Environmental & Social Information • Apr 20, 2018
Environmental & Social Information
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Consolidated Disclosure of Non-Financial Information in accordance with Italian Legislative Decree no. 254/2016
Integrated Report
| Letter to stakeholders | 2 |
|---|---|
| Methodological Note | 4 |
| 1 The A2A Group and its business model | 9 |
| 1.1 The A2A Group | 10 |
| 1.2 A2A's value chain | 14 |
| 1.3 Our business model | 16 |
| 2 Governance | 19 |
| 2.1 Sustainability governance | 20 |
| 2.2 Corporate governance guidelines | 22 |
| 2.3 Analysis and management of risks and opportunities | 24 |
| 3 Sustainability strategy | 27 |
| 3.1 Background information | 28 |
| 3.2 The Sustainability Policy | 32 |
| 3.3 The Sustainability Plan | 34 |
| 4 Stakeholder engagement and materiality analysis | 43 |
| 4.1 The forumAscolto programme | 45 |
| 4.2 Materiality matrix and analysis | 48 |
Specific Standard Disclosure 158
The A2A Group 2017 Integrated Report is completed by a specific supplement which is available for consultation on the Group website, both in Italian and in English. www.a2a.eu
It is an important event. And it is significant that its great success, originating from the merger of companies that made the history of public services in Italy, has been told right from the start, including through the sustainability report. Our thoughts and actions always move in a threedimensional space: environment, social and economy.
For the first time, this document also represents the Group's Consolidated Non-Financial Disclosure in accordance with Italian Legislative Decree no. 254/16. We are aware of the historic nature of this change, yet we do not wish our annual appointment with the ESG report to become a mere fulfilment of regulatory requirements. We want it to remain a privileged opportunity to dialogue, measure our progress and look to the future, starting out from a clear vision of today. This is another reason why, in preparing the document, we have confirmed the methodological choice to refer to refer to the Integrated Reporting Framework as well as to the GRI Standard of the Global Reporting Initiative.
This year's Report also includes, for the first time, the performance of the LGH Group, which in addition to always been close to logics of sustainable development, already boasted ten years of experience in non-financial reporting.
If European governments have realised the importance of social and environmental reporting, it is because sustainability has become a major part of political agenda. And under this scope, the UN 2030 Agenda is playing a formidable role, with its 17 Sustainable Development Goals. Italy has also taken action, at the end of last year adopting a National Sustainable Development Strategy, which will represent the reference framework of future sector and territorial policies. We are proud to say that A2A was one of the first companies, in April 2016, to redesign its sustainability strategy in light of the UN Agenda priorities, defining a Sustainability Policy through to 2030, hinged on four cornerstones: circular economy, decarbonisation, smartness in networks and services and people innovation. Two years down the road, the A2A Board of Directors, supported by the investigations of the Sustainability and Territory Committee, has chosen to repeat its commitments made through to 2030 and approve a new five-year sustainability plan, with a set of operative objectives, connected and integrated with and into the business, referring to a time frame and perimeter that are in line with the new Business Plan. For the first time ever, the sustainability indicators are an integral, qualified part of the Business Plan. The 2018-2022 Sustainability Plan is presented in full in the document, together with the monitoring of the targets of the previous Plan.
We are increasingly pursuing a sustainable business model that, in line with the mission and key values, allows us to ensure the integrated management of all social, economic and environmental aspects, through a governance system, risk assessment tools and an
operative strategy. Moreover, starting 2017, we have also included sustainability in the MbO (Management by Objectives) systems.
In 2017, we generated and distributed to stakeholders gross global added value of 1,655 million euros (+4% compared to 2016). We also distributed wealth through 1,003 million euros (+20%) spent on goods and services, 95% of which for the benefit of Italian companies. 78 million euros were investments in activities with environmental implications (17% of total investments), aiming to ensure energy efficiency, innovation, renewable sources and a reduction of emissions.
In 2017, we hired 906 people, out of a total of 11,416 employees (+17% on 2016). 95% of those working in A2A are on permanent contracts. This year, training increased (19 hours per capita) and the frequency and severity indexes of injuries improved (-11%). Since 2016, we have focused attention on managing the sites entrusted to external companies for works on the networks. In 2017, we made more than 700 control visits.
We aim to develop a new, shared managerial role, rooted in innovation, responsibility and entrepreneurship, through the ABC project, which has involved all the Group's middle management. We foster participation in projects that are transversal to the Group, as a growth factor of those involved.
