Sustainability Report 2020

2020

Sustainability ReportIndexA Message To Our Stakeholders

6

Reporting Principles and Criteria

120

Sustainability Highlights 2020

18

Scope of Reporting

121

Flos World

21

Materiality Analysis

122

Group structure and global presence

24

Key Stakeholders

125

Value creation

40

Quality Reporting Principles

125

Product development

42

Calculation Methodologies

126

Supplier selection and management

46

Gri Content Index

130

Client relationship

49

Sustainability path: from reporting to planning54

1. Energy and Materials

61

1.1 Balancing languages of light and environmental challenges

64

Flos’ participation in industry associations
1.2 Monitoring and optimising resource consumptions

66
74

Materials and waste

75

Energy and GHG emissions80

2. Development and Wellbeing89

2.1 Employees as the essence of brand success

92

2.2 Training for personal and professional improvement98

2.3 An inclusive and safe working environment102

3. Heritage and Know-How

107

3.1 Promoting the art and design culture

110

3.2 Fostering design know-how

116Sust a i n a b ili t y R e p o r t 2 0 2 0

A Message To Our Stakeholders
I am honoured to introduce you to the 2020 edition of Flos Group’s Sustainability Report, themately, living. Europe’s early stages of the pandemic were a confusing and challenging moment

recurring appointment that unveils our past performance and future aspirations. This can onlyin terms of national regulations and restrictions. Nevertheless, Flos continued to support its

be achieved with a profound and intimate conscience of who Flos is and what its key strategic

entire network of suppliers, guaranteeing timely payments. On exiting lockdown, it also pro-drivers are as insofar as sustainability is concerned. For this reason, we hereby reaffirm ourvided assistance for bureaucratic formalities to entities that were not equipped with adequate

commitments as showcased with the publication of our Sustainability Policy and our full ad-

internal structures. These actions allowed our operations, people, and supply chain to recoverherence to the principles outlined by the United Nations Global Compact and our contribution

following this unexpected setback and strengthen our foundations – allowing us to grow to-to the 2030 Sustainable Development Agenda and its Goals.

gether. I could not be prouder of the Group's work during this unprecedented emergency, andI would like to thank all our employees for the tireless efforts devoted to daily operations.

This year’s Report is made up of two fundamental components. The first one is continuity: weare picking up from where we left off, continuing with the document’s structure as introduced

Roberta Silva, CEOin the last reporting period. Thus, the introduction is followed by three thematic chapters that
directly recall our sustainability strategy and pillars – increasingly integrated into everyday operations. The environment and the impacts our operations can generate are dealt with in thefirst section, providing a glimpse of the legislative framework and how we are approaching responsibly and proactively the critical topics of our times – namely GHG emissions and circular
economy. In particular, the latter is indeed one key aspect of our strategy, from the efficiency
of processes to product innovation and the re-engineering of the icons that are an integral partof Flos’ legacy. The second section is dedicated to our people, the true enablers of the Group’s
potential and the vital strength for its success and longevity across nations and generations.
The last chapter entirely focuses on the role played by intangible resources, such as designand culture, to which we are inextricably intertwined.
The second essential component is vision – or in other words, the route we want to travel. An
important update in the 2020 Sustainability Report is the establishment of transparent andaccountable ESG targets we are committing to for the coming years. This constitutes a true
watershed for our way of approaching sustainability topics, and it underpins the dedication
towards our stakeholders and the call for a responsible business we have chosen to respondto years ago. Thus, we are disclosing objectives on emissions reduction, circularity, and waste
management.
One of the most demanding commitments for Flos, and our focus, is the transition from a linear
to a circular economy model, aiming at decoupling economic growth from the consumption offinite resources. We are continuously working on improving our work in all stages of design,
engineering, and production across all connections and countries.
Last but not least, 2020 has been the year characterised by the Coronavirus pandemic thatbroke out in February and overnight revolutionised our way of working, behaving – and ulti67

Sust a i n a b ili t y R e p o r t 2 0 2 0

Ou r S t a k e h o ld e r s

Painting department

8

R&D department

9

Sust a i n a b ili t y R e p o r t 2 0 2 0

Ou r S t a k e h o ld e r s

Electronic department

10

Polishing11

Sust a i n a b ili t y R e p o r t 2 0 2 0

Ou r S t a k e h o ld e r s

Custom product department

12

LED assembly department

13

Sust a i n a b ili t y R e p o r t 2 0 2 0

R ep orti ng P ri nci p le s a n d Cr it e r ia

Finance department

14

Logistic department

15

Sust a i n a b ili t y R e p o r t 2 0 2 0

R ep orti ng P ri nci p le s a n d Cr it e r ia

Biagio’s manufacturing, Italy

16

Outdoor production department

17

Sust a i n a b ili t y R e p o r t 2 0 2 0

Sustainability Highlights 2020

Sustainability Highlights

The Group

Value Chain

PeopleEnvironment

Revenues

People205 M€

648

Local suppliers in Italy

Local suppliers in Spain

87 %

65 %

Employees Flos, Ares

Permanent

and Antares

contracts

437

98 %

Carbon offsetting

Clean electricity

713 tCO eq

31 %GHG emissions

Electricity certified as produced

compensated throughfrom renewable sources2

the subscription to Go
Green Program by DHL

Carbon neutrality

GHG emissions reduction target

1,614 tCO eq-27.50 %Scope 1 + Scope 2

Scope 1 + Scope 2 target by 2030 in line

(Market based)with the WB2C scenario (Baseline 2019)2

emissions offset in 2020

18

19

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F lo s Wo r ld

Flos World

Since its establishment in 1962, Flos (“flower”
in Latin) has been an industry leader, a standout
company creating revolutionary, categorydefining products that enhance any building
or setting. From the outset, Flos has immediately
gained – and maintained – a reputation formasterfully manufacturing poetic designs andforward-thinking inventions. Counting on solid
foundations that are directly drawn from its
renowned legacy, for nearly sixty years, Floshas pushed the boundaries by making timelessicons that link design and engineering with art
and culture to profound effect.

Biagio by Tobia Scarpa, ph. Alecio Ferrari

20

21

Sust a i n a b ili t y R e p o r t 2 0 2 0

F lo s Wo r ld

“In Flos, you can’t find a uniform design model,

Today, Flos Group is still recognised as an

but rather a strong desire to make design that caninternational organisation and a world-leading

express broader meanings of the ‘sense of ourmanufacturer of innovative lighting solutions intime’, meanings that are often capable of adding

the residential, outdoor and architectural sectors,

cultural values even to expressions of taste.”featuring high-quality products and systems merging— Achille Castiglioni

technology and emotions. Organised into four
divisions - Flos Architectural, Flos Decorative, Flos
Outdoor, and Flos Bespoke - the Group incorporates
a holistic, human-centered lighting design philosophy.

Snoopy by Achille & Pier Giacomo Castiglioni

22

Achille Castiglioni with the lamp Brera, ph. J. B. Mondino

23

Sust a i n a b ili t y R e p o r t 2 0 2 0

F lo s Wo r ld

Group structure and global presence

183 employees
Commercial subsidiaries
Flos USA Inc.

193 employees
Flos S.p.A.

Flos Employs
648 people

86 employees
Ares S.r.l.

8

7

6

2

1

1

47.1%

24%

11%

4%

4%

3%

2%

2%

1%

1%

1%

0%

0%

0%

24

tr

en

C

Ea

na

e
dl
id

di

hi
C
M

te
W
es

In

or

w

an
m
er

N

D

Ita

Number of full-time equivalents (FTE) derived by taking into account employees employed under contracts of service,
both permanent and temporary, at the end of the reporting period.
1

Ja
pa
n
al
&
Am S
o
er ut
ic h
a
Au
st Re
ra st
la o
si f
a

11

st

12

a

18

ay
n Re
Eu st
ro o f
pe

24

y

28

k

69

ly

Antares S.A.U. (Architectural segment, Valencia,

155

G

s.r.l. (Outdoor segment, Bernareggio, Italy) and

306

ar

segment, headquartered in Bovezzo, Italy), Aresm(Lukas Lighting division, Long Island City, NY-USA).

enproduct manufacturing subsidiary, Flos USA Inc.

– that for 2019 comprised Flos S.p.A. (Decorativece

Spain. Starting from 2020, the reporting perimeteransmaller commercial subsidiaries and the custom

Fr

The remaining people were employed in the Group’s

Flos employed 6481 people, mainly located in Italy andS

than €205 million in 2020. During the reporting year,

U

Contract S.r.l., Custom segment, Collebeato, Italy).

n

Spain) – extends to Flos Bespoke S.r.l. (formerly Light

lighting industry, with consolidated revenues of moreai

Flos is one of the leading players in the ItalianSp

159 employees
Antares Iluminación S.A.U.

27 employees
Flos Bespoke S.r.l.

Employee Worldwide Distribution 202025

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F lo s Wo r ld

In December 2014, Investindustrial V L.P., one of Europe's leading independent
investment groups, became the majority indirect shareholder of Flos S.p.A.
From November 2018, Flos S.p.A. is entirely controlled by Design Holding
S.p.A., while the latter is jointly (and indirectly) controlled by Investindustrial
funds and the Carlyle Group. The Design Holding Group, the largest global
high-end design group with a European heritage, brings together threecomplementary companies with strong individual identities and significant
design legacy: B&B Italia Group in furniture, Louis Poulsen, and Flos in lighting.
The following table reports the economic impact that Flos' financial results
have on its stakeholders. Direct economic value generated by Flos shows

B&B Italia

B&B Italia is the leading Italian high-end furniture design brand, globallyrenowned for its iconic products and technological innovation.
The Company has a unique product portfolio, marketed under the B&B
Italia, MAXALTO, and Azucena brands for furniture and Arclinea for highend kitchens. It has earned many design awards over the years. B&B Italia
has developed longstanding partnerships with world-renowned designers
and architects such as Antonio Citterio, Patricia Urquiola, Naoto Fukasawa,
Gaetano Pesce, and many others whose contribution has positioned thecompany at the forefront of technological innovation and design. B&B Italia
is headquartered in Como (Italy) and has ten flagship stores worldwide (onein Milan, London, Munich, Miami, Washington, Dallas, two in Paris, and two
in New York) and over 40 mono brands. B&B Italia also signed commercial
agreements in 80 Countries, developing a presence in over 800 specialised
shops. The Company also operates in the Contract Division with complex"turnkey" realizations of furnishings and finishes in the hospitality, retail,office, and nautical areas.

Louis PoulsenLouis Poulsen is a leading lighting brand with an iconic product portfolio
focused on Danish design heritage, with headquarters in Copenhagen andproduction facilities in Vejen (Denmark), which offers a high-end productrange for indoor and outdoor applications. Louis Poulsen combines
iconic designs stemming from the work of golden age Danish designers,
such as Poul Henningsen, Arne Jacobsen, Finn Juhl, Verner Panton, andcollaborations with leading modern designers as Christian Flindt, Shoichi
Uchiyama, and Louise Campbell. The Company has a global distribution
network with more than 50 countries served and dedicated showrooms
in Copenhagen, Stockholm, Miami, Helsinki, Vejen, Oslo, Los Angeles,
Singapore, Tokyo, and Düsseldorf.

a proportional increase between 2018 and 2019. However, the Covid-19
pandemic caused a contraction in 2020, equal to 12% with respect to 2019;
this applied almost identically to the vast majority of data inputs reported.
Finally, the consistent increase in community investments is mainly attributable
to donations made to assist with the Coronavirus pandemic.
Direct Value Generated, Distributed and Retained€ in thousands

2018

2019

2020

Direct economic value generated

225,762

232,287

205,046

Direct economic value distributed

201,467

190,141

168,136

Operating costs

143,233

128,877

113,886

Employees' wages and benefits

39,212

42,146

38,764

Payments to providers of capital

13,791

8,866

9,143

Payments to the government

5,127

10,173

6,243

103

78

100

24,29542,14636,910Community investment 2
Economic value retained
2

Value related to Community Investment excludes donations of lamps (e.g. donations to charity auctions).

The Design Holding Group26

27

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F lo s Wo r ld

Flos Benelux NV

Euroformat S.r.l. 6

Flos Milano S.r.l. 4

Flos USA Inc.

Flos Japan Co. Ltd

Antares Iluminacion S.A.U.

Flos S.p.A. has implemented a control and governance system based on:• A Board of Directors, comprising seven members3, which, together with
the Design Holding Board of Directors, is entrusted with the powers
to ensure the ordinary and extraordinary management of the Company;• A Board of Statutory Auditors comprising three standing statutory auditors
and two substitute statutory auditors.

Flos Scandinavia A/S

Board Member
Vitaliano Borromeo Arese

Chairman of the Board

Roberta Silva

CEOGabriele Del Torchio

Vice president of the Board

Francesco Malvezzi

Board member

Massimiliano Caraffa

Board member

Roberto Maestroni

Board member

Giovanni Casali

Board member

Flos S.p.A.
Flos GmbH

Flos Bespoke S.r.l.

Flos Norge AS

Ares S.r.l.

An independent auditing firm has also been appointed.
To ensure transparency and responsible day-by-day operations, since 2015,
Flos has an Organisational, Management and Control Model pursuant toItalian law 231/2001 (hereinafter "Model 231"), approved by the Boardof Directors in March 2016. The drafting of Model 231 included an analysisof the main risks and the mapping of operating areas potentially subject

Flos Roma S.r.l. 5

to those risks.
As foreseen by Model 231 and applicable legislation, Flos has appointed

Flos France S.a.sa Supervisory Body (Organismo di Vigilanza) entrusted with the task ofcontrolling internal implementation and corporate compliance with Model
231, as well as its updating process.
Operating subsidiaries
Commercial branches
BoD composition has varied from 2019, with Roberto Maestroni and Giovanni Casali
replacing Maurizio Bottinelli and Davide Ambrogio Pelle. On the contrary, age composition
has not changed, with no members under 30 years of age,3 members over 50 yearsof age and the rest in the middle age group.
4
During 2020, Flos Milano s.r.l. was incorporated in Flos S.p.A.
5
During 2020, Flos Roma s.r.l. was incorporated in Flos S.p.A.
6
During 2020, Euroformat s.r.l. was incorporated in Flos Bespoke s.r.l.
3

28

The Group Structure29

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F lo s Wo r ld

Sales by Country
Western Europe

Asia PacificEastern Europe

65.7%

10.1%

5.6%

The Supervisory Board comprises two external members, fulfilling theAmericasMiddle East

Africaregulatory requirements regarding autonomy, independence, and continuity

14.4%

3.6%

0.6%

Manufacturing Plants

Showrooms - Flagship Stores - Offices

Ares S.r.l.
Bernareggio (MB), Italy

Flos Norge AS
Oslo, Norway

Flos USA Inc.
New York, United States

Flos S.p.A.
Bovezzo (Brescia), Italy

Flos Flagship Store
Stockholm, Sweden

Flos Co Ltd.
Tokyo, Japan

Flos Bespoke S.r.l.
Collebeato (Brescia), Italy

Flos Scandinavia A/S
Copenaghen, Denmark

Flos Flagship Store & Showroom
Milano, Italy

Antares Iluminación S.A.U.
Valencia, Spain

Flos BV
Amsterdam, Netherlands

Flos Flagship Store
Roma, Italy

Lukas Lighting (Flos USA Inc.)New York, United States

Flos France Store and Showroom
Paris, France

in addition to a secretary. Together with Model 231, Flos drafted its Codeof Ethics, which describes the Company's missions and ethical principles
and governs the relationship between Flos and all its counterparts, i.e.,shareholders, employees and partners, suppliers, Public Administration,
trade unions, political parties, and customers.
The implementation of Model 231 and the Code of Ethics, together with
Flos' certified 9001 Quality Management System, represents the framework
to ensure compliance with applicable national and international laws andregulations.
Flos firmly believes that acting under the principles of Model 231 and of
the Code of Ethics is essential to promote responsible business conduct,i.e., enabling it to avoid the occurrence of corruption cases and unethicalbusiness practices. In this regard, in the 2018-2020 period, neither
complaints from competitors and public authorities for anti-competitive
behaviour nor corruption cases were either identified or reported.

Flos Flagship Store
Lyon, France

Flos Global Presence

30

31

Sust a i n a b ili t y R e p o r t 2 0 2 0

Flos Decorative

F lo s Wo r ld

Flos' original core business, the Decorative collection merges technicalresearch and innovation with emotional and aesthetic design, thanks tothe strong relationships existing between the Company and the designers.
All products belonging to Flos' Decorative collection are designed anddeveloped in the Flos S.p.A. Italian headquarters in Bovezzo and include
several product categories, such as table lamps, floor lamps, pendant lamps
and wall & ceiling solutions.

Coordinates by Michael Anastassiades

32

Chiara Table and Chiara Floor by Mario Bellini
Mayday Limited Edition by Konstantin Grcic
33

Sust a i n a b ili t y R e p o r t 2 0 2 0

Flos Architectural

F lo s Wo r ld

The Architectural collection includes indoor lighting systems both fordomestic/residential use as well as for professional use.
This business segment designs and develops lighting solutions, often incooperation with engineering and architectural firms, both for big retail
networks (mainly fashion retail and hospitality) and for private customers.
This business line focuses on professional and residential lighting systems,
custom-made solutions and soft architecture products and it is based in
Antares Iluminacion S.A.U.'s headquarter in Valencia, Spain.

