The Group's procedures and policies constitute a solid benchmark of ethical business management for all employees and stakeholders.

The principles we apply are outlined in our Code of Ethics, and these are binding for all Feralpi directors and employees, and any person or organisation working with one or more of our companies.

Some of the Code's fundamental principles concern:

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    The Feralpi Group Code of Ethics provides a reference tool for promoting, publicising and managing ethics at work and in business operations.

    Management models

    In Italy and Germany we have a governance model containing a set of principles and rules that aim to guarantee transparency and integrity for anyone working within, or on behalf of, the Group.

    A governance model has been drawn up for the Group's Italian division and adopted by each company, with the exception of Ecoeternit due to it being smaller (its completion is underway).

    The model also enables the company to intervene promptly to prevent and tackle offences being committed, thanks to ongoing monitoring and close supervision of business areas at risk.

    With regard to the organisations operating in Germany, the Company refers to national legislation (Betriebsverfassungsgesetz- BetrVG) defining the right to joint decision-making with the establishment of a Factory Committee (Betriebsrat).

    The governance model is based on agreement, with employees and unions collaborating while simultaneously exerting a form of control, in terms of information, consultation and veto, albeit to a lesser degree with respect to upper management.

    The model ensures that business operations and company activities are carried out with transparency and integrity, by spreading a culture of prevention and a sense of responsibility, and preventing illegal conduct and corporate crime as set out in reference standards for areas of risk that are considered sensitive.

    Feralpi Holding Supervisory Body

    Risk management

    During 2019 we were part of a working party organised by the CSR Manager Network for the integration of sustainable risks within business risks. The output from these sessions became fundamental for new company strategies.

    In addition to risks of a financial, commercial and economic nature referred to in the annual report, business operations involve a variety of social and environmental risks.

    As part of a deeper understanding of this type of risk, in 2019 the Group's External Relations and Sustainability Unit carried out a sustainability analysis to map the global and specific risks and trends in the industry in which the Group operates.

    The main risks identified by the Group to date are outlined below, with reference to the section detailing the relevant management methods:

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