We continue to experiment with smart working, monitoring results with a view to shortly extending the model. We are rethinking the A2A welfare strategy with the creation of a joint commission that will take into account the results of the listening activities. We promote the use of electric vehicles by A2A people, both at work and privately, with integrated car and charging packages.
For A2A's industrial assets, the manufacturing capital plays a key role and must be preserved and developed over time. In 2017, also thanks to the new aggregations, the length of our electricity, gas, district heating and water networks grew by 4,600 km, taking them to a total of 32,600 km.
In Milan, we developed the largest hub for charging new electric vehicles of Unareti fifty of which are already up and running.
As for the generation activity, we have worked hard to increase the competitiveness of our combined cycle plants, making their operation more flexible, starting from the electric power stations of Chivasso and Sermide. We have integrated our production plants with new photovoltaic plants for 35 megawatts.
Having circular economy as a driver, we have increased our waste material recovery and treatment plants by 80% on 2016. We have launched sites to develop two new plants for the recovery of plastic and designed two plants for the recovery of the humid fraction of waste.
We invest in innovation, aware that this not only makes us more competitive on the market, but can also yield great benefits to the community. In 2017, we multiplied innovation projects, particularly in three areas: smart grid, circular economy and smart city. In this latter sector, we develop solutions based on the new IoT (Internet of Things) technology, enabling, for sustainable mobility, environmental quality, energy efficiency, safety and good territorial governance. We take part in urban area requalification projects, such as "Sharing Cities" in Milan and "Oltre la strada" in Brescia, which, under the scope of public-private partnerships, seek to develop the smart cities of tomorrow: inclusive, efficient, safe and resilient.
Our most successful experiments run over the years include the development of the network for charging electric vehicles in Brescia and Milan, recently enhanced with 13 fast charging stations. In 2017, more than 6 million kilometres were travelled with zero emissions thanks to charges used on our networks.
The logics of the circular economy want disposal in landfills to be virtually zeroed out and opportunities to reuse and recycle goods, maximised. In 2017 too, 99% of municipal waste collected by the Group's environmental companies was sent for recovery as a material (67.5%) or energy (31.5%).
Separate waste collection in the municipalities served has made another step forward (+7 percentage points), reaching an average of 63.2%, whilst the quantity of secondary raw materials produced in our plants, has doubled.
The National Energy Strategy has outlined Italy's route towards a low carbon economy, privileging a generation mix based on renewable sources and natural gas. In 2017, we produced 76% of electricity from these two sources. Moreover, in our electric power stations, thanks to advanced technologies and careful environmental management, we have reduced specific emissions per kilowatt of powders, SO2 and NOx .
In terms of the fight against climate change, in 2017, renewable sources, cogeneration and waste-to-energy allowed us to avoid releasing 2.5 million tonnes of CO2 into the atmosphere.
Once again, 2017 has seen A2A Energia confirm its excellent standing in terms of customer satisfaction, remaining in the top three of all market segments, in the Monitor Energia Cerved survey. The environmental companies, AMSA and Aprica have also recorded a very positive perception of the quality of their services in the reference territories, with average scores ranging between 7 and 8 (on a scale of 1 to 10).
In customer relations, we seek to constantly enrich the supply of contact channels with innovative proposals, increasingly based on
digital technologies. In 2017, 90% of A2A Energia customers used the on-line services offered by the company, including the latest innovations: the chat box, call centre and customer social care. AMSA too, again with a view to staying close to its customers, has offered citizens a new channel for encounters: the mobile information office.
As regards relations with the communities in the more general sense, we have expanded upon the offer of educational activities, with excellent feedback from schools and citizens: in 2017, more than 34 thousand (+19%) students and teachers took part in our initiatives (classroom lessons, meetings, exhibitions, educational tests), whilst 31 thousand (+49%) people visited the Group plants.
The listening programme continued on the territories with two multi-stakeholder forums in Milan and Udine, whilst 11 projects were developed starting from the ideas that emerged from the forums held in 2015 and 2016, including the Banco dell'Energia. This latter, in 2017 promoted, in collaboration with the Cariplo Foundation, a contest to allocate 2 million euros to 15 initiatives chosen and aiming to support situations of social and economic vulnerability throughout Lombardy.
We invested 5.8 million euros (+41%) in contributions to communities for sponsorships, donations and support to Foundations, such as, for example, support to the Musil Foundation of Brescia, to the restoration of the Sala delle Asse of Sforza Castle of Milan and the Donizzetti Theatre of Bergamo.
The A2A sustainability strategy is also concentrated in the participation in networks and associations, starting with the Global Compact, involved nationwide and internationally in the major global sustainable development challenges.