Oblique by Vincent Van Duysen

34

Infra-Structure Episode 2 by Vincent Van Duysen

35

Sust a i n a b ili t y R e p o r t 2 0 2 0

Flos Outdoor

F lo s Wo r ld

The Flos Outdoor collection has been created to illuminate open spaces
through a new design language, finding balance both by hiding in the naturallandscape behind discrete objects, and by conversing with the architecture
through designs with a unique identity.
At present, Flos Outdoor collection is mainly produced by Ares
(Bernareggio, Italy).

In Vitro by Philippe Starck

36

Caule by Patricia Urquiola

37

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Flos Custom

F lo s Wo r ld

Born to satisfy customers' specific practical needs and their increasing desire
for exclusivity, this collection focuses on the custom-made segment.
The custom-made business segment has been developed for over 20 years
by Flos' Italian subsidiary, Flos Bespoke (formerly Light Contract), and it iscurrently growing following the acquisition of Lukas Lighting, later merged into
Flos USA Inc., in December 2015.
Through this period of continuous change and development, the segment
is becoming particularly important for Flos, on the one hand to guarantee
a corporate identity and strong internal cohesion, and, on the other, to offer
its products through a unique brand and image.

Casa Popeea Boutique Hotel38

Naringi Café Eldorado
Valextra Boutique, Milan
39

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F lo s Wo r ld

Value creation

Flos' intent of bringing to life inspired sketches

requirements. Whereas, for most manufacturing,and projects from lighting architects and designers

assembly and logistic activities, Flos relies on

demands an articulated production process involving

the expertise of a specialised and trusted network

the R&D department, highly specialised artisans,of suppliers. Finally, an integral part of Flos value chain

and an accurate quality control system. Within thisis customer care, directly and internally managed

process, Flos directly manages, in collaboration with

with a unique contact for both the Decorative anddesigners, architects, and engineers, the conception

the Architectural collections. The aim is to buildand design of lighting systems, as well as monitoringa strong relationship with all customers and respondactivities and tests carried out to assess producteffectively and promptly to every customer’s needs.

quality and to ensure compliance with safety40

41

Sust a i n a b ili t y R e p o r t 2 0 2 0

Product development

F lo s Wo r ld

Creating iconic products and conceiving new languages around light require
an articulated process involving Flos’ internal R&D department, as well as
renowned and emerging designers, architects, and engineers.

The Development of New Lighting Solutions
Conception

Quality and Compliance

Designers, architects and/or engineers submit the

The pre-series is tested to assess its adherence tolighting solution idea and some preliminary sketches

quality and compliance requirements. For the design

to Flos’ R&D Department. The top management thencollection, final prototypes created from the pre-series

assesses these before starting the production of the

production process are then sent to pilot customers.

prototype series.

These customers are asked to fill in a report on the
products, providing Flos with valuable feedback
covering product functionality, finish, packaging, andPre-series Production Process

the overall product emotion and experience.

Once a product has been accepted, the R&D teamcollaborates with designers, architects, and engineers
to create it. A pre-series is then produced to test theProduct Launchmechanical and electrical design, select the mostOnce prototypes simultaneously satisfy the pilot

appropriate materials, identify the best available

customers’ expectations (for the design collection), Flos’suppliers, the production process, and incorporate any

internal quality standards, and the applicable regulatory

necessary improvements to the luminaires. During theserequirements, the product is approved for sale, and thestages, various assessments regarding construction,

production stage is launched.

mechanical and electrical aspects are performed.

Mayday Anniversary project developemnt

4243

Sust a i n a b ili t y R e p o r t 2 0 2 0

F lo s Wo r ld

The production chain of the Decorative collection is handled in Flos' ItalianStandardise, and Sustain. The 5S program focuses on having visual order,

headquarters in Bovezzo for indoor lighting products, in Bernareggio, fororganisation, cleanliness, and standardisation of each workspace, resulting

outdoor products, and in Collebeato (Bespoke) for the assembling andin improved profitability, efficiency, service, and safety. In line with its view

production of custom products. In contrast, the Architectural collection isof an integrated supply chain, Flos is also open to collaborations with its key

produced in Antares' Spanish headquarters in Valencia. Following the prototype

suppliers aiming at supporting them in the integration of the lean principles

and pre-series stages, the production process begins with the purchase ofin their production processes.

single components. Given the large extent of techniques and materials required
for Flos' products, most manufacturing processes are outsourced.

In 2020, Ares also continued implementing lean principles in its production
processes, which began in 2019. The lean project, specifically, focused on

This stage involves highly specialised techniques, including those deemed

integrating painting activities, consolidating existing KPIs while identifying

necessary for manufacturing hand-blown glass and technical textiles, in

new ones.

addition to coating processes and the processing of plastics and metals.
Next, processed materials composing the lighting systems are sent to Flos
headquarters for a quality check to ensure compliance with the Company’s
high quality and safety standards and all applicable regulations. Afterwards, thecomponents are assembled as specified in the design and engineering plans.

Quality as a Synonym of Safety and Durability
1.

2.

3.

First quality check

Statistical quality check

Routine test quality checkexception is Bespoke, where the production and assembling of custom

on raw materials

products are carried out directly within the plant in Collebeato. The production

on single components

on final products. Carried out in the assemblyand components coming

chain ends with a further quality assessment of the final product performed infollowing the manufacturing

department to ensure that all electrical items

from suppliers/painting stages by

are checked to comply with safety regulations

suppliers(including tests on the electrical safety of products

The assembly process is predominantly outsourced to a network of selectedartisans, mainly based in the Lombardy region and Valencia. One relevant

the Group's on-site laboratories.
Over the last few years, production processes have been characterised byan increase in Flos' production volumes resulting in a saturation of the external

detailed in the safety standards) and additional
statistical tests

network in charge of product assembly. To overcome this issue and to continue
to respond to market needs, in 2018, Flos initiated a pilot project for setting up
a new assembly line in its facilities in Nave, close to its Bovezzo plant.

Beyond mere regulatory compliance, Flos’ attention to quality is inherent in all
stages of the production process. In addition, safety is continuously monitored

The project, consolidated in 2019, aims to increase the ownership of thethroughout the product's lifetime by analysing complaints and communications

production process, thus enhancing the control over its supply chain,by consumers. In the rare event of safety-related complaints, Flos has

production capacity, and flexibility. Building on the vital strength derived fromestablished procedures that allow for a timely reaction by recalling products

the successful experiment carried out in Nave, and despite the constraints

and conducting tests to ensure customer safety. For instance, concerning thegenerated by the Coronavirus pandemic on production volumes in 2020,

malfunction case of the halogen version of the Skygarden 1 and Skygarden

the project was extended to become three times larger.

2 lamps and following a few complaints regarding the Romeo S2 Moon andLouis (manufactured until March 2006), Flos duly distributed safety kits andIn order to design and manage the new production area, Flos management

collaborated with the local authorities of the countries involved. Similar actions

decided to implement lean manufacturing principles. Lean thinking is awere taken concerning Bonjour unplugged’s battery in 2020 (a kit is available

systematic methodology that focuses on minimising waste within manufacturing

to replace the original component).

processes while simultaneously maximising productivity. The key components
and foundation are the so-called "5S program": Sort, Set in order, Shine,
4445

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F lo s Wo r ld

Furthermore, Flos is authorised to use the ENEC Mark logo on many of its

and attachment to the "Made in Italy" concept – acknowledged as a symbol

products. The ENEC logo is a voluntary mark that complements the mandatoryof expertise, artisanship, and innovation. Indeed, almost 87% of the Company's

CE marking, being a seal of compliance to all applicable European standards.

suppliers are located in Italy, mainly in the Lombardy region (approximately

While CE marking represents a self-declaration by the manufacturer and does

68% out of the total number of suppliers, representing 63.3% of the total

not imply the approval of products by the European Commission or any otherspent in 2020). During the pandemic crisis, the Group intensified the management

authority (i.e., Test Houses), the ENEC mark shows compliance with Europeanand support to suppliers in order to help them out with legislative compliancestandards. It is awarded by an independent third party, which is responsible

and financial issues. Any significant changes as mapped in the table below

for inspecting the production process as well. The ENEC mark can be granted

are mainly attributable to the Coronavirus pandemic.

only to Companies in which a Quality System is operating, either certified or
qualified by a third party.

Suppliers’ provenance by number and spending – Decorative and Outdoor
collection

In addition to ENEC certification for the EU market, during the design of new
products, Flos evaluates the need for other certifications (UL, CCC, EAC,

Suppliers Provenance2018

spending

2019

spending

2020 7spending

Italy

425

82.4%

497

85.4%

465

85.1%

341

69.1%

397

63.4%

366

63.3%

Italy (rest)

84

13.3%

100

22.1%

99

21.9%

specified in the Low Voltage Directive and other applicable EU Directives.

Other Countries

64

17.6%

71

14.6%

72

14.9%

The products are also identified with a batch of production. Thus, it is possible

Total

489

100%

568

100%

537

100%

Retilap, etc.) according to the reference destination market.
Finally, product labels include all information deemed necessary to ensure
the safe use of luminaires, in compliance with the minimum safety requirements

to obtain access to the relevant routine test results and a list of the components
used for their production. No incidents of non-compliance with regulations andvoluntary codes concerning products have occurred during the last four years.

Lombardy region

82020 data on suppliers count concerns Flos and Ares. The percentage on spending per supplier provenance includes
Bespoke as well.
8
Data includes the Verona district. For the definition of “local suppliers”, the Verona district was also considered, basedon its proximity to the Bovezzo HQ.
7

For the Architectural collection, given the quality performance of all suppliers,
Supplier selection

Flos' products result from a long-lasting collaboration with top-quality

the selection process is primarily based on their flexibility and capability toand management

Italian and Spanish suppliers, a fusion of craft heritage and experimentation.

promptly react to Flos' requests, which adapt to the fluctuations and demand

In addition to the electronic components, which are usually imported or

shifts characterising this branch of the lighting market. For these reasons, aspurchased from multinational companies, the production of other semi-

shown in the table below, 65% of Company suppliers are located in Spain,

processed materials and components and the majority of assembly activities

more specifically, in Valencia and its surrounding areas (approximately 42% of

are outsourced to Italian and Spanish suppliers, mainly from northern Italy andthe total number of suppliers and almost half of the total spent in 2020).

Valencia's surrounding areas. This proximity is crucial, also in strategic terms,
given the intensity and timeliness with which Flos performs quality control

Suppliers’ provenance by number and spending – Architectural collection

processes on semi-processed materials and finished products.
Promoting local suppliers allows relying on a shorter supply chain, improving
reliability and delivery times while supporting the local community. For boththe Decorative and Architectural collections, the percentage of local suppliers
is relevant both in terms of the number of suppliers and spending, showinga regular trend through the years, as reported in the following tables.
For the Decorative collection, Flos' preference for local suppliers is not

Suppliers Provenance2018

spending

2019

spending

2020

spending

Spain

137

70.9%

129

67.8%

122

69.7%

Valencia and surrounding areas

79

51.3%

81

49.6%

80

48.8%

Spain (rest)

58

19.6%

48

18.2%

42

20.9%

Other Countries

67

29.1%

63

32.2%

67

30.3%

Total

204

100%

192

100%

189

100%

a simple choice based on convenience but rather stems from its attention
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The sustainable management of the supply chain involves a long-lasting
relationship between Flos and its suppliers, built on mutual trust andClient relationship

Flos demonstrates its attention to clients by offering exceptionally designed
and technologically advanced lighting systems, close communication, andrespect. Considering the critical role of the supply chain in Flos' business,

an efficient repairing/substitution service.

the Company is committed to transferring its modus operandi and expertiseto suppliers, providing technical support to guarantee product quality. Flos

Flos' sales channels

adopts a strict selection process and conducts audits at the suppliers' sites
to evaluate the quality of the materials and services provided, their technicalskills, and the tools and machinery used. Moreover, great attention is paidFlosto the supplier's quality management system (QMS), preferring those whohave obtained an ISO 9001 QMS certification. Flos' business model, focused

S.p.A.

on aesthetics and the functional durability of its products, implies greater

Agencies

attention devoted to quality and technical aspects during the assessment
and selection of suppliers. Nevertheless, in its attempts to monitor andreduce its overall impacts along the supply chain, at the beginning of 2018,
Flos released new contractual clauses based on a series of relevant national

Exporters

and international guidelines and regulations. In 2020, Ares introduced a newcontract for suppliers amending the general conditions of purchase.
The contracts cover issues such as the safety of products and workplaces,

Showrooms

Wholesalers

RetailersKey
Accounts

Design Studios andArchitectural Firms

the environmental impact of products and production processes, and workers'
employment conditions. Moreover, in order to track their sustainability
performance, these additional contractual clauses envisage the possibility ofrequesting suppliers' specific data related to environmental aspects (such aswaste produced, raw materials, and energy consumption) or safety information(such as accident statistics). Similarly, these new contractual clauses envisage
the opportunity to conduct environmental and social audits on suppliers'
facilities and policies to test their compliance with Flos' requests.
In addition, during 2020, Ares continued to implement the new vendor rating
system, launched back in 2019, that aims to strengthen the relationship with
its suppliers and sustain the supply chain. This tool allows Ares to have indepth monitoring of a set of KPIs, such as economic solidity, flexibility, andquality. In the future, it might also turn into a rewarding mechanism.
Although designed for collecting business-related supplier information, thetools above of Flos and Ares will also allow the introduction of ESG aspects insupplier screening. These, together with the new contractual clauses, will help
the Company to further understand and minimise social and environmental
burdens across its supply chain.

As for communication, Flos operates through various sales channels tobetter adapt its offer to customers' different expectations and technicalrequirements. The Group mainly relies on its own subsidiaries and sales
team located worldwide as well as on agencies, as intermediaries that sell
the products of the Architectural and Decorative collection to distributors.
Flos' distributors comprise wholesalers of electric equipment and lighting
specialists, which sell products to installers, and generalist retailers, mainlycomposed of family-run furniture or lighting shops, which predominantly serveend customers. Instead, key accounts are B2B customers and have directcontact with the Company through the distribution network, which represents
an additional service and a market advantage compared to competitors.
By doing so, Flos operates closely with the key accounts both to meet theirneed of having the same lighting concept applied to their various storesand to help them better develop their project and business. Flos also relies
on Agencies that operate through active sales by collaborating with design
studios and architectural firms, proposing personalised and unique lighting
solutions. In these cases, lighting products can be sold either directly to theend customer or via distributors. Furthermore, Flos relies on showrooms

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for sales of its Architectural and Design collections. These showrooms are

Flos is also strongly focused on monitoring customers' complaints regarding

corporate shops operating either through B2C or through B2B models.

product malfunctioning or defects to improve the overall process, thus

Lastly, in markets where these sales channels are not available, Flos relies

enhancing customer satisfaction. In the event of claims, Flos evaluates, on a

on exporters, which allow reaching end customers and intermediaries incase-by-case basis, the best solutions in terms of both costs and customer

Countries where a direct sales activity is not present.

satisfaction. For instance, the Company may either recall the product toanalyse the causes of its malfunction, substitute it immediately or, in the event

146kfollowers

715k
followers

During the 2020 pandemic, the Group had to reinvent communicationsof widely installed systems, send a Flos technician from the internal quality

and interactions with customers and resellers. The impossibility of hosting

department to carry out a site visit to identify more suitable solutions.

events and presentations in Flos’ showrooms and offices was a problematic

Moreover, Flos' front office organises periodic meetings once every quarter

issue that the company had to face with utmost urgency. Indeed, the Groupinvolving specific departments – i.e., quality, production, and R&D – to reportswitched to remote, more diffused campaigns while re-imagining the concept

and analyse complaints received and evaluate corrective actions. The Groupof presentation fairs and exhibitions: these latter aspects will be discussed

monitors the number of products returned due to faultiness reasons and thein depth in the last chapter of this Sustainability Report.

evolution of the quality indicator, which is calculated as the ratio between
the cost of returned products due to faultiness reasons and the total costsof goods sold. This indicator, which includes the collections of Flos, Ares,
Bespoke, and Antares, and contributes to establishing employees' yearly

Customer Proximity in the Digital Era

bonus, has significantly decreased over the last years.

Flos’ commitment to combine customer needs anda suitable level of detail. The goal of Flos’ Professional

technological innovation is directly linked to thewebsite is to gradually implement new features tocontinuous improvement of its digital channels.

respond to the incoming needs and requests of a broad

The Group’s ultimate goal is to offer new experiences

and assorted audience, used to interact with advanced

to its customers, whether in the form of a productservices capable of understanding their needs easily

or by accessing Flos’ creations. Concerning the latter,and transparently. Furthermore, a series of new analytic

2019 and 2020 have witnessed the redesign andinstruments have been integrated into the new website

An additional relevant aspect, which demonstrates Flos' attention to its

re-engineering process of its Professional website:

structure to continuously respond to the needs of Flos’customers, is the importance of the timeliness of deliveries.10 Regarding thethrough a multi-level and multi-purpose stakeholder

customers following the on-going monitoring of their

Decorative collection, the time lag between orders and deliveries for 2020 was

survey, the primary needs of Flos’ customers andexpressions’ flow. Thus, Flos believes that the new

deeply affected by the restrictions related to the Covid-19 pandemic. In fact,

stakeholders were identified and translated into a new

Professional website will help unleash its iconic creations'

58% of orders were delivered with a time-lag of more than six days, against

architecture and wireframing site. The launch of thetrue potential. In turn, this will impact the designs

a much stable trend highlighted in 2018 and 2019. The Outdoor collection was

Professional website, originally envisaged for 2020, wasof many lighting professionals and strengthen theaffected accordingly: indeed, adding the pandemic on top of the standard

postponed to 2021 due to the Coronavirus pandemic.

communications of its wide range of solutions andvariability based on customers’ requests, the time-lag’s trend is different

services.

to that of 2019, with respectively a 14% and 35% of deliveries taking place

Quality Indicator

U.M.

