Rome, 12/04/2013

It is a great pleasure to present, for the first time, the Communication on Progress Report of eFM, which will guide you through our responsible initiatives and explain how we incorporate social responsibility into our business activities.
One of our defining characteristics at eFM is quality, not just product quality, but quality in everything we do. Growth in our business is a constant, but growth while maintaining quality is what we strive for. From here stems the importance of being an active member of the United Nations Global Compact.
As eFM embraces honesty, integrity, and the highest ethical standards, we believe the 10 UNGC principles are parallel to and complement our policies and the way we conduct our business.
In our daily activities, we follow the principles of the United Nations Global Compact, promoting human and labour rights, environmental protection and the combat against corruption, both internally within our company and by supporting initiatives of this organization. The following report will demonstrate how eFM is addressing each of these Principles and continues to reinstate its commitment to actively engage in and improve these practices over the years. We invite all our stakeholders (employees, clients, suppliers, investors, civil society, governments, local communities…), to read it and learn more about our commitment in favour of human rights, labour rights, environmental stewardship and anti-corruption.

OUR CORPORATE VALUES
Integrity
We accomplish our goals in an honest, fair and responsible manner, respecting ethical rules and principles required in the profession.
Excellence
We are committed to continuous learning and cherishing creativity in the service of innovation.
Equality
We are against all kinds of discrimination; we respect gender, racial, religious, political, language and intellectual differences, as well as age differences.
Transparency
Transparency is the pillar of all our activities, communications and contracts, in order to enable our clients to make autonomous and conscientious decisions.
Respecting every individual
We listen carefully and work on the improvement of relationship with each of our clients.
Individual values
The value of each individual is the guideline of our modus operandi: we apply the technics of listening and dialogue as tools for continuous improvement of our relationship with all interest groups.
Responsible use of resources
We tend to use all resources carefully and promote activities based on optimal use of resources and prevention of losses.

Nicola Martinelli.
Chairman eFM

In 2012 we went one step further in advancing the understanding of human rights and their protection in the eFM. We assessed what human rights are within the sphere of our influence and relevant to our business operations. The following human rights have been identified:
• Labour rights
• Freedom of expression and media
We presented the results of our assessment at the annual conference, in order to more thoroughly familiarize all our employees with the areas in which we are in a position to uphold and safeguard human rights. The presentation was also uploaded on Yammer (our internal social network) to serve as a point of reference for continuous re-evaluation of possible risks pertaining to human rights in our sphere of influence.

eFM supports and respects human rights as a core ethical value. Through its high ethical conduct, eFM upholds that human rights protection is applied in every aspect of its business. Human rights and labour right are closely related. The description below reflects eFM’s approach on the following areas of human rights: right to decent standard of living, right to education and training, right to family life (parenthood charter).
The two Global Compact principles on human rights are included:
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights
Principle 2: …and make sure that they are not complicit in human rights abuses.
eFM recognizes that human rights are an integral part of corporate citizenship and respects and supports the Universal Declaration of Human Rights and the ‘Guiding Principles on Business and Human Rights: Implementing the United Nations Protect, Respect and Remedy Framework’. eFM has developed a Human Rights Statement, in line with international best practice.
Over the past 12 months, eFM has reviewed its existing policies and procedures against its requirements. As a result of this review, we are updating our policies and procedures to put into practice our commitment to protect and respect human rights. This includes an undertaking to avoid causing or contributing to adverse human rights impacts and to address such impacts when they occur, and to seek to prevent or mitigate adverse human rights impacts that are directly related to our operations, services and business relationships. We have also approved a statement outlining our position to protect and respect human rights through our operations and in our sphere of activity. This statement is aligned to the Guiding Principles as well as the International Labour Organization’s Declaration on Fundamental Principles and Rights at Work and the Organisation for Economic Co-operation and Development’s (OECD) Guidelines for International Enterprises.

We Monitor continuously our governance system to ensure compliance with basic human rights within our organisation and with whom we interact.
The effective monitoring and evaluation mechanisms of human rights integration
are listed below:
• Regular stakeholder consultations in the area of human rights
• Internal awareness-raising and training on human rights for management and employees
• Grievance mechanisms, communication channels and other procedures for reporting concerns or seeking advice
• Inclusion of minimum human rights standards in contracts with suppliers and other relevant business partners
• System to monitor the effectiveness of human rights policies and implementation, including in the supply chain
• Leadership review of monitoring and improvement results
• Process to deal with incidents

eFM do not use forced, compulsory or child labor. eFM supports freedom of association and, where applicable, recognizes the right to collective bargaining. Our people want to work for an organization that encourages and respects individuals, and this is one of our values across the eFM network. Our drive to create a global culture of diversity and inclusion is fundamental to who we are, and critical to retaining our best people. We promote fair labor practices among our partners, employees, and suppliers, ensuring healthy working conditions and we encourage and respect individuality as one of our values embedded within our Code of Conduct. We know how important it is for our employees to strike a balance between their work and personal lives, so we have made a serious commitment to enabling flexibility in the workplace

