all the Group 
companies is based on, contribute to reinforcing its commitment towards an ever 
greater responsibility to doing business with attention to social, environmental and 
ethical matters, as well as to the fight against active and passive corruption.
In relation to the latter, it should be noted that, for both 2020 and 2021, there were no 
cases of corruption in the Panariagroup Group that led to the dismissal of employees 
or measures whereby contracts with business partners were terminated or not renewed 
due to corruption-related violations. Furthermore, during the reporting period, there 
were no incidents of corruption-related public lawsuits brought against the Group or its 
employees.
It should also be noted that, for both 2020 and 2021, there were no pending or 
concluded legal actions concerning anti-competitive behaviour, violation of antitrust 
regulations and related monopoly practices in which the Group was identified as a 
participant. Furthermore, in 2018, with the aim of promoting responsible commercial 
practices in terms of ethics and integrity, as well as social and environmental 
responsibility, the Group prepared its own Code of Business Conduct, as a guideline 
for a sustainable and responsible supply chain.
This Code is part of a process of selection and monitoring of the Group’s supply chain 
that requires verification of criteria related to the soundness, competitiveness and cost-
effectiveness of the supplier, as well as of ethical, social and environmental responsibility 
criteria, which are fundamental prerequisites for the development of a lasting and 
transparent business relationship.
For both 2020 and 2021, there were no significant fines8 and non-monetary sanctions 
for non-compliance with environmental laws and regulations, nor was there any non-
compliance with regulations and/or self-regulatory codes regarding product information 
and labelling and/or regarding the impact on the health and safety of products that 
resulted in a sanction, fine or warning from supervisory bodies.
Finally, in relation to non-compliance with laws and regulations in the social and 
economic area, it should be noted that in 2019 Panariagroup received 4 notices of 
assessment (referring to the years 2014, 2015, 2016 and 2017) relating to alleged 
irregularities in the calculation of the TARI waste tax, for a total value, including penalties 
and interest, of €0.6 million; the Company opened a legal dispute to contest the 
documents received. The situation remained unchanged in 2021.
8.	 Only monetary sanctions of a significant amount, i.e. of a value greater than €10,000, are taken into consideration.

68

PANARIAGROUP - SUSTAINABILITY REPORT
69
3
economic
responsibility

Panariagroup has always remained firmly rooted in its 
native land and proudly representing “Made in Italy”, 
the Group is aware of its responsibility towards local 
communities, shareholders and financial institutions.
Economic performance
The chapter’s material topics
Our contribution to the SDGs

Net operating margin
We believe in innovation
13.2 million euros
110 million euros
We improved our operating margin by €13.2 million compared to 2020 
Over the last 5 years, we have spent around €110 million on innovation and technological 
upgrading 
in evidence

72
The Group’s economic 
responsibility	
Panariagroup’s history is rooted in an area that is internationally renowned for porcelain 
stoneware production. The Modena and Reggio Emilia areas, and specifically the 
Sassuolo area, are home to numerous companies, whose core business is the production 
of ceramic surfaces. It is the perfect context in which to grow an entrepreneurial 
project that aspires to the highest quality and manufacturing excellence.
Over the years, parallel to the economic development of the area, the technical skills of 
ceramic workers, who have begun to settle here, have also increased exponentially.
Panariagroup has always remained firmly rooted in its native land and proudly 
represents “Made in Italy”. Indeed, products developed in Italy are key to its financial 
success. The Group considers it fundamental also to support the prosperity of the areas 
in which it operates, maintaining employment levels, promoting relations with local 
communities and creating shared value.
3
1
The Group considers it fundamental 
also to support the prosperity of the 
areas in which it operates, maintaining 
employment levels, promoting relations 
with local communities and creating 
shared value.

PANARIAGROUP - SUSTAINABILITY REPORT
73
Even when operating outside Italy, Panariagroup has also maintained, over the years, a 
strong local identity, supporting the economic and social development of the areas in 
which it operates (not only in Italy, but also abroad, in the Aveiro area in Portugal and in 
Lawrenceburg, Kentucky, U.S.).
Connected to the local community, but also focused on national and international 
dynamics, the Group - partly due to its 17-year presence on the Stock Market - is always 
aware of its responsibility towards its current and potential Shareholders and towards 
financial institutions.
Through appropriate reinvestment of profits and, in line with the economic results, an 
adequate dividend policy in which Shareholders are directly remunerated, the Group is 
committed to achieving development goals aimed at guaranteeing an increase in the 
company’s value.

74
Generated and distributed   
economic value	
The generate economic value represents the wealth produced by the Group, the 
majority of which is distributed to the stakeholders with whom the Group interacts in its 
daily operations.
The classification of Generated Economic Value shown below reveals how the value 
created by the Group is distributed to the various stakeholders.
3
2
 
 
2021
thousand 
euros
2020
thousand 
euros
difference
thousand 
euros
variation
%
Generated economic value
429,628
351,129
78,499
27%
Value distributed to Suppliers
293,543
231,009
62,534
11%
Value distributed to Staff
92,852
83,958
8,894
9%
Value distributed to Lenders
4,512
4,152
360
9%
Value distributed to Shareholders
-
-
-
-
Value distributed to the Public Administration
821
(5,890)
6,711
-114%
Value distributed to the Community
176
170
6
4%
Distributed economic value
391,904
313,399
78,505
25%
Retained economic value 
37,724
37,730
(6)
-0.02%

PANARIAGROUP - SUSTAINABILITY REPORT
75
The comparison with the previous year shows a very significant increase in Generated 
Economic Value of €78.5 million (+27%), which was matched by a similar increase in 
Distributed Economic Value, with Retained Economic Value remaining essentially stable.
However, it was not only Shareholders who benefited from the increase in Distributed 
Economic Value, but also Suppliers (+€62.5 million, +11%), Employees (+€8.9 million, 
+9%) and Lenders (+€0.4 million, +9%).
The return to a positive economic result and the resulting taxation also allowed for a 
distribution of value to the Public Administration. In 2021, following the delisting from 
Borsa Italiana, dividends amounting to €24.3 million were distributed to shareholders from 
the existing reserve in the balance sheet.
The return to a positive economic 
result and the resulting taxation also 
allowed for a distribution of value to 
the Public Administration.

76
2021 financial results
After 2020, marked by the strong repercussions of the pandemic, which did not spare the 
ceramics sector, 2021 looked to be a decidedly uncertain year, difficult to interpret. In this 
context, thanks to the management policies undertaken in the previous year, aimed at 
strengthening the company’s equity and financial position, Panariagroup could count on a 
solid base, which was necessary to face a highly uncertain context with predictable volatility 
in economic dynamics.
In hindsight, we can observe that certain distinctly unusual trends emerged in 2021, mainly 
concerning consumption and cost developments.
With regard to ceramic material consumption, there was a significant “rebound” compared 
to the previous year, with levels even higher than in 2019; this figure exceeded expectations, 
especially in view of the continuation of the global health emergency throughout the year, 
albeit to a lesser extent than in 2020. On the other hand, the sudden growth trend caused 
the market of raw materials and services to “overheat”, leading to supply difficulties and, 
above all, to a significant increase in purchasing costs. In particular, the first part of the 
year witnessed very noticeable increases in packaging and transport prices, which were 
accompanied by increases in gas and electricity rates in the second half of the year.
As shown in the graphs below, gas and electricity cost more than 5 times the average of 
recent years at the end of 2021. 
20
0
60
40
100
80
120
Average gas 
price trend 
(€/MWh)
dec-17
mar-18
jun-18
sep-18
dec-18
mar-19
jun-19
sep-19
dec-19
mar-20
jun-20
sep-20
dec-20
mar-21
jun-21
sep-21
dec-21
 
3
3

PANARIAGROUP - SUSTAINABILITY REPORT
77
50
0
150
100
250
200
300
Electricity 
price trend  
(€/MWh)
dec-17
mar-18
jun-18
sep-18
dec-18
mar-19
jun-19
sep-19
dec-19
mar-20
jun-20
sep-20
dec-20
mar-21
jun-21
sep-21
dec-21
This rise of energy components to historically high levels triggered further inflationary trends, 
which also significantly affected all other production factors.
In this highly complex context, the Group managed to improve its financial results, reporting 
an annual profit of €3.2 million, an improvement of €9 million over the previous year’s loss of 
€5.8 million.
The main driver was the revenue trend, which saw growth over the previous year in all the 
areas covered by the Group.
12.3%
2.2%
29.2%
24.8%
5.0%
0.0%
15.0%
10.0%
25.0%
20.0%
30.0%
35.0%
Europe
USA
Italy
Rest of 
the world
% Change in 
revenue by area
2021 VS 2020
Percentage data
The distribution of turnover is as follows:
37.6%
32.3%
20.5%
9.6%
Breakdown of 
turnover by 
geographical area
2021
Percentage data
2021
USA
Europe
Italy
Other
Panariagroup thus reaffirms its position in 2021 as a Group of international standing that 
operates in all major markets and that has a balanced distribution of turnover.

78
(10,000)
(20,000)
10,000
-
30,000
20,000
40,000
50,000
Gross Operating 
Margin
Net Operating 
Margin
Pre-tax
result
Net 
Result
2020 - 2021
Economic 
results 
(Million €)
2021
2020
37.5
41.8
(6.1)
7.3
(11.7)
4.0
(5.8)
3.2
The items relating to Net Working Capital, Shareholders’ Equity and Fixed Assets/Liabilities 
relating to 2020 were restated following the adjustment for a different method of accounting 
for EUA emission rights. For further details, please refer to the Explanatory Notes to the 
Consolidated Financial Statements as at 31 December 2021.
The economic results for 2021 show clear improvements compared to the previous year; the 
figure is particularly significant if we take into consideration the negative impact resulting 
from the increase in energy rates, which led to a higher estimated cost compared to 2020 of 
€14.6 million, only partially offset by the increases in sales prices implemented in the second 
half of the year.
In terms of Assets, the following trends were noted in Net Invested Capital and in the 
breakdown of Sources.
-
150,000
250,000
50,000
200,000
Net working capital
Fixed assets 
and liabilities
Breakdown of 
net invested 
capital
2020 - 2021
(Million €)
100,000
2021
2020
106.3
105.9
228.2
218.8

PANARIAGROUP - SUSTAINABILITY REPORT
79
60,000
100,000
120,000
140,000
160,000
20,000
80,000
Financial 
indebtedness before 
IFRS 16
Net equity
Liabilities for 
leased assets
Breakdown of 
sources
2020 - 2021
(Million €)
40,000
-
2021
2020
87.6
100.4
102.7
95.5
144.2
128.8
The significant decrease in Shareholders’ Equity is related to the distribution of €24.3 million 
in dividends (drawn from previous years’ reserves) connected to the delisting operation.
The Group managed to partially absorb the financial impact of this transaction (increase in 
NFP before IFRS 16 of €14.0 million) thanks to the improvement in operating cash flow and 
the containment of Net Working Capital (which remained unchanged despite the growth in 
business volume).
In conclusion, in a highly complex year characterised by the ongoing global health 
emergency and particularly significant external factors, the Group confirmed its ability to 
rapidly adapt to the changed conditions, managing to achieve growing economic results, 
while maintaining a solid equity and financial structure, without abandoning its investment 
programmes aimed at growth and industrial development.

80
Investing  
in innovation	
Panariagroup’s identity has always been strongly connected to manufacturing of the 
Group’s Brands’ products in its plants, with a constant policy of innovation, technological 
updating and efficiency improvement. Even in years of increased economic uncertainty, the 
Group continued to invest in its industrial sites, in order to maintain its position in the small 
group of pioneers in the industry.
In the last five years, the Group has always invested consistently, as shown in the 
following table:
The investments in this period concerned all three of the Group’s Business Units, as can be 
seen in the following table (figures in million €).
3
4
investment per year 
total
(M of €)
% of revenue
2017
34.4
8.9
2018
19.2
5.2
2019
14.6
3.8
2020
19.4
5.4
2021
21.8 
5.4
Total 2017-2021
109.8
5.8
investments for business unit
(M of €) 
Italy
Portugal
USA
Group
2017
13.1
13.8
7.5
34.4
2018
10.3
6.5
2.4
19.2
2019
6.2
5.9
2.5
14.6
2020
13.5
2.2
3.7
19.4
2021
14.2
4.2
3.4
21.8
Total
57.3
32.6
19.5
109.4
% of total
52%
30%
18%
100%
% of turnover
5.7%
8.7%
3.1%
5.8%

PANARIAGROUP - SUSTAINABILITY REPORT
81
In 2021, investments were mainly concentrated on the Italian Business Unit, which absorbed 
about two-thirds of the total resources. In particular, the development plans for the Finale 
Emilia and Fiorano Modenese sites were carried on. In the Finale Emilia plant, a process 
of expansion and technological advancement is under way, with the installation of a 
“Continuous Line” in 2020 as the first step.
In 2021, the project was followed up with the installation of a new sprayer with increased 
productivity and energy efficiency. Furthermore, a new lapping line and a new packaging 
line were installed, enabling the processing and management of large formats (up to 180 cm 
side). Moreover, during the year, the associated company Immobiliare Gemma, the lessor of 
the buildings in which Panariagroup carries out its activities, purchased a large area adjacent 
to the Finale Emilia site to support its ambitious industrial growth plans. The Fiorano plant, 
which is exclusively dedicated to producing laminated stoneware, also underwent a major 
upgrade, with the complete refurbishment of a production line involving the installation of a 
new press for forming large-size slabs, a multi-storey dryer and a sorting line with increased 
production capacity and optimised energy consumption.
Further significant progress is also planned for both plants in the 2022 financial year. For 
further details on the investments made by the Group, please refer to the “Product Quality, 
Design and Sustainability” section of this document.
Activities to update technology and improve production efficiency also continued in the 
plants of the foreign Business Units.
In addition, a number of interventions were carried out to optimise energy consumption, 
such as the replacement of existing lighting systems with LED systems at the Toano (Italy), 
Ílhavo (Portugal) and Lawrenceburg (U.S.) plants.

82
innovation
sustainability 
facts

PANARIAGROUP - SUSTAINABILITY REPORT
83
We are the first ceramic Group 
to have introduced the innovation 
of ultra-thin ceramic slabs, which 
reduce the thickness of 
traditional tiles by 2/3, 
generating fewer emissions and 
consuming less raw materials, 
energy and water.

84
Strategy and fiscal 
transparency
APPROACH TO TAX
The Group has not formalised a tax strategy in writing, but it operates in this area in 
accordance with its values and the principle of legality.
As stated in our Code of Ethics, “the Group, in the course of its activities, acts in 
compliance with applicable laws and regulations, as well as with the Code and internal 
procedures. Compliance with national and international regulations is a binding and 
essential condition for the Group’s actions.”
The Group therefore also operates in an ethical and transparent way in the 
management of its tax activities, through a behaviour geared towards compliance 
with the applicable tax regulations, undertaking to interpret them in a way that respects 
their substance as well as their form, and maintaining a collaborative and transparent 
relationship with the tax authorities. The choice of the Countries in which the Group 
operates is guided by business evaluations, rather than tax reasons.
The main goals guiding tax management activities are:
•	 correct and timely assessment and settlement of taxes due by law and performance of 	
	 related duties;
•	 correct management of tax risk, understood as the risk of violating tax rules or abusing 	
	 the principles and purposes of the tax system.
3
53
5
Panariagroup operates in accordance 
with its values and the principle of 
legality. maintaining a collaborative and 
transparent relationship with the tax 
authorities.

PANARIAGROUP - SUSTAINABILITY REPORT
85
In terms of central tax management, the Group does not engage in behaviours and 
operations, whether domestic or cross-border, which result in purely artificial arrangements, 
which do not reflect economic reality and from which it is reasonable to expect undue tax 
advantages, insofar as they are contrary to the purpose or spirit of the provisions or of the 
relevant tax system and lead to double deduction, deduction/non-inclusion or double 
non-taxation, including as a result of disparities between the tax systems of the various 
jurisdictions.
At local level, Group entities must comply with the principle of legality, applying the 
tax laws of the Countries in which the Group is present in a timely manner, in order to 
ensure that the provisions, spirit and purpose that the rule or law provides for the issue in 
question are observed.
The Group considers taxes as a cost of doing business, which as such must be managed in 
compliance with the principle of legality, with the aim of safeguarding the company’s assets 
and pursuing the primary interest of creating value for Shareholders over the medium to 
long term, in the knowledge that tax revenues are one of the main contributors to the 
economic and social development of the Countries in which it operates. 
TAX GOVERNANCE, CONTROL AND RISK MANAGEMENT
Responsibility for tax issues lies with the Board of Directors, whereas at executive level it 
falls within the remit of the Managing Director. The Group CFO, who reports to the Chief 
Executive Officer, is responsible for directing and coordinating tax-related activities for all 
Group companies.
The various Group companies employ staff with appropriate training in taxation, who 
manage deadlines and recurring obligations; moreover, qualified external consultants 
constantly support the local teams and have a direct relationship with the Group CFO.
The Group has adopted a set of rules, procedures and principles that are part of its 
wider organization and control system, which should be considered fundamental points 
of reference that all parties, depending on the type of relationship they have with the 
Group, are required to respect.
With specific reference to the tax issue, a Tax Control Framework was defined for 
Panariagroup, which provides for a structured process of evaluation of Tax Risks through 
the phases of Risk Assessment for the identification of controls and risk monitoring, 
evaluation of these controls and related information flows. Eight areas of Tax Risk 
(Processes) have currently been identified; the risk is the result of a self-evaluation by 
Group Internal Audit and Group CFO that takes into consideration the Features of the 
Process and Type of Risk involved.
The goal is to implement this model for all of the Group’s significant business units within 
3 years.

86
Intercompany transactions 
Intercompany transactions are governed, for tax purposes, on the basis of the arm’s 
length principle (ALP), as outlined by the OECD (Model Tax Convention and Transfer 
Pricing Guidelines), with the aim of aligning transfer conditions and prices as accurately as 
possible with the places where value is created within the Group.
Low-tax jurisdictions
The Group does not make investments in or through Countries considered to have 
favourable taxation for the sole purpose of reducing the tax burden. Such investments may 
only be suggested if they are supported by valid economic/strategic reasons and if they 
are aimed at developing activities included in the corporate purpose.
Tax incentives
Tax incentives are an important development-oriented economic policy mechanism that 
Countries promote to stimulate growth and attract investment, in order to support the 
implementation of national policy. The use of tax incentives generally leads to a reduction 
in long-term tax liabilities. Some Countries in which the Group operates offer various types 
of incentives. The Group makes use of tax incentives generally applicable to all operators, 
complying with all specific regulations only where they are aligned with its industrial and 
operational goals and consistent with the economic rationale of its investments.
STAKEHOLDER INVOLVEMENT
The Group guarantees transparency and fairness in its relations with the tax authorities, 
in the event of audits relating to both Group companies and third parties. Panariagroup 
also constantly takes a collaborative approach with all institutions and trade associations 
to support the development of effective tax systems in the various Countries where it 
operates.
In Italy, Panariagroup has adopted a “cooperative compliance” procedure concerning 
the Patent Box and its related incentives; this process was successfully concluded with an 
agreement signed with the Tax Authorities in 2021.
COUNTRY BY COUNTRY REPORTING
Information relating to country-by-country reporting for the 2021 tax year, for each tax 
jurisdiction in which the Group operates through its Business Units, is provided below:

PANARIAGROUP - SUSTAINABILITY REPORT
87
Italy
Portugal
Germany
USA
India
Names of resident 
entities
Panariagroup 
Industrie Ceramiche 
S.p.A.; Montanari 
Ceramiche S.r.l.
Gres Panaria 
Portugal S.A.
Gres Panaria Central 
Europe GmbH
Panariagroup USA 
Inc.; Florida Tile Inc.; 
Lea North America 
LLC.
Panariagroup India 
Industrie Ceramiche 
Pvt Ltd.
Main activities of the 
organization
Production and sale 
of ceramic material
Production and sale 
of ceramic material
Promotion of        
ceramic material
Production and 
sale of ceramic and 
building materials
Sale of ceramic 
material
Number of employees
748
449
4
453
36
Revenues from        
sales to third parties   
(thousand €)
229,995
85,985
679
130,519
2,642
Revenues from 
intercompany sales 
(thousand €)
21,132
8,871
679
-
552
Pre-tax profit (Loss) 
(thousand €)
7,513
6,628
(195)
(5,386)
(33)
Tangible assets 
other than cash and 
cash equivalents       
(thousand €)
405,441
83,776
93
154,269
1,127
Corporate income taxes 
paid on a cash basis 
(thousand €)
-
248
-
30
-
Corporate income taxes 
accrued on profits/
losses (thousand €)
(163)
1,406
-
-
-

88

PANARIAGROUP - SUSTAINABILITY REPORT
89
4
product 
responsibility

We combine the ancient art of ceramics with the most 
advanced technological standards to offer solutions 
of outstanding quality and to ensure our customers’ 
satisfaction through a diverse product range.
Product quality and design
Sustainable innovation
Customer satisfaction
Protection of brands and reputation
Our contribution to the SDGs
The chapter’s material topics

For a healthy, safe and protected home
The quality of our products
Putting the customer first
5.8 million m2
0.85%
-50%
In 2021, we sold over 5.8 million m2 of PROTECT® antibacterial surfaces.
Complaints about sold products represent just 0.85% of total turnover.
We cut our internal management time of product-related reports by 50%, optimizing customer 
response procedures, thanks to the new VIS application
in evidence

92
Product quality, design and 
sustainability	
Technological innovation is key to Panariagroup for achieving new goals in the production 
of porcelain stoneware tiles and with regard to the environment. The Group’s product 
range combines the ancient art of ceramic with the most advanced standards for 
floor and wall coverings, offering specific solutions for any kind of application, from large 
commercial surfaces to residential use.
At its plants, Panariagroup produces ceramic porcelain stoneware or monoporosa (single-
fired) tiles. In particular, the porcelain stoneware denomination refers to an extremely, 
compact, dry-pressed ceramic product characterised by excellent technical specifications 
(high mechanical strength and resistance to wear, chemicals and stains) and very low 
porosity. Due to these features, the product, during the firing stage (at a temperature of 
over 1,200° C), reaches complete vitrification, acquiring extremely low water absorption 
properties and consequently frost resistance, making it suitable for outdoor installation.
Panariagroup is also a leading company in the production of laminated porcelain 
stoneware, a revolutionary product manufactured with an extremely innovative system, 
the result of a very advanced and high-performance technology. Panariagroup’s laminated 
porcelain stoneware allows the creation of tiles characterised by reduced thickness (as little 
as 3 mm), produced in whole 100x300 cm and 120x278 slabs without the use of moulds. 
Completely automated cutting lines enable the creation of various commercial formats. 
Extraordinary attention to quality during every step of the production cycle is another 
defining feature of Panariagroup’s products: from the choice of raw materials to the next-
generation industrial plants, certifications and after-sales service. This all goes hand in hand 
with our sustainability choices, which represent a continuous stimulus for innovation 
and process improvement. 
4
1
Panariagroup is a leading company in
the production of laminated porcelain 
stoneware, a revolutionary product 
manufactured with an extremely 
innovative system.