2018

2019 92020

Cost of returned product for faultinessreasons on cost of goods sold

%

1.51

1.08

1.13

9

2019 data was updated due to a refinement in Ares’ data collection.

in over 12 days for 2020. As already mentioned, these trends are entirely

As an actual result, the new website will separately
address retail customers and professionals to build

To conclude, Flos, along with Design Holding, is working

a user experience and the underlying structure in a way

to achieve a unified e-commerce. The on-line platformthat allows users to find what they are looking for withlaunch is expected later in 2021.

attributable to the Covid-19 pandemic.

Due to intrinsic production processes concerning the Architectural and Custom
segments which impede to present consistent figures concerning time-lag, data
is reported on the Decorative and Outdoor collections.
10

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Time lag - Decorative Collection

2020

42%

58%

2019

69%

31%

2018

63%

37%

< 6 days> 6 daysTime lag - Outdoor Collection

2020

65%

35%

2019

86%

14%

2018

56%

44%

< 12 days> 12 days

Coordinates installation, Flos Store Milan

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Sustainability path: from reporting to planning

2015

2016

2018

Sustainability

2017reportIn 2015, Flos strengthened its commitment towards

operations and strategies with ten universally

its stakeholders by publishing its first Sustainability

accepted principles in human rights, employment,

Report. Since then, Flos initiated a process to identify

environment, and anti-corruption. Companies

and prioritise its social and environmental impacts

participating in the Global Compact initiative must

and monitor the process of the most significant key

annually report on progress made by implementing

performance indicators with an increasing degree

the ten principles to inform the Company’sof awareness and knowledge. Furthermore, in

stakeholders, such as investors, consumers, civil

November 2015, Flos subscribed to the Unitedsociety, governments. This Sustainability Report

Nations Global Compact (UNGC), a global coalition

represents Flos' Communication on Progress.

Sustainability Report 2020

2018

2019

2020

of companies committed to voluntarily align their

Plastic-free packaging

54

Sustainability Report covers

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A giant leap was then taken in 2019 when Flos decided to further reinforce
its commitment to sustainability by formalising its first Group Sustainability
Policy that was integrated into last year’s Report with a complete restructuringof its contents. These key principles and values constitute the basis for Flos’sustainability strategy and are the foundations for this new edition of the
document.

Energyand Materials

Flos aims at improving its overall environmental footprint along the value chain.
Aware that global challenges are closely linked to energy and materials, respectively
interconnected to climate change and circular economy aspects, Flos strives tomitigate and optimise its direct and indirect consumption of these resources.

Development
and Wellbeing

Flos believes that its employees, through their passion and expertise, represent theessence of its brand success worldwide. Flos puts its workforce, regardless of theirrole, at the centre of its strategies aiming at cultivating an inspiring, inclusive andmotivating working environment.

Heritage
and Know-How

Flos’ most valuable asset in the path towards sustainability is strongly related
to its heritage of design icons and its technological know-how. Flos is therefore
committed to actively exploiting its intangible resources to contribute to addressing
the challenges that the lighting industry, both from an artistic and a technologicalstandpoint, is facing.

Thus, starting from the sustainability pillars, Flos is shifting the focus from
reporting to shaping its commitment for the future by identifying a set of ESG
targets it is publicly committing to for the coming years. As a result of a sharedprocess that witnessed the participation of various business functions andthe direct involvement of the Group’s management, Flos shortlisted a selectionof goals falling within the scope of its “Energy and Materials” pillar.
These were highlighted as the top priority for establishing clear actions
and initiatives. Specifically, the three clusters identified concern emissions
reduction, circular economy, and waste management. The process included
the evaluation of the relevant SDGs, which are mapped against the targets
presented – thus creating a clear link between Flos’ strategy and the United
Nations’ 2030 Agenda for Sustainable Development. In addition, the Group
undertakes to identify and publish other relevant ESG targets correlated with
the Policy for the coming years.

Belt Architectural System, detail56

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PillarF lo s Wo r ld

SDGs

Energyand Materials

TargetKPI

Baseline-27.5%
emissions reduction
by 2030 11% reduction of Scope 1,955 tCO2e (2019)
1 + Scope 2 – Market
based GHG emissions

100%of electricity fromrenewable sources
consumed by 2022

% of electricity
31.4% (2020)
covered by Guaranteesof Origin purchasedand consumed over
the total electricity
consumed

At least 80%
of new products’
components can bedisassembled andrecycled by 2023 12% of new products’
Varies depending
components can beon the collection 13
disassembled andrecycled over the total

At least 90%
of recyclable
packaging by 2023

% of recyclable
packaging over the
total packaging

Varies dependingon the collection 14

100%
of new products withrecycled textile
by 2023 15% of new productswith recycled textile
over the total of new
products with textile

Not applicable 16100%
of new products
based on bio-based
resins by 2023 17% of new products
based on bio-based
resins over the totalof new products withresinsNot applicable 18

Thus, in line with the Sustainability Policy and with the UNGC commitment
to take specific action in support of the 17 Sustainable Development Goals(SDGs) of the 2030 Agenda for Sustainable Development, this document isdivided into three main chapters, one for each strategic pillar: the chapters
open with a new frontispiece made up of the reference pillars’ definition andscope, and account for the material topics relevant for the pillars and theSDGs linked to them. Finally, a highlights section summarises the Chapter’s
main findings at a glance.
A significant change from last years’ editions of Flos’ Sustainability Reportis the extension of the reporting scope to include Flos Bespoke’s Collebeato
plant, starting from 2020. Bespoke counts 18 permanent employees, and its
headquarters are located in Collebeato (Brescia). The principal tasks carriedout are mainly related to the logistics of Flos’ products, comprising packaging

Progressively% of waste classified
decrease the amount as “mixed” over theof waste classified as total waste produced“mixed waste”

and shipping to stores and customers. Moreover, Bespoke has a department
dedicated to designing and producing custom products, dealing with allstages from initial scratches and pilots to engineering and custom crafting.

Qualitative

The target on GHG emissions reduction has been defined based on the WB2C (Well Below 2°C) scenario according to themethodology outlined by the Science Based Targets initiative.
11
The target does not refer to Flos Bespoke and refers to main components only. The Decorative collection’s specific target
is set at 100%.
12
The baseline varies from one collection to the other and ranges from the Decorative’s almost 0% to the Architectural’s 80%.
13
The baseline varies from one collection to the other and ranges from the Custom’s 42% to the Decorative’s 90%+.
14
The target refers to Flos S.p.A. only.
15
Currently, Flos has not developed products containing textiles.
16
The target refers to Flos S.p.A. only.
17
Currently, Flos has not developed products containing resins.
10

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1. Energy and Materials

Material Topics• Sustainability of Lighting Systems• Emissions and Climate Change• Product Innovation• Sustainability of Materials• Product Quality and Compliance• Logistics

United Nations SDGs

Highlights

80%

31%

the share of recycled
waste over the total

the electricity certified
as produced from renewablesources

Flos aims at improving its overall environmental
footprint along the value chain. Aware that
global challenges are closely linked to energy
and materials, respectively interconnected toclimate change and circular economy aspects,
Flos strives to mitigate and optimise its direct
and indirect consumption of these resources.
In this regard, Flos is committed to:• continuously monitor its energy and materials consumption
as well as the related greenhouse gas emissions generated;• identify and carry out optimisation activities intended
to progressively reduce environmental impacts related
to energy and materials;• balance product's quality, performance and durability
with environmental burdens by implementing the best
available technologies and solutions.

24.461the total energy
consumption in GJ

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For Flos, improving its environmental footprint in its broader meaning –thus including both product manufacturing and product life – has always
been a fundamental part of its sustainability mindset. This commitment is
implemented into actions by the Group on a continuative basis while carryingout its core business activities, from R&D and product conception to theperformance monitoring over the product’s entire life cycle.
In 2020, Flos strengthened its foothold on sustainability and the circular
economy: one of the most pressing aims for the Group is to develop new
solutions that take advantage of innovative materials and renovated productconceptions to reduce the overall environmental impact. Among the mosteffective levers concerning these aspects is modularity; namely the possibilityof disassembling the final product in all its main parts to separate the various
components. This maximises its recyclability and potential for being repaired
while extending the product’s life. The above implies rethinking the entire
business processes in order to deliver on the commitment by both imagining
new products that embody circular economy principles from scratch andadapting iconic products to new priorities through the so-called regenerative
design.
In general, the lighting industry is joining many other industrial sectors in
the growing interest for the transition from a linear to a circular economy
model aiming at decoupling economic growth from the consumption offinite resources. In fact, sustainability awareness in the lighting sector has
gradually increased in the last decades, mainly through improvements inenergy efficiency regulations and the spread of voluntary certifications, thus
stimulating the various players through the development and enhancementof more efficient lighting technologies. While some years ago the industry
underwent a paradigm shift from conventional lighting to Light Emitting Diodes(LED) – which unleashed less energy consumption together with automatedand intelligently controlled system opportunities – attention is now moving
towards the so-called "human-centric lighting", which considers the impacts
of artificial light quality on people's well-being and emotions.
Finally, as part of the broader manufacturing sector, the lighting industry is
also called upon to progressively reduce its direct and indirect greenhousegas (GHG) emissions, closely linked to energy consumption and the circular
economy to effectively address climate change. Willing to fully participate inthis process, Flos is committing to a more sustainable world by contributing
to emissions abatement with an emissions reduction target inspired by the
Science Based Targets initiative methodology alongside new ESG targets
ranging from product circularity and materials sustainability to electricity

Water-based painting

procurement and packaging.
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1.1 Balancing languages of lightand environmental challenges
In 2020 Flos' activities continued, like in previous years, to focus on the
new edition of the IEC/EN 60598-1 safety standard, published in 2020,
specifically targeting the latest LED light sources. In addition, the Company
kept on working and sharing its expertise towards the update and draft ofvarious standards and regulations concerning the better coexistence between
safety requirements and the evolution of the lighting sector. In this field, Flosparticipated in the amendment of the IEC/EN 60570 standard on the electricalsupply track systems for luminaires, published at the end of 2019, and workedon aligning the two above-mentioned IEC/EN standards. Through Assoluce,
Flos also closely collaborated with Lighting Europe, an entity with which theGroup has been working for years now, to promote regulations embracing acircular economy perspective, mirroring and confirming the trend that sees
the lighting industry as the leading actor in the diffusion of energy efficiency
solutions. Additionally, the industry sector has a strong record in prolonging
the product's lifetime and increasing recycling and reducing hazardous
waste. Finally, in the next few years, Flos will be actively involved in theElectromagnetic Compatibility Directive, Low Voltage Directive, and General
Product Safety Directive revision.
To cover the safety of furniture products with lighting devices and, in general,with electrical functions, a specific working group has been establishedwithin the IEC (Italian Electrotechnical Committee) with the aim of drafting a
Guidelines paper. Flos managed the working group and provided the required
inputs to involve the Technical Direction of CEI and all the various IT Technical
Flos profoundly believes that the transition towards a

departments, Flos is at the forefront of several

Committees of the electrical products considered (CT 20, CT 23, CT 59/61,

low carbon and circular economy requires joint efforts

working groups that aim to discuss new regulations

CT 64, CT 108). The draft proposal has been submitted for a public inquiry,of all the industry players at a systemic level and thatand standards to safeguard both the lighting industry

and the Guidelines’ publishing is planned for 2021. An aspect of fundamental

no single company, as innovative and disruptive as it

and final customers. Such working groups take placeand strategic importance to Flos is the work towards counterbalancing the

may be, is able to make it on its own. For this reason,at the national (e.g., CEI – Comitato Elettrotecnico

potential inhomogeneity between regulations from one country to another

Flos is contributing to the development of new and

Italiano, Italian Electrotechnical Committee) andwhere the Group operates; this may entail additional challenges concerning

more effective national and international regulations

international level (e.g., IEC/CENELEC – International

compliance with various rules and procedures applying to lighting products.

and standards regarding the lighting sector throughElectrotechnical Commission and European

In this sense, in recent years, further activities related to material efficiency

tight cooperation with peers. Due to its participation

Committee for Electrotechnical Standardisation).

were initiated in IEC (TC 34 AG 16 Standardisation Strategy) to provide ain Assoluce and other industry associations’ technicalstrategic plan, liaison coordination, and issuing deliverables to the benefitof global electronic industries. The entity’s ultimate aim is to ensure that
actions approved at the EU level are duly taken into consideration worldwide.
Furthermore, in 2020 Flos took part in activities to define the standardisation
framework on UV products (TC 34 AG 17 - UV-C radiation for disinfection andgermicidal purposes).

WireLine by Formafantasma

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Flos’ participation in industry associations

Flos is an associate of Assil, the Italian Association of Lighting Manufacturers

Moving to the legislative changes of the last few years, in 2019, the European

founded in 1995, which includes about 80 Italian Companies representing overCommission adopted a new Circular Economy Action Plan for sustainable

50% of the Italian market turnover in the lighting segment.

growth. This Action Plan covered initiatives along the entire life cycleof products, for instance, targeting design, promoting circular economy
processes, fostering sustainable consumption, and ensuring that the resources
used remain within the EU economy for as long as possible.

Flos and Ares are members of Assoluce, the Italian national association
comprising more than 150 luminaire manufacturers, part of FederlegnoArredo,
the Italian wood, and furniture industry association.

The European Commission has also requested that European standardisation
organisations draft new European standards on efficiency aspects for energyrelated products to support the implementation of Directive 2009/125/EC.
Furthermore, it envisaged Mandate M/543 to develop generic standards thatcover eco-design requirements related to material efficiency aspects (such as
recyclability, recoverability, reusability, durability, reversible disassembly, andAntares is an associate of Anfalum, the Spanish Association of lighting

end of life extraction time) for any product covered by the Directive mentioned

manufacturers that comprises 87 Spanish Companies active in the lighting

above. Following the Mandate, CEN-CLC TC/10 drafted generic standards

industry.

on the various subjects related to material efficiency as required by theCommission.
The Eco-design Regulation for Light Sources, also known as the Single
Lighting Regulation (SLR), published in December 2019 and entered into
force in the same year, provides further input to the implementation of circular
economy principles. As a direct consequence of the SLR, only products

Assil, Assoluce, and Anfalum are part of Lighting Europe, the industry

with removable light sources and control gears clearly labelled with disposal

association representing the lighting industry in Europe. Lighting Europe’s

indications can be placed on the EU market.

mission is to promote efficiency and sustainability of lighting systems,
focusing on environmental challenges, human comfort, and customers’ health

The new Eco-design Regulation does not only introduce higher energy

and safety. Lighting Europe is made up of four Working Groups (WG) , inefficiency limits for light sources and requirements on “circularity”, but also

which Flos takes direct action, addressing topics such as products’ safety andspecifies new minimum “performance” requirements, like, for instance, thosequality, light impact on human life as well as sustainability issues.

on colour rendering, displacement factor, survival factor, colour consistency

19

and flicker. Compliance with these requirements shall be ensured in due time
to be ready for September 2021.

- WG Better Enforcement: Better Enforcement is key to providing safe and quality products for people, and a level playing
field for the industry.
- WG Sound Product Rules: this WG works with regulators to shape good rules that foster quality products and innovation,
and works with the industry to help implement these rules.
- WG Value of Lighting:this WG works to spread the concept that light can have important consequences on people’s
daily life (e.g. affecting mood, cognitive performance, sleeping patterns, and so on).
- WG Sustainability:
this WG operates to support the lighting industry in taking the lead in sustainability, first andforemost by delivering significant energy savings for lighting products and systems.
It also works to prolong the lifetime of products, to recycle and reduce hazardous substances.
19

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Besides improving energy efficiency, in 2020, Flos focused a vast amount of its

Key applicable regulatory requirements for Flos
Low Voltage Directive(2014/35/EU), on placing electrical equipment designed foruse within certain voltage limits on the market to ensure thesafety of low voltage electrical equipment on the EU market.
Radio Equipment Directive(2014/53/EU), on the harmonisation of the European Member
States laws establishing a regulatory framework for placing
radio equipment on the market.
Performance requirements
such as photometric tests, carried out according tointernational standards and used for lighting design.

efforts on implementing circular economy principles in its product design and

Product labellingin this respect in 2017, Flos took part in a working groupwith Lighting Europe and the European Commission todefine obligations regarding energy labelling (and therelevant energy classes rescaling). In 2021 new labelling
requirements for the lighting products will be in force(2019/2015/EU). Manufacturers of containing products,
with integrated light sources (i.e., LED), will be required toprovide the energy efficiency class of the light source. In
addition, working groups tackled the European Registry for
Energy Labelling (EPREL) database (Regulation 2017/1369/
EU), which requires the European Commission to establish
a product database where all new models, covered by an
Energy Labelling regulation, have to be registered before
they can be placed on the EU market for the first time.

production. Modularity and regenerative design are thus key to Flos’ approachto both its iconic and brand-new products – a matter which is being formalisedby the publication of new ESG targets on the topic. Such philosophy
touches upon all Flos' indoor lighting products for domestic use – also withthe availability of spare parts –, an aspect that goes hand in hand with the
products' renowned durability. In addition, Flos takes into consideration,
throughout the conceptual design process and the selection of materials andsuppliers, the durability of the materials composing the lighting systems.
Indeed, in its R&D activities, Flos outlines a way to reconcile efficiency,
sustainability trends, and requests with its identity and philosophy, as well aswith customers' quality and aesthetics expectations. The continuous effort inresearching and developing new solutions to reinventing iconic products andinnovating with brand-new ones can lead to breakthrough outcomes insofar as

Flos took part in Lighting Europe’s working groups topropose amendments to the Eco-design Regulationand Labelling Regulations that aim to clarify specificrequirements concerning DG Energy. The relevant updatesof Eco-design Regulation and Labelling Regulations are
expected to be published within the first half of 2021.
Restriction of Hazardous Substances (RoHS) Directive(2011/65/EU and 2015/863/EU) on the restriction of the useof certain hazardous substances in electrical and electronicequipment.

