Letter to Stakeholders

Letter to Stakeholders

In 2016, Salini Impregilo celebrated 110 years since the foundation of what is now a major global player in the large complex infrastructure sector.

During this long journey, we have helped write some of the most important pages of the history of infrastructure, through works that have played a key role in the growth of countries: dams in Africa, unique water projects like the Panama Canal, railways and metro systems that help reduce congestion in large cities and air pollution in some of the most populated cities in the world, road projects that shorten distances and facilitate economic and social integration between territories and communities, and the rescue of works that tell the history of man, such as saving the temples of Abu Simbel in Egypt.

Ours is a history of thousands of men and women on every continent, who share the same values of Solidity, Excellence, Respect, and Transparency, deliver increasingly innovative projects and constantly push the technical boundaries, in accordance with our clients’ requirements, for the benefit of entire communities.

More than just a year of celebration, 2016 was also a year of new achievements. We met our business targets for a third consecutive year, with revenues in excess of €6.1 billion and a total backlog of €36.9 billion; Lane Industries became part of the Group, significantly strengthening our presence in the United States; we inaugurated three important projects: the Panama Canal, the Stavros Niarchos Cultural Center in Athens, and the Gibe III hydropower project in Ethiopia. 

At an international level, 2016 saw the launch of the 2030 Agenda for Sustainable Development, signed by the governments of the 193 UN member countries that committed to achieving 17 Sustainable Development Goals (SDGs) over the next 15 years. This is a wide-ranging project that focuses the world's political agenda on people and the planet, assigning a key role to infrastructure, which has always been the backbone of societies.

Through our projects, we support our clients in pursuing numerous SDGs, including energy, water, the fight against climate change, sustainable cities, and resilient infrastructure. As much as 70% of our construction backlog relates to projects that contribute directly to the fight against climate change, with initiatives for renewable energy (hydroelectric) and sustainable transport (railways and metro systems).

For us, sustainability is not only in the works we build, but also in the way we build them. We support the United Nations' Global Compact and pledge to abide by and promote these principles in our specific area of activities, in accordance with the particulars received from our clients. The pages that follow broadly describe our Sustainability policies, practices, and performance. Here are just a few worth highlighting.

The health and safety of our employees remains our top priority. In 2016, we made further progress in implementing policy and procedures. We also improved the injury rate (-13% compared to 2015) for the third consecutive year, increasing staff training (+16%) and investments (+10%) in this area.

We continue to invest in people, both those who are already working with us, through training and development, and by attracting and developing the best candidates on the market. We further increased the training provided to the staff (+10%), completing the first edition of the Master's in International Construction Management at the Politecnico di Milano and launching the second edition. We also rose to the top of the "Best Employer of Choice" ranking of the companies most desired by recent graduates. 

In our activities, we promote the principles of a circular economy, thereby contributing to fighting climate change and protecting the environment. In 2016, we increased the share of excavated material reused in our production processes (+1%) and the percentage of recycled waste (+6%), reducing the water intensity (-17%) and greenhouse gas emissions (-18%) of our operations. Our strategies and achievements earned us a place in the Climate "A List" of the Carbon Disclosure Project (CDP), which includes a small number of the best-performing companies in the world. 

Above all, we create shared value for and with the communities that host us, respecting local cultures and diversity. At the end of 2016, our projects employed over 59,000 direct and indirect staff, three quarters of whom were directly recruited from local communities. We met our procurement needs for goods and services almost exclusively at local level, with 85% of purchases made in the same markets where our projects are located (+10% compared to 2015). These two levers of local hiring and procurement are critical in activating the local economy, and contribute significantly to the economic and social growth of the countries in which we operate. In 2016, we developed a special calculation model, that we evocatively called “SEED”, which allows us to quantify the contribution of our direct investments in a country (the seeds) to its economic and social development in terms of GDP, employment, labor income distribution and contribution to public administrations. 

We want to remain among the market leaders, driven by a strong ambition: to contribute to the sustainable development of societies, implementing major infrastructure projects that last longer and improve the lives of current and future generations, starting right from the construction phase.

The invaluable commitment of all our people means we are confident that we will continue to achieve further successes and meet new targets, for the benefit of our shareholders, investors, clients, communities and all other stakeholders. 

Pietro Salini
Chief Executive Officer