PANARIAGROUP - SUSTAINABILITY REPORT
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Concrete evidence of this are both the investment in a technology - laminated porcelain 
stoneware - that drastically reduces the environmental impact of the products and the 
choice to create, starting in 2010, a growing line of antibacterial products, thanks to 
the exclusive PROTECT® technology. The decision to invest in these products, which 
provide a solid guarantee for an improved lifestyle, confirms the pioneering vision of 
Panariagroup, which has acted well in advance of its competitors, intercepting health 
and healthy living trends that have become established over the years. All this is 
achieved through an exclusive partnership with Microban®, a world leader in antibacterial 
technologies, and through an intensive and continuous technical development work 
carried out within the company and capable of generating very high-performance 
materials: in over ten years of experience, Panariagroup has sold over 20 million square 
meters of PROTECT® products worldwide, also contributing to very important and 
prestigious works and projects.
Panariagroup develops products through an outstanding process coordinated by the 
Group’s Product Development function, which aims to select the best market trends and 
to further develop them through qualified research and to the highest standards, in order 
to generate concepts for new collections. This process leads to the market launch, very 
efficiently and effectively in terms of time to market, of products that are increasingly 
able to meet the most advanced Customer base expectations.
Panariagroup products are created in an environment that is also highly devoted to 
design and maximum aesthetic performance: the beauty of the materials draws on both 
strong internal research skills and maximum enhancement of the expertise of external 
partners, as well as important collaborations with international designers.

94
Particular care is taken over the aesthetic detail and surface finishes of the products, 
which thus obtain outstanding visual and tactile properties. The extraordinary quality of 
Panariagroup products is also reflected in the numerous awards that the Group has won 
over the years. 
In over 40 years of business, the Group’s management team has consolidated 
exceptional skills and ceramic culture, which are expressed in the development of 
new ideas and in the finished product, constituting a major asset in the creation of 
high-quality collections. This is demonstrated by Panariagroup’s countless references 
around the world, where its products have been chosen for extremely prestigious 
architectural works, confirming the aesthetic and technical value of the Group’s 
materials: collaborations with leading names in architecture and design and important 
partnerships that have resulted in projects (residential, commercial and large public 
works) and installations, as well as products designed by top international designers. The 
Group thus confirms its ability to support complex projects, thanks to its structure as a 
large manufacturing company and to the expertise of its team, with the ability to control 
and modulate its output to satisfy even the most complex orders.
In 2021, the Group also contributed, with its products and technical expertise, to the 
implementation of several important projects at international level. Recent projects 
include the BGI Headquarters in Ethiopia, the Centro Socio Sanitario Nuovo Picchio 
in the province of Modena in Italy, the Green Opificio residential project in Milan, and 
the Radisson Palazzo Nani hotel in Venice. Other projects in Italy include the Abitare in 
Maggiolina residential complex in Milan, the Palazzo agli Arcieri residential complex 
in Tuscany, the offices of Tartarini Auto S.p.A. Industries, and the headquarters of 
Esseti Meccanica di Precisione. Other notable projects abroad are the Arodafnousa 
Rehabilitation Centre in Cyprus and a Gallery on the Wartberg S6 Semmering 
Schnellstrasse in Austria. Panariagroup also continued important collaborations with 
architects and designers for special projects in 2021: it renewed the partnership with 
Ferruccio Laviani, who designed Lea Ceramiche’s Masterpiece Collection and the ambitious 
project for the Cersaie stand of Panariagroup and its Italian and Portuguese Brands.
The value of Panariagroup’s skills and technology is also demonstrated by the major 
production work for other ceramic operators which have been turning to the company for 
several years to develop products for their catalogue. The industrial development plan 
for the Finale Emilia site continued in 2021. Following the installation of the innovative 
production line referred to as Linea Continua +, the second half of the year witnessed the 
decommissioning of an old kiln and the installation of a modern tile firing plant, which will 
significantly increase the plant’s production capacity. The commissioning of this new kiln 
is scheduled for May 2022.  Moreover, in the last months of 2021, the purchase of a large 
area of land adjacent to the Finale Emilia site was finalised, with a total surface area of 
approximately 230,000 m2, which will be used for the expansion of the industrial building 
and the construction of new yards for the reorganisation of the logistics department. 
Panariagroup also completed major plant engineering investments at the Fiorano site 
in 2021, following the extension work on the building, which covered an area of around 
15,000 m2.  For the renovation of the plants, which required innovative solutions that 
could guarantee the best performance in terms of production and corporate management, 
Panariagroup turned to System Ceramics technologies; the heart of the new production line 
is the Superfast mouldless ceramic press, which, thanks to its single-belt system, permits an 
extremely flexible production. Advantages in terms of time, space and consequently costs 
make this technology a concrete support for ceramic slab production focused on sustainable 
development. In fact, it is possible to make production changes in zero time and completely 
recover surplus raw materials during raw cutting. The line is also equipped with a new multi-
storey dryer that will increase the technological solutions in terms of production of large-
format and thin slabs. The new line was launched in early 2022.

PANARIAGROUP - SUSTAINABILITY REPORT
95
Headquarters BGI, Etiopia

96
Our brands	
Panariagroup’s Brands, which have increased over the years to the current nine, all 
boast an equally strong international reputation and excellence from both an aesthetic 
and technical standpoint. Each Brand has a specific and distinctive feature, but they 
are all designed and developed to respond to the needs of a Customer base which, 
though diverse, demonstrates a particular attention to the quality and aesthetic 
style of the products. Below is a brief description of each Panariagroup Brand: all the 
Brands operate in the ceramic sector for floors and walls and position themselves in 
the high-end and luxury segment of the market, but each of them has its own features 
and peculiarities.
4
2
BLUSTYLE is the brand that offers all Cotto D’este’s quality and elegance with solutions in standard 
thickness that are simpler and affordable.
LEA CERAMICHE is the perfect combination of visionary design and technologic performance, and
it is a creative partner anywhere in the world, for any kind of architectonic project requiring distinction
through a unique, recognisable style. Continuous innovation, absolute reliability of technical performance 
and the capacity to dare made Lea Ceramiche an undisputed key player in international architecture, 
signing important and prestigious partnerships with internationally renowned designers and architects.
COTTO D’ESTE is the most prestigious brand in the field of ceramic surfaces. Its creations, synonymous with
quality and beauty, are the product of fine craftsmanship and of a passionate and dedicated attention to detail. 
The profound commitment to aesthetic research and to developing unique and innovative technical solutions 
and environmentally friendly manufacturing processes has contributed to the brand’s reputation for excellence, 
as confirmed by important international references. Cotto d’Este’s surfaces are available in the unique 14 mm 
thickness, as well as in the famous kerlite large ultra-thin slabs, which have revolutionized the world of ceramics.
PANARIA CERAMICA embodies the group’s great ceramics tradition. Representing all main contemporary
styles from the start, Panaria Ceramica is a brand with a deep ceramic culture. It offers high-end products 
created mostly to be used in residential contexts and a catalogue of rich and structured collections with a 
wide range of formats and decorative complements.
MAXA CERAMIC SLABS is the line of large-sized and high-thickness ceramic slabs of
Panariagroup. Maxa slabs are designed for all indoor and outdoor furnishings.

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MARGRES, Portugal’s leading brand of technical porcelain stoneware and an important player in the
international market, supplies high quality products for all types of construction in private or public
spaces, meeting the needs of contemporary architecture with state-of-the-art production technologies,
high quality raw materials and sophisticated aesthetic qualities.
LOVE TILES is the leading trademark in the Portuguese market of monoporosa wall tiles of large sizes
and glazed porcelain stoneware for floors. Love Tiles products seek to be a first choice for those who
feel passionately about the connection between people and their living spaces through the creation of
elegant, unique and distinctive environments.
FLORIDA TILE, with a Kentucky manufacturing facility and 24 showrooms in the United States, creates
and sells innovative porcelain and natural stone flooring designed specifically to meet the needs of the
American market. It’s been part of the Group since 2006, but with over sixty years of history, the Brand
competes with national market leaders thanks to its new production capacity and the continuous technical
and aesthetic innovation of its products.
BELLISSIMO is a specific brand for the Indian market. The mission of Bellissimo is to produce luxury ceramic 
tiles that are a combination between Italian style, technology and know-how and the architectural needs of 
the Indian building industry.

98
Innovation and technology	
Over the years, the Group has constantly evolved and it is now one of the most 
advanced players in its industry. One of the main factors behind Panariagroup’s success 
is its continuous Research and Development activity, which aims to identify new 
manufacturing techniques and innovative product lines that can meet the needs of an 
increasingly discerning and diverse Customer base.
Panariagroup has an important Research Centre that employs highly qualified 
technicians, engineers, architects and researchers, all driven by a desire to constantly 
study new solutions in order to enable the Group to successfully compete in the ceramic 
floor and wall coverings sector, maintaining its position as a market leader.
Process and product innovation is a constant target for Panariagroup and this is 
reflected in all its plants in Italy, Portugal and the United States. Development and 
evolution of the production lines, continuous research and excellence in the selection 
of raw materials variety and richness in surface applications are a constant process and 
a daily challenge. The Group had the foresight to invest in innovative technologies, 
such as laminated porcelain stoneware, a revolutionary product that Panariagroup has 
focused on for over 10 years, leading to record sales all over the world and a constant 
innovation capable of reinterpreting and evolving this technology for increasingly 
ambitious projects. This has allowed Panariagroup to complete its range of thin materials 
with an extensive and important set of formats and thicknesses, produced using a 
winning and distinctive technology.
Panariagroup’s laminated porcelain stoneware also stands out for its high environmental 
performance when compared to standard 10 mm thick porcelain stoneware. This is a 
further concrete demonstration of the Group’s commitment to constant research into 
eco-friendly products.
4
3

PANARIAGROUP - SUSTAINABILITY REPORT
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Large-sized laminated porcelain stoneware: 
a light, resistant and versatile product for 
new design perspectives in the world 
of architecture and housing.
 Thin, light and suitable for renovation projects
 Easy to work with, handle and lay
 Flexible (minimum radius of curvature up to 5 metres)
 Perfectly flat
 Reliable, thanks to our experience in supplying this product globally for over 10 years
 Available in a wide range of big sizes
 Whit the exclusive antimicrobial PROTECT®
All processes are executed and managed in-house, from the application of the fibreglass mesh to polishing and rectification.
moreover our slabs are:
THIN AND
RESISTANT
ULTRA-THIN AND ULTRA-RESISTANT 
WITH FIBREGLASS MESH
REINFORCEMENT
superior quality 
thin ceramic slabs
3
PLUS
5
PLUS
6
PLUS
6
mm
20x120
20x180
30x240
33x300
100x300
100x250
100x150
120x260
120x278
60x120
60x60
100x100
120x120
50x100
50x50
50x150

100
POWDERS 3
TIMES SUPERIOR
TO TRADITIONAL
ONES
ONLY HIGH
QUALITY BASE
MATERIALS
ARE USED, NO
RECYCLED
MATERIALS
Highest standards
in quality
and performance
More compact slabs
More elastic slabs
Minimum radius of curvature up to 5 metres
Unique pressing process
directly on conveyor belt
EVEN PRESSURE
ON THE WHOLE
SURFACE
MATERIAL IS
PRESSED FOR
MORE THAN
1 MINUTE ON THE
STATIONARY SLAB
PRESSING
FORCE UP TO 
27,000 TON
COMPLETE
DEAERATION
VACUUM EFFECT
Only the finest
raw materials
why our slabs
are of superior
quality
1
2

PANARIAGROUP - SUSTAINABILITY REPORT
101
Environmental
sustainability
Application of the
fibreglass mesh
Available on a wide selection of products
Exclusive surface
processing technologies
OUR PRODUCTION PROCESS
 REDUCES BY
-66% 
POLLUTION CAUSED
BY TRANSPORT
-65% 
THE CONSUMPTION
OF RAW MATERIALS
-80% 
THE CONSUMPTION
OF WATER
-30% 
CO2 EMISSIONS IN
THE ATMOSPHERE
The data refers to a 3.5 mm thick
product when compared to a 10
mm thick porcelain stoneware tile
-30% 
THE CONSUMPTION 
OF ENERGY
FIBREGLASS MESH  
ON THE REAR OF THE SLAB
Extraordinary
added resistance
HIGH DEFINITION
OF STRUCTURES
GREAT DEPTH 
OF THE GRAPHIC EFFECTS
Excellent aesthetic yield
of the products
MAXIMUM SURFACE
SHINE AND EASY TO 
CLEAN
HIGH STANDARDS
IN COLOUR YIELD AND 
WHITENESS
3
4
5

102
We invented the certified Easy system for 
dry installation of ceramic tiles. It can be laid 
without adhesive and, thanks to the exclusive 
use of our ultra-thin slabs, the material can 
be quickly and easily installed and removed, 
permitting sustainable renovations 
(without demolition and waste production) 
on top of the existing floor.
research
sustainability 
facts

PANARIAGROUP - SUSTAINABILITY REPORT
103
Panariagroup’s laminated porcelain stoneware is a material that is also suitable for 
significant innovative applications: due to its reduced thickness and resistance, it can be 
applied over existing surfaces, thereby allowing renovation without demolition.
In this regard, in 2021 the company developed and fully launched an important and 
exclusive innovation: the Easy system (currently launched by Cotto d’Este and Lea 
Ceramiche under the Kerlite Easy and Slimtech Easy Brands), a dry laying system that 
allows the application of the ceramic slab on the surface without the need for gluing, 
using an exclusive combination of the material and a mat (Silent), completed by simple 
sealing of the joints. In early 2022, the company also obtained a patent for this unique 
solution.
This revolutionary application is guaranteed by the Kerlite and Slimtech slabs reinforced 
with fibreglass, which provide the floor with maximum stability and resistance, as well as 
the ability to easily install and replace the material and possibly even recover and reuse 
it, embracing a circular economy approach.
Another concrete example of the Group’s innovative ability is the development of 
PROTECT®. 
Since 2010, Panariagroup, thanks to the constant work of its Research Centre, has 
established technological and commercial leadership in the antibacterial products 
segment, developing a line of very high performance ceramic surfaces with Microban®, 
a world leader in antibacterial technology applied to multiple sectors and products. 
Evidencing the growing demand for products with these technical specifications, in 2021 
the Group sold around 5.8 million m2 of PROTECT® products worldwide.
The PROTECT® antibacterial surfaces have been designed by Panariagroup with a real 
silver ion antibacterial shield incorporated in the ceramic product, which eliminates up 
to 99.9% of bacteria from the surface and guarantees continuous protection, night and 
day. Unlike other technologies, it is not an organic treatment applied to the finished 
product (such as waxes or resins): PROTECT®’s antibacterial protection is permanently 
integrated into the products during the industrial firing process. It cannot be 
removed by washing, it does not wear out and it actively protects the entire surface 
throughout the product’s life cycle.
PROTECT® is guaranteed by the partnership with Microban®, a world leader in 
antibacterial technology that boasts partnerships with hundreds of Brands, and each 
new collection is tested to officially certify its antibacterial properties in recognized 
international laboratories.
Thanks to a constantly protected surface, high hygienic performance and resistance to 
wear and tear conditions, PROTECT® makes it possible to improve people’s lifestyles 
and living conditions. The technology based on silver ions, which is permanently 
integrated in the tile at the time of firing, blocks the metabolism of bacteria, eliminating 
them and preventing their proliferation.

104
Consequently:
•	 the tiles are more hygienic and easier to clean: the degree of product cleanliness 	
	 can be visibly improved with antibacterial technology, which does not replace normal 	
	 cleaning procedures, but facilitates and completes them, making them less expensive 	
	 and achieving a better level of protection between one clean and the next;
•	 the technology also eliminates what you cannot see: thanks to antibacterial 		
	 technology, growth of bacteria can be significantly limited on floors, walls, kitchen 	
	 tops, etc.;
•	 less bacteria and less odours: the presence of bacteria can cause unpleasant odours 	
	 and reducing bacteria reduces these odours.
With PROTECT®, Panariagroup confirms its role as a responsible company, since 
the use of this product brings the benefits of antibacterial technologies to various 
domestic and non-domestic environments, including, in particular, public places, such as 
healthcare facilities, restaurants, airports and schools, where preventing contamination 
is essential. Being able to offer very high-quality antibacterial materials is increasingly 
important when responding to ever more selective specifications and therefore 
receiving orders, as well as for meeting end consumers’ growing demand for health-
oriented products.
Panariagroup also launched a recent product line: geared towards the furnishing 
accessories segment, Maxa Ceramic Slabs is a range of large slabs with a high thickness 
(12 mm) and a 160x320 cm format. This is an important addition to the range of products 
offered by the company to meet the needs of specific targets and channels, partly due 
to the fact that the company will obtain GreenGuard Gold and NSF certifications in the 
first quarter of 2021, testifying to Panariagroup’s ongoing commitment to producing and 
supplying products that are safe, healthy and suitable for use in direct contact with food.
The company also committed itself to optimising the thickness of its porcelain stoneware 
materials in standard formats. By re-engineering the production processes, it was 
possible to work on several categories of materials, slightly reducing their thickness, 
while maintaining their technical and aesthetic performance and full compliance with 
quality requirements. This obviously allowed us to lower the impacts related to the 
consumption of raw materials and other factors necessary for the production cycle, with 
clear benefits in terms of sustainability.
The exclusive Panariagroup technology for antimicrobial floor and wall coverings
with the highest performance. To live healthy, safe and secure.
Powerful action
Eliminates microbes
and prevents their
reproduction
Continuous protection
Always active, 24 hours
a day, with and without
sunlight
Eternal effectiveness
Thanks to the technology
permanently integrated
into the product
Guaranteed quality
by the partnership with

PANARIAGROUP - SUSTAINABILITY REPORT
105
Customer satisfaction	
Customer satisfaction goes hand in hand with our drive towards innovation and 
sustainability. The company’s innovation is based on constant experimentation which, 
thanks to the development of cutting-edge production systems and technologies, 
allows Panariagroup to offer its Customers a wide range of top-quality products that are 
positioned at the top of the market thanks to their excellent technical and aesthetic 
performance. Thus, the synergy between products, research and design allows us 
to offer a wide range of products that can meet and satisfy the most varied design 
requirements, with a focus on sustainability and enhancement of architectural design. 
Panariagroup operates with very high quality standards, which are reflected in its 
outstanding supply standards: complaints about sold products represent just 0.85% 
of total turnover (2020 figure9). Additionally, the Group is committed to handling any 
product problems by offering an attentive and scrupulous after-sales service, which 
is constantly updated with increasingly advanced monitoring and response tools. In 
this regard, Panariagroup, starting from the Italian Business Unit, is the first company 
in the ceramic sector to have developed the “Servizio VIS - Verbale Interno di 
Sopralluogo” (internal inspection report), an innovative proprietary (Sales Force 
Automation) system that allows the sales force to monitor the quality of supplies 
in real time and give its customers a fast and comprehensive feedback. A rapid 
response is guaranteed thanks to the use of advanced digital tools, such as a specific 
app for smartphones and tablets connected to the web system for data and process 
management. The service has been very successful: in 2021, around 1,500 requests 
were handled (850 of which came from the Italian market) with an average response 
time to the end customer of 15 days. The application has eliminated the need for in-depth 
technical analysis by qualified Panariagroup staff for 80% of the requests received, ensuring 
that the dedicated department operates with optimal efficiency. It could be estimated with 
reasonable accuracy that the time for data entry per report, collection of information, stock 
control if necessary, and preparation of a response to the customer was reduced by 50% 
compared to the previous procedure for handling reports from the market.
The uniqueness of the VIS service lies in the ability to quickly develop a written 
response certifying the qualities of the products sold. During 2021, this service was also 
developed and launched for the U.S. Business Unit; an evaluation of its implementation 
in the Portuguese Business Unit is also planned in 2022.
In addition, Panariagroup provides its commercial partners with in-depth technical 
expertise on the use and application of materials, through information tools (technical 
manuals), with thorough staff training and specific training sessions, both at the 
company’s sites and in customers’ premises. Over the years, thousands of people have 
visited the Fiorano laminated porcelain stoneware plant and attended in-depth technical 
sessions on ceramic slabs at the corporate site and off-site, both in Italy and abroad. 
4
44
4
9. The figure only refers to the Italian business unit. At the date of publication of this document, data for 2021 are currently being processed.