Eco-design Directive(2009/125/EU), adopted in October 2009 by the European
Regulatory Committee, establisheda framework for adopting eco-design requirements
for energy-related products.

Electromagnetic Compatibility (EMC) Directive(2014/30/EU) governing the electromagnetic compatibility ofequipment.

Eco-design Regulation(2019/2020/EU), the main requirements of entering into
force in September 2021, requires an improvement ofenergy efficiency of light sources and introduces new
functionality and information requirements for light sources,
control gears, and containing products.

"Safe Drinking Water and Toxic Enforcement Act"a Californian law known as Proposition 65, among otherissues, was set out to inform the public with warning labels
about the presence of toxic substances that may cause
cancer and/or birth defects in consumer products. In orderto check Flos products' compliance with the requirements of
Proposition 65, during 2018, the Company, with a qualified
external laboratory, started a program aimed at testing thepossible exposure to toxic substances (e.g., lead, phthalates)with foreseeable use of the product, based on the mostrestrictive standard methods.

Product disposal
such as EU WEEE Directive (2012/19/EU), Waste Electrical& Electronic Equipment). Specifically, in August 2018,
the WEEE Directive changed the product categorisation
to the so-called "Open Scope"; the existing ten productcategories were reduced to six, and more products are
now covered by the Directive, such as heat exchangeequipment, monitors and lamps.

the materials used in crafting and packaging are concerned.
In order to improve circularity, the use of recycled materials to produce partsof luminaires is increasing, not limited to metal components, glass, and easily
recyclable materials but also considering plastic parts. One of the main topics
is the quest for new materials, either recycled or recyclable, that can maintainthe same quality and performance of already implemented solutions regarding
compliance to electrical and mechanical characteristics specified by safety
standards and business practice. The same approach is applied to materials
used for product packaging by increasing the use of cardboard.

ESG Targets

At least

80 %

20

90 %

of new products’ componentsof recyclable packaging

can be disassembled and recycled

by 2023

by 2023

20

68

At least

The Decorative collection’s specific target is set at 100%.

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A further action ensured in the Bovezzo plant to manage Flos’ environmental

Furthermore, an important topic that gained particular resonance in 2020 is

impacts is related to implementing an environmental management system

the work undertaken towards increasing Flos’ product modularity. The ease

(EMS) certified according to ISO 14001 standard.

of dismantling into single components is of fundamental importance forrecyclability and the product's resilience. As mentioned before, circularity

As previously mentioned, it is important to underline that in recent years, Flosprinciples apply both to Flos’ icons and new collections: as regards thehas been centring its efforts on deepening the quest for innovative materials

former, the output is a renovated product that matches circular principles andthat will allow the Group to improve the way its products are crafted while

engineering techniques with the renowned iconicity that is an integral partalso impacting the effect these have on the environment during their entire lifeof Flos’ legacy. In order to facilitate the transition to fully modular products,

cycle. One of the main purposes of R&D activities is to match the needs of

the R&D department is also working on substituting glued components with

reducing the environmental impact of products with quality aspects typical of

dovetail solutions to guarantee an ever-higher level of ease of dismantling andan iconic brand: these can be summarised by the twofold concept of material

thus recyclability. Another option under evaluation – which is mirrored by aand product innovation. This allows the Group to focus on materials as a

specific ESG target – is the use of bio-based resins in new product lines.

way of finding new answers that enable it to properly respond to the needof reducing the environmental footprint of products – and in some cases, byredesigning Flos’ historical items as well.
Accordingly, in recent years, Flos explored 3D printing techniques as a way of
manufacturing innovative bio-based materials such as polylactic acid (PLA) – a
compostable thermoplastic polyester made up of renewable natural resources.
Other environmental savings can also arise from filament 3D printing
applications due to the possibility of significantly reducing scraps. Finally, thespecific 3D printer module currently in use by Flos’ R&D department for theseresearch activities does not emit hazardous substances during the printing

Circular Principles in New Products: Oplightprocess, making it perfectly suitable to be installed in offices and labs without
exposing workers to dangerous air emissions.

Oplight is a bidimensional applique that will be launchedenhancements come to the market.

later in 2021. It consists of a perfect mixture of different

A light refraction system allows to direct light at about

Besides 3D printing and PLA applications, across 2019 and 2020, Flos has

aspects relating to product circularity and modernity:

25 degrees in the centre of the room to avoid zenithal

also been researching new plastics with reduced environmental impacts bymodularity, absence of glues, energy efficiency.

light. In addition, the elasticity of the materials used will

collaborating with key industry players. The final aim of these activities is to try

In particular, finishes are made with powder coating

enable Oplight to be disassembled and reassembled

to overcome the potential technical limitations that in some cases characterise

without solvents, while the body is made with die-castwithout any issue and without compromising mechanicalthese new materials in order to guarantee the emotional quality inherent

aluminium. The LED module can be substituted entirely

resistance and characteristics.

in Flos’ design. The main obstacle with currently available technologies isand even updated in future years as technology

mechanical and performance-related constraints that ultimately undermine
product quality output.

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Finally, Flos’ R&D is carrying out work concerning high-quality, recycled
textiles to be applied to new product collections. Specifically, the department
is evaluating the possibility of using recycled nylon coming from abandoned
fishing nets: the material is recovered, purified, spun, and made ready to be
re-used.

ESG Targets 21

100 %

100 %

of new products with recycled textilesof new products based on

by 2023

bio-based resins by 2023

Product Quality Oversee
For Flos, quality epitomises the perfect blend of

In the meantime, Bespoke has been working to obtainaesthetics, compliance, and attention to detail.

the QMS certification within the coming year.

To improve the production process and offer customers

In order to fulfil all requirements and standards, Flos has

high-quality products, Flos and Antares implemented

its own on-site laboratories, which are accredited to

ISO 9001 Quality Management Systems, certified

verify product safety compliance (few tests are carried

by independent third parties, covering the design,out externally). Compliance with applicable regulations

production, and sales activities of luminaires.

guarantees that all Flos' product categories are

In February 2020, Ares achieved the same Quality

assessed concerning health and safety impacts acrossManagement System certification.

their life cycle.

Targets are applicable in the event of, respectively, new products made with textiles
and products with resins.
21

72

Oblique by Vincent Van Duysen

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1.2 Monitoring and optimisingresource consumptions

Ares’ Environmental Impacts
Ares' headquarters, located in Bernareggio (Monzaof particulate and other hazardous compounds andand Brianza province, Italy), boasts 12,000 m2,

a water treatment plant authorised for effluent

including the R&D department, testing laboratories,

discharging in the sewage collection system. External

and a painting and coating system. In addition,

specialists carry out wastewater and air quality analyses

the plant also has a specific division fitted withregularly to guarantee compliance with normative limits

an automatic assembly line for circuit boards andand the correct functioning of treatment plants.

a production department for wiring and assembly
activities. Ares’ manufacturing activities entail bothIn order to further strengthen its commitment towards

water consumption and air emissions, mainly related

environmental protection, in 2019, Ares initiatedto painting processes and the work of the electronica process for aligning its Environmental Management

circuit division, which comprises, for instance, welding

System (EMS) with ISO 14001:2015 guidelines.

activities and the use of chemical compounds.

All the procedures and guidelines were set up during

In line with current legislation, Ares' facilities are fitted

2020 and the certification was successfully obtainedwith an air treatment system for the abatementin the month of July.

Materials and waste
The most relevant environmental impacts from Flos'

Flos is conscious that, in order to be effective,

overall production process come from outsourced

a forward-looking sustainability strategy must

activities and, only to a limited extent, from theencompass environmental footprint assessments

assembly and packaging activities carried out inand impact reduction initiatives along the entire

Bovezzo and Valencia, as well as from manufacturing

value chain. Accordingly, beginning with the R&D

processes carried out in Bernareggio and, on a muchand design stage, Flos focuses on selecting materials

smaller scale, in Collebeato. Impacts mainly relate

and production processes that align with the aesthetic

to the following environmental aspects: material

profiles and quality requirements of products, ensure

consumption, energy consumption, scraps, and wasteenvironmental compliance, and reduce its overall

from production and assembly (including discharged

footprint. To do so, Flos actively monitors

process water containing toxic substances employed

the environmental impacts generated by its activities

in the coating and painting processes) and indirectcontinuously, progressively integrating those impacts

greenhouse gas emissions from activities such as

occurring outside its organisational boundaries

logistics and materials procurement.

as well.

Flos is addressing its most pressing environmental challenges by focusing on
less impactful and more innovative techniques, reinventing, where possible,
its iconic products, and committing to engineer modular products – therefore
avoiding glued components and chemical products that can compromise
sustainability of the item itself. In addition, the Group accurately monitors
the amounts of materials and components purchased to produce its lighting
systems and the relevant waste generated, undertaking to reduce the use of
non-recyclable or toxic materials. However, as mentioned in previous sectionsof the Sustainability Report, 2020 data is not fully comparable to prior years as
far as the reporting scope is concerned. In fact, the current period comprises
Flos Bespoke as well, alongside Flos, Ares, and Antares.

ESG Performance

68 %3.135 tons

Decrease of polyurethaneof materials processed within Flos,foam purchased withAres, Bespoke, and Antares facilities

respect to 2013
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Sust a i n a b ili t y R e p o r t 2 0 2 0

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Concerning the procurement and processing of raw materials, all materials

Focusing on the electronic components purchased during 2020, it is worth

showed either a moderate decrease or a stable absolute trend on a yearly

noticing that the Group is continuing with the substitution of conventional

basis – exception made for glass and marble/concrete. For all the classes

lamps (in 2020, the value is set to 4.245 units against 5.545 of 2019) while theconsidered, the trend is mainly attributable to the Covid pandemic, which

LED figure has increased (+11.5% with respect to 2019). This trend is entirely

indirectly impacted production volumes during 2020. The increase of the glassconsistent with last year's, while it shows an opposite run when considering

category is due to the inclusion of Bespoke in the reporting perimeter, while

the decreases of other purchased materials related to the Coronavirus

marble and concrete data highlight the fact that these are becoming more andpandemic. As for the electrical and electronic components, it is possible

more popular in Ares' Outdoor and Flos’ Decorative collections.

to notice that both decreased as far as purchased quantities are concerned.
These reductions are mainly attributable to the 2020 pandemic.
For the Decorative collection, the downward trend of traditional lamps

Processed Materials 22

U.M.

2018

2019

2020

Glass

t

209

208

236

kg/k€

1.24

1.21

1.47

t

380

355

296

kg/k€

2.24

2.07

1.84

materials is not available and thus not included: Bespoke undertakes

t

2,029

2,025

1,531

to improve its data collection and to make the missing data available for

kg/k€

11.97

11.81

9.52

the coming reporting years.

t

626

585

557

kg/k€

3.69

3.41

3.47

52

49

37

0.31

0.29

0.23

51

38

38

0.30

0.22

0.24

4

10

7

kg/k€

0.02

0.06

0.04

t

371

424

433

kg/k€

2.19

2.47

2.69

Plastics

Aluminium and Zamak

Iron

Gypsum

23

t
kg/k€

Brass

t
kg/k€

RubberMarble/ConcretetIntensity ratios refer to net sales of Flos, Ares, Bespoke and Antares.
Zamak is a family of alloys with a base of zinc and alloying elements of aluminium,
magnesium and copper.
22
23

purchased is also attributable to Regulation 2015/1428/EU, which requires
companies not to sell lamps together with traditional light bulbs, thus allowing
the customer to buy the preferred solution among LED and traditional sources.
It is essential to highlight that Bespoke’s data on components and packaging

Electronic Components 24

U.M.

2018

2019

2020

Transformers and power supply

units

706,722

646,025

623,824

4.17

3.77

4.16

6,658,154

5,674,954

4,230,000

39.28

33.08

28.18

6,843,040

6,888,141

7,680,660

units/k€

40.37

40.15

51.17

units

11,931

5,545

4,245

0.07

0.03

0.03

units/k€Electrical components

units
units/k€

LED and LED components

Traditional lamps

units

units/k€Data is related to Flos, Ares and Antares plant. Intensity ratios are calculated on Flos,
Ares and Antares’ net sales.
24

Moreover, another relevant impact arising from Flos' business comes from
In addition to the abovementioned raw materials, the Bernareggio plant also

packaging. Flos aims to reduce the amount of packaging materials used andpurchases chemical components for painting and coating activities.

to improve their recyclability while ensuring an adequate protective barrier

In 2020, these compounds, which include paints, artificial resins, andduring transportation. Since 2018, Flos is progressively replacing non-silicones, continued to decrease in terms of quantities purchased and usedrecyclable polyurethane foams with cardboard boxes, specifically studied

with respect to 2018 due to efficiency interventions that provide savings inand developed to deliver the same packaging protection standards during

material consumption while guaranteeing the same production levels.

transport for all the new collections from the Bovezzo plant with a much
lower environmental impact. The project allowed Flos to record a significant
68% decrease in the purchase of polyurethane foams in 2020 compared to2013, the year the project was launched – with an outstanding -32% yearly.

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Finally, Flos is continuously striving to find new, innovative solutions regarding

directly possible due to the close relationship between Flos and its supply

substituting current packaging materials with alternatives that can either be

chain, which gives this business model an inherent added value.

recycled or guarantee a more negligible environmental impact. This is entirely
in line with Flos’ ESG target of moving to at least 90% recyclable packaging

Furthermore, Flos offers its employees the opportunity of buying non-saleable,

by 2023 at the Group level.

defective products at a discounted price, thus further reducing its total waste
volumes. Waste produced during the assembly stage occurring in Flos'

Packaging Materials

25

Paper and cardboard

Plastics

Wood

headquarters is collected and separated based on its composition to optimise

U.M.

2018

2019

2020

t

1,133

1,049

1,031

kg/k€

6.7

6.1

6.9

t

78

70

67

kg/k€

0.5

0.4

0.4

a circular way of thinking and behaving among its employees through, for

t

371

309

263

instance, the improvement of the recycling process in coffee areas, in recent

kg/k€

2.2

1.8

1.8

years, Flos increased the separation of waste material in the plants of Bovezzo

recycling.
Lastly, in 2020, Flos continued to improve its waste management and recycling
activities, entirely in line with trends of the past few years. Along with fosteringand Bernareggio. Specifically, in Bovezzo, a container divided into three

Data is related to Flos, Ares and Antares plant. Intensity ratios are calculated on Flos,
Ares and Antares’ net sales.
25

parts to separately collect iron, brass, and aluminium waste was installed. In
addition, Flos reviewed its suppliers' list to select the best providers to ensure
the correct disposal and recycling of waste produced.

Moving to the downstream of materials lifecycle, Flos' waste production
mainly relates to faulty components that do not meet product aesthetics andquality requirements and are thus sent back to suppliers. Whenever possible,
in the event of defective products, undamaged parts are separated and reused
to minimise waste volumes and maximise resource recycling.

ESG Performance80 %456 tons

the share of recycled

the total tonnes of waste produced

waste over the total

ESG Target

Progressively decrease the amount of waste classified
as “mixed” over the total waste produced

Through this approach, in 2020, the percentage of recycled waste over the
total waste produced has peaked to 80% against 67% in 2019. This year’s
data comprises Bespoke’s as well: Collebeato plant contributes almost 28
tonnes of recycled materials, amounting to 8% out of the total value at theGroup level.

Moreover, firmly believing that prevention is the most effective approach for

The significant increase of recycled waste is clearly related to Flos Group’s

eliminating waste, Flos is involved in training its suppliers in order to reduce

aim to reduce its environmental impact by applying circular economy andcases of non-compliance of input materials. Specifically, Flos inspects andsustainability principles at all production levels. Concerning hazardous waste,monitors the percentage of defective components coming from various

in line with past years, the figure is mainly related to the Bernareggio plant:

suppliers and the reasons for their return to identify the suppliers experiencing

the plant hosts manufacturing stages, such as painting and coating, whichmore difficulties. Furthermore, it engages with them to identify the areas ofrequire the use of chemical compounds.

improvement and set up potential corrective actions while providing them with
the necessary tools and training to put them into practice. This aspect is madeIt is also important to underline that in Bovezzo, the separated collectionof polyethylene, introduced in 2017, continues to deliver results, always withthe aim of reducing the Company’s overall impact.

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Waste produced (tonnes)

Flos has implemented a real-time monitoring system of its energy consumption
levels in the Bovezzo plant to progressively optimise resource consumption.

Waste Produced

U.M.