Human Resources ensured that the employee bylaws, which comply with local labour laws, are strictly followed by every employee and necessary disciplinary action would take place if any of these laws were broken.
• Employee bylaws are distributed to new employees and explained during the induction process.
• Any grievances received by managers were processed to HR and dealt with in a timely manner, and appropriate measures were taken.
• The labour laws are put into effect and communicated to managers within their anticorruption training to ensure fair dealings among employees.
• Signing of the Code in 2012 by current and new eFM employees..

HEALTH & SAFETY
Health and safety lie at the core of our business. We cannot operate successfully and deliver quality products without ensuring the health and wellbeing of our employees. We are committed to continuous improvements in health and safety. The our policy involves the appointment of an HSE supervisor in each business unit and health and safety training was offered to all employees across the Group. Promoting the health and safety of our employees is clearly aligned with our key business objectives – to deliver better health to the markets we serve.

TRAINING
eFM is committed to on-going training of all employees and consistent delivery of ’world class’ service. This quality can be achieved only through a proactive, managed training and development programme. Our induction programme for all staff regardless of grade covers the following key areas:
• Health and safety training and procedures
• The quality programmes and their policies
• HR issues – including discrimination, corruption and data security
• Customer service, sales, service delivery, insurance, etc
• Whistle-blower system and grievance mechanism

Employees’ right to free association and collective bargaining are recognised and respected. There is a clear, transparent process for receiving employee suggestions, requests and complaints. Effective communication with employees is promoted, so that issues arising from business decisions are addressed appropriately and in a timely fashion.
eFM helps monitor the labor conditions of a client’s suppliers and the responsibility performance as compared to the company’s own Code of Conduct. The results were used as the basis for making further improvements in supplier behavior.

eFM, like every business, has an impact on the environment, both locally and globally. We are working towards limiting that impact by educating our staff and encouraging them to think about their effect on the environment in everything they do. We are also actively exploring ways in which we can reduce carbon emissions across and reduce waste, particularly harmful waste.
For eFM, integrating principles 7, 8 & 9 into our strategies and operations means understanding and managing our own impact on the environment, while also working with stakeholders to respond to the environmental challenges facing the world. eFM promotes sustainable workplace policies and implementing environmentally responsible initiatives, while encouraging their stakeholders to do the same and is committed to making a positive impact on the environment and addressing local environmental challenges. eFM is investing in responsible energy use; educating and supporting our people in making sustainable decisions; working on environmental protection projects; and joining forces with clients, leadership groups and other businesses to address environmental impacts.
eFM is associated at Green Building Council, a non-profit organization dedicated to sustainable building design and construction.

Actions taken to ensure the optimal results for eFM’s environmental policy include training employees on the environmental policies, periodic internal audits, management review meetings, environmental programs such as reducing hazardous and non hazardous waste.

eFM’s Environmental Policy 4 key pledges:
1. To integrate our environmental policy across the company;
2. To reduce our impact on climate change;
3. To comply with environmental legislation and regulation in every country in which we operate;
4. To strive for continuous improvement in our environmental protection;

Trying to conduct all our activities in a responsible manner, but also to reduce our own negative impact on the environment, we have been implementing and improving the programme of “printing consolidation“ for the second consecutive year. In 2012, eFM introduced the goal of reducing unnecessary printing and use of paper. During the year, and according to estimates, the use of paper is decreased by 20% compared to the previous years.

Employees received training for reducing waste and managing resources more effectively. It was introduced a system to better monitor and manage hazardous waste output. and the activity of recycle paper in line with the company’s commitment to to inculcate an environmentally conscious in the employees.

eFM is strongly committed to the fight against bribery and corruption. This is consistent with our values, and our commitment to integrity, and lawful and ethical behavior.
eFM does not tolerate corruption in any shape or form and has undertaken strict measures to ensure the compliance of all employees with these standards.
eFM is committed to ensure all business dealings are conducted in a fair manner and has a zero tolerance policy to all forms of bribery and corruption.

Our targets for 2013:
• Analyze our clients for corruption-related risks
• Formulate an anti-bribery/corruption policy

The Audit Committee, composed of manager and senior manager, is responsible for the development, implementation and monitoring of anti corruption activities