106
Due to the health emergency situation caused by COVID-19, the Group has had to 
significantly reduce the openings of its production plants to external visits, however it 
will resume this activity as soon as possible with the same spirit as always: to provide a 
close-up view of the people and processes that allow Panariagroup to offer outstanding-
quality products every day.
One of Panariagroup’s distinctive elements is its ability to face commercial challenges 
not only with a multitude of Brands geared towards different market segments, but 
also with Group divisions dedicated to specific sales channels and/or geographical 
areas. This enables Panariagroup to pursue one of its fundamental principles, namely 
maximum attention to Customer care through an organisation that is solid, reliable, 
flexible and able to provide a timely response. Vertical organisations that aim to broadly 
cover markets and retail distribution are supported by horizontal structures dedicated to 
certain geographical areas or to particularly strategic targets, such as large international 
projects, corporate buyers and contracts.
With reference to this last market segment, Panariagroup has a division (the Contract 
and Key Account Division) specialized in the relationship with particular Customer 
base segments, such as developers, professional offices, architects, etc., with a sales 
team and a design and service unit that can efficiently and specifically respond to all 
the needs of these specific targets on a global scale. As at 1 January 2021, the division 
was further strengthened, encompassing promotion activities for all the Group’s Brands, 
including on the Italian market.

PANARIAGROUP - SUSTAINABILITY REPORT
107
Digitalisation: remote working and new ways of dealing with customers
In 2021, the digital transition, initiated during the pandemic years, continued for many 
corporate activities, with the aim of coming into closer contact with customers and their 
habits.
The company has gradually converted to using digital platforms for both internal 
communication (video meetings) and daily communication with customers.
Online training was also aimed at the company’s business partners with a number of 
webinar sessions on specific issues of interest.
Customer relations also gradually shifted to telematics: an online consultancy service 
was set up that allowed all interested parties to request an appointment with one of the 
company’s professionals for in-depth information on the Group’s products.
Another major step was the virtualisation of product presentations: all the company’s 
Sales Divisions adopted digital and video methods featuring real television productions 
to broadcast the new products live to their audiences. All of this was accompanied by 
the increasingly extensive use of video footage at the launch of new collections.
Even the experience of visiting the showrooms has been gradually digitised: all the 
spaces have been made available online via a 360° virtual tour.
Communication activities on digital channels also continued to grow, both on social 
media platforms and with search and display campaigns and collaborations with 
influencers. 
Finally, Panariagroup has been launched on WeChat, the Chinese platform already used 
by over a billion users, and has released the first BIM objects to enter the new digital 
systems of planning, construction and integrated management of buildings.

108
System certifications	
Panariagroup has adopted a quality management system certified according to ISO 
9001 which extends to all commercial divisions and services. This is further evidence of 
the Group’s commitment towards ethical, environmental, safety and quality issues.
4
5
certification
description
field of
application
Panariagroup 
Italy
Gres Panaria 
Portugal
In accordance to the ISO 9001 
certification, every passage in the 
production process, from the arrival 
of the raw material to the packaging 
of the finished product, is verified by 
experienced personnel through accurate 
quality control. The quality of the 
Panariagroup production sites is audited
yearly by an external agency through 
detailed visits.
Worldwide
Finale Emilia
Toano
Fiorano Modenese
Aveiro
Ílhavo
In accordance to the ISO 14001 
certification, all the environmental
aspects concerned in the production 
of our tiles are constantly monitored, 
guaranteeing the use of the best 
technologies on the market in order to 
reduce the environmental impact. The 
environmental system of the Panariagroup 
production sites is audited yearly by an
external agency through detailed visits.
Worldwide
Finale Emilia
Toano
Fiorano Modenese
Aveiro
Ílhavo
GESTIONE AMBIENTALE
VERIFICATA
The EU EMAS Eco-Management and 
Audit Scheme for organization requires 
the creation of a complete system of 
environmental management based on 
constant improvement. The system is 
based on the establishment of a rapport 
of cooperation and trust with employees, 
local authorities and the public. An 
Environmental Declaration is the final 
product of such process.
EU
Finale Emilia
Toano
Fiorano Modenese
Aveiro
Ílhavo

PANARIAGROUP - SUSTAINABILITY REPORT
109
Gres Panaria Portugal
Panariagroup Italy
Company
Company
Finale Emilia
Aveiro
Toano
Ílhavo
Fiorano Modenese
EMAS
EMAS
ISO
9001
ISO
9001
ISO
14001
ISO
14001

110
Product certifications 
 
Below are the certifications obtained by Panariagroup for the products sold by the Group 
companies operating in Italy, Portugal and the United States, reflecting the Group’s 
considerable attention and sensitivity towards ethical, environmental, safety and quality 
issues.
4
6
certification
description
field of
application
It
Pt
US
UPEC is a product certification issued by the French institution CSTB, verifying
the technical suitability of the products related to their intended use.
Francia
•
•
The CE mark is a safety certification required by the European Union with
the intention of safeguarding health and safety.
EU
•
•
The KEY-MARK and the Certiquality-UNI marks confirm that the certified
products are compliant with the EU laws regarding ceramic tiles.
EU
•
The Certif mark confirms that the certified products are compliant with
the EU laws regarding ceramic tiles.	
EU
•
Since August 2005, it is allowed to export in the People’s Republic of
China only ceramic tiles bearing the CCC marking, which Panariagroup
obtained, on several products, since March 2006.
Cina
•
•
The EPD declaration is a voluntary declaration that can be applied to all
products. It is an important instrument to report on the environmental
quality of a product.
Worldwide
•
•
•
All of Panariagroup’s collections have obtained the GREENGUARD GOLD 
certification, i.e. the UL standard with the strictest VOC emission limits, 
guaranteeing that that they are as healthy as possible for the people who use and 
live in these environments. They can therefore be used in environments such as 
schools and health facilities, attended by sensitive individuals such as children and 
the elderly. GREENGUARD GOLD is a widely recognised certification required by 
sustainable building programmes and design and construction regulations around 
the world, such as LEED (international) and BREEAM (UK).
Worldwide
•
•
•
Panariagroup has adopted the HPD (Health Product Declaration) open standard, 
recognized by USGBC LEED, created to encourage attention to people and 
consumers through reporting of product characteristics and information on health 
risks of all those involved in the project.
Worldwide
•
•
MAXA has obtained the prestigious “Solid Surfacing for Food Zone” certification 
issued by NSF (National Sanitation Foundation - American National Standard 
for Food Equipment Materials), which certifies the product’s suitability for food 
contact and compliance with strict chemical analysis criteria, guaranteeing the 
food safety requirements of the substances used in its manufacture.
Worldwide
•
It is a TCNA initiative aimed to recognize and certify sustainable products
according to the ANSI 138.1 law. Covered by this certification are the 
environmental characteristics of the product, its production chain, the extraction
of raw materials, the management of end-of-life products and innovation.
US
•
For most of its products, Panariagroup achieved a certification related to
the contents of recycled material pre-consumer. This character of eco-sustainability
contributes to the achievement of credits required by several national building 
standards.
Worldwide
•
•
EN 14411
HPD

PANARIAGROUP - SUSTAINABILITY REPORT
111
Panariagroup USA
Gres Panaria Portugal
GREEN
GUARD
GREEN
SQUARED
EPD
HPD
40%
RECYCLED 
CONTENT
CE
CCC
UPEC
Panariagroup Italy
EPD
GREEN
GUARD
EPD
KEYMARK
CE
CCC
UPEC
GREEN
GUARD
HPD
NSF
40%
RECYCLED 
CONTENT
CERTIF

112

PANARIAGROUP - SUSTAINABILITY REPORT
113
5
environmental 
responsibility

We integrate environmental sustainability into the 
entire value chain, striving to reduce the impact of our 
plants and to safeguard ecosystems, in the belief that 
a responsible Group must necessarily create value for 
People and the Planet. 
Combating climate change
Water resources management
Waste management and circular economy
Our contribution to the SDGs
The chapter’s material topics

*
An average capacity of 50 l per wash cycle was considered.
**
The data are based on estimates and refer to the comparison with the production of traditional-thickness porcelain stoneware in the year in question.
***
Emissions intensity Scope 1 + Scope 2 (Location-based).
Ceramic slabs with a sustainable profile
We were the first ceramic group to introduce ultra-thin laminated porcelain slabs to the market 
and this enabled us to: avoiding the extraction of more than 34,000 tonnes of natural raw 
materials**, halving our emission intensity in relation to the product unit (tCO2 per m2)**.
-34,000 t
Water, a precious resource
over 430,000 m3
We recovered over 430,000 m3 of water in the production cycle. Equivalent to almost 9 million 
washing cycles of a washing machine*.
Consistent performance
0.009 tCO2/m2
Our emission intensity has remained extremely low and consistent over the past 3 years***.
A new life for our waste
98%
In 2021, we sent 98% of our waste for recovery (+1% compared to 2020).
in evidence

116
Environmental 
responsibility	
Always at the vanguard in skilfully combining beauty, quality and sustainability, 
Panariagroup works every day to reduce the environmental impact of its plants to a 
minimum, demonstrating its commitment to ecosystem conservation and to researching 
the best housing comforts. This is a vital and essential commitment, especially for 
those who create products that millions of people all around the world encounter in 
their daily life, at home and in public places. The Group considers the aspects related 
to environmental impact and to occupational safety and hygiene to be of fundamental 
importance. Consequently, the policy adopted to manage the Group’s activities is based 
on strong and precise principles:
•	 safeguarding the integrity of the environment that surrounds the production plants, as 	
	 well as the environment within, thus protecting the environment as a whole;
•	 ensuring constant respect of the existing legal regulations regarding safety and the 	
	 environment through ongoing and rigorous inspections;
•	 managing, preserving and, where possible, reducing the use of natural resources, 	
	 through research and development activities focused on the use of recycled material and 	
	 on energy efficiency policies;
•	 constantly improving its environmental approach to keep the production of pollutants 	
	 and the consumption of resources to a minimum;
•	 providing constant information and maintaining an ongoing collaboration with the 	
	 population and with public organizations regarding the environmental policies adopted, 	
	 including the release of the EMAS Environmental Statement and, since 2016, the 	
	 Group’s Sustainability Report.
Such principles are of paramount importance, because they drive Panariagroup both at 
a management and strategic level and in terms of operational management of individual 
plants, with the ultimate aim of constant improvement of environmental performance at 
all management levels.
5
1
Panariagroup works every day to reduce 
the environmental impact of its plants 
to a minimum, demonstrating its 
commitment to ecosystem conservation 
and to researching the best housing 
comforts.

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117
Conscious that in the ceramic tiles for floor and wall coverings production sector, 
environmental awareness is increasingly a critical factor for success, the Group has 
demonstrated, year after year, a true green philosophy that manifests itself at every 
level. Everything is designed and created with the highest respect for the environment, 
from the architectural design of the production plants, which are in perfect harmony with 
the local area, to the careful control procedures at every stage of product processing.
As a testament to the central role that environmental sustainability plays for the Group, 
all the production plants in Europe, all highly automated and integrated, have achieved 
the ISO 14001 and EMAS Environmental Management System Certifications. The EMAS 
Declaration reports on environmental performance and the pre-established improvement 
goals. It is published annually on the company websites for the Italian and Portuguese 
production plants. Additionally, Panariagroup compiles the annual AIA Report, as required 
by the Integrated Environmental Authorisation, for the Italian production sites, containing 
environmental performance data and specific performance indicators. 
The raw materials used in the production processes in Panariagroup plants are constantly 
monitored, in full respect of the environmental standards set by the law.Likewise, 
production waste is reused to a large extent, with a significant reduction in the use of 
new natural raw materials.
Every Brand product then undergoes strict and accurate quality control and every 
collection is classified according to specific regulations established by the law relating 
to ceramic tiles. Most of the collections have the requirements for obtaining credits from 
the main building certification systems, such as LEED. The Group, in fact, is very attentive 
to regulatory changes regarding ceramic tiles and its technicians monitor regulatory 
updates by participating in technical committees in associations or internationally through 
participation in ISO committees.

118
environment
We prioritise and guarantee environmental 
protection: we have adopted production 
and management systems that allow us 
to achieve first-class standards, as 
evidenced by the achievement of major 
international certifications such as EPD 
and GreenGuard Gold.
sustainability
facts

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119
Management of natural 
resources	
Panariagroup has chosen to take a stand in defence of the planet. It has done so 
and continues to do so every day with concrete actions, investing in the most advanced 
technologies and production choices focused on eco-sustainability. Because after all, 
despite being the result of a complex and advanced industrial process, ceramic is a 
natural product. A simple recipe, made of earth, fire and water produces a tough, 
versatile, practical and hygienic product with a high value in terms of beauty and design. 
It is even more natural when the production chain has a responsible dialogue with 
the environment by reducing the need for raw materials, recycling water and processing 
waste and using high-efficiency plants. This reduces the ecological footprint that industrial 
production leaves on the planet. In 2021, the Group’s production plants managed to avoid 
the extraction of large quantities of natural raw materials through the reuse of over 70,000 
tons of production waste and to avoid the withdrawal of water from natural water resources 
through the recycling of over 430,000 cubic meters of processing water.
According to Panariagroup, a sustainable management is expressed at its highest level 
in every production cycle, starting from a concept of quality that considers constant 
research and respect for the environment to be among its distinctive features. Compliant 
for years with environmental protection and eco-sustainable development regulations, 
the Group has always believed in the possibility of combining improvement of the 
production process with ever-increasing product quality and a focus on improving 
quality of life and environmental impact.
Applying its environmental policies, the Group regularly sets a series of goals to achieve 
in order to optimize its environmental performance even further and to promote issues 
related to occupational safety and hygiene. For the Italian and Portuguese plants, the 
specific details of these goals are set out in the EMAS Environmental Statement. The 
Group’s performance and goals are set out annually in the Sustainability Report.
5
2

120
Due to its restrictions, the pandemic has led us to naturally rethink our spaces, starting with our 
homes, which have gradually become our refuge, our office, our space of well-being and comfort. An 
increasingly important investment in the home aimed at transforming it into a place that is ever closer to 
new, more sustainable living models.
On the other hand, modern architecture and growing consumer awareness require solutions that 
minimise the impact of renovation. As part of a circular economy approach, it is becoming increasingly 
important to focus on innovation that minimizes waste and scrap, while at the same time allowing 
the use of products with a proven sustainability matrix.
The ideal answer to these new requirements are ultra-thin laminated porcelain stoneware slabs: 
Panariagroup was the first ceramic group to introduce this innovation, which, in addition to being a 
revolutionary product in terms of technical features and versatility of application, offers an exceptional 
response to the demand for easy, fast, sustainable and impact-free renovation work.
The slabs can be applied on top of existing floors, making it possible to install them without any 
masonry work. So there is no dust, waste and debris, making it possible to very quickly change 
the surfaces in a space, significantly cutting costs. In terms of sustainability, this is an extraordinary 
advantage, considering, among other things, the high impact that building waste generally has on the 
overall production of waste, as demonstrated by numerous studies, including those produced by the 
European Commission.
However, the Group’s latest innovation connected to sustainable repaving is particularly significant, 
namely a new dry laying system without adhesive that makes it possible not only to lay ceramic slabs 
on top of existing floors, but also to do so without gluing the new materials, meaning that the material 
can be replaced and recovered (and the existing floor can be preserved). Easy is available with both 
Kerlite slabs by Cotto d’Este and Slimtech products by Lea Ceramiche, guaranteeing extraordinary 
performance thanks to the materials’ exclusive glass fibre reinforcement.
Easy: ceramic slabs, a sustainable 
product for fast and sustainable 
renovation
sustainability
facts

PANARIAGROUP - SUSTAINABILITY REPORT
121
Not to mention the impressive sustainability characteristics of laminated porcelain stoneware: 
its production cycle allows significant reductions in energy, water and raw material consumption, in 
emissions and in transport impact. It is a product that by its very nature (it reduces thickness by up to 
2/3 compared to traditional tiles) places a strong emphasis on sustainable innovation.
Moreover, there is a proportion of recycled material from other production processes in Panariagroup 
ceramic material, which can be as high as 40%.
Panariagroup’s slabs are available starting from a minimum thickness of 3 mm: a solution that 
differentiates the company's product range and that is particularly suitable for covering and interior 
design applications.