2018

2019

2020

Non-hazardous waste

t

533

445

422

Hazardous waste

t

28

30

33

Total

t

561

475

455

Since January 2018, the system has allowed monitoring of the energy demandof the various production processes within the plant, identifying the mostenergy-intensive processes and potential inefficiencies while reducing thelatter, thus increasing the site’s overall efficiency. The final goal, beginning with
consumption patterns, is to progressively implement mitigation or remediation
activities to reduce the energy demand and increase the site’s overall efficiency.

Waste produced, by disposal method (tonnes)
The initiative, which began in 2018, is delivering also in 2020.
Waste, by disposal method

U.M.

2018

2019

2020

In fact, Bovezzo’s energy consumption dropped by 15% with respect to last

Recycled

t

311

316

366

year. Nonetheless, Flos is well aware that if, on the one hand, this decrease

Not recycled

t

250

159

89

Total

t

561

475

455

can be attributed to the ever-increasing efficiency of the site, on the other
hand, it is due to the reduced use of spaces and instruments caused bylockdown measures, as well as by remote-working.
Specifically, in 2020, 49% of electricity was consumed in offices, while
production-consumption amounted to 34%. Given the strong and specific

Energy and GHG emissions

In addition to material consumption, Flos monitors its energy consumption
and the related GHG emissions, which are mainly due to heating and cooling
purposes and to fossil fuel consumption for the corporate fleet. Specifically,
the production site in Bovezzo is supplied from the district heating networkof Brescia, an integrated system providing energy to the city from waste

results achieved, Ares is evaluating the possibility of implementing a similar
mechanism in its Bernareggio plant to improve work quality, reduce energy
waste, and have a lesser impact on the environment.
Bovezzo's Electricity Consumption

incineration. Instead, natural gas consumption derives from Bernareggio
and Collebeato plants, where it is used for heating purposes and painting
activities. Nonetheless, given its dimensions and operations, Bespoke’s

49%
Offices

activities have no relevant impact in terms of energy consumption, GHG

1%
General Services

emissions, and in general, on the environment.

ESG Performance

24.461 GJ

31 %the total energy

the electricity certified as produced

consumption

from renewable sources

34%
Production Area

16%
R&D

As expected last year, in 2020, Ares concluded the LED revamping in its plant,
thus contributing to decoupling production volumes and energy demand:
as a result of this substitution, savings generated in 2020 amount to around
15% at the plant level.
The total energy consumed in 2020 is equal to 24,461 GJ, showing a 3.8%
decrease from 2019. This slightly downward trend is mainly attributable
to the pandemic, which had a significant impact on the Group’s activities from80

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Sust a i n a b ili t y R e p o r t 2 0 2 0

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March onwards – especially when considering that 2020 data witnessed
an enlargement of the reporting scope, thus also comprising Bespoke.
More specifically, decreases are mainly due to the indirect decline in production
volumes, to lockdown measures imposed by local and national governmental
institutions, and to remote working implemented at the Group level for all tasks
where possible.
Energy Consumption (GJ)
Energy Consumption

U.M.

2018

2019

2020

Energy consumption - for buildings

GJ

22,951

21,99921,220-of which: electricity purchased from national grid

GJ

9,168

8,352

7,860

Carbon Offsetting Projects
Flos Group’s carbon neutrality is achieved by balancing

areas that were previously designated, sanctioned orcarbon emissions with offsetting, thus using carbon

approved for commercial logging. The project activities

credits coming from positive impact projects. Each

include changes in land-use legislation and regulationcredit is certified according to international standards

that result in the protection of forest areas and reduction

and it corresponds to the reduction (or removal) of oneof harvest levels.

ton of CO2 equivalent. In particular, the two projects the

The second project is developed in the GuatemalanGroup bought the credits from are the “Great bear forest

Conservation Coast region by addressing the drivers

carbon” and the “Guatemalan conservation coast”.

of deforestation through effective law enforcement,
land-use planning, education, economic opportunities,

The Great Bear Forest Carbon project aims at

and sustainable agroforestry initiatives. The project has-of which: district heating purchased from external
waste-to-energy plant

GJ

5,892

6,277

5,177

improving forest management in the British Columbia

also significant perks: over 400 species of birds have-of which: natural gas for heating and production processes

GJ

7,890

7,370

8,183

(BC), the westernmost province of Canada, generating

been documented in the project area and 120 species

Energy consumption - for fleet

GJ

3,593

3,425

3,243

emission reductions through the protection of forest

depend on the corridor to sustain their great journeys.

-of which: for Company car fleet

GJ

3,342

3,143

3,034

-of which: for Company truck fleet

GJ

356

282

209

Total

GJ

26,64925,424

24,463Flos' commitment to reduce its overall environmental impact also
encompasses monitoring its GHG emissions along the value chain for
reduction and compensation purposes. Moreover, to strengthen its efforts,
with the publication of this Sustainability Report, Flos undertakes to reduce
its Scope 1 and Scope 2 – Market-based GHG emissions in line with the
WB2C (Well Below 2°C) scenario as provided by the Science-Based Targets
initiative’s calculation methodology.26 Expressly, the Group undertakes toreduce its GHG emissions by 27.5% by 2030.
As a further commitment with respect to climate change, Design Holding
Group decided to purchase carbon credits in order to compensate its overall

In accordance with the GHG Protocol Corporate Accounting and ReportingStandard and in line with recent years, Flos has identified and monitored
all relevant direct GHG emissions (Scope 1) and those resulting from energy
purchases (Scope 2). In 2020, Scope 1 emissions amounted to 757 tCO2 eq,
slightly decreasing yearly even with an enlarged reporting scope. This aspect
is mainly due to the Covid pandemic, which impacted energy consumption
and, as a consequence, emission patterns. In general, emissions related tothe production process are quite limited in absolute terms: as alreadyobserved, this is mainly because, out of the plants falling within the scopeof the reporting scope, only Bernareggio – and Bespoke for a much smaller
share – have production processes.

GHG Scope 1 and Scope 2 – Market based emissions, starting from 2020
reporting year. The initiative allowed Flos Group, and the other subsidiaries
of Design Holding Group, to become carbon neutral on the activities fallingwithin the reporting perimeter and is designed as a transition tool to mitigate
its impact on the road to effectively reducing carbon emissions.

The Science-Based Targets initiative was created by the collaboration between
the CDP, the UN Global Compact (UNGC), the World Resources Institute (WRI) andthe World Wide Fund for Nature (WWF). It is acknowledged to be one among the We
Mean Business Coalition’s commitments. The initiative supports companies in defining
26

82

emission reduction targets that enable to cap global warming well below 2°C (WB2C)
aiming to stay within +1.5°C compared to pre-industrial temperatures, in line with whatis envisaged by the Paris Agreement.

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Moving to Scope 2, GHG emissions, resulting from electricity purchased fromthe national grid, have been calculated both by adopting the location-based
and the market-based method. The first method reflects the average emissions
intensity of grids from which energy consumption occurs, while the second
reflects emissions from the electricity that the Company has purposefully
chosen. Guarantees of Origin (GO) have covered the electricity purchased
by Flos’ headquarter in Bovezzo since August 2018, thus certifying that it

Reported GHG Scope 3 Emissions Categories 27

Description

Cat. 1 - Purchased Goods and Services

Upstream emissions from the production of products
purchased or acquired.

Cat. 3 - Fuel and Energy-Related Activities

Emissions related to the production of fuels and energy
purchased and consumed.

Cat. 4 - Upstream Transportation

Emissions associated with the transportation anddistribution of products purchased in the reporting
year, between a company’s tier 1 suppliers and its
own operations in vehicles not owned or operated by
the reporting company.
Emissions related to the transportation and distribution
services purchased by the reporting company in thereporting year, including inbound logistics, outboundlogistics (e.g., of sold products), and transportation anddistribution between a company’s own facilities.

Cat. 5 - Waste Generated in Operations

Emissions from third-party disposal and treatment of waste
generated by the Group’s owned or controlled operations.

Cat. 6 - Business Travel

Emissions from the transportation of employees forbusiness-related activities.

Cat. 7 - Commuting

Emissions from the transportation of employees between
their homes and their worksites.

is produced from renewable sources, resulting in zero direct carbon emissions
according to the market-based method. In this regard, all of Flos’ companies
within the reporting scope are moving towards complete coverage of their
entire electricity needs with certificates, aiming at 100% GO procurement
by 2022.

ESG Targets

100 %-27.5 %

of electricity from renewable energy

Scope 1 and Scope 2 –sources consumed

Market-based emissions
by 2030

27

The Greenhouse Gas Protocol – A Corporate Accounting and Reporting Standard – Revised edition.

Moving to Scope 3, most GHG emissions generated in 2020 are grouped

GHG Emissions 2020

U.M.

under this category. In order to strengthen its commitment towards reducing

Scope 1emissions and deepen its understanding of its own operations at all levelsof the value chain, Flos decided to expand Scope 3 monitoring and reportingby adding new emissions categories to its Corporate Inventory.
Thus, in addition to the transportation of purchased goods and business

Location-Based

Market-BasedtCO 2 eq757

757

Scope 2tCO 2 eq923

857

Scope 3tCO 2 eq

22,341

22,341

Total

tCO 2 eq

24,021

23,955

travels, already included in past periods, four additional categories havebeen added. These focus on purchased goods and services, fuel and energyrelated activities, waste generated in operations, and employees’ commuting.

GHG Emissions 2020 - Scope 3 (tCO2 eq)

Consequently, data comparability from 2019 to 2020 is not guaranteed insofar
as Scope 3 emissions are considered. As shown, Scope 3 emissions aremainly composed by purchased goods and services that constitute 89% outof the total: this is relevant as it allows Flos to understand the significance

19,975 tCO 2 eq
Cat. 1

11 tCO 2 eq
Cat. 5243 tCO 2 eq
Cat. 3155 tCO 2 eq
Cat. 6

1,578 tCO 2 eq
Cat. 4379 tCO 2 eq
Cat. 7of product design in terms of the Group’s performance. The table below
shows the description of all emission categories that fall within 2020’s GHG
Inventory’s Scope 3.

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GHG Emissions by activity

U.M.

2018

2019

2020

Direct Emissions (Scope 1)

tCO 2 eq

858

783

757

-Natural gas combustion
for heating and production processestCO 2 eq

448

418

463

In addition to the full compensation of our Scope 1 andlogistics activities. The methods used for calculating-Diesel consumption for truck fleettCO 2 eq

27

21

16

Scope 2 – Market based GHG emissions (for further

and offsetting greenhouse gas emissions are based-Diesel consumption for car fleettCO 2 eq

306

275

246

information, see box “Carbon offsetting projects”),

on the Greenhouse Gas Protocol's Product Life Cycle-Gasoline consumption for car fleettCO 2 eq

15

12

32

since 2017 Flos has adhered to the Go Green – Climate

Accounting and Reporting Standard. The calculation-Refrigerant gases
from leakages of air-conditioning systems

Neutral program organized by DHL .

methodology includes carbon dioxide (CO2) and further

tCO 2 eq

63

57

0

The initiative allows customers to offset their emissions

GHG emissions such as methane (CH4) and nitrous

Indirect Emissions (Scope 2) - Location BasedtCO 2 eq

1,123

1,090

923

resulting from the transportation of goods, thusoxide (N2O) from transportation and logistics, as well as-Electricity purchased from the national grid

tCO 2

816

783

675

compensating the environmental impacts of outboundupstream emissions from fuel and energy production.

-District heating purchased from external waste-to-energy
planttCO 2 eq

307

307

248

Indirect emissions (Scope 2) – Market BasedtCO 2 eq

1,342

1,029

857

-Electricity purchased from the national gridtCO 2 eq

1,035

722

609

-District heating purchased from the waste-to-energy planttCO 2 eq

307

307

248

Other Indirect Emissions (Scope 3)

tCO 2 eq

3,590

2,021

22,341

Total Location BasedtCO 2 eq

5,571

3,894

24,021

Total Market BasedtCO 2 eq

5,790

3,837

23,955Focus: 2020’s Scope 3 GHG Emissions

U.M.

2020

Scope 3 CategoriestCO 2 eq

22,341

Cat. 1 - Purchased Goods and Services

tCO 2 eq

19,975

Cat. 3 - Fuel and Energy-Related Activities

tCO 2 eq243

Cat. 4 - Upstream TransportationtCO 2 eq

1,578

Cat. 5 - Waste Generated in Operations

tCO 2 eq

11

Cat. 6 - Business TraveltCO 2 eq

155

Cat. 7 - CommutingtCO 2 eq

379

Logistics Carbon Offsetting

28

Percentage of GHG emissions resulting fromtransportation of sold products offset
2020

67%

33%

2019

59%

41%

2018

30%

70%

GHG emissions offset with GoGreen programm

GHG emissions not offset

On behalf of Flos and proportionally with the emissions

to 713 tCO2 eq, thus offsetting 67% of the GHG

resulting from the transportation service purchased,emissions resulting from the transportation of sold

DHL invests in climate protection projects complying

products. The increase with respect to 2018 is mainlywith the Clean Development Mechanism29 (CDM) criteria

related to the increase of the Go Green programme

set out in the Kyoto Protocol. In addition, Flos and Ares

used by the group. In total, in 2020, Flos contributed

are studying the feasibility of extending this programme

to carbon savings equal to the CO2 eq emitted by aroundto other logistics suppliers.

423 passenger cars, which travelled 10,000 km.

In conclusion, Flos and Ares' offset for 2020 amounted

DHL is an international company providing express deliveries worldwide and logistics services including freighttransportation, warehousing and supply chain solutions.
29
The Clean Development Mechanism certifies emissions reduction projects in developing countries as well as trading and sellingcertificates arising from projects in order to meet emissions reduction targets through off-setting under the Kyoto Protocol.
28

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2. Development and Wellbeing

Material Topics• Occupational Health and Safety• Diversity• Employee Care

Flos believes that its employees, through their
passion and expertise, represent the essenceof its brand success worldwide. Flos puts its
workforce, regardless of their role, at the centerof its strategies aiming at cultivating an inspiring,
inclusive and motivating working environment.

United Nations SDGs

Highlights

477

2,843 hFlos, Ares andAntares Workforce

Training Hours

To this extent, Flos undertakes to:• invest in training activities and development programs
dedicated to employee personal and professional improvement;• promote a rewarding and inclusive working environment
in order to recognise and empower employee talent,in line with everyone's potential and aspiration.

1.1
Injury Rate

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Flos has always strongly believed that when it comes to shaping strategies

coordination across Flos, Ares, Antares, and Bespoke: in fact, during 2020, all

and business decisions, the role played by its employees is key to the brand’sGroup companies implemented similar measures engaging all their employees

history and today’s achievements. This commitment is built on the Group’s

at all levels in the same containment actions as well as sharing best practices.

daily operations by understanding its employees’ personal and professional
needs and by fulfilling them through cross-cutting initiatives and tailor-madeNonetheless, and despite the Group's prompt action, which ensured continui-

activities.

ty, it was necessary to avail of the furlough schemes launched by the national
governments in both Italy and Spain. These ensured that employees and their

These solid assets, which Flos has been working on for years and that are an

families received financial support while saving their jobs and allowing Flos tointegral part of its everyday life, proved to be a key strength during 2020, a

offset the decline in production volumes due to the impact of the pandemic on

year characterised by unprecedented challenges for the Group as a whole andthe global economy.

more specifically for its employees. The outbreak of the Coronavirus pandemic
called for extraordinary health-related and social measures: Flos’ number one

One of the main changes of the past few years, as far as human resources

priority was to protect its employees while guaranteeing business resiliencestructures and procedures are concerned, was the introduction, from theand continuity. As news of the pandemic spread, the Group promptly ap-

second quarter of 2021, of a new function: a Group Head of HR. The figure will

pointed an internal Task Force to handle the situation. At an operational level,

deal with homogenising Flos’ initiatives by centrally coordinating the various

following the prescriptions issued by the Italian national government,

entities.

the plants of Bovezzo, Collebeato, and Bernareggio suspended production
from March 13th, 2020, through March 22nd when the official suspension entered into force. The Prime Minister’s Decree of April 10th, 2020 extended thecontainment measures, including the closure of production activities until May
3rd, 2020 – even though Flos resumed its activities on April 27th due to thesebeing classified as being strategically relevant activities. Following this date,
all production sites in Europe gradually reopened.
Capitalising on its intrinsic flexibility and agility, Flos has been able to implement drastic measures since day one of the pandemic outburst: more stringent health and safety protocols than the ones required by local law have been
duly implemented; a vast mapping of the vulnerabilities of Flos’ employees
and greater exposure to the possibility of contagion has been carried out tofoster remote working as a means of protection and direct support; actions
implemented also concerned Flos’ suppliers, who received direct assistancewhen facing both economic and operative challenges, for example through the
supply of personal protective equipment. Moreover, the Group’s management
decided to take out Covid insurance for all employees – to be applied in theevent of contagion and hospitalisation – and set up a detailed Covid protocol
to contain as much as possible the spread of the virus. This protocol –still inforce in 2020 – prescribes, among others, the need to wear masks, social distancing during working hours, and checkpoints for temperature measurement.
All these measures have been implemented and monitored with a deep level of90

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2.1 Employees as the essence of brand success

ESG Performance

477

92 %

Flos, Ares, Bespoke

Percentage of employees over theand Antares’ workforce

total workforce

Workforce, by Employee Category U.M.
and Gender

2018

2019

2020

Total Workforce

n.

