We create value for all our key stakeholders: our supply chain (in terms of purchasing of goods and services [1]), human resources (in term of direct and indirect remuneration), lenders (interest rate), shareholders (dividends) and other investors, as well as public administration (in terms of total taxes paid). The majority of the value we generated in 2015 relates to our contribution to local economies and employment.

 

 

 

Boosting local economies

75%
Procurement from local suppliers


The Group is committed to expanding opportunities for suppliers of goods and services in every host country by prioritising local sourcing, wherever possible.

In 2015, we maintained good relationships with local suppliers, spending 75% of our procurement budget (on average) locally. Additionally, our construction sites contracted 3,500 new suppliers in 2015, of which 89% were local.

In financial terms, the total economic value distributed to the supply chain was € 3.6 billion, and consisted mainly of services (41%), sub-contracts (33%), raw materials, and goods (22%). 

 

Creating employment

74%
Total workforce (direct and indirect) hired locally

58%
Managers hired locally


We focus on engaging a local workforce in areas where projects are located, whenever possible. In 2015, Salini Impregilo employed some 41,300 people, comprising both direct employees and indirect [2] workers. Some 71% of our 30,598 directly-employed staff [3] consisted of local personnel, mainly in our African operations, followed by Asia, the Middle East and Europe.

Salini Impregilo’s job creation programme plays a crucial role in enhancing the capabilities of local personnel, mainly in developing countries – in addition to the salaries paid and the contribution we make to local economies. Our approach is welcomed by local authorities and governments, who value the contribution of vocational training in supporting local welfare and economic growth. Importantly, creating local employment is also fundamental to fostering a skilled workforce for current and future projects.

More information on people development is reported in the “Excellence” section.

In addition, sub-contractors and other service providers (including technicians, consultants, catering staff, etc.) contribute significantly to local job creation. In 2015, some 10,700 people were employed by our sub-contractors and service providers, 82% of whom were hired locally.

 

Supporting communities

For Salini Impregilo, building shared growth also means interacting with and supporting the communities that live near our sites. We have a longstanding commitment to understanding the cultures, needs, and expectations of those communities. For example, we seek to integrate our sites with the surrounding areas by deepening our knowledge of the country and local area, and regularly engaging with communities. In 2015 we did it engaging over 86,700 local stakeholders through meetings, information campaigns and open-doors events.

In 2013-2015, we contributed to local communities with over 180 initiatives as reported in the table below, investing €5.7 million (around €1.3 million in 2015) [4].

 

Salini Impregilo consistently shows its support for communities by promoting a wide range of programmes and activities designed to contribute positively to local communities and environment, including:

  • Direct interventions for building and delivering infrastructures for the benefit of local residents (schools, health centres, public offices, water networks, roads, and bridges);
  • Community initiatives and programmes conducted directly and in partnership with other organisations (related to social, cultural, sportive, artistic, educational and humanitarian topics);
  • Free access to some of our sites’ facilities (on-site health clinics, training rooms, water wells, roads) for communities living in rural areas not served by basic amenities.

In 2015, we offered more than 17,700 free healthcare sessions to our communities, in order to help improve their quality of life.


[1] It includes community initiatives’ expense.
[2] Indirect employees include subcontractors' personnel and workers of other service providers employed at Group's sites.

[3] In 2015 direct employees decreased in comparison with 2014, due to the physiologic lag between the demobilization of some large projects and the mobilization of personnel in new-awarded projects, as well as due to the retirement of employees from some projects located in unstable areas. However, beyond the headcount at 31st December 2015 (equal to 30,600 employees), it should be noted that in 2015 the FTEs calculated based on the worked man-hours at sites included in this report were equal to 43,000 (+7% compared with 2014). 
[4] This amount comprises direct costs only, and not the value created for local communities, nor the costs sustained for infrastructure developed by the Group for project-related needs (e.g. mainly roads, bridges, water wells and basins) which remain available to communities after the project has been completed.