122
Raw materials		
5
35
3
Glazes are composed by the
following materials:
The main auxiliary 
additives are:
The main raw materials
used in the production
of ceramic tiles are:
Clay
Clay dust
Binding agents
Sand
Quartz
Fluidising agents
Feldspar
Alumina
Colored pigments
Natural pigments
Frit
Raw materials
Glaze
Auxiliary additives

PANARIAGROUP - SUSTAINABILITY REPORT
123
The chart below shows the main raw materials used by the Group in 2021. The chart 
reveals that most purchases are of clays and feldspars. Since 2019, the Group has reduced 
the purchase of spray-dried powders to zero.
Panariagroup has always shown great respect for the environment, purchasing, where 
possible and in line with the preliminary material for its business, renewable raw materials.
In the Italian Business Unit, in terms of packaging for ceramic, all wood is purchased 
from PEFC or FSC certified suppliers, about 70% of purchased paper and cardboard 
is recycled and the plastic used contains 70% recycled material (a marked increase over 
the previous year, 35%, thanks to the valuable cooperation with qualified suppliers). Both 
the glaze class and the class relating to raw materials for the mixture – which nonetheless 
contain natural materials, such as clays, feldspars and sands – were considered as non-
renewable materials.
With regard to the foreign scope, the U.S. Business Unit used more than 4,000 tonnes 
of renewable material for its packaging in 2021, including 1,000 tonnes of PEFC- or 
FSC-certified corrugated cardboard. While Gres Panaria Portugal used 1,149 tonnes of 
corrugated cardboard for FSC-certified packaging, a quantity representing 92% of the 
total packaging.
38.10%
0.31%
0.61%
2.04%
2.13%
2.55%
3.70%
raw materials 
used in
2021
Feldspars  
Zirconium/Whitening agents
40.08%
Clays
0.25%
Atomized
10.23%
Sand
Additives
Glazes and colouring agents
Packaging
Other
Ground fired material
2021

124
In all of the Group’s plants,
100% of raw waste is recovered
in the production process.
The production process	
The first phase of the production process is the delivery and storage of raw materials, 
such as clays and feldspars mixed with sands, kaolins and silicates. These raw materials 
are extracted from quarries, through a process that generally takes place outside. 
The production of tiles begins, therefore, from grinding of the raw materials that are 
delivered to the plant and stored in separate and easily identifiable boxes located in 
covered areas.
The mixture at the basis of the production of porcelain stoneware is obtained by mixing 
these raw materials, and mostly contains a clay part, which has a plasticising role, an inert 
part (sand) with a structural and thinning role to limit shrinking and expansion during the 
firing phase and a feldspar part with a melting role, allowing, during the firing stage, the 
creation of a vitreous phase, thus helping to make it more compact (vitrification).
Before they are stocked, all raw materials undergo a series of checks, in order to verify 
the compliance of the analysed features with the specifications agreed with suppliers.
An interesting aspect from an environmental perspective is the recycling of raw and 
fired waste during production. Raw waste may come from the spray-drying, pressing or 
glazing stages, while fired waste may come from the selection and rectifying/lapping 
phases. In all of the Group’s plants, 100% of raw waste is recovered in the production 
process. In the plants located in Italy and in the U.S., 100% of fired waste is reintroduced 
into the ceramic mixture. In Portugal, the Aveiro plant has started to progressively 
recover fired waste, reaching around 60%, while feasibility studies are under way at the 
Ílhavo plant, in order to achieve the same goal.
Finally, in terms of circular economy, at the end of their life cycle ceramic tiles can 
be fully recycled as a foundation for buildings or roads, or easily disposed of like 
any other inert material. However, it should be noted that Panariagroup products are 
characterised by their durability, so they may last as long as the building in which they 
are installed and for much longer periods than any other coverings.
5
4

PANARIAGROUP - SUSTAINABILITY REPORT
125
Input
Output
Raw materials
Waste
Water
Emissions
Energy
Finished product
1
Stocking
of raw materials
3
Atomization
4
Pressing
and drying
5
Glazing
6
Firing 
7
Finalization
and packaging
2
Grinding

126
Energy and emissions	
Panariagroup plants mainly use electricity, natural gas and diesel. In 2021, the Group 
consumed a total of 3,441,263 GJ of energy, an increase of 21% compared to the previous 
year, of which 1,480 GJ was from renewable sources and 3,439,783 GJ from non-renewable 
sources. Compared to 2020, increases were recorded in relation to the purchase of electricity, 
fuel consumption for industrial vehicles, LPG consumption and natural gas consumption, 
while the amount of fuel used for the car fleet remained almost unchanged. The main 
changes compared to the previous year reflect the COVID-19 health emergency scenario, 
which led the Group, for several weeks in 2020, to temporarily halt its production activities, 
first at the end of March in the 3 Italian plants and then in the first half of April in the 2 
Portuguese plants.
Although impacted by the effects of the health emergency, the figures directly reflect 
the efficiency improvement measures carried out by Panariagroup over the years, which 
have made it possible to consolidate an operational efficiency that enables the Group 
to maintain constant energy performance, confirming its focus on monitoring and 
minimizing environmental impacts, particularly those related to energy consumption 
and emissions. 
5
5
energy intensity10
year
u.m.
index
2020
GJ/m2
0.140
2021
GJ/m2
0.141
emission intensity10
year
u.m.
index
Scope 1 + Scope 2
(Location based)
index
Scope 1 + Scope 2
(Market based)
2020
tCO2/m2
0.009
0.009
2021
tCO2/m2
0.009
0.010
10.	The intensity values are calculated based on the m2 of tiles produced during the year, which amounted to 24,365,161 m2 in 2021 and to 20,179,156 m2 in 2020.

PANARIAGROUP - SUSTAINABILITY REPORT
127
Panariagroup constantly invests in improving energy efficiency in its production plants. 
Every year, energy saving projects carried out by companies which, like Panariagroup, 
have decided to significantly reduce the environmental impact of their activities, allow 
GSE (Energy Service Management) to award TEE (Titles of Energy Efficiency, also called 
White Certificates) in accordance with Legislative Decree of 20 July 2004, based on 
energy consumption compared to the sector benchmarks.
Furthermore, in 2013, Panariagroup’s plants in Italy and Portugal joined the “Emission 
Trading” system, regulating the exchange of quotas of CO2 emitted during 
production, as per Directive 2009/29/EC. Consequently, direct emissions related to the 
production activities of the Group’s European plants are fully offset through the return of 
representative CO2 emission allowances to the European Union.
Emissions avoided in 2021 thanks to 
the photovoltaic systems at Fiorano 
Modenese, Finale Emilia and Sassuolo
Total energy used by the Group 
in 2021
129
3,441,263 
tCO2
GJ

128
Three photovoltaic systems were installed at the Italian plants of Finale Emilia, Fiorano 
Modenese and Sassuolo, respectively 450 kWp with a surface of 4,200 m2, 85 kWp with 
a surface of 1,000 m2, 19.5 kWp with a surface of 220 m2, enabling them to produce 
electricity for internal consumption and to reduce CO2 emissions. Thanks to these plants, 
the Group avoided the emission of 129 tonnes of CO2
11 in 2021, a figure 15% lower 
than in 2020 due to maintenance interventions carried out on the plants, which led to 
partial operation during certain periods, as well as to the loss of their “structural” efficiency, 
for which the Group is taking action with targeted investments.
Finally, one of the outstanding elements in the production plants located in Italy (in Toano 
and Finale Emilia) is the system for recovering smoke from the kilns inside the spray-drying 
plants, leading to a reduction in the use of thermal energy.
With regard to energy consumption, it is important to note that, in relation to most other 
covering materials (parquet, natural stone and cork), it takes less energy to produce 
porcelain stoneware, partly thanks to modern plants and to its very high durability.
In 2019, Panariagroup carried out an energy audit of its Italian plants, in order to 
comply with the requirements of Legislative Decree no. 102/2014. The next energy audit 
is scheduled for 2023. This systematic procedure is designed to provide an adequate 
knowledge of the energy consumption profile of an industrial plant, to identify and 
quantify cost-effective energy saving opportunities and to report on the results. The 
audit, besides being a mandatory service for the parties involved, is useful for customers 
in determining recommendations for the reduction of energy consumption. It aims to 
assess the presence and technical and economic feasibility of interventions to reduce this 
consumption.
Atmospheric emissions are a significant environmental aspect for Panariagroup’s 
business. In fact, the production process and the related activities result in the emission 
of substances into the atmosphere that require purification treatment, in particular 
during the tile firing phase. With regard to greenhouse gas emissions, the increase in 
the consumption of natural gas and fuel for industrial vehicles and the car fleet, with LPG 
consumption virtually unchanged, was matched by an increase in direct greenhouse gas 
emissions in 2021, compared to 2020, as well as by indirect greenhouse gas emissions 
associated with the purchase of electricity. Scope 2 emissions were calculated using two 
different approaches: “Location-based” and “Market-based”. The “Location-based” 
approach involves the use of average emission factors relating to specific national 
electricity generation energy mixes. The “Market-based” approach involves the use of 
emission factors defined on a contractual basis with the electricity supplier. In the absence 
of specific contractual agreements between the Group Companies and the electricity 
supplier (e.g. purchase of Guarantees of Origin), the emission factor relating to the national 
“residual mix” is used for this approach (for the emission coefficients used, please refer to 
the relevant tables in the “Appendix” section).
11.	The avoided CO2 emissions were calculated with the Location-based method (Emission factor source: Terna, Confronti Internazionali, 2019 with emission factor 
	
gCO2/kWh for Italy).

PANARIAGROUP - SUSTAINABILITY REPORT
129
12.	Values obtained from the processing of Panariagroup’s EMAS data and the ICE and ECO-BAU database for porcelain stoneware, which include the energy consumption values for 	
	
the extraction of raw materials (source: EPDs of products of the same thickness).
Location-based indirect emissions  
in 2021 (49,629 tCO2 in 2020)
Direct emissions in 2021
(135,989 tCO2e in 2020)
Market-based indirect emissions   
in 2021 (55,190 tCO2 in 2020)
68,105 
51,182 
166,815 
tCO2
tCO2e
tCO2
Compared to 2020, the Group’s direct and indirect emission figures showed an increase 
due to the impact of COVID-19 on production in the previous year and the return to high 
production levels.
Furthermore, with regard to emissions, it should be noted that the production of laminated 
porcelain stoneware, one of the products on which the Group has strongly focused in 
recent years, requires a reduced use of energy and has a lower environmental impact.
Comparing the emissions impact of laminated porcelain stoneware and porcelain 
stoneware, a significant reduction in the CO2 emitted into the atmosphere12 can be 
observed.

130
Water	
Water is an essential component of the ceramic production cycle and in Panariagroup’s 
plants water use is mostly concentrated in the phases of wet milling of raw materials, 
preparation of the semi-finished products for glazing, washing of machinery - in 
particular of mills and glazing lines - and finally during the operations of lapping, cutting 
and rectifying the fired tiles. The production plants are supplied with groundwater from 
the wells. Drinking water, which comes from the water supply networks, is mainly used 
for civil services in both logistics centres and production plants.
The water used in the production process is entirely reused, which means that the Group 
has no wastewater from production.
In terms of water resource management, the Group has always focused on minimizing 
the environmental impact of its production activities and its water withdrawal 
has remained fairly stable compared to the previous year. In 2021, the total water 
withdrawal from production sites was just over 485 megalitres, an increase of 18% 
compared to 2020, as highlighted in the data in the “Appendix” section of this 
document, an increase caused by the plant shutdown during the national lockdown 
period in 2020.
Starting from 2019, Panariagroup monitors the location of its production plants in 
relation to water stress areas, i.e. areas of land that cannot meet water demand, both 
human and ecological. Water stress may refer to water availability, quality or accessibility. 
In order to identify areas potentially exposed to water risk, in line with GRI reporting 
standards, the Group used the “Aqueduct Water Risk Atlas” tool, developed by 
the World Resources Institute. The analysis showed that none of Panariagroup’s 6 
production plants are located in water-stressed areas.
Panariagroup has also identified and evaluated environmental aspects and risk factors, 
including those related to water resources, using a special index - Significance Index 
- according to a methodology developed by the company and reported in the EMAS 
Environmental Declarations, prepared annually by the Group for its European production 
sites. The company is committed to constantly monitoring environmental performance 
linked, among other things, to the Significance Index, with a view to continuous 
improvement.
5
6

PANARIAGROUP - SUSTAINABILITY REPORT
131
Finally, it is important to highlight how the Panariagroup production plants in Italy 
and in the U.S. reuse 100% of the water in the process. This allows us to reduce the 
consumption of natural water resources by up to 80%. The Group’s water consumption 
is generally much lower than the volume of total water required in the production 
processes. Most of this is reused within processes, thanks to specific water recovery 
technologies, which will result in the reuse of over 430,000 cubic metres by 2021 (Group 
consolidated figure).
Specifically, the company uses purification plants to subject wastewater to a chemical-
physical purification treatment. Once the purification cycle is completed, part of the 
water is normally reused in the process of grinding the mixtures and glazes used in the 
production cycle, while the remaining part is used as washing water for glazing lines or 
mills in the Glaze Grinding department.
The water recovered this way creates a sort of “closed cycle”, since it is reused in the 
same production processes. The only water drained outside the production site is water 
from the toilet facilities (in very low quantities), which is considered as industrial waste 
comparable to civil waste and which, therefore, is discharged into public sewers.
It is important to note that the laminated porcelain stoneware tiles produced by the 
Group - the result of the Group’s commitment to research and innovation - require 
approximately 80% less water than porcelain stoneware tiles.

132
Waste management	
The waste produced in Panariagroup’s plants is assigned, for recovery or - in a minimal 
percentage - for landfill disposal, to external agencies authorised according to the current 
laws. Management of the waste, during its temporary storage inside the plants, takes place 
in special storage areas in compliance with internal procedures and current regulations. In 
2021, the Group produced 79,765 tons of waste, of which 325 tons were hazardous waste 
(0.4% of the total).
During 2021, the Group continued to focus on waste recovery, a commitment that in 
2021 led Panariagroup to recover a total of 78,506 tonnes of waste, accounting for 
98.4% of total waste produced, a 1% increase in recovered waste compared to 2020. In 
terms of production waste, which accounts for about 80% of total waste, the percentage 
of waste recovered was almost 100%; all the Group’s plants recover 100% of the raw 
waste, amounting to about 44 thousand tonnes, which is then reintroduced into the 
production process. In the Italian and U.S. plants, 100% of the fired waste, amounting 
to about 21,000 tonnes, is reintroduced into the ceramic mixture. The figure also takes 
into consideration the Portuguese plant in Aveiro, where work is being done to gradually 
reach the recovery percentage of the aforementioned plants. 
All data on waste management is shown in the “Appendix” section of this document.
5
7
2021
waste13
Italy
Portugal
US
total
Recovered/recycled (t)
56,777 
21,623
105
78,506
Disposal (t)
311 
10 
938
1,259 
Total (t)
57,089
21,633 
1,044
79,765
of which hazardous
306 
19 
-
325
% hazardous waste
0.54%
0.1%
0.0%
0.41%
13.	Details on the type of disposal are currently unavailable. In the coming years, the Group will further develop its data collection process, in order to provide this information in 	
	
the future editions of the Sustainability Report.

PANARIAGROUP - SUSTAINABILITY REPORT
133
In 2021, there was an increase in waste production compared to 2020, equal to 23%, also 
attributable to the resumption of production at full capacity.
The Finale Emilia plant is undergoing extensive plant renovation and at this stage it has not 
been possible to extend the recovery of sewage sludge as was done at the Toano plant. 
At the latter plant, again in 2021 the as-is recovery of production wastewater resulted 
in no ceramic sludge being disposed of externally. In the absence of this intervention, 
wastewater from departments for the preparation of mixtures, grinding and glazing are 
sent to a physical-chemical purifier that produces purified water, subsequently used in 
production, and ceramic sludge which, once filter-pressed, are sent away for recovery. 
Plant modification requires wastewater to be collected in a tank positioned in the mixture 
preparation department and is recovered as it is in wet milling inside the continuous drum 
mills, bypassing the purification stage. This intervention has led to a significant decrease in 
the production of waste (filter-pressed sludge) sent to external companies authorized for 
material recovery.
Panariagroup is evaluating the possible extension of this intervention to the Group’s other 
production plants.
Waste produced by the Group in 2021
(65,890 tonnes in 2020)
Percentage of hazardous waste compared to 
the total waste produced by the Group in 2021 
(0.29% in 2020)
Percentage of waste sent for recovery compared 
to the total waste produced by the Group in 2021 
(98% in 2020)
98.4
79,765 
0.41
tonnes
%
%

134
Packaging	
For some time, the Group has paid close attention to reducing the environmental 
impact in the packaging system through a careful approach to purchasing recycled 
material and efficient use of resources in the packaging process, thanks to the company’s 
ongoing investment across all production sites in Italy and abroad in the use of automatic 
boxing machines in the sorting lines within the production process.
These machines enable optimisation of the use of cardboard during the packaging process 
thanks to the use of thinner paper and cardboard and to waste reduction: the machine 
creates the shape of the packaging by wrapping the product, adjusting the size of the 
packaging accordingly. This technology allows a reduction of up to 50% of used cardboard 
compared to the traditional systems used previously.
Despite significant difficulties in sourcing packaging materials at a time of great 
uncertainty, the Group managed to maintain good sustainable procurement practices and 
during 2021 the Italian Business Unit purchased:
•	 80% of recycled plastic for industrial use, an increase over 2020 that confirms the 	
	 improving trend compared to previous years (79% in 2020 and 2019, 72% in 2018, 57% 	
	 in 2017 and 40% in 2016);
•	 70% of recycled paper and cardboard used for product packaging;
•	 100% of wood for storage and material handling from PEFC or FSC certified suppliers.
Panariagroup is also committed to the recovery of waste materials that are reused by 
the market. To this end, the plastic used to package the tile pallets is duly recovered 
through specialised suppliers and returned to the production cycle with the “GREEN 
Packaging” logo, ensuring that waste is fully traceable for the company and the customer.
5
8

PANARIAGROUP - SUSTAINABILITY REPORT
135

136

PANARIAGROUP - SUSTAINABILITY REPORT
137
6
social 
responsibility

Staff, their well-being, their growth and their 
professional development continue to be our absolute 
priority and the key to our success.
 
Similarly, we support the local areas in which we 
operate by making extensive use of local suppliers and 
developing activities that actively contribute to the 
growth of the community.
Health and safety in the workplace
Employee training and development
Well-being and responsibility towards employees
Responsible supply chain management
The chapter’s material topics
Our contribution to the SDGs

Safety first
We pay great attention to the safety of our staff. 
The number of accidents among our employees remained below 30 per million hours worked.
One priority: our employees’ health
Our flexible work model
1,800
185,000
<30
In 2021, we offered our employees over 1,800 medical visits.
In 2021, our employees used over 185,000 hours of smart working.
in evidence

140
Our employees	
One of Panariagroup’s core values is to always attach central importance to people and 
quality of life, operating with the utmost respect for those who work with the Group.
Its employees, their well-being, their growth and their professional development are key to 
Panariagroup’s success. In managing its employees, Panariagroup endorses a corporate 
culture that attracts the best talents, improves employees’ skills and their ability to 
work in groups, and recognises and rewards their performance, with the ultimate goal of 
contributing to their professional and personal satisfaction.
In order to guarantee the application of these principles, the Group almost exclusively 
employs permanent staff. This type of contract guarantees employees more stability 
and greater opportunities for professional growth. At the same time, the Group takes 
into consideration requests from employees for part-time work, where possible offering job 
opportunities that fit their personal and professional needs.
Operating in a complex economic environment, up to this point Panariagroup has decided 
to maintain stable employment levels and solid relations with the local communities in 
which it operates, avoiding outsourcing of production processes. Indeed, stability in 
relations with employees is a fundamental element in responsibly maintaining the Group’s 
economic growth.
6
1
97%
3%
Group 
employees by 
contract type as 
at 31.12.21
Dati in percentuale
2021
ﬁ xed-term 
contract
permanent 
contract

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As at 31 December 2021, the Group employed 1,690 employees, with 34 less new hires 
compared to the previous year.  
In light of a slightly decreasing workforce, the Group’s turnover between 2020 and 
2021 remained almost stable.
Inclusion and non-discrimination are two values that are considered fundamental to the 
Group’s staff management. These are at the base of various tools used to develop each 
individual’s talent, to facilitate a work-life balance and to safeguard diversity of culture, 
ethnicity, age, gender and skills. The Panariagroup Group is committed to ensuring 
equal opportunities for employees and for those applying to become part of the 
organization. At all of the Group’s plants, respect for individuals and their religious, 
political and sexual orientation is encouraged and every kind of discrimination is prevented 
by promoting diversity, tolerance and acceptance.
With regard to the diversity management strategy, people who are legally recognised 
as disabled are strongly integrated. The careful evaluation, during the induction stage, 
of the position and tasks most suited to the person and their skills and the identification 
of a suitable tutor, allows these workers to make a real contribution to corporate life and 
to effectively improve their skills, relationships and self-image. A careful approach to their 
integration, their protection and above all their development has important repercussions 
on the workers themselves, on their families and, more generally, on the social fabric.
100
0
300
200
500
400
600
700
800
Group 
employees as 
at 31.12.2021
748
783
449 445
453 457
36
4
39
0
Italy
Portugal
USA
India
Germany
2021
2020

142
In the U.S. Business Unit, the “non-discrimination policy” and the “anti-harassment policy” 
have been adopted. In addition to the implementation of a reporting channel for any cases 
or issues concerning human resources or management, there are disciplinary measures for 
employees who violate internal policies and regulations.
In this regard, it should be noted that in 2021, as in 2020, the Group did not detect any 
incidents of discrimination based on race, colour, sex, religion, political views, national 
descent or social origin.
Panariagroup has a work-life balance policy and offers access to flexible working systems 
in the event of maternity or paternity. In addition, the Group strongly supports its 
employees, especially at key moments in their lives, such as the birth of a child. In 
2021, there were 10 parental leaves, all 10 taken by female employees. The rate of return 
from leave for 2021 was 100%, in line with the Group’s retention rate, calculated as the 
number of employees who took leave and are still company employees 12 months on, 
which stands at 100%.
Flexible work arrangements obviously received a particular boost in 2021 due to the 
constraints imposed by the COVID-19 pandemic: remote smart working was introduced 
for a considerable proportion of the company’s employees, who were therefore able 
to safely continue their work. The increased use of this work organisation method 
has allowed function managers to become more focused on goals. In this sense, the 
pandemic situation has had the unexpected benefit of familiarising employees with 
less commonly used organisational methods, meeting their needs and providing them 
with a different, richer perspective on how their work performance is evaluated. Flexible 
work through smart working also continued in 2021 in a more structured way than in 
the previous year, but alternated with a gradual return to attendance, partly in order to 
facilitate employees’ needs.
In 2020, an important project initiated in the previous year was followed up: the employee 
survey on the Italian and Portuguese Business Units, which provided important 
evidence that made it possible to implement specific improvement actions. This 
included structuring and enhancing the company’s internal communication process, in 
order to make certain important organisational and operational communications clearer 
and more efficient for all of the staff.
Great attention and emphasis is always placed on employee welfare initiatives: 
packages of benefits and services that the company updates and offers to the employees. 
Specifically, the Portuguese Business Unit remained particularly active, implementing 
improved health insurance coverage for employees, as well as favourable financial 
conditions for communication services (telephone and TV). The welfare and personal 
care model implemented by Panariagroup has been cited, together with other illustrious 
companies, by the authoritative guide “Welfare aziendale. Secondo welfare, novità, 
gestione e buone pratiche” edited by Prof. Tiziano Treu, further confirming the Group’s 
commitment to social responsibility, recognised as one of the fundamental values of its 
business model.