438

446

477

Employees

n.

401

414

437

Supervised workers

n.

28

24

37

Interns

n.

9

8

3

Women

%

43%

43%

44%

Men

%

57%

57%

56%

Workforce by Gender2020’s Coronavirus pandemic has been polarising activities in humanresources, standing out as a very challenging year for the Group. For example,
during 2020, the total number of workers increased to 477 compared to 446
of the past year, with an increase of 31 employees, mainly attributable to the
In 2020 Flos Group's workforce, including Flos USA

159 employees. Moreover, women and men were

Inc. and Flos' commercial branches, totalled 64830

proportionally balanced as far as the employee

persons , showing a slight decrease with regard to

population is concerned (44% and 56% respectively),

the previous year (651).

with a slight increase in female presence with respect
to the past year (43% and 57% respectively) andAs for the reporting perimeter, including people inentirely consistent with a trend already highlighted

Italy (Flos, Ares, and Bespoke) and Spain (Antares),between 2018 and 2019. Moreover, also in 2020, thein 2020, 64% of total employees were located inmost relevant category of workers considering age

Bovezzo (179), Bernareggio (81), and Collebeato

groups is the one between 30 and 50 years, with(18) for an overall 278 people, while the remaining

almost no changes with respect to last year.

36%, located in the Valencia district, amount toreporting scope enlargement regarding Bespoke. In 2020, Flos confirmed its
strong commitment to retain its talents and enhance their sense of belonging
by guaranteeing permanent contracts, increased by 9% yearly, and covering
a 98% share of all contracts. In 2020 the percentage of part-time employees
decreased by 31% (downsizing to a 4% share), showing Flos’ attention to its
workforce and the need for a personal and professional life balance. In linewith previous reporting years, all Flos employees are covered by collective
bargaining agreements, as required by Italian and Spanish national laws.
During 2020, the Group heavily relied on remote working to guarantee fulladherence with lockdown and social distancing prescriptions issued by local
and national governments in Italy and Spain. These measures follow FlosGroup’s intrinsic attitude towards safeguarding its people while embracing
new opportunities and technologies. In fact, the pandemic turned out to bean effective lever for process updates and modernisation – entirely in line witha philosophy of workplace changes the Group is embracing and implementing

Number of full-time equivalents (FTE) derived by taking into account employees employed under both permanent andtemporary contracts of service, at the end of the reporting period.
30

92

in everyday operations.

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Antares’ ERTE

Employees, by Genderand Contract Type

U.M.

2018

2019

2020

Permanent

n.

375

395

429

In Spain, as part of the initiatives implemented to face

Consequently, Antares decided to adopt a flat reduction

Women

n.

165

174

197

the Coronavirus pandemic, Antares introduced theof both the payroll and working hours that involved

Men

n.

210

221

232

Temporary Lay-off Plan (Expediente de Regulación

every employee at all levels of the organisation’s

Temporary

n.

26

19

8

de Empleo Temporal – ERTE). ERTE is a job retention

hierarchy. Accordingly, given the flat payroll reduction

scheme, a Spanish regulation that allows an employer

purposefully established, Governmental subsidies

Women

n.

7

10

3

to temporarily suspend employees’ contracts or reduceallowed lower-wage workers to experience almost no

Men

n.

19

9

5

the working hours under certain severe conditions

changes in monthly compensation.

Total

n.

401

414

437

that cause issues during the normal working routine.
Concerning hires and terminations, the graph below shows the Group’s
resilience when facing the difficulties and constraints correlated with the
pandemic. Indeed, the 2020 hiring rate is fully in line with respect to 2019.
The 2020 figures – the ratio between the number of hires and the total number
Employees, by Gender2020of employees at the beginning of the reporting year – was equal to 11.8%

Full-time vs Part-time Employees

200

237

2020

4%

against 11.7% of 2019.31
96%

On the other hand, the turnover rate – the ratio between the number of job
terminations and the number of employees at the beginning of the reporting

2019

184

2018

172

year – followed the constant trend of the last two years, slightly increasing230

to 8.9% from 2019’s 8.5%.
In 2020, total hiring amounted to 49, of which 18 women and 31 men, while229

in 2019, the total figure was 47. On the contrary, the number of terminations
was 37, of which 11 females (13 in 2019) and 26 males (21 in 2019).

Woman

Man

Part-time

Full-time

Among these, 21 were voluntary, amounting to 56% of total terminationsin 2020, against the 34 of the past year. In absolute terms, the two dimensions
showed a downward trend if we consider the same reporting perimeter aslast year – a performance that can be mainly attributed to the Coronavirus

Employees, by Category

Employees, by Age

63%
Office Workers

66%
From 30 to 50 years

6%
Middle Managers

pandemic.

7%
Less than 30 years

3%
Executives

2019 and 2018 ratios have been re-calculated using respectively 2018’s and 2017’s
total number of employees. 2020 figures have been aligned accordingly.
31

28%
Workers

94

27%
More than 50 years

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Employee Hiring and Turnover Rates

Hiring rate

Turnover rate
11.8%

11.7%
8.6%

7.6%
2018

96

8.9%

8.5%

2019

Hires, by Gender and Age

U.M.

Women

2020

2018

2019

2020

n.

19

24

18

Men

n.

15

23

31

Less than 30 years old

n.

11

16

11

From 30 to 50 years old

n.

22

29

27

More than 50 years old

n.

1

2

11

Total Hires

n.

34

47

49

Terminations, by Gender and Age

U.M.

2018

2019

2020

Women

n.

19

13

11

Men

n.

11

21

26

Less than 30 years old

n.

6

9

7

From 30 to 50 years old

n.

16

19

17

More than 50 years old

n.

8

6

13

Total Terminations

n.

30

34

37

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2.2 Training for personal
and professional improvement
Among the companies32 falling within the scope of the figures, Flos andAres show an upward trend as far as the overall training hours carried out isconcerned, while Antares’ decreased due to the Coronavirus pandemic andconsequent budget reviews.
In the coming years, Flos undertakes to deliver on the commitment ofcontinuous investment on its own workforce by maintaining the steadylevel of training activities and by continuing to monitor both the market andemployees’ needs.

ESG Performance

2,843

6.8 h

Flos, Ares, and Antares

The average training hours

total training hours

per employee

To continuously funnel personal and organisational improvements, in recent
years, Flos has designed and implemented a dynamic and personalised
training programme aligned to the diverse needs of employees and corporate
responsibilities. The programme was conceived to help employees realise theirfull potential, both in terms of soft and technical skills deemed necessary to
In recent years, Flos has embarked on a journey

deepened the differences with respect to 2019 –meet the Group’s evolving business scenario and adapt to the technologicalof substantial investments in terms of financial anddespite this, several hours of training were also

national and international legislative changes. When designing the programme,time resources aimed at upskilling its workforce. In

provided in 2020. Indeed, due to on-line platforms

Flos considered employees’ training needs and identified minimum training

2020 the total amount of hours dedicated to training

and web meetings, it was possible to continue

requirements for every cluster of functions. As a result, the training programmeamounted to 2,843 compared to 3,644 in 2019.

to guarantee appropriate training opportunities for

involves both ad hoc courses – e.g., e-commerce – and non-technical training

A decrease of the total training was actually expected

Flos’ workforce. Of course, as mentioned, what has

ranging from legislative requirements – e.g., RoHS, Eco-design, import, anddue to periodical updates as far as health & safety,

dramatically changed was the delivery of training:

export – to public speaking and English, French and German lessons.

and technical courses are concerned. However, theto ensure full compliance with all applicable legislationdifficulties caused by social distancing, lockdown

concerning Covid-19 containment measures, courses

In addition, during the past year, Ares underwent a profound restructuring of

measures, and more in general, the pandemic

shifted to remote learning whenever possible.

its own training projects, thus embarking on a process that led to a significant
increase in its capacity to track, value, and monitor employees’ academic
and professional training background. This pathway, an integral part of ISO
9001:2015 certification process – successfully concluded in February 2020

Data refers to Flos, Ares and Antares. Bespoke does not monitor training data andundertakes to disclose it from the next reporting period.
32

98

99

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– aimed at identifying Ares’ people strengths and improvement areas withthe goal of structuring ad hoc training opportunities: this continuous flow of
information and training needs deep mapping and allows Ares to make betteruse of its employees' expertise while continuing to duly invest in their upskill.

Technical Training for Leveraging Innovation

Training

U.M.

2018

2019

2020

Total Hours

h

3,885

3,644

2,843

Men

h

2,280

2,263

1,159

Women

h

1,606

1,381

1,684

Average Hoursh/employee

9.7

8.8

6.8

Men

h/employee

10.0

9.8

5.1

Women

h/employee

9.3

7.5

8.9

%

96

70

85

%

4

30

15

Non-Compulsory Training

Along with continuing the courses on lean

the most specific commercial requests and to follow

manufacturing, in the last few years, a set of new

through with its Heritage and Know-how commitment,

technical courses were carried out, responding tothese courses included, for example, lighting

the need to broaden and sharpen Flos’ people andtechniques and legislative requirements for residential

light designers’ vertical competencies. Thus, withareas, hospitality and wellness areas; school areas;

the aim of ever-enlarging its capacity to respond to

workplaces; museums and churches.

In 2020, training hours provided to Flos’ employees corresponded to an
average of 6.8 hours per employee33, showing a reduction compared to 2019’s

Percentage on total training
Compulsory Training
Percentage on total training

Average Training Hours, by Employee Category

2020

3h

2019

6h

2018

4h

8h

13h

10h

7h

7h

3h

8.8. In addition, looking at the non-compulsory training – i.e., excluding
training activities required by national regulations, such as health and safety
training – the average training hours per employee amounted to 5.8 in 2020,

12h

17h

12h

equal to 85% of 2020 total training hours. Focusing on the average training
per employee category, the only groups that show changes compared to 2019are executives (from 3 to 7 hours in 2020) and office workers (from 10 to 8

Workers

Office Workers

Middle Managers

Executives

hours in 2020). To conclude, training envisaged for supervised workers andinterns, which amounted to a total of almost 70 hours in 2019, was postponeddue to the Coronavirus pandemic. For the future and in line with recent years,
Flos confirms its commitment to provide all employees with adequate training
in the upcoming years, regardless of employee category and contract types.

The average excludes Bespoke’s employees as data for 2020 on training delivered
is not available.
33

100

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2.3 An inclusive and safe working environment

Furthermore, concerning the abovementioned benefits, fuel vouchers werealso extended to fixed-term employees.
Additionally, to provide a wider set of benefits to its employees, in 2019 Flos
implemented an on-line platform developed to manage workers’ benefits andperformance bonuses. The web platform was launched in September 2019,
allowing an integrated and simplified way of discovering and accessing all
the various benefits for both white and blue-collar workers. In order to help
familiarise its employees with the platform – which has also been confirmedfor 2020 – the Company offered dedicated training and one-to-one support
sessions to all employees that needed it. Flos’ goal to extend the benefits
package to all Group companies was implemented in 2019 by introducing the
new second-level contract34 in Ares.
In addition to employees’ welfare, Flos continuously pays the utmost attention
to health and safety aspects by constantly monitoring the key indicatorsand fostering a safety culture across all roles and responsibilities within theGroup. In line with these objectives, the Group carries out, on an on-goingbasis, several activities to improve occupational health and safety and raise
employee's awareness on these topics.
At the core of the Group’s commitment to guaranteeing high safety standards
are training and education activities. In 2020, a total of 421 hours of healthand safety training was provided. The figure, which is evidently lower than in
Work-life balance is one of the ways through which

covered all employees in the event of Covid positivity

2019, is mainly attributable to normal trends concerning H&S training updates

Flos rewards the talent and passion of its employees

and relevant intensive care hospitalisation. Moreover,to employees: in other words, the decrease is primarily due to the frequency

but also creates an inclusive working environment as

Flos continued to incentivise performance-based payof the activities that are carried out on a two to five-year basis depending on

a way of looking after everyone’s personal well-being.

to acknowledge everyone’s contribution by offeringboth training levels and safety regulation requirements.

Flos has indeed translated this commitment into

performance bonuses related to product quality andproviding a benefits package that meets employees'

business profitability. Specifically, even during such

Flos’ attention to the prevention and mitigation of work-related health andneeds beyond mere basic compensation.

a dramatic year, Ares decided to provide a bonus

safety impacts also extends to supply chain management. Indeed, theto all employees in recognition of the extraordinaryCompany takes advantage of the close relationship with its suppliers – above

In line with 2019, in 2020, Flos continued toefforts poured into activities, guaranteeing business

all, the smallest and nearest ones – by monitoring their performance and work

guarantee benefits such as meal vouchers, healthcontinuity. In general, Flos’ approach is to provide theconditions through frequent, commercial site visits. This aspect allows for

insurance, invalidity coverage, fuel vouchers, andsame benefits to all full-time and part-time employees

deep integration within the scope of a long-lasting relationship based on trust,canteen services. In addition, due to the Coronavirus

and, as insofar as possible, to temporary workers.

quality, and safety.

pandemic, Flos subscribed additional insurance that

Employee welfare

102

The second level contract, as provided by the Italian regulatory framework, is acollective agreement signed between the employer and trade unions that allows
derogations from national collective bargaining agreements.
34

103

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Along with the continuous safeguard of its blue-collar workers with thepurchase of shoes, gloves, glasses, and all other necessary personal
protection accessories, and in full compliance with the applicable legislation,in 2020 Flos updated its Risks Assessment Document (DVR) to map the risks
correlated to the Coronavirus pandemic.

Health and Safety 36

U.M.

2018

2019

2020

Total number of worked hours

h686,009714,284

705,691

Total number of recordable work-related injuries

n.

5

3

4

Rate of recordable work-related injuries

n.

1.5

0.8

1.1

n.

0.3

0.6

0.3

37

Lost time injury rate 38

All data reported in the table refers to Flos, Ares, Bespoke and Antares’ employees.
Calculated by the total number of injuries multiplied by 200,000 and divided by overall number of hours worked
in the reporting period.
38
Calculated by the total number of lost time injuries multiplied by 200,000 divided by overall no. of hours worked
in the reporting period. 2018 and 2019 data have been aligned to the calculation methodology.
36

ESG Performance

421

1.1

The number of training hours on

The injury rate

37

Health and Safety topics

Training on Healthand Safety Topics

U.M.

2018

2019

2020

Total hours

h

160

1,111

421

Occupational health and safety aspects are directly

The same procedure applies to work-related injuries,

managed at the plant level: Flos, Ares, Bespoke, anddepending on the severity of the event. As required

Antares implemented policies and management systems

by law, a risk assessment is carried out to identify the

During 2020, the Group recorded four injuries – all of which occurred inunder local legislative requirements and sometimes

major risks for the health and safety of the Company’s

Antares’ plant in Valencia: three out of four were minor injuries and resulted inapplied at the Group level with the share of protocols

employees. The most significant risks outlined are

no days lost. During the 2018-2020 three-year period, no high-consequenceand processes (for instance, this is the case for 2020’s

internal transit areas, fixed and portable ladders, object

work-related injuries or fatalities resulting from work-related injuries were

Covid protocols). Health and safety monitoring andstorage, means of transportation, fire and explosion

recorded. From 2020, Flos and Bespoke35 joined Ares’ monitoring of workers

oversight are focused on the involvement of functions at

risks, physical workload and load handling, vibrations,whose workplace or activities are under the Company’s either complete ordifferent levels of the organisational chart with specificnoise, and chemical risks. Furthermore, Flos and its

partial control: the trend showed a situation that perfectly mirrored the overall

responsibilities for the application of safety procedures.

subsidiaries have implemented an internal monitoring

employees’ health and safety data, with 59,446 hours worked and no injury of

Risk assessment procedures, for instance, are managed

system to safeguard their own workforce from any

any sorts recorded. The total hours worked by the Group’s employees in 2020by health and safety managers, or equivalent, or in other

health and safety whistleblowing-related repercussions.

recorded a small decrease compared to the previous year, notwithstanding thewords, in compliance with applicable local regulations.

In accordance with legislative obligations, a doctor isenlargement of the reporting scope to include Bespoke. The downward trend

Managers carry out inspections and consult employees

an integral part of all H&S management practices andis mainly attributable to the impact of the Coronavirus pandemic on production

to detect risks on time, duly assess them, and propose

procedures.

volumes.

mitigation efforts to prevent future accidents.

35

104

Health and Safety Management

Antares has no workers that are not employees.

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3. Heritage and Know-How

Material Topics• Product Innovation• Brand Protection• Training to Clients

Flos' most valuable asset in the path towards
sustainability is strongly related to its heritageof design icons and its technological know-how.
Flos is therefore committed to actively exploiting
its intangible resources to contribute to addressing
the challenges that the lighting industry, bothfrom an artistic and a technological standpoint,
is facing.

United Nations SDGs

Highlights

163€ 100.000

patents filed to protect
Flos'products

the monetary valueof philanthropic activity

Launch of Local Connection
a new way for experiencing Flos'
new products' launch106

In doing so, Flos aims to:• play an active role in the development of new innovative
solutions that are able to enhance people's physicaland emotional wellbeing through investing in researchand technological innovation;• promote and disseminate the art and design culture amongst
the community as an integral part of its sustainability strategy.

