SUSTAINABILITY

40 GEOPOLITICAL RESILIENCE

Amursky is a concrete example of business that fosters socio-econo«A mic development in local areas. We are talking about a project to build the largest gas treatment plant in the world, with a capacity of 42 billion cubic meters of natural gas per year. On the border between Russia and China, Maire Tecnimont has created a city within a city: a construction site measuring 870 hectares, which employs over 28 thousand people of 20 different nationalities. In addition to the cultural mediator - fundamental for improving the working and living conditions of the staff involved in the project - during the Covid emergency we faced numerous tests of our resilience: including the one of recruiting all the barbers from the nearby village, asking them to come and work exclusively for us...». INTERVIEW WITH GIANNI BARDAZZI, REGIONS COORDINATION SVP MAIRE TECNIMONT: «INTERACTING WITH THE REGION AND LOCAL COMMUNITIES, CREATING VALUE FOR CUSTOMERS, IS A FUNDAMENTAL ASPECT OF THE IDENTITY OF A MULTINATIONAL GROUP». A PROJECT IS UNDERWAY, IN PARTNERSHIP WITH CASSA DEPOSITI E PRESTITI, TO SUPPORT THE ITALIAN SUPPLY CHAIN.

From the story of Gianni Bardazzi, Vice President of Maire Tecnimont for the Russia and Caspian region (as well as Group Special Initiatives and Regions

Coordination SVP), interesting testimonies emerge that convey the dimension of an unprecedented design commitment. And which help us understand the scale of the challenge faced by Maire Tecnimont’s management during the difficult months of the lockdown, in an area completely surrounded by the Siberian tundra for thousands of kilometers. Coordinating, in the middle of the quarantine, a task force of over 900 engineers and technicians of different specializations, through 17 operational centers distributed in 10 different time zones (from Milan to Mumbai, from Moscow to Ningbo) is equivalent to a field-medal in the specialty of “extreme resilience”.

In the different geographic areas where Maire Tecnimont is present - despite the ever-changing difficulties and beyond the design and business aspects - even in the complex interaction with local communities and institutions, management of the discontinuity generated by COVID-19 was never lacking. All this comes from what Bardazzi defines as the “DNA of listening” (in addition to a thorough preparation in the agile work, already in place for several years, which allowed Maire Tecnimont to be ready to operate with smart working). A highly relevant trait for a multinational company engaged in the consolidation of the supply chain and in the creation of value and sustainable development.

At the heart of this commitment in line with the Sustainable Development Goals (SDG) - and in compliance with the principles of the Global Compact promoted by the United Nations - the Group has taken the statement “Making global goals local business” very seriously. «Our approach to sustainability is global - continues Bardazzi. Interacting with the territory and local communities, creating value for all stakeholders, is a fundamental aspect of the identity of a multinational group. We do it in India, where there is great sensibility for cultural values and projects related to sustainability. It happens in Russia, a country where the attention to growing local realities and sharing know-how is a main priority.

It happens in the United States where, with an appreciation of their business culture and operating models,

We design a customtailored model for each individual context based on the geography, environmental peculiarities and social contexts of the places in which we operate.

you can work with excellent engineers motivated by team spirit. In Azerbaijan, great importance is also given to supporting universities and engineering laboratories, with positive impact on the employment of young local talent. Again, in Azerbaijan, Maire Tecnimont Group works proactively with local suppliers and subcontractors to enhance local expertise. In fact we design a custom-tailored model for each individual context based on the geography, environmental peculiarities and social contexts

of the areas in which we operate as a general contractor. A form of geopolitical resilience that allows us to anticipate local dynamics, as well as to adapt to laws, regulations, guidelines and new requirements related to local content».