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143
Another important reflection of employment stability relates to flexibility in career 
planning. Career development within Panariagroup is conducted in harmony with the 
life stages of the employees and their related needs; in agreement with the employee, 
therefore, transitions from part-time to full-time work and vice versa are also facilitated. As 
at 31 December 2021, 53 people were working on part-time contracts, a figure roughly in 
line with 2020.
With regard to remuneration, the Group strongly endorses fair salaries for its employees, in 
line with local legislation.
It is important to note that the Group respects employees’ rights to collective 
bargaining, in compliance with the International Labour Organization Conventions and 
always in compliance with local legislation. In 2021, the Group recorded a collective 
bargaining coverage rate of 71%, in line with previous years. In particular in Italy, where 
this percentage stands at 100%, over the years supplementary corporate-level agreements 
have been developed that stipulate better employment terms than those guaranteed by 
national agreements.
Finally, it should be noted that, in the event of any major organizational changes, the 
Group will comply with the provisions of collective agreements regarding proper notice.

144
We believe in stable relationships 
with our employees: 97% of our 
employment contracts are permanent.
people
sustainability 
fact

PANARIAGROUP - SUSTAINABILITY REPORT
145
Training and development	
Employee training and development is an issue that both the Group and its stakeholders 
consider relevant. Education and professional development are fundamental aspects for 
Panariagroup, with the aim of developing the skills and increasing the knowledge of its 
staff, as well as of ensuring compliance with national legislation and occupational safety.
Training activities are not perceived by the Group as a mere legal obligation, but 
as something beneficial to the corporate organisation. For this reason, the Group 
companies analyse workers’ specific needs on an annual basis, in order to guarantee 
the provision of training activities that are best suited to them and to operational 
requirements.
Training activities on health and safety issues are provided throughout the Group, as 
required by local legislation. In addition, the Group has also offered its employees a 
wide range of training activities identified by the managers of the various areas, since 
they are the most knowledgeable about the specific needs of both the employees 
themselves and of the skills required in their jobs.
In consideration of the concrete needs of employees with environmental 
responsibilities, training events are planned and implemented, in order to improve 
management skills.
The total hours of training provided by the Group in 2021 amounted to 7,991, up 
24% from 2020, of which 5,597 were provided to men and 2,394 to women, with a per 
capita Group average of 5. The 2021 figures reflect a slight recovery after the year of 
the COVID-19 health emergency that affected all the Group’s Business Units, in which 
the transition to smart working, new organisational requirements and internal priorities 
meant that it was not possible to guarantee training in line with that of the previous year. 
With regard to the Italian Business Unit, several specific training and refresher initiatives 
were carried out in 2021. The first one saw the Group actively participate in the creation 
of an “end-of-line” training module within the ITS Impianti Ceramici course, organised 
by the Confindustria Ceramica training area and ITS Maker. This course started in 
late 2021 and over the next few years those who take the course will be given the 
opportunity to do an internship within the Group.
The second one entailed the continuation of “Management Meetings”, periodic 
meetings of the community of Panariagroup managers who gather to share corporate 
results and strategies, as well as testimonials from important external speakers.
6
2

146
Education and professional development 
are fundamental aspects for the Group, 
with the aim of developing the skills and 
increasing the knowledge of its staff.
Despite the difficulties of the new health emergency scenario, the planning and 
provision of safety courses continued in all its forms in 2021 and, similarly, in the 
production departments, the practice of mentoring new employees for a minimum 
period of two weeks, a central aspect for those entering the world of Panariagroup, 
continued. During this training period, employees, in addition to practices in compliance 
with legal obligations, have an opportunity to learn the basic rules and behaviours for 
occupational safety, gradually familiarizing themselves with the machinery and current 
procedures. In the production departments, including during the pandemic, training was 
conducted that especially focused on understanding the operation of new machinery 
and tools.
2021 also saw the continuation of information initiatives for employees relating to the 
issue of Sustainability, through the sending and distribution of a periodic newsletter.
With regard to the U.S. Business Unit, the Learning Management System continued 
to be used in 2021 to enhance the training system with thousands of free courses 
available to employees, including those created by internal staff; these include issues 
related to employee health and well-being. The introduction of this system was critical, 
especially in the year of the pandemic, since many of the courses were taught online to 
address the need for social distancing.
Courses for new hires, covering issues such as health, safety and the environment, were 
offered online through the Paycor platform, an innovation that added an important 
degree of flexibility in how staff could access them. Training requirements are annually 
reviewed by the U.S. Business Unit to ensure that all employees are properly and 
adequately trained. “Ergonomic training” is also offered in the plants and at Florida Tile 
stores to reduce the injury rate and lost day rate, as well as specific training for the use of 
processing machinery with the goal of reducing accidents and possible damage caused 
by incorrect use.
With regard to the Portuguese Business Unit, Gres Panaria Portugal has always 
viewed employee qualification as an important strategic asset. Based on a careful 
analysis of the training needs of its staff, every year a training plan is drawn up and 
approved by the company Management.
In Portugal, a major skills management and development plan was completed in 2020 
and applied in 2021: this dynamic process outlines the combination of knowledge, 
skills and attitudes required to achieve high job performance. Identifying skills enables 
employees to achieve greater autonomy in their day-to-day lives, creates a common 
language and commitment to strategy and business, and simplifies the process of 
changing and adapting staff to new practices, values and technologies.

PANARIAGROUP - SUSTAINABILITY REPORT
147
The model implemented by Gres Panaria Portugal identifies the specific skills required 
for each department, defined as a set of standard procedures that the operator must be 
able to independently carry out in order to correctly perform their work. Every employee 
is therefore assigned a level that ranges from 0 (training period) to 5 (leadership skills). 
The skill level evaluation is carried out on an annual basis and involves the supervision of 
the department manager with the support of a figure from the Quality, Environment and 
Safety Area.
The skills management and development system makes it possible to implement more 
targeted recruitment and selection processes, to more accurately identify the training 
needs of employees, to integrate performance evaluation processes, to facilitate 
comparison between different skill profiles and to identify employees with leadership skills.
Portugal also saw the launch of the “Welcome to GPP” project: a format designed to 
welcome new employees featuring a presentation of the company and all the information 
and references needed to start developing knowledge and a sense of belonging.
In 2021, programs continued with the goal of qualifying the population, aimed at improving 
their education and training, contributing to the improvement of their qualification levels and 
employment status. Gres Panaria Portugal wants to offer the opportunity to increase and 
develop skills through qualified training. To this end, in collaboration with specialised training 
centres, the Portugal Business Unit is developing initiatives to strengthen competitiveness 
and to establish collaborations with international and national counterparts on issues of 
common interest, to promote the internationalisation of companies in the Aveiro Region, to 
encourage entrepreneurship and to promote vocational training, contributing to increasing 
employment and social inclusion.

148
Health and safety                 
in the workplace	
Panariagroup, paying great attention to health and occupational safety issues, has 
implemented an integrated Quality, Environment, Hygiene and Safety management 
system in order to guarantee the protection and safety of its workers. This is one of the 
issues considered fundamental by both the Group and its stakeholders.
In Italy, an environmental and safety management system has been developed in 
compliance with the ISO 9001 and ISO 14001 standards, EMAS Regulation and the UNI 
INAIL Guidelines with the aim of developing and implementing internal procedures 
aimed at preventing, monitoring and managing occupational accidents and injuries. The 
main mechanisms adopted are:
•	 a protocol on the reduction of accidents;
•	 a list of best practices aimed at avoiding exposure to situations considered dangerous 	
	 for certain work processes;
•	 the arrangement of meetings between the main health and safety representatives 	
	 (RSPP, RLSSA and competent doctor), in order to evaluate the negative impacts of 	
	 certain processes on the health and safety of workers;
•	 periodic meetings for prevention and protection from health and safety risks, as well as 	
	 periodic meetings between RSPP and RLSSA aimed at keeping the main managers in 	
	 the plants constantly informed;
•	 an occupational Risk Evaluation Document, prepared in accordance with the 	 	
	 requirements of Legislative Decree no. 81/08.
Panariagroup is also committed to informing all the staff about the importance of 
applying all safety procedures.
The Italian Business Unit reported a recordable occupational accident rate of 35.2 for its 
employees in 2021 (in 2020 the rate was 26.5).
With regard to Portugal, the Margres and Love Tiles plants have implemented an 
integrated Quality, Environment, Health and Safety system, certified according to ISO 
9001, ISO 14001 and EMAS. The safety management system follows the principles of the 
relevant management standard (currently ISO 45001). The main management tools are:
•	 workers’ representatives for occupational health and safety (Law 3/2014);
•	 an internal procedure for analysing occupational risks;
•	 a program to improve occupational health and safety conditions;
•	 programs to promote employee health;
•	 internal training on occupational health and safety;
•	 technical advice on occupational health and safety;
•	 monitoring of occupational risk factors for noise and inhalation of crystalline silica;
•	 internal verification of the minimum safety requirements for work equipment (Directive 	
	 No. 2001/45/EC);
6
3

PANARIAGROUP - SUSTAINABILITY REPORT
149
•	 work analysis meetings, which include health and safety aspects;
•	 gymnastics at work to prevent musculoskeletal injuries;
•	 occupational medical and nursing services (Law 3/2014);
•	 procedure for the control of external service suppliers with regard to social aspects 	
	 and occupational health and safety.
In 2021, the Portuguese company improved its recordable occupational accident rate for 
its employees to 23 (in 2020 the rate was 28.5).
With regard to the U.S. company, at Florida Tile internal procedures are used to 
keep employees focused on good work practices and on behaviour necessary to 
avoid potentially dangerous situations or risks connected to processes in the various 
departments.
According to guidelines based on, among others, OSHA, NIOSH and ANSI standards, 
the main management tools include internal procedures for analysing occupational 
risks, programmes for improving occupational health and safety conditions, promoting 
employee health and safety, including through the provision of occupational medical and 
nursing services and specific training on these issues.
Regular meetings are also held with the aim of sharing correct procedures and 
behaviour among all employees and collecting reports in order to improve the working 
environment and occupational safety.

150
The U.S. Business Unit also offers its employees a free care program, which can help 
them cope with mental and physical well-being, and has provided a doctor who gives 
advice not only on work-specific illnesses, but also regarding any need that each 
employee may have. The focus on occupational health and safety was even more 
important in the year of the pandemic, when the company offered and continues to offer 
its employees psychological support, as well as addressing work-life balance issues.
In previous years and before COVID-19, employees sponsored on-site health and 
wellness fairs in Lawrenceburg, an activity that will be vigorously resumed as soon as 
possible. 
Finally, with regard to the U.S. scope, the work of the “Safety Team” continued in 2021 
with the aim of facilitating workers participation and consultation in the development, 
implementation and evaluation of the occupational health and safety management 
system, and in order to provide access to and communicate relevant information on 
occupational health and safety; the team meets about once a month. The Group 
constantly monitors accident rates and acts decisively to raise staff awareness 
through training and internal communications on aspects of occupational safety and 
through appropriate training for new hires (specific mentoring with expert staff, correct 
use of personal protective equipment and provision of appropriate documentation on 
the subject).

PANARIAGROUP - SUSTAINABILITY REPORT
151
In this respect, the U.S. Business Unit achieved a recordable occupational accident rate 
of 22.0 for its employees in 2021, a slight increase on the previous year (18.9).
In the Italian plants, following the update of the Health and Safety Risk Evaluation 
Document, no urgent and immediate occupational risk situations were detected. Risk 
analysis of the plants is constantly updated, in order to promptly manage occupational 
safety and hygiene problems.
The Group also carefully considers health and safety when designing its products.
The design and development of any Panariagroup product is conducted by qualified 
lab technicians, according to the guidelines established by a specific internal procedure 
that includes, whenever a new raw material is used, a request to the suppliers for a 
safety protocol indicating all the material’s toxicological features. All safety protocols 
are checked and verified before receipt of the material, and are stored in the same 
laboratory for future reference.
The process for the creation of a new product is carefully evaluated to ensure that the 
activities related to the various phases of the production cycle do not negatively 
impact the environment or pose particular risks to workers’ health and safety. 
In order to demonstrate the Group’s attention to employee health and safety, each 
plant has a list of operational safety instructions, describing the correct procedures for 
performing the most dangerous operations in the vicinity of the machinery.
23.8 in 2020
77 in 2020
47.8
26.9
Recordable occupational 
accident rate - employees
Recordable occupational 
accident rate - contractors

152
Relations with local 
communities	
For Panariagroup, Sustainability also encompasses relations with local communities. In 
our management strategies, we consider policies concerning the economic and social 
impact of our presence. The goal is to adopt sustainable behaviours at each level in 
relation to the organizations with which Panariagroup interacts.
The processes implemented for the purpose of the EMAS certification procedure 
are an excellent opportunity to dialogue with the public and stakeholders regarding 
environmental and social issues and the potential impact of the Group’s activities.
The Group also actively contributes to the growth of local communities through 
participation, donations and sponsorships relating to the development and 
improvement of local conditions. The data concerning this commitment is shown in 
the appendix. A relevant example is the donation of tiles to local associations. Despite 
its positioning in the upper tier of the market and its high-end differentiation strategy, 
Panariagroup is committed to selling discontinued or slightly imperfect products at 
reduced prices to encourage the distribution of its products in markets and communities 
with lower purchasing power.
In the U.S., Florida Tile has demonstrated active commitment through donations and 
solidarity activities to support hospitals, associations for the protection of disadvantaged 
categories and sports associations. On some occasions, employees have also been directly 
involved: for example, several days were organized dedicated to helping cancer patients, 
during which Florida Tile employees cooked for the patients and for their caregivers.
The Panariagroup Group has also always been involved in sports sponsorship. Its 
long-term contribution to cycling, involving a multi-year partnership with international 
professional teams, has been supplemented by more local operations. In this regard, 
the activities performed by the Portuguese Business Unit are very significant. Every year, 
the Unit organises the Douro Gran Fondo, a top-level competition that attracts non-
professional cyclists from all over the world, as well as the organisation of the Love Tiles 
Cycling Team, which brings together cycling enthusiasts.
6
4

PANARIAGROUP - SUSTAINABILITY REPORT
153
The Group is also a partner of the Maratona Dles Dolomites-ENEL, an international 
amateur cycling race that attracts almost 10,000 participants to every edition. 
Finally, the company joined a project to relaunch an important cultural institution 
in the district of Sassuolo: together with other important companies in the area, 
Panariagroup is one of the promoters of the recovery of the Carani Theatre, a 
historical institution with a long tradition, with the aim of returning a very important 
cultural asset to the local community.
value of money and products 
donated to local communities 
by the Group in 2021.
176,000
euros

154
Responsible supply         
chain management	
The Panariagroup Group aims to strengthen relations with its suppliers, in order to 
jointly create a system committed to sustainability throughout the whole value chain.
To this end, the Group, which is also aware of the importance of social and 
environmental responsibility along the supply chain, has formalized its Code of 
Business Conduct with the commitment to start a process of implementation of 
policies and procedures aimed at selecting suppliers on the basis of sustainability 
criteria and monitoring the entire supply chain from an ethical, social and environmental 
perspective, respecting human and workers’ rights.
In 2019, the Group developed a process to analyse its supply chain based on 
environmental, social and governance criteria, dividing its suppliers into clusters on the 
basis of a number of variables that identify their potential risk profile and their strategic 
importance for Panariagroup. This process was initially developed for the Italian scope, 
but it was extended to the Portuguese Business Unit in 2020. The Group thus identified 
the suppliers that most expose the company to indirect risks and committed to setting 
up a uniform system for evaluating and monitoring measures adopted in relation to 
environmental, social, governance and quality aspects. 
In the Italian Business Unit, the evaluation reached 82% of the suppliers concerned 
and the suppliers belonging to the cluster with the highest importance and risk profiles 
consistently scored above 75/100, demonstrating a rather developed sensitivity to ESG 
issues. In Portugal, where the first evaluation process was completed in 2020, 93% of the 
suppliers obtained a rating higher than “good” and, in general, the overall analysis of 
the results for all evaluation criteria enabled us to conclude that Gres Panaria Portugal’s 
suppliers have, on average, a good overall rating.
The Group started this project focusing on the most significant suppliers with which it 
had a commercial relationship: any new suppliers belonging to the identified product 
categories are added to the initial list on an annual basis, while the extension of the 
analysis to new relevant product classes is currently being evaluated. Since this is an 
initial process that is still under development, no evaluations of new suppliers based on 
sustainability criteria (social and environmental) were carried out in 2021.
The Group’s suppliers14 are mainly “Primary Suppliers”, from which the Panariagroup 
Group purchases raw materials, finished products and services for its main production 
activities, and “Other Suppliers”, which provide energy, maintenance and transport 
services, as well as other activities and assets for operations.
6
5
14.	The percentage of suppliers in the respective categories is calculated on the basis of the expenditure by type of purchase. Costs for commissions for the entire operating area 	
	
have been excluded from the calculation.

PANARIAGROUP - SUSTAINABILITY REPORT
155
The evaluation of the “Primary Suppliers”, which are then inserted in the List of Qualified 
Suppliers, considers the following factors:
•	 quality of the product offered;
•	 level of attention to Environmental, Social and Governance Policies;
•	 occupational health and safety criteria;
•	 price;
•	 service provided;
•	 results of any visit to the Supplier;
•	 number of registered Non-Conformities;
•	 after-sales assistance, focusing in particular on responses to complaints.
Attention to the following aspects is equally important:
•	 Quality Management System certification in accordance with UNI EN ISO 9001;
•	 Environmental Management System certification in accordance with                         	
	 UNI EN ISO 14001;
•	 possible participation in the EMAS Regulation.
Moreover, as regards supply chain monitoring, through a contractual clause 
Panariagroup requires all its Italian suppliers and contractors to accept the standards 
of conduct defined by the Group’s 231/01 Organization and Management Model 
and whose compliance by the supplier is verified by on-site visits carried out by the 
Group’s Purchasing function. Specifically, particular importance is given to suppliers 
of raw materials, both because they are considered to be the Group’s main suppliers 
and because of the type of processing, since mining is an activity with a significant 
environmental impact.

156
In this regard, the Group monitors the suppliers’ management of the quarries from which 
the raw materials are extracted with inspection visits (audits) carried out on-site at the 
suppliers’ locations by Purchasing Department staff or by qualified technicians. During 
these audits, the methods for extracting materials, for managing and monitoring the 
environmental impact generated and for performing subsequent laboratory analyses 
are checked.
The process of selecting suppliers in Portugal, with the aim of avoiding any conflict of 
interest, deserves a particular mention. Those who require materials are not allowed 
to formalise an order with a supplier, but they must file a specific request. Only the 
Purchasing Department, after having received and compared three quotes from three 
different potential suppliers, can formally place the order. The administration can only 
proceed with payment when the whole process has been successfully concluded. Large 
investments are always authorised by the technical staff of the Parent Company, in 
order to add a further control stage to the whole process.
In the U.S., moreover, the Group added specific sustainability clauses linked to 
environmental and social aspects to the supply contracts.
Panariagroup recognizes the importance of supporting and developing the local 
economy. In this regard, the tables in the “Appendix” section of this document show the 
expenditure on local suppliers , which for 2021 accounted for 89% of total expenditure 
(89% in 2020).
15. “Local suppliers” were considered to be those suppliers with a registered office in the country in which each Business Unit operates.