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Flos’ outer reach, and thus the relationship that ties the brand with its
community, is the third essential element of the Group’s Sustainability Policy.
In this sense, the safeguard of Flos’ know-how on the one hand and thedissemination of the Group’s heritage on the other represent the twofold
strategy with which it interacts with the public.
This allows to deliver an ever-increasing level of quality by guaranteeing fresh
initiatives while continuing to build a lasting relationship with the Group’s
stakeholders. Indeed, with its sustainability commitment, Flos is dedicated tocontributing to the creation of social value tied to the industry’s national andinternational artistic heritage through a continuously renovated legacy thatenables the brand to be acknowledged as a market icon in the lighting design
world.
During 2020, the Group’s activities – which usually heavily rely on public fairs
and exhibitions – were impacted by the Coronavirus pandemic. The entire
process was rationalised by both reducing these experiences and reinventing
the presentation and enjoyment of Flos’ new products launched on the market.
The fundamental outcome that was achieved has been a constant footholdon key occurrences, with a significant development towards hybrid events
that take advantage of new technologies to keep sharing Flos’ heritage andknow-how.

Flos at the 26th ADI Compasso d’Oro Awards

108

109

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3.1 Promoting the art and design culture

Contributing to disseminating the art and design

For over 60 years, Flos has collaborated with the mostculture amongst the community is one of Flos' key

prestigious art, architecture and design museums

commitments in terms of social responsibility as

worldwide. Many products have been donated orit allows to deepen the relationship between thelent to such institutions and actually feature in thebrand and its key stakeholders. In line with thispermanent collections of iconic museums, such asgoal, the Group offers its support to cultural events,

the MOMA (Museum of Modern Art) in New York, theexhibitions, and design festivals through donations,

Triennale in Milan, and the Centre National d'Art et deloans, light installations, and co-organisation efforts.

Culture Georges Pompidou in Paris.

“Designer(s) du design” exhibition

110

Local Connections Milan and Paris

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As previously mentioned, the pandemic had a major impact on the fostering

The following represents a selection of art and cultural events in which Flosof culture: in fact, the number of physical events and exhibitions where Flostook part in during 2020.

took part was significantly less compared to the previous year. The Group’scommitment is to guarantee the constant presence through sponsorships,
featured exhibitions, and installations in events worldwide, allowing the Groupto further develop its dedication to fostering design know-how and heritage.

Flos’ participation and support to art and cultural events“Nature Morte Vivante”
exhibition

Feb. 2020

The city of Madrid placed the spotlight on international
design with its third Madrid Design Festival. Among its many
exhibitions planned, the festival wanted to acknowledge oneof the best-known designers worldwide, Patricia Urquiola.
The “Nature Morte Vivante” exhibition, which included wellknown Flos’ designs, mainly focused on Patricia Urquiola’s
work as a designer, showing her work for industrial production,occasionally for craft production, and frequently for a
combination of both.

“Cambio”
exhibition

Mar. – May 2020

Flos was the Supporting Sponsor of Cambio, a major exhibition
by Formafantasma – the Italian art and design duo basedin Amsterdam. Cambio (from the medieval Latin cambium,'change, exchange') is an on-going investigation performed byFormafantasma into the extraction, production, and distributionof wood products.
This exhibition, presented by the Serpentine Galleries
in London, aims to question the role that design can play intranslating emerging environmental awareness into informed,
collaborative responses.

“Designer(s) du design”
exhibition

Sept. – Nov. 2020

Produced in consultation with leading figures of contemporary
design, the “Designer(s) du design” exhibition has presented
more than seventy designers as well as their projects andbusiness approaches.
Flos supported the event, hosted within the Lille Métropole
2020 - World Design Capital, by providing Philippe Starck’s
Guns collection of lamps.

In fact, Flos profoundly believes that the concepts of art and design aretightly intertwined and among the highest disciplines, united by the common
goal of delivering a true social value to the benefit of the wider community.
Consequently, Flos is constantly willing to be the enabler for the unfoldingof talent of the most refined artists, who are able to combine outstanding
materials with innovative ideas by creating something unique.
One relevant example of this overall attitude lies in the brand-new concept
of “Local connections”: given the impossibility to travelling and attending
physical events due to the pandemic, the Group came up with a hybrid
solution that intertwines classic exhibitions with digital delivery.
The outcome is a complete renewal of exposition spaces that, along with awise representation of Flos’ ability in lighting design, allows for a completely
new experience.
The new scenography of showrooms and the possibility to remotely booka dedicated appointment allow architects, interior designers, resellers, andeven specifiers to better see and understand products and their peculiarities.
Indeed, the “Elements of Light Tour” was carried out as an itinerant event all
across Europe as a means to unveil the new collections and launch “Elementsof Light”, a new brand book specifically destined to the contract segment.

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Flos’ Relationship with the Community
In addition to supporting cultural events, Flos'due to Flos' contributions, several projects haverelationship locally-speaking involves contributing tobeen supported. For instance, since 2016, Flos hascharity and fundraising events. The outburst of theallocated its entire contribution to the project "Healthy

Coronavirus pandemic hit northern Italy the hardest,childhood in the Totonicapán Maya Kiché community inwhere the Group has three of its production facilities.

Guatemala" carried out by the organisation "Asociación

For this reason, Flos decided to contribute to the

CDRO", with the purpose of reducing infectious

activities carried out by Fondazione della Comunità

diseases and complications arising from common

Bresciana ONLUS39 by donating €100.000 to thepathologies spreading among child populations.

fundraising programme #aiutiAMObrescia (“Let’s help

The project involves four local communities belonging

Brescia”), which aims to assist the Province’s healthcare

to the Santa Lucia la Reforma Municipality (which

system in facing the emergency. Among the fields ofsupersedes the villages of Pamaria, Pabaquit, Sanintervention, the Group contributed by purchasing

Luis Sibilia, and Arroyo San Juan) with the primarysanitary apparel and personal protective equipment,

focus of improving the availability, accessibility, andcovering sanitary transportation and intensive careoverall quality of childhood health services. The project

costs, and other activities related to the vaccination

moved forward in 2019, during which more than 3,300

programme.

consultations were carried out between clinical andhome medical visits, as well as the delivery of medicines

An integral part of Flos' commitment in respect ofand food supplements based on the pathologies

the community is the long-lasting support to Fratelli

identified. The project’s progress witnesses an on-goingdell'Uomo40, a non-governmental organisation forimprovement of all the main monitored KPIs, including:international cooperation working for local communities

access to specialised paediatric care, immunisation,

in developing countries. According to this partnership,and malnutrition. The project concluded in 2020.

initiated in 2015, 20% of the gross sales from the Gun
Collection by Philippe Starck (Bedside Gun, Lounge

Finally, in 2020 Flos sponsored Milan’s Politecnico’sGun, and Table Gun lamps) is donated each year toLighting Design and LED Technology Master by way of

Fratelli dell'Uomo. During the past few years,

confirming its efforts in respect of academic education.

A community foundation, FCB was established in 2001 according to the input provided by the Cariplo Foundation.
FCB operates in the fields of social and socio-health assistance, the protection of the artistic and environmental heritage,education, and culture.
40
Fratelli dell'Uomo, which is acknowledged by the Italian Foreign Ministry, was launched in Italy in 1969 and it is part of the
Frères des Hommes Group. The organisation supports projects and initiatives, mainly located in Latin America and Africa,
concerning access to food, environmental protection and protection of common goods, responsible economy, community
health, as well as migration and co-development. From 2019, Fratelli dell’Uomo no longer exists as an independent entity,
but has instead been integrated into Amref.
39“Nature Morte Vivante” exhibition“Cambio” exhibition
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3.2 Fostering design know-how

In order to further disseminate the Group’s know-

the primary tool for providing training. The Academy

how by providing the opportunity of deeply

is an internal storytelling platform that supports allunderstanding Flos' products, both in technologicalactivities around sales moments to improve andand aesthetic terms, the Group offers several training

strengthen the connection between Flos and its

programmes specifically designed to cover the needs

customers. Targeting the sales force together withof the various customers (e.g., agents, distributors,

retailers, professionals, and key accounts, Flos willlighting designers). Flos delivers many courses oninvest in training before launching new products,

Architectural collection products, aimed at explaining

engaging with buyers, supporting all information andtheir technical features and how to install them.

key specifics concerning products and applications.

As a way of sharing Flos’ know-how and brandIn addition, it will foster the spread of lighting design

heritage with all design professionals and customers,

culture and Flos’ breakthrough products.

in 2020, Flos Light Academy was extensively used as

Flos Light Academy platform

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Flos webinars

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The topics addressed through the platform vary depending on the customer

foreign countries representing strategic regions in

filed and items unveiled. Consequently, the indicatortarget and on the intended applications: it is a way of meeting customers’

terms of business and sales volumes. Conversely, forreported is expected to decrease its variability from oneneeds by fostering the Group’s know-how in terms of product specifics andthe architectural collection, patents are filed directly atyear to the other in the coming periods.

appreciating product history and heritage.

the EU level. Since 2017, Flos has extended its brandNumber of Patents Filed, by Year
2020

2019

2018

10

41

129

11

61

13

19

10

13

3

19

Flos

Ares

Antares

Bespoke

Total number of patents filed by Flos, Ares and Antares during the last three years, including the first filing stage only andexcluding following extensions. 2020 data comprises Bespoke as well.

protection activities to the Outdoor collection as well.

Registered designs have a limited duration: in Italy, for

The wavy trend of filings during the years is mainly due

example, they only last 25 years. Therefore, to guarantee,

to the biennial periodicity of Euroluce, which is where

safeguard, and protect some of the Group’s iconic

new lamps belonging to the Decorative collection

products, Flos also filed applications for copyrightare presented to the public. Consequently, 2017 andregistration in Italy and other strategic countries.

2019 recorded a natural, higher number of patents

Moreover, Flos is actively engaged in fighting on-line

filed compared 2018. Moreover, as Flos’ products are

infringements and frauds, such as the sale of counterfeit

innovative both from materials and design viewpoints,

products or the illicit use of images and texts from Flos'

additional challenges arise when approaching the topic

website and social media. The latter are among the mostof protecting the Group’s ideas: this is the case, forwidespread due to the rapid growth of on-line shopping.

instance, with Michael Anastassiades’ Coordinates,

Since 2018, an external specialised company hasa modular lighting solution launched during 2019 Milan

supported Flos in the continuous process of identifying

Salone del Mobile that required more than 40 different

and suppressing worldwide e-commerce platforms,

design registrations to cover not only the single piecemarketplaces, and social networks selling counterfeit

but also the main possible product combinations in

products. To strengthen its fight against counterfeiting

terms of axis intersection.

– carried out with the essential support of retailers –41

Protecting Flos’ Ideas

during 2020, Flos continued to register its most iconic
As shown in the chart, the total number of patent files

products' trademarks in several countries.

was impacted by the Coronavirus pandemic and the

To enhance the "Made in Italy" concept and protect

cancellation of 2020 exhibitions and fairs. Ares is thehigh-quality branded products from counterfeiting, Flossole exception as in 2020, it submitted patents for eightis also an active member of INDICAM.

multiple products, each consisting of different models.

It represents nearly 180 companies, industry associations,

Flos took advantage of the juncture to restructure its

legal and IP firms, security consultants, and otherTo face the global and competitive environment inin view of the pandemic emergency. Given the natureprocesses from new product drafting and piloting toorganisations committed to take a stand against

which the Group operates, Flos, Antares, and Ares haveof Flos' core business, most patents belong to themarket launches by rationalising the number of patentscounterfeiting activities affecting branded products.

proceeded to file several patents to protect brands andregistered designs category, while patent applications

innovations during the past years. In 2020, Bespoke

for inventions represent the smallest share.

joined the disclosure as well. Flos evaluates the best
approach and solutions for each new product category

The latter mainly refer to the architectural and soft

to protect its creations across geographies.

architectural business and, in an attempt to provide

Among others, registered designs, patent applications

broader protection of rights, consider the originalfor inventions or utility models, and registered

design and any significant aesthetic variation that the

copyrights are some of the methods currently applied.

product may undergo in the future. Concerning the

All patents are filed before presenting new products in

Decorative collection, patents are first filed in Italyinternational exhibitions or during web presentations

and then extended to the European Union and other

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Reporting Principles and Criteria
2020 Sustainability Report, in line with Flos’ established practice, has been
prepared in accordance with the GRI Standards: Core option. The contentsof this report reflect the materiality analysis as carried out according to theapproach described in the following paragraph "Materiality analysis", inaccordance with the GRI Standards. As a signatory to the United Nations
Global Compact (UNGC) initiative since 2015, through the present report Flosis also fulfilling its commitment to producing an annual Communication on
Progress – a public disclosure outlining its progress in implementing the Ten
Principles of the UNGC. The UNGC Principles are clearly mapped against the
GRI indicators in the GRI Content Index. At present, Flos' 2020 Sustainability
Report does not directly address the UNGC issues and principles related
to Human Rights, since the majority of the Group's direct activities andsuppliers are located in Europe, where Human Rights are regulated by laws.
To avoid any possible risk of complicity and as proof of its commitment, Flos
introduced clauses on labour conditions and on the respect for human rights
in its contracts. In addition, some of the most important human rights issues
related to Flos' activity, such as the protection of workers' occupational healthand safety, are already included among the "Labour" principles and issues theGroup reports on.

Scope of Reporting

This document includes a description of initiatives and activities carriedout during the 2020 calendar year as well as the related key performanceindicators, presented for the entire 2018-2020 period, where available. The
data collection process and the report publication activities are structured on
an annual basis. The information included in the Sustainability Report refers to
Flos S.p.A. and the fully controlled operating subsidiaries Antares Iluminacion
S.A.U., Ares S.r.l and Flos Bespoke S.r.l. (for this latter, 2020 data only).
All commercial branches and the other operating subsidiaries as of December,
31st 2020 are not included. Any exceptions to this reporting scope are
explicitly indicated in the text. The Companies falling withing the scope of the
Sustainability Report have their registered headquarters in:• Flos S.p.A. – Bovezzo (Brescia – Italy), Via Angelo Faini, 2;• Antares Illuminacion S.A.U – Carrer Mallorca, Polígono Industrial Reva,
Calle Turia, Ribarroja de Turia (Valencia – Spain);• Ares S.r.l. – V.le dell'Artigianato, 24 (Bernareggio – Italy);• Flos Bespoke S.r.l. – Via A. De Gasperi, 2 (Collebeato – Italy).

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Corporate
Identity

Materiality Analysis

Customer
Satisfaction

Product Quality
and ComplianceAs part of the process for defining the Sustainability Report contents, themateriality analysis has been updated for the current reporting year in orderto map relevant topics, which reflect Flos' economic, environmental andSustainabilityof Materialssocial impacts and/or may influence the decisions of the key stakeholders
identified. In line with the materiality review practice, a meeting with Flos’ top
management was carried out with the aim of evaluating possible changes andupdates in terms of topics' relevance and priority.
This has been carried out considering different sources of information:

Emissionsand Climate Change• The ten principles of the UN Global Compact to which Flos adheres;• Actual or potential requests coming from clients;• Results of a sector specific media analysis that covered news regarding Flos;• The Regulatory framework;• Reports from industry associations;• Flos' ESGs targets and priorities.
Below the updated Materiality matrix for 2020.

Sustainability ofLighting Systems

Relevance to Flos' Stakeholders• The GRI Sustainability Reporting Standards;

Supply Chain
Managementand Human
RightsEconomic
Performance

Product
Innovation
Logistics
Competitive
Behavior

Community
Relations

Employee Care

Occupational Healthand Safety

Diversity

Waste

Brand
Protection

Anti-Corruption

Water
Consumption

Training
To Clients

Responsible
Communication

Data Privacy
and Protection

Relevance to Flos Group

Topic not considered as material

122

Material topic

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The following table provides the link between Flos' material issues and the

Key Stakeholders

The following table reports an overview of Flos' key stakeholders, based oncorresponding GRI Standards topics (Topic-specific Disclosures), together

their influence on and the dependence from the Group; for each stakeholder

with their scope and any eventual limitations on the reporting boundary, duecategory, a description of existing engagement activities is provided.42

to the unavailability of data and information on the external perimeter.
In the coming years, Flos is committed to identifying and implementing

Flos' Material Aspects

specific actions aimed at gradually extending the scope of data collection and

Flos’ Stakeholders
Category

reporting for material aspects.

Employees and Trade Unions

Continuous dialogue between HR department and employees/trade unions,specific initiatives

Board of Directors

Formal meetings

Suppliers

Continuous dialogue and periodic meetings

Clients

Website, fairs, catalogues
Training course organized for clients
Preliminary analysis of customer satisfaction on a sample of clients

End-User

Social networks, communication campaigns, fairs and meetings

Competitors

-

Media

Press releases

Architects and Interior Designers

Continuous cooperation on research and development of new products

Providers of Financial Capital

Formal meetings and periodic management reports

Regulatory
and Certification Bodies

Membership of working groups within regulatory bodies and industry associations(e.g. Assoluce, Lighting Europe, etc.)