In light of the thresholds reached, we look back over the past ten years with great satisfaction. And this success is owed first and foremost to the people who make up our Group, the men and women with their different personal and professional experiences, who have managed to give rise to something new and original on the Italian scene, adjusting, fearless, to the rapid evolution of scenarios and markets, developing new skills and attitudes.
We trust that our effort has also been acknowledged and appreciated by our interlocutors - our customers, suppliers, the institutions, associations and local communities - and, in general, by all those with whom we may share new challenges in sustainable development over the next few years.
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital 8 Human capital 9 Intellectual capital
10 Relational
capital
Independent Auditor's Report
In compliance with Italian Legislative Decree no. 254/2016, this document represents the A2A Group 2017 Consolidated Disclosure of Non Financial Information (NFD). In support of the relevance that matters of sustainability are gaining worldwide, in
December 2016, the Italian government issued Italian Legislative Decree
no. 254 with the aim of monitoring the non-financial performance of major Italian companies of public interest, aknowledging Directive 2014/95/EU.
Entities of public interest (listed companies, banks, insurance and reinsurance firms) with more than 500 employees and which have exceeded at least one of the two following dimension limits: total balance sheet greater than 20 million euros or total net income from sales and services greater than 40 million euros.
The Disclosure of Non-Financial Information must regard the environmental matters (use of energy resources and emissions, as well as environmental and health risks), social and employee-related matters, respect for human rights, anti-corruption and bribery matters as considered relevant to the business and characteristics of the company. With reference
This NFD is A2A's tenth Sustainability Performance Report and was prepared with reference to the Integrated Reporting Framework (IR Framework) drawn up by the International Integrated Reporting Council (IIRC).
This document (including the Supplement) provides an account of the performances of the companies within the scope of consolidation for the year ended on December 31, 2017 from both a financial and a social and environmental standpoint. The document has been prapared in accordance with the Global Reporting Initiative (GRI) Standards and, for some indicators, it complies with GRI-G4 Electric Utilities Sector Supplement.
Adopting the principles of the Integrated Report entails the objective of presenting the way in which an organisation creates value over time. We therefore decided to adopt a structure for our report based on the to the matters specified, the report must at least provide information about: (a) the company management and business organisation model, (b) the main risks generated or suffered in connection with said matters and which derive from the business carried out, its products, services or commercial relations, including supply chains and subcontracting and (c) policies applied by the company, the results achieved thanks to these and the related non-financial KPI.
Consob is responsible for the sanction procedure in the event of failure to fulfil the obligation or making false declarations. In the event of incomplete or non-compliant declarations, Consob can ask the company concerned for the necessary integrations, avoiding sanctions.
various types of capital, which constitute the variables that determine how value is created:
Methodological Note 1
The A2A Group and its Business Model
Letter to stakeholders
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality
analysis 5 Financial
capital 6 Manufacturing
capital
7 Natural capital 8 Human capital 9 Intellectual capital
10 Relational capital
Independent Auditor's Report
GRI Content Index
Through the analysis of the types of capital that influence, and are in turn influenced by, the Group's activities, A2A aims to provide a clear account of the existing and necessary integration between economic and social and environmental aspects in company decision-making processes, but also in the definition of the Group's strategy, governance and business model.
The initial chapters of the document describe the Group's Business Model and the management tools applied, through which the various capitals are used to create value over time. A structured process of materiality assessment, to which reference is made in section 4.2, supported the definition of the content to be reported as relevant to both the Group and its stakeholders. On the basis of the issues identified as material, the GRI standards were selected along with the pertinent qualitative and quantitative disclosures to be presented in the NFD and Supplement. The description of the material aspects, the
associated risks and the management methods,
are reported at the start of each capital, together with an overview of the input/output/outcome model of the business model, highlighting inputs and outcomes of the specific capital. This representation is mainly intended for communication purposes, insofar as the Group outputs, i.e. the public utility services and support processes, with which it supplies the communities, can only be obtained through the combination of the various capitals. Within each chapter, the actions and KPIs (Key Performance Indicators) relative to the specific capital, are therefore described.
According to the cover of the GRI Standards and Specific Standard Disclosure indicators associated with the material aspects and summarised in the GRI Content Index, the NFD was prepared "in accordance with the GRI Standards: Core option".
In order to comply with the requirements of Italian Legislative Decree no. 254/2016, in 2017, the A2A Group equipped itself with an internal procedure aimed at drafting the NFD - Procedure 201.0128 "Non-Financial Information Reporting Flow" - which defines the organisational structures involved and the methods used to collect, process and control the non-financial data included in this document.