PANARIAGROUP - SUSTAINABILITY REPORT
157
The environmental, social and economic risks that may affect the supply chain 
deserve particular attention. From an environmental perspective, the risks are related 
to the failure by suppliers to properly manage natural resources and to the loss of 
biodiversity, in particular, in relation to the activities of suppliers of raw materials, whose 
extraction processes could significantly impact the environment.
The production of ceramic starts from the grinding of raw materials. This stage is subject 
to fluctuations in quantity and/or price due to problems with the extracting process or to 
international tensions (conflicts, change in the cost of transportation due to changes in the 
value of oil, exchange rates and so on). This is one of the reasons why the Panariagroup 
Group laboratories and technicians constantly research alternative raw materials. The 
composition of the mixture and transport methods are therefore based on a number of 
different channels (quarries in different geographical areas, several supply channels, use 
of different transport methods), so that different solutions can be used depending on the 
different problems that may arise. In this regard, it should be noted that the worsening of 
the crisis in Ukraine with the consequent outbreak of the conflict with Russia has caused 
the cessation of supplies from this country: clay from Ukraine (about 75,000 t/year out 
of a total of 136,000 t/year of clay used by the Italian BU) is therefore being replaced, 
as stocks are depleted, with alternative raw materials, mainly from Europe (Germany, 
Portugal, Turkey, etc.). To date, the Group is continuing to search for and test raw materials 
from various sources to find the best solution for the mixture, both from a technical and 
commercial standpoint and in terms of long-term sustainability.
The procurement of raw materials also emerges as a relevant issue, especially with 
regard to the extraction of the material in the quarries by the suppliers. Panariagroup, in 
this regard, requires all suppliers of raw materials obtained by mining to have licenses 
for the mines that include the obligation to redevelop the land when the mines are no 
longer in use. In addition to the Environmental Impact Assessment, Panariagroup also 
requires mining authorisation and documentation with the geographical coordinates of 
the sites. Production of this documentation accounts for 75% of the evaluation within the 
“Environmental” section. From a social perspective, moreover, it should be noted that 
none of the raw materials purchased by the Group are linked to “conflict minerals”.

158

PANARIAGROUP - SUSTAINABILITY REPORT
159
7
attachments

160
Environmental data
For 2021, the scope of the environmental data refers to the Group companies that 
operate production sites. Companies with only commercial offices, Gres Panaria 
Central Europe GmbH and Montanari Ceramiche S.r.l., are excluded, since they are 
not considered relevant to an understanding of the Group’s business activities and the 
impact of its products.
      
7
17
1
ENERGY CONSUMPTION
Total energy consumption by source (renewable and non-renewable)16
                                                                           2020
2021
 IT
PT
US
TOTAL
 IT
PT
US
TOTAL
Total energy consumption (GJ)
1,423,001
846,987
564,401
2,834,390
1,815,101
1,030,839
595,323
3,441,263
of which:
from renewable sources (GJ)
1,734
-
-
1,734
1,480
-
-
1,480
from non-renewable sources (GJ)
1,421,267
846,987
564,401
2,832,655
1,813,621
1,030,839
595,323
3,439,783
Total energy consumption by type16
                                                                           2020
2021
 IT
PT
US
TOTAL
 IT
PT
US
TOTAL
Total energy consumption (GJ)
1,423,001
846,987
564,401
2,834,390
1,815,101
1,030,839
595,323
3,441,263
of which:
electricity purchased (GJ)
243,150
160,971
110,695
514,816
295,694
183,421
108,743
587,858
electricity self-generated from 
renewable sources (GJ)
1,734
-
-
1,734
1,480
-
-
1,480
natural gas (GJ)
1,158,330
678,675
451,333
2,288,338
1,494,548
839,748
483,902
2,818,197
LPG (GJ)
-
67
535
601
-
75
662
737
diesel for industrial vehicles (GJ)
12,285
2,220
1,696
16,201
14,832
2,676
1,809
19,317
petrol for industrial vehicles (GJ)
-
-
-
-
-
-
-
-
diesel for car fleet (GJ)
7,404
5,055
-
12,459
8,374
4,300
-
12,674
petrol for cat fleet (GJ)
98
-
141
239
174
619
207
1,000
16.	It should be noted that, following an improvement in the U.S. Business Unit’s reporting system for LPG, the 2020 energy consumption figure has been restated from the figure 
published in the previous Sustainability Report. For the previously published data, please refer to the 2020 Sustainability Report, which can be found in the Sustainability section on 
www.panariagroup.it

PANARIAGROUP - SUSTAINABILITY REPORT
161
17.	It should be noted that, following an improvement in the U.S. Business Unit’s reporting system for LPG, the 2020 figure for direct emissions – Scope 1 has been restated 
from the figure published in the previous Sustainability Report. For the previously published data, please refer to the 2020 Sustainability Report, which can be found in the 
Sustainability section on www.panariagroup.it
18.	The figure for Scope 1 direct emissions from the raw material firing process takes into consideration the carbonates contained in the clay, feldspar, sand and zirconium/bleaching 
agents. The figure for the U.S. Business Unit is estimated based on the European parameters already used for the Italian and Portuguese Business Units.
19.	The emission factors reported by Terna, Confronti Internazionali version 2018 and 2019, and by AIB, European Residual Mix version 2020, are expressed in tons of CO2; however 
the percentage of methane and nitrous oxide has a negligible effect on the total greenhouse gas (CO2e) emissions, as can be inferred from the relevant technical literature.
Total direct and indirect emissions17
                                                                        2020
2021
 IT
PT
US
TOTAL
 IT
PT
US
TOTAL
Direct emissions - Scope 1 
(tCO2e) Energy
66,919
38,906
25,682
131,508
85,926
47,895
27,461
161,282 
Direct emissions - Scope 1 
(tCO2e) Raw material processing18
768
3,453
293
4,515
674
4,435
424
5,533
Direct emissions - Scope 1 
(tCO2e) Total
67,687
42,360
25,976
136,023
86,600
52,330
27,885
166,815
Indirect emissions - Scope 2 
(tCO2) - Location-based19
22,694
14,666
12,269
49,629
25,873
14,011
11,297
51,181
Indirect emissions - Scope 2 
(tCO2) - Market based
31,474
11,447
12,269
55,190
37,701
19,106
11,297
68,104
EMISSIONS
NOx, SOx and other pollutant emissions
                                                                        
2020
2021
t/year
t/year
NOx
102
118
SOx
20
14
Persistent organic pollutants (POPs)
-
-
Volatile organic compounds (VOCs)
70
71
Hazardous air pollutants (HAPs)
3
3
Particulate matter (PM)
53
57
Other emission standard categories identified in the applicable legislation
39
38
Conversion factors 
2020
2021
LOWER CALORIFIC VALUE OF FUELS
LCV
LCV
Natural gas (GJ/m3)
0.036
0.036
LPG (GJ/ton)
45.94
45.94
Diesel (GJ/ton)
42.64
42.47
Petrol (GJ/ton)
43.83
43.80
Source
UK Government GHG 
conversion factors for 
company reporting, 2020
UK Government GHG 
conversion factors for 
company reporting, 2021

162
Emission factors
2021
Electricity
(gCO2/kWh) - Location
based19
Electricity   
(gCO2/kWh) - Market 
based19
Natural gas  
(tCO2e/m3)
LPG
(tCO2e/ton)
Diesel   
(tCO2e/ton)
Petrol   
(tCO2e/ton)
Italy
315
459
0.002
2.939
2.969
2.948
Portugal
275
375
US
374
374
Source
Terna,
Confronti 
Internazionali, 2019
AIB, European Residual 
Mix 2020 for Italy and 
Portugal, Terna
Confronti Internazionali,
2019 for US
UK Government 
GHG conversion 
factors for 
company 
reporting, 2021
UK Government 
GHG conversion 
factors for 
company 
reporting, 2021
UK Government 
GHG conversion 
factors for 
company 
reporting, 2021
UK Government 
GHG conversion 
factors for 
company 
reporting, 2021
2020
Electricity
(gCO2/kWh) - Location
based19
Electricity   
(gCO2/kWh) - Market 
based19
Natural gas  
(tCO2e/m3)
LPG
(tCO2e/ton)
Diesel   
(tCO2e/ton)
Petrol   
(tCO2e/ton)
Italy
336
466
0.002
2.939
3.029
2.942
Portugal
328
256
US
399
399
Source
Terna,
Confronti 
Internazionali, 2019
AIB, European Residual 
Mix 2019 for Italy 
and Portugal, Terna, 
Confronti Internazionali, 
2018 for US
UK Government 
GHG conversion 
factors for 
company 
reporting, 2020
UK Government 
GHG conversion 
factors for 
company 
reporting, 2020
UK Government 
GHG conversion 
factors for 
company 
reporting, 2020
UK Government 
GHG conversion 
factors for 
company 
reporting, 2020
19.	I fattori di emissione riportati da Terna, Confronti Internazionali versione 2018 e 2019, e da AIB, European Residual Mix versione 2020, sono espressi in tonnellate di CO2, tuttavia la 
percentuale di metano e protossido di azoto ha un effetto trascurabile sulle emissioni totali di gas serra (CO2e), come desumibile dalla letteratura tecnica di riferimento.

PANARIAGROUP - SUSTAINABILITY REPORT
163
WATER AND WASTEWATER
Water withdrawal 
WITHDRAWAL SOURCE (ML)
2020
2021
All areas
Water-stressed areas
All areas
Water-stressed areas
ITALY
Surface water 
-
-
-
-
Groundwater 
152
-
188
-
of which fresh water (≤1,000 mg/l total dissolved solids)
152
-
188
-
Seawater 
-
-
-
-
Water produced
25
-
33
-
of which fresh water (≤1,000 mg/l total dissolved solids)
25
-
33
-
Third-party water resources 
14
-
15
-
of which fresh water (≤1,000 mg/l total dissolved solids)
14
-
15
-
Total water withdrawal
191
-
236
-
PORTUGAL
Surface water 
-
-
-
-
Groundwater 
154
-
179
-
of which fresh water (≤1,000 mg/l total dissolved solids)
154
-
179
-
Seawater 
-
-
-
-
Water produced
18
-
23
-
of which fresh water (≤1,000 mg/l total dissolved solids)
18
-
23
-
Third-party water resources 
5
-
5
-
of which fresh water (≤1,000 mg/l total dissolved solids)
5
-
5
-
Total water withdrawal
177
-
207
-
US
Surface water 
-
-
-
-
Groundwater 
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Seawater 
-
-
-
-
Water produced
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Third-party water resources 
45
-
43
-
of which fresh water (≤1,000 mg/l total dissolved solids)
45
-
43
-
Total water withdrawal
45
-
43
-
GROUP TOTAL
Surface water 
-
-
-
-
Groundwater 
305
-
367
-
of which fresh water (≤1,000 mg/l total dissolved solids)
305
-
367
-
Seawater 
-
-
-
-
Water produced
44
-
56
-
of which fresh water (≤1,000 mg/l total dissolved solids)
44
-
56
-
Third-party water resources 
64
-
62
-
of which fresh water (≤1,000 mg/l total dissolved solids)
64
-
62
-
Total water withdrawal
413
-
485
-

164
Wastewater 
DISPOSAL SITE (ML)
2020
2021
All areas
Water-stressed areas
All areas
Water-stressed areas
ITALY
Surface water 
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Groundwater  
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Seawater  
-
-
-
-
Third-party water resources  
13
-
15
-
of which fresh water (≤1,000 mg/l total dissolved solids)
13
-
15
-
of which other types of water (> 1,000 mg/l total dissolved solids)
0.04
-
0.05
-
Total wastewater
13
-
15
-
PORTUGAL20
Surface water
55
-
53
-
of which fresh water (≤1,000 mg/l total dissolved solids)
55
-
53
-
Groundwater
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Seawater
-
-
-
-
Third-party water resources  
5
-
4
-
of which fresh water (≤1,000 mg/l total dissolved solids)
5
-
4
-
of which other types of water (> 1,000 mg/l total dissolved solids)
-
-
-
-
Total wastewater
60
-
57
-
US
Surface water
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Groundwater
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Seawater
-
-
-
-
Third-party water resources  
16
-
17
-
of which fresh water (≤1,000 mg/l total dissolved solids)
16
-
17
-
of which other types of water (> 1,000 mg/l total dissolved solids)
-
-
-
-
Total wastewater
16
-
17
-
GROUP TOTAL
Surface water
55
-
53
-
of which fresh water (≤1,000 mg/l total dissolved solids)
55
-
53
-
Groundwater
-
-
-
-
of which fresh water (≤1,000 mg/l total dissolved solids)
-
-
-
-
Seawater
-
-
-
-
Third-party water resources  
34
-
36
-
of which fresh water (≤1,000 mg/l total dissolved solids)
34
-
36
-
of which other types of water (> 1,000 mg/l total dissolved solids)
0.04
-
0.05
-
Total wastewater
89
-
89
-
20.	It should be noted that, following an improvement in the Portuguese Business Unit’s reporting system, the 55 ML reported as groundwater in the previous Sustainability 
Report was categorised as water discharged to the surface. For the previously published data, please refer to the 2020 Sustainability Report, which can be found in the 
Sustainability section on www.panariagroup.it.

PANARIAGROUP - SUSTAINABILITY REPORT
165
WASTE
Waste by treatment method and composition21
WASTE COMPOSITION (t)
2021
IT
PT
US
TOTALE
Plastic
267
70
6
343
of which disposed
1
-
-
1
of which recovered
266
70
6
342
of which hazardous
-
-
-
-
Wood
514
141
13
668
of which disposed
-
-
-
-
of which recovered
514
141
13
668
of which hazardous
-
-
-
-
Paper
460
152
47
659
of which disposed
-
-
-
of which recovered
460
152
47
659
of which hazardous
-
-
-
-
Production waste
54,698
6,488
61,186
of which disposed
227
-
-
227
of which recovered
54,471
6,488
-
60,959
of which hazardous
227
-
-
227
Electronics and batteries
12
2
-
14
of which disposed
-
1
-
1
of which recovered
12
1
-
13
of which hazardous
10
1
-
11
Toners and varnishes
0.31
-
-
0.31
of which disposed
-
-
-
-
of which recovered
0.31
-
-
0.31
of which hazardous
-
-
-
-
Other waste
1,138
14,780
977
16,895
of which disposed
84
9
938
1,031
of which recovered
1,054
14,772
39
15,865
of which hazardous
69
18
-
87
Total waste produced
57,089
21,633
1,044
79,765
of which disposed
311
10
938
1,259
of which recovered
56,777
21,623
105
78,506
of which hazardous
306
19
-
325
% waste recovered
99.5%
99.9%
10.1%
98.4%
% hazardous waste
0.5%
0.09%
0.0%
0.4%
21.	See footnote 13, p. 132 of this document.

166
Waste by treatment method and composition22
WASTE COMPOSITION (t)
202023
IT
PT
US
TOTAL
Plastic
245
79
-
324
of which disposed
-
-
-
-
of which recovered
245
79
-
324
of which hazardous
-
-
-
-
Wood
479
117
-
596
of which disposed
-
-
-
-
of which recovered
479
117
-
596
of which hazardous
-
-
-
-
Paper
368
172
-
540
of which disposed
3
-
-
3
of which recovered
365
172
-
537
of which hazardous
-
-
-
-
Production waste
45,805
4,799
-
50,603
of which disposed
119
-
-
119
of which recovered
45,686
4,799
-
50,485
of which hazardous
119
-
-
119
Electronics and batteries
10
3
1
14
of which disposed
-
-
-
-
of which recovered
10
3
-
13
of which hazardous
8
-
1
9
Toners and varnishes
0.24
-
-
0.24
of which disposed
-
-
-
-
of which recovered
0.24
-
-
0.24
of which hazardous
-
-
-
-
Other waste
984
10,407
1,181
12,573
of which disposed
96
8
1,147
1,252
of which recovered
888
10,399
35
11,321
of which hazardous
43
20
-
63
Total waste produced
47,891
15,578
1,183
64,651
of which disposed
218
8
1,147
1,374
of which recovered
47,672
15,570
35
63,277
of which hazardous
170
20
-
190
% waste recovered
99.5%
99.9%
3.0%
97.9%
% hazardous waste
0.4%
0.13%
0.0%
0.3%
22. See footnote 13, p. 132 of this document.
23.	It should be noted that, following an improvement in the U.S. Business Unit’s reporting system for production waste, the 2020 waste figure has been restated from the figure 
published in the previous Sustainability Report. For the previously published data, please refer to the 2020 Sustainability Report, which can be found in the Sustainability section 
on www.panariagroup.it.

PANARIAGROUP - SUSTAINABILITY REPORT
167
PRODUCTION
Surface area and weight of tiles produced
2020
2021
IT
PT
US
TOTAL
IT
PT
US
TOTAL
Surface area of tiles 
produced (m2)
9,582,016
6,256,745
4,340,395
20,179,156
12,007,348
7,810,619
4,547,1943
24,365,161
Energy intensity (GJ/m2)
0.149
0.135
0.130
0.140
0.151
0.132
0.131
0.141
Location-based emission 
intensity (tCO2/m2)
0.009
0.009
0.009
0.009
0.009
0.008
0.009
0.009
Market-based emission 
intensity (tCO2/m2)
0.010
0.009
0.009
0.009
0.010
0.009
0.009
0.010

168
Human resources data	
For 2021, the scope of human resources data, including health and safety aspects, refers 
to Group companies using the full consolidation method in the consolidated financial 
statement. It should be noted that the Gres Panaria Central Europe GmbH company 
started active operations in 2021. 
7
2
Number of employees by Country, gender and type of contract as at 31 December   
2020
2021
Men
Women
Total
Men
Women
Total
ITALY
569
290
859
600
296
896
Employees
514
269
783
489
259
748
Staff leasing workers
55
21
76
111
37
148
Apprentices
-
-
-
-
-
-
Interns/trainees
-
-
-
-
-
-
PORTUGAL
431
134
565
399
136
535
Employees
321
124
445
326
123
449
Staff leasing workers
110
9
119
73
13
86
Apprentices
-
-
-
-
-
-
Interns/trainees
-
1
1
-
-
-
US
333
132
465
331
128
459
Employees
325
132
457
326
127
453
Staff leasing workers
8
-
8
5
1
6
Apprentices
-
-
-
-
-
-
Interns/trainees
-
-
-
-
-
-
INDIA
37
5
42
31
8
39
Employees
35
4
39
29
7
36
Staff leasing workers
2
1
3
2
1
3
Apprentices
-
-
-
-
-
-
Interns/trainees
-
-
-
-
-
-
GERMANY
-
-
-
4
-
4
Employees
-
-
-
4
-
4
Staff leasing workers
-
-
-
-
-
-
Apprentices
-
-
-
-
-
-
Interns/trainees
-
-
-
-
-
-
GROUP TOTAL
1,370
561
1,931
1,365
568
1,933
Employees
1,195
529
1,724
1,174
516
1,690
Staff leasing workers
175
31
206
191
52
243
Apprentices
-
-
-
-
-
-
Interns/trainees
-
1
1
-
-
-
NUMBER OF EMPLOYEES

PANARIAGROUP - SUSTAINABILITY REPORT
169
Number of employees by Country, gender and type of contract as at 31 December   
2020
2021
Men
Women
Total
Men
Women
Total
ITALY
514
269
783
489
259
748
Permanent employees
510
268
778
486
257
743
Fixed-term contract employees
4
1
5
3
2
5
PORTUGAL
321
124
445
326
123
449
Permanent employees
292
112
404
291
119
410
Fixed-term contract employees
29
12
41
35
4
39
US
325
132
457
326
127
453
Permanent employees
325
132
457
326
127
453
Fixed-term contract employees
-
-
-
-
-
-
INDIA
35
4
39
29
7
36
Permanent employees
35
4
39
29
7
36
Fixed-term contract employees
-
-
-
-
-
-
GERMANY
-
-
-
4
-
4
Permanent employees
-
-
-
4
-
4
Fixed-term contract employees
-
-
-
-
-
-
GROUP TOTAL
1,195
529
1,724
1,174
516
1,690
Permanent employees
1,162
516
1,678
1,136
510
1,646
Fixed-term contract employees
33
13
46
38
6
44
Number of Part-Time and Full-Time employees by gender as at 31 December
2020
2021
Men
Women
Total
Men
Women
Total
ITALY
514
269
783
489
259
748
Full-time
507
224
731
482
218
700
Part-time
7
45
52
7
41
48
PORTUGAL
321
124
445
326
123
449
Full-time
321
124
445
326
123
449
Part-time
-
-
-
-
-
-
US
325
132
457
326
127
453
Full-time
324
131
455
321
127
448
Part-time
1
1
2
5
-
5
INDIA
35
4
39
29
7
36
Full-time
35
4
39
29
7
36
Part-time
-
-
-
-
-
-
GERMANY
-
-
-
4
-
4
Full-time
-
-
-
4
-
4
Part-time
-
-
-
-
-
-
GROUP TOTAL
1,195
529
1,724
1,174
516
1,690
Full-time
1,187
483
1,670
1,162
475
1,637
Part-time
8
46
54
12
41
53