Quality Reporting Principles

Flos' Sustainability Report is drafted in accordance with the principles

GRI Material Aspects

Aspect Boundary

Limitations of Reportingon Boundary

Within theorganization

Outside theorganization

Within theorganization

Outside theorganization

Brand protection

-

Group

-

-

-

Competitive behavior

Anti-competitive behavior

Group

-

-

-

Corporate identity

-

Group

-

-

-

Customer satisfaction

Marketing and labeling

Group

-

-

-

Diversity

Diversityand equal opportunities

Group

-

-

-

Economic performance

Economic performance

Group

-

-

-

Emissionsand climate change

EmissionsGroup

Suppliers-

Reporting scope partiallyextended to suppliers

Employee care

Employment

Group

-

-

-

Training and education

Group

-

-

-

EmissionsGroup

Suppliers-

Reporting scope partiallyextended to suppliers

EnergyGroup

Suppliers-

Reporting scope partiallyextended to suppliers

Logistics--

of balance, comparability, accuracy, timeliness, clarity and reliability,
as defined by the GRI Standards. The document highlights both strengths

Occupational healthand safety

Occupational healthand safetyGroup

Product innovation

-

Group

-

-

-

The data collection and reporting processes are structured in a way to ensure

Product quality
and compliance

Customer health and safety

Group

-

-

-

information comparability over the years and to guarantee an accurate

Marketing and labeling

Group

-

-

-

Supply chain management
and human rights

Procurement practices

Group

-

-

-

Supplier environmental
assessment

Group

-

-

-

Supplier social assessment

Group

-

-

-

Sustainability of lighting
systems

EnergyGroup

Suppliers,
clients-

Reporting scope notextended to suppliers

Sustainability of materials

Materials

Group

Suppliers-

Reporting scope notextended to suppliers

Training to clients

Training and education

Group

Clients--

124

Suppliers

Engagement Tools and Activities

and weaknesses, as well as possible areas of improvement for the Group.

interpretation by the key stakeholders interested in Flos' performanceevolution. Flos' 2020 Sustainability Report is not subject to external assurance.

The engagement activities that require direct relationships and meetings as indicatedin the table were all either hold remotely or postponed in 2020 due to the Coronavirus
pandemic and the restrictions imposed by local and national governments as regardssocial distancing and safety measures put in place to mitigate the risk of contagion.
42

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Calculation Methodologies

F lo s Wo r ld

The methodologies and assumptions used to calculate the performance

All greenhouse gas emissions calculations have been carried out based on theindicators included in the Report are described below:

principles included in the GHG Protocol Corporate Accounting and ReportingStandard. Scope 1 emissions have been calculated as follows:• Research & Development costs are calculated taking into account capital
expenses and operating costs (e.g. personnel involved, costs for materials);• 2020 data related to injuries refer to the Group employees and contractors,
while 2018 and 2019 refer to employees only. Commuting injuries for which
the transportation was not organized by the Group and first-aid cases are

GHG Emissions Scope 1
SourceActivity Data

Emission Factor

GWP

Flos’ car fleet

Kilometres covered

UK Department for Environment,
Food & Rural Affairs (DEFRA),
Conversion factors –Full set, 2018, 2019, 2020

CO 2 equivalent.

Ares, Antares andFlos Bespoke’s fleet

Fuel consumption(gasoline and diesel)

UK Department for Environment,
Food & Rural Affairs (DEFRA),
Conversion factors –Full set, 2018, 2019, 2020

CO 2 equivalent.

Leakages fromair-conditioning systemsof refrigerant gases

Leakages (kg)-Global Warming Potentials(GWPs) are taken from
IPCC Fifth Assessment
Report (AR5).

not included;• Where environmental data were not available, conservative estimations
have been used, resulting in the underestimation of the Group's
environmental performance;• Energy consumption from the Group's fleet has been calculated startingfrom the following available data: Flos' car fleet (kilometres covered), Ares,
Antares and Bespoke's fleet (fuel consumption);• Hiring and turnover rates have been calculated by using the total numberof employees at the beginning of the reporting period as denominator;• Lost time injury frequency rate has been calculated with the total losttime injuries multiplied by 200,000 and divided by the overall no. of hours

Concerning Scope 2 emissions resulting from the consumption of electricity

worked in the reporting period.

purchased from the national grid, two calculation methodologies have been
implemented: the location-based and the market-based approaches.

The following table shows the conversion factors that have been used to

The first one reflects the average emission intensity of grids taking into

perform energy consumption calculations and distance estimates:

account both renewable and non-renewable productions, while the second
one reflects emissions from the electricity source that the Group has

Typology

U.M.

SourceAverage car fuel consumption

l fuel/100 km

UK Department for Transport, Fuel Consumption 2017

Fuel densityl/t

UK Department for Environment, Food & Rural Affairs (DEFRA),
Conversion factors – Full set, 2018, 2019, 2020

LCV (Lower Calorific Value)

GJ/t

UK Department for Environment, Food & Rural Affairs (DEFRA),
Conversion factors – Full set, 2018, 2019, 2020

126

purposefully chosen through, for instance, contractual instruments. Scope 2
emissions have been calculated as follows:
GHG Emissions Scope 2
SourceActivity Data

Emission Factor

GWP

Electricity purchasedfrom the national grid
(Location-based approach)Electricity
consumption

Terna international comparisons on
Enerdata figures, 2017, 2018, 2019

Only CO 2 emissions
have been considered.

District-heating purchasedfrom the waste-to-energy
plant

Heat
consumption

UK Department for Environment,
Food & Rural Affairs (DEFRA),
Conversion factors –Full set, 2018, 2019, 2020

CO 2 equivalent.

Electricity purchasedfrom the national grid(Market-based approach)Electricity
consumption

AIB, European Residual Mixes,
2017, 2018, 2019

Only CO 2 emissions
have been considered.

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Scope 3, 2020 emissions comprise a selection of categories chosen according
to criteria of relevance, data availability and improvement potential for future
initiatives. The calculations carried out relied on the following assumptions:purchased goods and services (Cat. 1) data includes raw materials(e.g. copper, steel, marble) and packaging materials only, thus excluding

GHG Emissions Scope 3
SourceActivity Data

Emission Factor

GWP-Business travels by plane-Logistics

Kilometres

UK Department for Environment,
Food & Rural Affairs (DEFRA),
Conversion factors –Full set, 2018, 2019

CO 2 equivalent.

Business travels by train

Kilometres

Ferrovie dello Stato,
Only CO 2 emissions“Rapporto di Sostenibilità”, 2018, 2019 have been considered.

Materials procured (Cat.1)

Weight of raw,
process andpackaging materials
procured

Ecoinvent v.3.7.1

Fuel and energy related
activities (Cat. 3)

Fuel and electricity
consumption

UK Department of Environmental,
Food & Rural Affairs (DEFRA),
Conversion factor –Full set, 2020

CO 2 equivalent.

Upstream logistics (Cat. 4)

Kilometres coveredby air, truck or ship
multiplied by shippedweight (ton)UK Department of Environmental,
Food & Rural Affairs (DEFRA),
Conversion factor –Full set, 2020

CO 2 equivalent.

Waste disposal (Cat. 5)

Weight of waste
disposed

UK Department of Environmental,
Food & Rural Affairs (DEFRA),
Conversion factor –Full set, 2020

CO 2 equivalent.

Business travel by air, train
and car (Cat. 6)

Kilometres travelled

UK Department of Environmental,
Food & Rural Affairs (DEFRA),
Conversion factor –Full set, 2020

CO 2 equivalent.

the purchase of electrical and electronical equipment (e.g. LEDs, cables);Bespoke is not included in the packaging materials (Cat. 1) calculations
since weight data were not available; inbound logistics (Cat. 4) include alldata related to purchased goods of Flos, Ares and Antares (thus excluding
Bespoke); outbound logistics (Cat. 4) include transportation of sold products
for Flos, Ares and Antares and Bespoke; for Bespoke, transportation by ship
(Cat. 4) is excluded; for Antares, transportations of sold products (Cat. 4) also
include ex-works shipments. For further information about the categories
involved in Scope 3 analysis please refer to the “Energy and GHG emissions”
paragraph in Chapter I – Energy and Materials.
Scope 3 emissions have been calculated as follows:

CO 2 equivalent.

UK Department of Environmental,
Food & Rural Affairs (DEFRA),
Conversion factor –Full set, 2020

Ferrovie dello Stato Italiane,“Rapporto di Sostenibilità”, 2020
Employees commuting(Cat. 7)

Kilometres travelled

UK Department of Environmental,
Food & Rural Affairs (DEFRA),
Conversion factor –Full set, 2020

CO 2 equivalent.

Ferrovie dello Stato Italiane,“Rapporto di Sostenibilità”, 2020

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G R I Co n t e n t In d e x

GRI Content Index

GRI Standard

Disclosure

Page number(s)GRI 101: Foundation 2016
General Disclosures
GRI 102: General
Disclosures 2016

Organizational Profile
102-1 Name of the organization

121

102-2 Activities, brands, products, and services

31-38

102-3 Location of headquarters

121

102-4 Location of operations

121

102-5 Ownership and legal form

24-30

102-6 Markets served

31102-7 Scale of the organization
102-8 Information on employees and other workers

24-29;92-96
UNGC

102-9 Supply chain

92-96
46-48

102-10 Significant changes to the organization and its supply chain*

102-11 Precautionary Principle or approach**102-12 External initiatives

54-59

102-13 Membership of associations

66

Strategy102-14 Statement from senior decision-maker

UNGC

6-7

Ethics and Integrity
102-16 Values, principles, standards, and norms of behavior

24-30

Governance102-18 Governance structure

24-30

Stakeholder Engagement102-40 List of stakeholder groups
102-41 Collective bargaining agreements

125
UNGC

92-95

102-42 Identifying and selecting stakeholders

125102-43 Approach to stakeholder engagement125102-44 Key topics and concerns raised

64-69; 125; 110-119

Reporting Practice102-45 Entities included in the consolidated financial statements
102-46 Defining report content and topic Boundaries
102-47 List of material topics

130

28-29
124
123-124

102-48 Restatements of information***

102-49 Changes in reporting****

102-50 Reporting period

121102-51 Date of most recent report

121102-52 Reporting cycle

121102-53 Contact point for questions regarding the report135

102-54 Claims of reporting in accordance with the GRI Standards

121102-55 GRI content index

130-135

102-56 External assurance

125

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GRI Standard

G R I Co n t e n t In d e x

Disclosure

Page number(s)GRI Standard

Disclosure

Material Topics

Material Topics

GRI 200 Economic Standard Series

GRI 300 Environmental Standards Series

Economic Performance

Materials

GRI 103: Management
Approach 2016

GRI 201: Economic
Performance 2016

103-1 Explanation of the material topic and its Boundary

26;123-124

103-2 The management approach and its components

26;123-124

103-3 Evaluation of the management approach

26;123-124

201-1 Direct economic value generated and distributed

26

GRI 204: Procurement
Practices 2016

103-1 Explanation of the material topic and its Boundary

46-48;123-124

103-2 The management approach and its components

46-48;123-124

103-3 Evaluation of the management approach46-48;123-124

204-1 Proportion of spending on local suppliers

47

GRI 205: Anti-corruption
2016

103-1 Explanation of the material topic and its Boundary

28-30;123-124

103-2 The management approach and its components

28-30;123-124

103-3 Evaluation of the management approach

28-30;123-124

205-3 Confirmed incidents of corruption and actions taken

28-30;123-124

GRI 206: Anti-competitive
Behavior 2016

103-1 Explanation of the material topic and its Boundary

28-30;123-124

103-2 The management approach and its components

28-30;123-124

103-3 Evaluation of the management approach

28-30;123-124

206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices

28-30;123-124* No significant changes occurred in 2020.		
** Flos adapts its decision-making approach by taking into account the social and environmental issues according
to the precautionary approach.
*** Restatements and related reasons for restatements are clearly identifiable within the text.		
**** Whenever a change in reporting scope was carried out, it has been duly highlighted and is thus clearly identifiable within
the text.			

132

103-1 Explanation of the material topic and its Boundary

75-78;123-124

103-2 The management approach and its components

75-78;123-124

103-3 Evaluation of the management approach

75-78;123-124

301-1 Materials used by weight or volume

GRI 302: Energy 2016

103-1 Explanation of the material topic and its Boundary

80-82;123-124

103-2 The management approach and its components

80-82;123-124

103-3 Evaluation of the management approach

80-82;123-124

302-1 Energy consumption within the organization

GRI 103: Management
Approach 2016

GRI 308: Supplier
Environmental
Assessment 2016

82
UNGC

Emissions

GRI 305: Emissions 2016

76-78
UNGC

103-1 Explanation of the material topic and its Boundary

82-87;123-124

103-2 The management approach and its components

82-87;123-124

103-3 Evaluation of the management approach

82-87;123-124

305-1 Direct (Scope 1) GHG emissions

85-86

305-2 Energy indirect (Scope 2) GHG emissions

85-86

305-3 Other indirect (Scope 3) GHG emissions

85-86

Supplier Environmental Assessment

Competitive Behavior						GRI 103: Management
Approach 2016

GRI 103: Management
Approach 2016

GRI 103: Management
Approach 2016

UNGC

Anti-corruption
GRI 103: Management
Approach 2016

GRI 301: Materials 2016

UNGC

EnergyProcurement Practices						GRI 103: Management
Approach 2016

GRI 103: Management
Approach 2016

Page number(s)UNGC

103-1 Explanation of the material topic and its Boundary

46-48;123-124

103-2 The management approach and its components

46-48;123-124

103-3 Evaluation of the management approach46-48;123-124

308-2 Negative environmental impacts in the supply chain andactions taken************ No suppliers were assessed for environmental impacts.		

133

Sust a i n a b ili t y R e p o r t 2 0 2 0

GRI Standard

G R I Co n t e n t In d e x

Disclosure

Page number(s)GRI Standard

Disclosure

Material Topics

Material Topics

GRI 400 Social Standards Series

GRI 400 Social Standards Series
UNGC

Employment
GRI 103: Management
Approach 2016

GRI 401: Employment 2016

92-96;123-124

103-2 The management approach and its components

92-96;123-124

103-3 Evaluation of the management approach

92-96;123-124

Occupational Health and Safety		
GRI 103: Management
Approach 2016

GRI 403: Management
Approach 2018

GRI 403: Occupational
Health and Safety 2018

GRI 404: Training
and Education 2016

GRI 405: Diversity
and Equal Opportunity 2016

GRI 414: Supplier Social
Assessment 201640-45; 64-72;123-124

103-2 The management approach and its components

40-45; 64-72;123-124

103-3 Evaluation of the management approach

40-45; 64-72;123-124

416-2 Incidents of non-compliance concerning the healthand safety impacts of products and services

102-105;123-124

103-3 Evaluation of the management approach102-105;123-124

403-1 Occupational Health and safety management system102-105;123-124

403-2 Hazard identification, risk assessment, and incident
investigation

102-105;123-124

403-3 Occupational health services

102-105;123-124

403-4 Worker participation, consultation, and communication on
occupational health and safety

102-105;123-124

403-5 Worker training on occupational health and safety

102-105;123-124

403-6 Promotion of worker health102-105;123-124

Product Innovation						403-7 Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

102-105;123-124

GRI 103: Management
Approach 2016403-9 Work-related injuries

104-105;123-124

GRI 103: Management
Approach 2016

GRI 417: Marketing andLabeling 2016

103-1 Explanation of the material topic and its Boundary

40-46; 64-72;123-124

103-2 The management approach and its components

40-46; 64-72;123-124

103-3 Evaluation of the management approach

40-46; 64-72;123-124

417-1 Requirements for product and service informationand labeling40-46; 64-72;123-124

Brand Protection					GRI 103: Management
Approach 2016

103-1 Explanation of the material topic and its Boundary

116-119;123-124

103-2 The management approach and its components

116-119;123-124

103-3 Evaluation of the management approach116-119;123-124

103-1 Explanation of the material topic and its Boundary

64-72;123-124

103-2 The management approach and its components

64-72;123-124

103-3 Evaluation of the management approach

64-72;123-124

103-1 Explanation of the material topic and its Boundary

64-72;123-124

103-2 The management approach and its components

64-72;123-124

103-3 Evaluation of the management approach

64-72;123-124

Corporate Identity

UNGC
103-1 Explanation of the material topic and its Boundary

98-101; 104; 123-124

103-2 The management approach and its components

98-101; 104; 123-124

103-3 Evaluation of the management approach

98-101; 104; 123-124

404-1 Average hours of training per year per employee

46;123-124

Marketing and Labeling						103-2 The management approach and its components

GRI 103: Management
Approach 2016

101-104;123-124
UNGC

103-1 Explanation of the material topic and its Boundary

92-95;123-124

103-2 The management approach and its components

92-95;123-124

103-3 Evaluation of the management approach

92-95;123-124

405-1 Diversity of governance bodies and employees

94-95
UNGC

Supplier Social Assessment
GRI 103: Management
Approach 2016

UNGC

GRI 416: Customer
Health and Safety 2016

103-1 Explanation of the material topic and its Boundary

102-105;123-124

Diversity and Equal Opportunity
GRI 103: Management
Approach 2016

96

GRI 103: Management
Approach 2017103-1 Explanation of the material topic and its Boundary

Training and Education
GRI 103: Management
Approach 2016

Customer Health and Safety						103-1 Explanation of the material topic and its Boundary

401-1 New employee hires and employee turnover

Page number(s)103-1 Explanation of the material topic and its Boundary

46-48;123-124

103-2 The management approach and its components

46-48;123-124

103-3 Evaluation of the management approach46-48;123-124

414-2 Negative social impacts in the supply chain and actions taken******For further information about this Sustainability report please contact
Flos S.p.A., Via Angelo Faini, 2 – 25073 Bovezzo (Brescia), Italy
Tel: + 39 03024381 – Email: info@flos.com****** No suppliers were assessed for environmental impacts. 		

134

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Simone Piermaria, Silvia Lavinia Carbonere

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