Sicily Region Bulletin for Il Sole 24 ORE
The direction of the European regulatory framework on sustainability is moving toward provisions that require respect for human rights throughout the entire supply chain, strengthening the system of laws and regulations that support a form of sustainability which is not only environmental but also social. A clear example of this is the minimum safeguards set out in EU Regulation 2020/852 on environmental taxonomy, according to which economic activities classified as sustainable must also align with social and governance standards. Currently under discussion and development is the proposal for a Social Taxonomy, which represents a strategic direction to ensure that the ecological transition encompasses all dimensions of sustainability. Social principles are integrated within the Corporate Sustainability Reporting Directive (CSRD), which requires companies to clearly report on their ESG (environmental, social, and governance) impacts. The Corporate Sustainability Due Diligence Directive (CSDDD) fits into the broader framework of the European Union’s policies and strategies aimed at promoting decent work worldwide, including within global value chains — major sources of social inequalities on which large enterprises depend.
In a regulatory context increasingly oriented toward social responsibility, Circular Srl, a sustainability consultancy firm and pioneer in assessing the social impacts over the product life cycle—through a methodology known as Social Life Cycle Assessment (S-LCA)—offers an innovative approach with the development of the first Social Product Declaration (SPD). This initiative was carried out in collaboration with Hitachi Rail for the Blues hybrid train by Trenitalia. To create the SPD, the S-LCA methodology was applied, and the first Product Category Rules for SPD (SPD-PCR) were developed to evaluate the social impacts of a train carriage. Both the SPD and the SPD-PCR comply with the guidelines established by the UNEP 2020 framework for S-LCA and the new ISO 14075 standard (2024).
The vehicle features an innovative architecture offering four operating modes—electric, diesel-electric, hybrid, and battery—making it ideal for use in regions with inadequate infrastructure, such as Sicily. This flexibility results in positive social impacts for local communities. The assessment, modeled on the structure of environmental life cycle assessment, covered the entire life cycle of the train, from materials production to the use phase, evaluating social impacts along the supply chain.
The analysis was guided by fundamental questions such as:
The categories analyzed include various stakeholders, such as: workers involved in the production, assembly, and maintenance phases; local communities potentially impacted by industrial and logistical activities; and final users and operators of Trenitalia (including train drivers and maintenance personnel). By examining 100% of the materials and components, the producing countries and quantities were identified in order to analyze social risks—referred to as Hotspots—in the raw material extraction phase, using the Social Hotspot Database© (SHDB). The analysis involved the creation of data collection questionnaires, which were distributed to various suppliers, along with the evaluation of sustainability reports from both the suppliers and Hitachi Rail (responsible for final assembly and production), with a focus on: wages, working conditions, health and safety, and social benefits.
Based on the collected data and the definition of reference scales in line with international and national regulations, scores were assigned to suppliers and to Hitachi Rail according to their regulatory compliance and social practices. With regard to local communities, the analysis looked at local employment and resource impact, highlighting the positive effects of production on local communities in the manufacturing areas. The S-LCA enabled the identification of strengths and weaknesses, with the goal of understanding both the positive and negative social impacts across the entire product life cycle and improving social sustainability in various stages of the supply chain. The Blues hybrid train provides both end users and its operators with the assurance of traveling on a vehicle designed in compliance with ethical standards.
The SPD allows companies to complete the sustainability framework by incorporating a less widespread but essential element: the ethical and social dimension of the product life cycle. It also contributes to the achievement of most of the United Nations Sustainable Development Goals (9 out of 17) and enables the creation of databases of sustainability indicators. This is a strategic tool, particularly valuable in high public exposure sectors, and a powerful instrument for compliance and transparency, capable of integrating economic development, protection of rights, and social cohesion. It supports companies in demonstrating their social responsibility throughout the supply chain. In light of the ongoing risks related to working conditions in certain areas of Southern Italy, such as Sicily, it becomes urgent to promote a responsible and transparent business culture, also aimed at identifying and rewarding best practices. Through the SPD, Circular Srl offers a model for future public and private projects in Sicily, encouraging public administrations to include social criteria in tenders and pushing companies to integrate social responsibility into their procurement and design processes. Innovation is not complete without social responsibility, and local communities must be protagonists—not mere spectators—of the change.
Maria Antonella Cigno
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