170
Number of employees by employee category and gender as at 31 December
2020
2021
Men
Women
Total
Men
Women
Total
ITALY
514
269
783
489
259
748
Senior manager
32
-
32
33
-
33
White-collar workers
165
109
274
158
111
269
Blue-collar workers
317
160
477
298
148
446
PORTUGAL
321
124
445
326
123
449
Senior manager
11
3
14
11
3
14
White-collar workers
43
59
102
39
61
100
Blue-collar workers
267
62
329
276
59
335
US
325
132
457
326
127
453
Senior manager
17
7
24
17
7
24
White-collar workers
92
104
196
90
94
184
Blue-collar workers
216
21
237
219
26
245
INDIA
35
4
39
29
7
36
Senior manager
2
-
2
2
-
2
White-collar workers
24
4
28
20
7
27
Blue-collar workers
9
-
9
7
-
7
GERMANY
-
-
-
4
-
4
Senior manager
-
-
-
1
-
1
White-collar workers
-
-
-
3
-
3
Blue-collar workers
-
-
-
-
-
-
GROUP TOTAL
1,195
529
1,724
1,174
516
1,690
Senior manager
62
10
72
64
10
74
White-collar workers
324
276
600
310
273
583
Blue-collar workers
809
243
1,052
800
233
1,033
Number of employees by employee category and age as at 31 December
2020
2021
<30
30-50
>50
Total
<30
30-50
>50
Total
ITALY
38
412
333
783
28
390
330
748
Senior manager
-
15
17
32
-
13
20
33
White-collar workers
18
165
91
274
13
157
99
269
Blue-collar workers
20
232
225
477
15
230
211
446
PORTUGAL
41
247
157
445
39
243
167
445
Senior manager
-
10
4
14
-
9
5
14
White-collar workers
8
66
28
102
6
63
31
100
Blue-collar workers
33
171
125
329
33
171
131
335
US
82
229
146
457
76
221
156
453
Senior manager
-
14
10
24
-
14
10
24
White-collar workers
24
104
68
196
19
96
69
184
Blue-collar workers
58
111
68
237
57
111
77
245
INDIA
5
31
3
39
7
26
3
36
Senior manager
-
1
1
2
-
1
1
2
White-collar workers
2
24
2
28
4
21
2
27
Blue-collar workers
3
6
-
9
3
4
-
7
GERMANY
-
-
-
-
1
1
2
4
Senior manager
-
-
-
-
-
-
1
1
White-collar workers
-
-
-
-
1
1
1
3
Blue-collar workers
-
-
-
-
-
-
-
-
GROUP
166
919
639
1,724
151
881
658
1,690
Senior manager
-
40
32
72
-
37
37
74
White-collar workers
52
359
189
600
43
338
202
583
Blue-collar workers
114
520
418
1,052
108
506
419
1,033

PANARIAGROUP - SUSTAINABILITY REPORT
171
Number of protected class employees by category and gender as at 31 December24
2020
2021
Men
Women
Total
Men
Women
Total
ITALY
21
12
33
19
13
32
Senior manager
-
-
-
-
-
-
White-collar workers
2
2
4
2
2
4
Blue-collar workers
19
10
29
17
11
28
PORTUGAL
-
-
-
-
-
-
Senior manager
-
-
-
-
-
-
White-collar workers
-
-
-
-
-
-
Blue-collar workers
-
-
-
-
-
-
U.S.
5
1
6
5
3
8
Senior manager
-
-
-
-
-
-
White-collar workers
-
1
1
1
3
4
Blue-collar workers
5
-
5
4
-
4
INDIA
-
-
-
-
-
-
Senior manager
-
-
-
-
-
-
White-collar workers
-
-
-
-
-
-
Blue-collar workers
-
-
-
-
-
-
GERMANY
-
-
-
-
-
-
Senior manager
-
-
-
-
-
-
White-collar workers
-
-
-
-
-
-
Blue-collar workers
-
-
-
-
-
-
GROUP TOTAL
26
13
39
24
16
40
Senior manager
-
-
-
-
-
-
White-collar workers
2
3
5
3
5
8
Blue-collar workers
24
10
34
21
11
32
Composition of the Board of Directors as at 31 December 2021, by gender and age
NAME AND SURNAME
Gender
<30
30-50
>50
Emilio Mussini
M
•
Paolo Mussini
M
• 
Giuliano Pini
M 
• 
Andrea Mussini
M
•
Marco Mussini
M
•
Daniele Prodi
M
•
Men - 100%
>50 anni - 100%
24.	The protected class category is defined according to the local laws of each individual Country. For the calculation of U.S. protected classes, only employees with “disability” 	
	
status were considered, in order to further align the data with the national legislation where the Group’s other Business Units are present.

172
Employee new hires by gender and age25
2020
2021
Men
Women
Total
Employee 
new hires as 
% of total 
Men
Women
Total
Employee 
new hires as 
% of total 
ITALY
10
6
16
7
7
14
Age <30 years
5
1
6
15.8%
1
3
4
14.3%
Age 30-50 years
5
5
10
2.4%
4
2
6
1.5%
Age > 50 years
-
-
-
0.0%
2
2
4
1.2%
Employee new hires as % of total
1.9%
2.2%
2.0%
1.4%
2.7%
1.9%
PORTUGAL
14
3
17
35
5
40
Age <30 years
8
1
9
22.0%
16
1
17
43.6%
Age 30-50 years
6
2
8
3.2%
15
4
19
7.8%
Age > 50 years
-
-
-
0.0%
4
-
4
2.4%
Employee new hires as % of total
4.4%
2.4%
3.8%
10.7%
4.1%
8.9%
U.S.
169
57
226
166
51
217
Age <30 years
72
23
95
115.9%
64
16
80
105.3%
Age 30-50 years
75
25
100
43.7%
73
28
101
45.7%
Age > 50 years
22
9
31
21.2%
29
7
36
23.1%
Employee new hires as % of total
52.0%
43.2%
49.5%
50.9%
40.2%
47.9%
INDIA
7
-
7
8
3
11
Age <30 years
-
-
-
0.0%
3
1
4
57.1%
Age 30-50 years
7
-
7
22.6%
5
2
7
26.9%
Age > 50 years
-
-
-
0.0%
-
-
-
0.0%
Employee new hires as % of total
20.0%
0.0%
17.9%
27.6%
42.9%
30.6%
GERMANY
-
-
-
-
4
-
4
Age <30 years
-
-
-
-
1
-
1
100%
Age 30-50 years
-
-
-
-
1
-
1
100%
Age > 50 years
-
-
-
-
2
-
2
100%
Employee new hires as % of total
-
-
-
-
100%
0.0%
100%
GROUP TOTAL
200
66
266
220
66
286
Age <30 years
85
25
110
66.3%
85
21
106
70.2%
Age 30-50 years
93
32
125
13.6%
98
36
134
15.2%
Age > 50 years
22
9
31
4.9%
37
9
46
7.0%
Employee new hires as % of total26
16.7%
12.5%
15.4%
18.7%
12.8%
16.9%
25.	Data on new hires does not include seasonal staff and intra-group transfers.
26.	Employee new hires as a % of total is calculated as follows: number of new hires during the year/total employees at the end of the year*100

PANARIAGROUP - SUSTAINABILITY REPORT
173
Employee terminations by gender and age27
2020
2021
Men
Women
Total
Employee 
new hires as 
% of total 
Men
Women
Total
Employee 
new hires as 
% of total 
ITALY
24
13
37
32
17
49
Age <30 years
1
-
1
2.6%
2
-
2
7.1%
Age 30-50 years
8
2
10
2.4%
8
3
11
2.8%
Age > 50 years
15
11
26
7.8%
22
14
36
10.9%
Employee terminations as a % of total
4.7%
4.8%
4.7%
6.5%
6.6%
6.6%
PORTUGAL
14
5
19
30
6
36
Age <30 years
3
1
4
9.8%
8
-
8
20.5%
Age 30-50 years
6
1
7
2.8%
15
4
19
7.8%
Age > 50 years
5
3
8
5.1%
7
2
9
5.4%
Employee terminations as a % of total
4.4%
4.0%
4.3%
9.2%
4.9%
8%
U.S.
182
73
255
170
51
221
Age <30 years
66
22
88
107.3%
58
14
72
94.7%
Age 30-50 years
88
33
121
52.8%
90
27
117
52.9%
Age > 50 years
28
18
46
31.5%
22
10
32
20.5%
Employee terminations as a % of total
56.0%
55.3%
55.8%
52.1%
40.2%
48.8%
INDIA
12
-
12
14
-
14
Age <30 years
-
-
-
0.0%
-
-
-
0.0%
Age 30-50 years
11
-
11
35.5%
14
-
14
53.8%
Age > 50 years
1
-
1
33.3%
-
-
-
0.0%
Employee terminations as a % of total
34.3%
0.0%
30.8%
48.3%
0.0%
30.8%
GERMANY
-
-
-
-
-
-
-
Age <30 years
-
-
-
-
-
-
-
0.0%
Age 30-50 years
-
-
-
-
-
-
-
0.0%
Age > 50 years
-
-
-
-
-
-
-
0.0%
Employee terminations as a % of total
-
-
-
-
0.0%
0.0%
0.0%
GROUP TOTAL
232
91
323
246
74
320
Age <30 years
70
23
93
56.0%
68
14
82
54.3%
Age 30-50 years
113
36
149
16.2%
127
34
161
18.3%
Age > 50 years
49
32
81
12.7%
51
26
77
11.7%
Employee terminations as a % of total28
19.4%
17.2%
18.7%
21.0%
14.3%
18.9%
27.	The data for employee terminations does not include seasonal staff and intra-group transfers.
28.	Employee terminations as a % of total is calculated as follows: number of outgoing employees during the year/total employees at the end of the year*100.

174
PARENTAL LEAVE 
Parental leave 2020
Italy
Portugal
US
India
Men
Women Total
Men
Women Total
Men
Women Total
Men
Women Total
Employees who took parental 
leave during 2020
-
3
3
3
3
6
-
5
5
-
1
1
of which status as at 31/12/2020
still on leave
-
1
1
2
3
5
-
1
1
-
-
-
returned and still employed
-
2
2
1
-
1
-
3
3
-
1
1
resigned
-
-
-
-
-
-
-
1
1
-
-
-
Return to work rate as at 
31/12/2020
-
100%
100%
100%
-
100%
-
75%
75%
-
100%
100%
Employees who took parental 
leave during 2019
-
3
3
7
3
10
-
3
3
-
-
-
of which status as at 31/12/2019
still on leave
-
-
-
3
2
5
-
-
-
-
-
-
returned and still employed
-
3
3
4
1
5
-
2
2
-
-
-
resigned
-
-
-
-
-
-
-
1
1
-
-
-
Return to work rate as at 
31/12/2019
-
100%
100%
100%
-
100%
-
67%
67%
-
-
-
Employees who took parental 
leave during 2019
-
3
3
5
2
10
-
3
3
-
-
-
of which status as at 31/12/2020
still on leave
-
-
-
3
2
5
-
-
-
-
-
-
returned and still employed
-
3
3
4
1
5
-
2
2
-
-
-
resigned
-
-
-
-
-
-
-
1
1
-
-
-
Retention rate as at 31/12/2020
-
100%
100%
100%
100%
100%
-
67%
67%
-
-
-

PANARIAGROUP - SUSTAINABILITY REPORT
175
Parental leave 2021
Italy
Portugal
US
India
Germany
Men
Women Total
Men
Women Total
Men
Women Total
Men
Women Total
Men
Women Total
Employees who took parental 
leave during 2021
-
7
7
-
-
-
-
3
3
-
-
-
-
-
-
of which status as at 31/12/2021
still on leave
-
4
4
-
-
-
-
-
-
-
-
-
-
-
-
returned and still employed
-
3
3
-
-
-
-
3
3
-
-
-
-
-
-
resigned
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Return to work rate as at
31/12/2021
-
100%
100%
-
-
-
-
100%
100%
-
-
-
-
-
-
Employees who took parental 
leave during 2020
-
3
3
3
3
6
-
5
5
-
1
1
-
-
-
of which status as at 31/12/2020
still on leave
-
1
1
2
3
5
-
1
1
-
-
-
-
-
-
returned and still employed
-
2
2
1
-
1
-
3
3
-
1
1
-
-
-
resigned
-
-
-
-
-
-
-
1
1
-
-
-
-
-
-
Return to work rate as at 
31/12/2020
-
100%
100%
100% -
100%
-
75%
75%
-
100%
100%
-
-
-
Employees who took parental 
leave during 2020
-
3
3
3
3
6
-
5
5
-
1
1
-
-
-
of which status as at 31/12/2021
still on leave
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
returned and still employed
-
3
3
3
3
6
-
4
4
-
1
1
-
-
-
resigned
-
-
-
-
-
-
-
1
1
-
-
-
-
-
-
Retention rate as at 
31/12/2021
-
100%
100%
100% 100%
100%
-
80%
80%
-
100%
100%
-
-
-

176
TRAINING
Number of training hours by job category and gender
2020
2021
MEN
WOMEN
TOTAL
MEN
WOMEN
TOTAL
Hours
Average
Hours
Average
Hours
Average
Hours
Average
Hours
Average
Hours
Average
ITALY
Senior manager
83
3
-
-
83
3
214
6
-
-
214
6
White-collar workers
-
-
-
-
-
-
138
1
175
2
313
1
Blue-collar workers
196
1
39
0,2
235
0,5
1,011
3
211
1
1,222
3
TOTAL
279
1
39
0,1
318
0,4
1,363
3
386
1
1,749
2
PORTUGAL
Senior manager
265
24
48
16
313
22
71
6
65
22
135
10
White-collar workers
687
16
1,249
21
1,936
19
292
7
1,121
18
1,413
14
Blue-collar workers
 598
2
50
1
648
2
630
2
4
0,1
633
2
TOTAL
1,550
5
1,347
11
2,896
7
992
3
1,189
11
2,181
5
U.S.
Senior manager
71
4
59
8
130
5
11
1
9
1
20
1
White-collar workers
241
3
167
2
408
2
380
4
148
2
528
3
Blue-collar workers
2,191
10
451
21
2,642
11
2,852
13
660
25
3,512
14
TOTAL
2,503
8
677
5
3,180
7
3,243
10
816
6
4,059
9
INDIA
Senior manager
10
5
-
-
10
5
-
-
-
-
-
-
White-collar workers
6
0,3
23
6
29
1
-
-
3
0,4
3
0,11
Blue-collar workers
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
16
0,5
23
6
39
1
-
-
3
0,4
3
0,08
GERMANY
Senior manager
-
-
-
-
-
-
-
-
-
-
-
-
White-collar workers
-
-
-
-
-
-
-
-
-
-
-
-
Blue-collar workers
-
-
-
-
-
-
-
-
-
-
-
-
TOTAL
-
-
-
-
-
-
-
-
-
-
-
-
GROUP
Senior manager
429
7
107
11
536
7
295
5
74
7
368
5
White-collar workers
933
3
1,439
5
2,372
4
810
3
1,446
5
2,256
4
Blue-collar workers
2,985
4
540
2
3,525
3
4,493
6
874
4
5,367
5
TOTAL
4,347
4
2,086
4
6,433
4
5,597
5
2,394
5
7,991
5

PANARIAGROUP - SUSTAINABILITY REPORT
177
HEALTH AND SAFETY
Workplace injuries and type - Employees
                                  2020
2021
 IT
PT
US
IN
GROUP
 IT
PT
US
IN
GER
GROUP
Total number of deaths due 
to workplace injuries
-
-
-
-
-
-
-
-
-
-
-
Total number of serious 
workplace injuries29  
(excluding deaths)
-
-
-
-
-
-
-
-
-
-
-
Total number of recordable 
workplace injuries
30
22
18
-
70
43
19
20
-
-
82
Superficial injuries, open 
wounds and burns
4
7
11
-
22
11
8
9
-
-
28
Sprains, dislocations and 
fractures
26
15
7
-
48
32
11
11
-
-
54
Amputations
-
-
-
-
-
-
-
-
-
-
-
Hours worked
1,131,712
770,591
950,484
86,834
2,939,621
1,221,707
825,590
910,081
78,276
9,186
3,044,840
Death rate due to workplace 
injuries30 
-
-
-
-
-
-
-
-
-
-
-
Serious workplace 
injury rate29 
(excluding deaths)
-
-
-
-
-
-
-
-
-
-
-
Recordable workplace 
injury rate31
26.5
28.5
18.9
-
23.8
35.2
23.0
22.0
-
-
26.9
Workplace injuries and type - Contractors32
                                  2020
2021
 IT
PT
US
IN
GROUP
 IT
PT
US
IN
GER
GROUP
Total number of deaths due 
to workplace injuries
-
-
-
-
-
-
-
-
-
-
-
Total number of serious 
workplace injuries29  
(excluding deaths)
-
-
-
-
-
-
-
-
-
-
-
Total number of recordable 
workplace injuries
3
20
1
-
24
8
12
-
-
-
20
Superficial injuries, open 
wounds and burns
-
13
-
-
13
3
6
-
-
-
9
Sprains, dislocations and 
fractures
3
7
1
-
11
5
6
-
-
-
11
Amputations
-
-
-
-
-
-
-
-
-
-
-
Hours worked
123,416
177,427
10,806
-
311,649
212,134
194,785
11,059
-
-
417,979
Death rate due to workplace 
injuries30 
-
-
-
-
-
-
-
-
-
-
-
Serious workplace 
injury rate29 
(excluding deaths)
-
-
-
-
-
-
-
-
-
-
-
Recordable workplace 
injury rate31
24.3
107.1
92.54
-
77.0
37.7
61.6
-
-
-
47.8
29.	A serious workplace injury refers to an injury that leads to a death or injury from which the worker cannot recover, does not recover or for which it is unrealistic to expect him/	
	
her to fully recover and return to his/her state of health prior to the injury within 6 months.
30.	The rate is calculated as follows: number of deaths due to workplace injuries/hours worked * 1,000,000.
31.	The rate is calculated as follows: number of recordable workplace injuries/hours worked * 1,000,000.
32.	The data relating to the Health and Safety of contractors only include the category of staff leasing workers and not other types of external staff who work at the Panariagroup 	
	
Group’s sites and/or under the Panariagroup Group’s control, in view of their significance and of the availability of this data over which Panariagroup does not exercise direct 	
	
control.

178
Locally hired management33
2020
2021
Men
Women
Total
Men
Women
Total
ITALY
Senior manager
32
-
32
33
-
33
  of whom hired locally
32
-
32
33
-
33
% of locally hired management
100%
-
100%
100%
-
100%
PORTUGAL
Senior manager
11
3
14
11
3
14
  of whom hired locally
11
3
14
11
3
14
% of locally hired management
100%
100%
100%
100%
100%
100%
U.S.
Senior manager
17
7
24
17
7
24
  of whom hired locally
13
6
19
13
6
19
% of locally hired management
76%
86%
79%
76%
86%
79%
INDIA
Senior manager
2
-
2
2
-
2
  of whom hired locally
2
-
2
2
-
2
% of locally hired management
100%
-
100%
100%
-
100%
GERMANY
Senior manager
-
-
-
1
-
1
  of whom hired locally
-
-
-
1
-
1
% of locally hired management
-
-
-
100%
-
100%
GROUP
Senior manager
62
10
72
64
10
74
  of whom hired locally
58
9
67
60
9
69
% of locally hired management
94%
90%
93%
94%
90%
93%
LOCALLY HIRED MANAGEMENT
Employees covered by collective bargaining agreements as at 31 December34
2020
2021
IT
PT
US
IN
GROUP
IT
PT
US
IN
GER
GROUP
Employees covered by 
collective bargaining 
agreements
783
445
-
-
1,228
748
449
-
-
4
1,201
%
100%
100%
0%
0%
71%
100%
100%
0%
0%
100%
71%
COLLECTIVE BARGAINING AGREEMENTS
33.	In defining locally hired management, management with citizenship in the country where each Business Unit of the Group is located was considered local. 
34.	No collective bargaining agreements are in force in the U.S. and India.