Therefore, Maire Tecnimont needs not merely to manage the possible repercussions on the project schedule and budget: the objective is to simultaneously develop the ability to create and release value locally, considering the relevance of the projects, the size of the plants and the development of local professional skills. Becoming part of the dynamics of a territory (ensuring direct support for local employment, training people, structuring the supply chain, consolidating relationships with institutions) drives us to adopt responsible business practices, which in turn generate a positive impact in the communities where we operate. «In this extremely complex scenario, Maire Tecnimont has taken action to strengthen all of the financial support tools to safeguard its supply chain, particularly those represented by Italian companies. In the field of sustainability reporting - continues Bardazzi - we have initiated a more analytical and thorough process able to assess the value generated and distributed locally. The evaluation of the socio-economic impact has been developed using an econometric “Input-Output model”, which has allowed us to determine the economic and working effects (direct, indirect and induced) generated by our Group through the support of the Italian supply chain in detail».

Supporting the strategic supply chain

As part of an overall rethinking of the ways of approaching the supply chain Maire Tecnimont is investing on a global scale in order to implement a project aimed first and foremost at Italian suppliers. The results of the “In-Country Value” (ICV) analysis and estimates show how Maire Tecnimont Group, in the period from 2017 to 2019,

Baku Higher Oil School student awards ceremony (Azerbaigian)

To support the Italian supply chain, within the In-Country Value approach the “Maire Tecnimont UP” project was born.

has contributed - through its national supply chain - to generating a positive and substantial socio-economic impact on the Italian territory, both in terms of added value and sustained employment. Within the ICV approach, the “Maire Tecnimont UP” project was created, with the aim of supporting the chain of Italian suppliers that have high technological content and are considered strategic (“Champions”) on a path of managerial and industrial growth in order to improve their performance (“Growth Programme”).

«The results of the project - explains Bardazzi - help us to become more aware of how Maire Tecnimont’s strategic and operational commitment also provides a strong return of value sharing with the stakeholders. Enhancing the Group’s supply chain, particularly the Italian component, does not exclude comparisons to an increasingly competitive market: in fact, suppliers are expected to participate with Maire Tecnimont in the paradigm shift. If we look at the socio-economic impact generated by Maire Tecnimont through the Italian supply chain, we see an added value of about €2.2 billion generated in the three-year period from 2017 to 2019, with about 39 thousand jobs supported by the demand of Maire Tecnimont in the same period, compared to a total expenditure of €2.17 billion». In other words, this means that on average per €1 million spent on Italian suppliers, €1.01 million in added value is generated for the economic system and 18 jobs are supported.

Globally, Maire Tecnimont has launched structured activities to integrate environmental, social and governance

factors within its supply chain, from the search for suppliers to the qualification process and post-order management. This approach, which has proved capable of producing a direct and positive impact for the Group, has led to the reduction of quality non-compliance and an improvement in performance, also due to greater synergy with the stakeholders concerned. We can summarize by saying that Maire Tecnimont mainly operates abroad, but quite often relies on Italian suppliers. This is particularly relevant also considering the geographical areas in which the Group operates, the protectionist economic policies that encompass the use of local labor or supplies. In the post Covid-19 scenario - which has led to an objective and overall slowdown in production and commercial activities worldwide (with subsequent repercussions on the entire supply chain of all major industrial groups) - Maire Tecnimont has recently signed a memorandum of understanding with Cassa Depositi e Prestiti to support its strategic suppliers also from a financial point of view. The initiative represents concrete support for the competitiveness of the companies in the supply chain in Italy and worldwide. Thanks to the support of Cassa Depositi e Prestiti, Maire Tecnimont’s supply chain will be able to access financial resources and credit facilitation, thus fostering a sustainable and market-oriented relationship. «In Italy - said Pierroberto Folgiero, CEO of Maire Tecnimont - we have outstanding competences in the natural resources transformation industry: yesterday with Cassa Depositi e Prestiti we are taking another decisive step forward to support them abroad, equipping them with tools to strengthen and adapt to those geographies where it is crucial to synergize with local players, a fundamental driver of competitiveness». Fabrizio Palermo, CEO of Cassa Depositi e Prestiti, explained that «it is of great importance to continue supporting Italian strategic supply chains which represent a significant part of the industrial and technological heritage of our country, as well as a demonstration of the excellence of the Made in Italy in the world, with important repercussions on the Italian economy even for ancillary industries».