PANARIAGROUP - SUSTAINABILITY REPORT
179
STANDARD SALARY FOR NEW HIRES
Ratio of standard entry level salary by gender compared to local minimum salary
                                2020
IT
PT
US
IN
Men
Women
Men
Women
Men
Women
Men
Women
Ratio between the 
standard new hire level 
and the local minimum 
salary, by gender
1.0
1.0
1.0
1.0
1.9
1.9
1.2
1.2
2021
IT
PT
US
IN
GER
Men
Women
Men
Women
Men
Women
Men
Women
Men
Women
Ratio between the 
standard new hire level 
and the local minimum 
salary, by gender
1.0
1.0
1.0
1.0
1.9
1.9
1.2
1.2
1.0
-

180
Expenditure on local suppliers (million €)35 
2020
2021
IT
PT
US36
IN
GROUP
IT
PT
US
IN
GROUP
Expenditure on local suppliers
104
40
52
1
197
142
46
64
2
254
Total purchases
113
45
61
1
220
154
55
74
2
285
% of expenditure on local suppliers out of 
total purchases
92%
88%
86%
100%
89%
92%
85%
86%
100%
89%
LOCAL SUPPLIERS
Materials used by weight (t)
2020
2021
IT
PT
US
GROUP
IT
PT
US
GROUP
Clay
107,874
80,368
45,519
233,761
136,212
107,821
54,499
298,532
Feldspar
100,025
66,430
41,293
207,748
132,011
70,500
81,303
283,813
Sand
45,718
7,500
11,045
64,263
53,320
12,066
10,795
76,182
Glazes and colouring agents
6,920
4,540
1,733
13,193
8,537
5,516
1,827
15,880
Spray-dried powders
1,755
-
-
1,755
1,858
-
-
1,858
Zirconium/whitening agents
1,411
610
157
2,178
1,577
530
214
2,321
Additives
2,030
1,065
624
3,719
2,732
1,191
593
4,516
Ground fired material
16,236
2,000
-
18,236
21,488
6,057
-
27,545
Packaging
10,032
987
3,866
14,884
13,279
1,247
4,453
18,979
Other
3,554
7,455
1,182
12,191
5,042
8,433
1,738
15,213
Total
295,555
170,955
105,419
571,929
376,056
213,361
155,422
744,839
MATERIALS USED
35.	In defining expenditure on local suppliers, “local suppliers” were considered to be those suppliers with a registered office in the country in which each business unit operates. 	
	
Monetary values are reported net of intercompany transactions and VAT for all the reference Countries.
36.	It should be noted that, following an improvement in the U.S. Business Unit’s reporting system, the 2020 figure for total purchases was restated from the figure published in 	
	
the previous Sustainability Report, since it was stripped of intercompany values. For the previously published data, please refer to the 2020 Sustainability Report, which can be 	
	
found in the Sustainability section on www.panariagroup.it
Data on the supply chain	
For 2021, the scope of the supply chain data refers to the Group companies that operate 
production sites and, limited to information regarding expenditure on local suppliers, 
Panariagroup India Industrie Ceramiche Pvt Ltd. Companies with only commercial 
offices, Gres Panaria Central Europe GmbH and Montanari Ceramiche S.r.l., are 
excluded, since they are not considered relevant to an understanding of the Group’s 
business activities and the impact of its products.  
7
3

PANARIAGROUP - SUSTAINABILITY REPORT
181

182

PANARIAGROUP - SUSTAINABILITY REPORT
183
8
GRI content
index

184
GRI content index
      
8
0
GRI Standards
Disclosure
Page
Omission
GRI 102: GENERAL STANDARD DISCLOSURE (2016)
Organizational profile
102-1
Name of the organization
50
102-2
Activities, Brands, products, and services
50-51; 102-103
102-3
Location of headquarters
50
102-4
Location of operations
50-53
102-5
Ownership and legal form
56-57
102-6
Markets served
45; 50-53
102-7
Scale of the organization
46-47
102-8
Information on employees and other workers
168-169
102-9
Supply chain
154-157
102-10
Significant changes to the organization and to 
its supply chain
15
102-11
Precautionary principle
60-65
102-12
External initiatives
2-3; 12-13; 20-21; 24-25
102-13
Membership of associations
152-153
Strategy
102-14
Statement from senior decision-maker
2-3
Ethics and integrity
102-16
Values, principles, standards, and norms of 
behaviour  
66-67
Governance
102-18
Organization’s governance structure
56-57
102-19
Delegating authority
57
102-22
Composition of the highest governance body 
and of its committees
57
102-23
Chairman of the highest governing body
57
102-26
Role of the highest governing body in defining 
goals, values and strategies
56-57
102-30
Effectiveness of risk management processes
60-65
102-32
Highest governance body’s role in 
sustainability reporting
57

PANARIAGROUP - SUSTAINABILITY REPORT
185
GRI Standards
Disclosure
Page
Omission
Stakeholder involvement
102-40
List of stakeholder groups
27
102-41
Collective bargaining agreements
143; 178
102-42
Identifying and selecting stakeholders
27-28
102-43
Approach to stakeholder involvement
29
102-44
Material and relevant issues that emerged from 
involvement
30-32
Reporting practices
102-45
Entities included in the consolidated     
financial statement
14-15; 160; 168; 164
102-46
Definition of the report content and the scope 
of material issues
15; 30-33
102-47
List of material issues
31-32
102-48
Restatements of information
15; 150-152: 164; 166; 180
102-49
Significant changes in the report
14-16
102-50
Reporting period
14
102-51
Date of most recent report
March 30, 2021
102-52
Reporting cycle
Annual
102-53
Contacts for questions regarding the report
16
102-54
Statement on reporting in accordance with GRI 
Standards
14
102-55
GRI content index
184-189
102-56
External assurance
190-192
Topic-specific standards
MATERIAL ISSUE: ECONOMIC PERFORMANCE 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
 31-33
103-2
The management approach and its components
34-35; 39; 72-79; 84-87
103-3
Evaluation of the management approach 
30; 72-79; 84-87
GRI 201: Economic performance (2016)
201-1
Direct economic value generated and 
distributed
74-75
GRI 202: Market presence (2016)
202-1
Ratios of standard entry level salary by gender 
compared to local minimum salary
179
202-2
Proportion of senior management hired from 
the local community
178

186
GRI Standards
Disclosure
Page
Omission
GRI 207: Tax (2019)
207-1
Approach to tax
84-85
207-2
Tax governance, control and risk management
85-87
207-3
Stakeholder engagement and management 
concerns related to tax
86
207-4
Country-by-Country reporting
86-87
MATERIAL ISSUE: INTEGRITY AND COMPLIANCE  
GRI 103: Management approach (2016)  
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
66-67
103-3
Evaluation of the management approach 
30; 66-67
GRI 205: Anti-corruption (2016)
205-3
Confirmed incidents of corruption and actions 
taken
67
GRI 206: Anti-competitive behaviour (2016)
206-1
Legal actions for anti-competitive behaviour, 
anti-trust and monopoly practices
67
GRI 307: Environmental compliance (2016)
307-1
Non-compliance with environmental laws and 
regulations
67
GRI 419: Socioeconomic compliance (2016)
419-1
Non-compliance with laws and regulations in 
the social and economic area
67
MATERIAL ISSUE: RESPONSIBLE SUPPLY CHAIN MANAGEMENT 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
40; 122-123; 154-157
103-3
Evaluation of the management approach 
30; 122-123; 154-157
GRI 204: Procurement practices (2016)
204-1
Proportion of expenditure on local suppliers
155; 180
GRI 301: Materials (2016)
301-1
Materials used by weight or volume
180
GRI 308: Supplier environmental assessment (2016)
308-1
New suppliers that were screened using 
environmental criteria
154
GRI 414: Supplier social assessment (2016)
414-1
New suppliers that were screened using social 
criteria
154

PANARIAGROUP - SUSTAINABILITY REPORT
187
GRI Standards
Disclosure
Page
Omission
MATERIAL ISSUE: COMBATING CLIMATE CHANGE 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
36-37; 40; 126-129
103-3
Evaluation of the management approach 
30; 126-129
GRI 302: Energy (2016)
302-1
Energy consumption within the organization
126; 160-161
302-3
Energy intensity
8; 126; 161
GRI 305: Emissions (2016)
305-1
Direct (Scope 1) GHG emissions
128-129; 161-162
305-2
Energy indirect (Scope 2) GHG emissions
128-129; 161-162
305-4
Emissions intensity
8-9; 126; 161-162
305-7
Nitrogen oxides (NOX), sulphur oxides (SOX), 
and other significant air emissions
161
MATERIAL ISSUE: WATER RESOURCES MANAGEMENT
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
138-139
103-3
Evaluation of the management approach 
30; 138-139
GRI 303: Water and effluents (2018)
303-1
Interactions with water as a shared resource
130-131
303-2
Management of water discharge related 
impacts
130-131
303-3
Water withdrawal
163
303-4
Water discharged
164
MATERIAL ISSUE: WASTE MANAGEMENT AND CIRCULAR ECONOMY
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
36-37; 124-125; 132-133
103-3
Evaluation of the management approach 
30; 124-125; 132-133
GRI 306: Waste (2020)
306-1
Waste generation and significant waste-related 
impacts
132-133
306-2
Management of significant waste-related 
impacts
132-133
306-3
Waste generated
165-166

188
GRI Standards
Disclosure
Page
Omission
MATERIAL ISSUE: WELL-BEING AND RESPONSIBILITY TOWARDS EMPLOYEES 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
37-38; 41; 138-143
103-3
Evaluation of the management approach 
31; 138-143
GRI 401: Employment (2016)
401-1
New employee hires and employee turnover
172-173
401-3
Parental leave
175
GRI 405: Diversity and equal opportunity (2016)
405-1
Diversity of governance bodies and employees
170-171
GRI 406: Non-discrimination (2016)
406-1
Incidents of discrimination and corrective 
actions taken
142
MATERIAL ISSUE: OCCUPATIONAL HEALTH AND SAFETY 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
37-38; 41; 138-139; 148-151;161
103-3
Evaluation of the management approach 
30; 138-139; 148-151;161
GRI 403: Occupational health and safety (2018)
403-1
Occupational health and safety management 
system
148-151
403-2
Hazard identification, risk assessment, and 
incident investigation
148-151
403-3
Occupational health services
148-151
403-4
Worker participation, consultation, and 
communication on occupational health and 
safety
148-151
403-5
Worker training on occupational health and 
safety
148-151
403-6
Promotion of worker health
148-151
403-7
Prevention and mitigation of occupational 
health and safety impacts directly linked by 
business relationships
148-151
403-9
Workplace injuries
177
MATERIAL ISSUE: EMPLOYEE TRAINING AND DEVELOPMENT 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
37-38; 41; 145-147
103-3
Evaluation of the management approach 
30; 145-147

PANARIAGROUP - SUSTAINABILITY REPORT
189
GRI Standards
Disclosure
Page
Omission
GRI 404: Training and education (2016)
404-1
Average hours of training per year per 
employee
145; 176
MATERIAL ISSUE: PRODUCT QUALITY AND DESIGN 
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
36-37; 40; 98-101
103-3
Evaluation of the management approach 
30; 98-101
GRI 416: Consumer health and safety (2016)
416-2
Incidents of non-compliance concerning the 
health and safety impacts of products and 
services
67
GRI 417: Marketing and labeling (2016)
417-2
Incidents of non-compliance concerning 
product and service information and labelling
67
MATERIAL ISSUE: PROTECTION OF BRANDS AND REPUTATION
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
54-55; 66-67; 99
103-3
Evaluation of the management approach 
30; 54-55; 66-67; 99
MATERIAL ISSUE: CUSTOMER SATISFACTION
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
38; 40; 96-97; 111-113
103-3
Evaluation of the management approach 
30; 96-97; 111-113
MATERIAL ISSUE: SUSTAINABLE INNOVATION
GRI 103: Management approach (2016) 
103-1
Explanation of the material topic and its 
boundary
31-33
103-2
The management approach and its 
components
35-37; 39-40; 70-71; 80-81; 104-110
103-3
Evaluation of the management approach 
30; 70-71; 80-81; 104-110

190
Independent auditor’s report
      
9
0
 
Ancona Bari Bergamo Bologna Brescia Cagliari Firenze Genova Milano Napoli Padova Parma Roma Torino Treviso Udine Verona 
Sede Legale: Via Tortona, 25 - 20144 Milano | Capitale Sociale: Euro 10.328.220,00 i.v. 
Codice Fiscale/Registro delle Imprese di Milano Monza Brianza Lodi n. 03049560166 - R.E.A. n. MI-1720239 | Partita IVA: IT 03049560166 
Il nome Deloitte si riferisce a una o più delle seguenti entità: Deloitte Touche Tohmatsu Limited, una società inglese a responsabilità limitata (“DTTL”), le member firm aderenti al suo network e  
le entità a esse correlate. DTTL e ciascuna delle sue member firm sono entità giuridicamente separate e indipendenti tra loro. DTTL (denominata anche “Deloitte Global”) non fornisce servizi ai  
clienti. Si invita a leggere l’informativa completa relativa alla descrizione della struttura legale di Deloitte Touche Tohmatsu Limited e delle sue member firm all’indirizzo  
www.deloitte.com/about. 
© Deloitte & Touche S.p.A. 
 
Deloitte & Touche S.p.A. 
Piazza Malpighi, 4/2 
40123 Bologna 
Italia 
 
Tel: +39 051 65811 
Fax: +39 051 230874 
www.deloitte.it 
 
INDEPENDENT AUDITOR’S REPORT 
ON THE SUSTAINABILITY REPORT 
 
 
To the Board of Directors of 
Panariagroup Industrie Ceramiche S.p.A. 
 
 
We have carried out a limited assurance engagement on the Sustainability Report of the Panariagroup 
Group (hereinafter also “Group”) as of December 31, 2021. 
 
RResponsibility of the Directors for the Sustainability Report 
 
The Directors of Panariagroup Industrie Ceramiche S.p.A. are responsible for the preparation of the 
Sustainability Report in accordance with the “Global Reporting Initiative Sustainability Reporting 
Standards” established by GRI - Global Reporting Initiative (hereinafter “GRI Standards”), as stated in the 
paragraph “Note on methodology” of the Sustainability Report. 
 
The Directors are also responsible for such internal control as they determine is necessary to enable the 
preparation of the Sustainability Report that is free from material misstatement, whether due to fraud or 
error. 
 
The Directors are also responsible for the definition of the Panariagroup Group’s objectives in relation to 
the sustainability performance, for the identification of the stakeholders and the significant aspects to 
report. 
  
Auditor’s Independence and quality control 
 
We have complied with the independence and other ethical requirements of the Code of Ethics for 
Professional Accountants issued by the International Ethics Standards Board for Accountants, which is 
founded on fundamental principles of integrity, objectivity, professional competence and due care, 
confidentiality and professional behaviour.  
 
Our auditing firm applies International Standard on Quality Control 1 (ISQC Italia 1) and, accordingly, 
maintains a comprehensive system of quality control including documented policies and procedures 
regarding compliance with ethical requirements, professional standards and applicable legal and 
regulatory requirements.

PANARIAGROUP - SUSTAINABILITY REPORT
191
2 
Auditor’s responsibility 
 
Our responsibility is to express our conclusion based on the procedures performed about the compliance 
of the Sustainability Report with the GRI Standards. We conducted our work in accordance with the 
criteria established in the “International Standard on Assurance Engagements ISAE 3000 (Revised) - 
Assurance Engagements Other than Audits or Reviews of Historical Financial Information” (hereinafter 
“ISAE 3000 Revised”), issued by the International Auditing and Assurance Standards Board (IAASB) for 
limited assurance engagements. The standard requires that we plan and perform the engagement to 
obtain limited assurance whether the Sustainability Report is free from material misstatement. 
 
Therefore, the procedures performed in a limited assurance engagement are less than those performed 
in a reasonable assurance engagement in accordance with ISAE 3000 Revised (“reasonable assurance 
engagement”), and, therefore, do not enable us to obtain assurance that we would become aware of all 
significant matters and events that might be identified in a reasonable assurance engagement. 
 
The procedures performed on the Sustainability Report are based on our professional judgement and 
included inquiries, primarily with Company personnel responsible for the preparation of information 
included in the Sustainability Report, analysis of documents, recalculations and other procedures aimed 
to obtain evidence as appropriate. 
 
Specifically, we carried out the following procedures: 
 
1) analysis of the process relating to the definition of material aspects disclosed in the Sustainability 
Report, with reference to the methods used for the identification and prioritization of material 
aspects for stakeholders and to the internal validation of the process results; 
 
2) comparison between the economic and financial data and information included in the paragraph 
“Economic Responsibility” of the Sustainability Report with those included in the Group’s Financial 
Statements; 
 
3) understanding of the processes underlying the origination, recording and management of qualitative 
and quantitative material information included in the Sustainability Report. 
 
In particular, we carried out interviews and discussions with the management of Panariagroup Industrie 
Ceramiche S.p.A. and with the personnel of Gres Panaria Portugal S.A. and we carried out limited 
documentary verifications, in order to gather information about the processes and procedures, which 
support the collection, aggregation, elaboration and transmittal of non-financial data and information to 
the department responsible for the preparation of the Sustainability Report.

192
3 
In addition, for material information, taking into consideration the Group’s activities and characteristics: 
 
− at the parent company’s and subsidiaries’ level: 
 
a) with regards to qualitative information included in the Sustainability Report, we carried out 
interviews and gathered supporting documentation in order to verify its consistency with the 
available evidence; 
b) with regards to quantitative information, we carried out both analytical procedures and limited 
verifications in order to ensure, on a sample basis, the correct aggregation of data; 
 
− for the following companies and sites, Fiorano Modenese (MO, Italy) site and production plant for 
Panariagroup Industrie Ceramiche S.p.A., Aveiro (Portugal) site and production plant for Gres Panaria 
Portugal S.A., which we selected based on their activities, their contribution to the performance 
indicators at the consolidated level and their location, we carried out site visits, during which we have 
met the management of the plant and have gathered supporting documentation on a sample basis 
with reference to the correct application of procedures and calculation methods used for the 
indicators. 
 
CConclusion 
 
Based on the work performed, nothing has come to our attention that causes us to believe that the 
Sustainability Report of the Panariagroup Group as of December 31, 2021 is not prepared, in all material 
aspects, in accordance with the GRI Standards as stated in the paragraph “Note on methodology” of the 
Sustainability Report. 
 
 
DELOITTE & TOUCHE S.p.A. 
 
Signed by 
SSilvia Dallai 
Partner 
 
 
Bologna, Italy  
May 25, 2022 
 
 
 
 
This report has been translated into the English language solely for the convenience of international readers.

Panaria Ceramica
Via Panaria Bassa, 22/A
41034 Finale Emilia (MO) - Italy
Tel.: +39 0535 95111 - email: info@panaria.it
www.panaria.it
Lea Ceramiche
Via Cameazzo, 21
41042 Fiorano Modenese (MO) - Italy
Tel.: +39 0536 837 811 - email: info@leaceramiche.it
www.leaceramiche.it
Cotto d’Este Nuove Superfici
Via Emilia Romagna, 31
41049 Sassuolo (MO) - Italy
Tel.: +39 0536 814 911 - email: info@cottodeste.it
www.cottodeste.it
Blustyle
Via Emilia Romagna, 31
41049 Sassuolo (MO) - Italy
Tel.: +39 0536 814 911 - email: info@blustyle.it
www.blustyle.it
Maxa Ceramic Slabs
Via Cameazzo, 21
41042 Fiorano Modenese (MO) - Italy
Tel.: +39 0536 915211 - email: info@maxaslabs.it 
www.maxaslabs.com 
Florida Tile Inc.
998 Governors Lane
Suite 300, Lexington, KY 40513 - U.S.A.
Tel.: 001 - 859 219 5200 - email: marketing@floridatile.com
www.floridatile.com
Margres
Chousa Nova,
3830-133 Ílhavo - Portugal
Tel.: +351 234 329 700 - email: margres@margres.com
www.margres.com
Love Tiles
Zona industrial de Aveiro, Apartado 3002
3801-101 Aveiro - Portugal
Tel.: +351 234 303 030 - email: lovetiles@lovetiles.com
www.lovetiles.com
Bellissimo
Panariagroup India Industrie Ceramiche Pvt Ltd.
B-702, Shapath - IV, Opp. Karnavati Club,
S.G. Highway, Ahmedabad (Gujarat), 380015 - India
Tel.: +91 79 6191 6501 - email: info@bellissimo.asia
www.bellissimo.asia
Panariagroup Industrie Ceramiche S.p.A.
Via Panaria Bassa, 22/A
41034 Finale Emilia (MO) - Italy
Tel.: +39 0535 95111 - info@panariagroup.it
www.panariagroup.it
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PHOTO CREDITS:
Lorenzo Franzi, Luigi Ottani
BUILDINGS CREDITS:
Foto: Moreno Maggi

EN 10/2022