The data collection, processing and control process was handled through the implementation of a specific software purchased in 2017 and managed by the CSR structure, which allows for the definition, for each section of the NFD, of the data owner and various approval levels, through to the company's senior management. Data on financial capital is in line with the schedules of the Consolidate Financial Statements, whilst that for manufacturing capital derives from the A2A management control systems. The data represented in natural capital was handled by the Environment structure and collected via the EMS (Environmental Management System) software.
In this document and its supplement, where necessary a specific note has been included to indicate changes in the 2015 and 2016 performance data with respect to that reported in the 2016 Integrated Report.
This document, approved by the Board of Directors of A2A S.p.A. on March 20, 2018, was then subjected to a limited audit, with regard to aspects relating to GRI reporting, by an external company, in accordance with the criteria laid down by the "International Standard on Assurance Engagements 3000" (ISAE 3000), which, at the end of the work carried out, issued the report attached to this document.
The NFD includes all subsidiaries fully consolidated on a line-by-line basis into the Consolidated Financial Statements, to which, however, a concept of relevance and significance is applied. Indeed, companies with business that is not relevant or companies purchased/ sold/liquidated during the year can be excluded from the social and environmental performance data.
Consequently, with the exception of "Financial Capital" and the chapter entitled "The A2A Group", for which the scope coincides with that of the Consolidated Financial Statements, the following companies are excluded from the list of consolidated companies in the remaining Capitals:
Patavina Technologies, start up company of Padua University, operative in the design of software and telecommunications systems and acquired on June 1, 2017, for irrelevant impacts on social and environmental aspects;
LumEnergia, of which, by deed dated July 31, 2017, a further 57% of units was acquired, thereby ending up with 90% of the company; the company was excluded because it was acquired in the second half of 2017 and the omission of information relating to it does not affect a correct, balanced understanding of the performance of the A2A Group (supply points are less than 1% of the total points managed by the Group's commercial companies).
Moreover, with respect to the tables of the Report on Operations, the data of the NFD does not include the EPCG Group, following the exercise of the put option notified on July 03, 2017 to the Government of Montenegro, which effectively cancelled the control of A2A over the Montenegrin company.
The plants (owned or leased) are consolidated 100% if they are included in the assets of the consolidated companies. In this sense, the data on the activity of the Acerra Waste-to-energy plant and the Thermoelectric plant of Scandale, is not considered. The Group's jointly owned material plants, managed by A2A, are consolidated proportionally. According to this principle, for environmental data, the Mincio Thermoelectric plant was 45% consolidated.
As part of the process of integration between subsidiaries and in line with the Group's goal of simplification of its corporate structure, the following companies were formed:
With respect to the scope of companies consolidated in the 2016 Integrated Report, we highlight the inclusion in the 2017 NFD of the LGH Group, the Rieco-Resmal Group and the companies La Bi.CO Due, ASVT and Consul System.
1 The A2A Group and its business model
Letter to stakeholders Methodological Note
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
Manufacturing capital
6
7 Natural capital 8 Human capital
9 Intellectual capital 10
Relational capital
Independent Auditor's Report
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model The A2A Group A2A's value chain Our Business Model 2 Governance
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Sustainability strategy
Manufacturing capital 7 Natural capital 8 Human capital 9 Intellectual capital 10 Relational capital
Independent Auditor's Report GRI Content Index
The A2A Group is one of Italy's most important multiutility companies, at the top of the production, sale and distribution of gas and electricity, district heating, environmental services and the integrated water cycle.
Its business areas are attributable to the Business Units (BU) illustrated below.
• Thermoelectric and hydroelectric plants • Energy management
• Sale of electricity and natural gas
• Waste collection and street sweeping
• Treatment
• Disposal and energy recovery
• Electricity generation and sales • Electricity networks
• Telecommunication services
• Electricity networks • Gas networks
Networks and Heat
• Integrated water cycle • Public lighting and other services • District heating services
• Heat management
• Corporate services
Corporate
services
↗ A description of the BUs and the related economic data may be found in the 2017 Report on Operations published at www.a2a.eu
The A2A Business Model seeks to create shared sustainable value for the company over time and for its reference community. In actual fact, the services offered by the Group look to the future and are focussed on improving the quality of life of local residents and businesses operating in the reference territories, by offering essential services, guaranteed by the highest quality and efficiency standards: waste collection, sale of electricity and natural gas, water treatment, distribution networks, public lighting and IoT (Internet of Things) technologies for smart cities. The solidity of A2A's presence meets with the change of sectors that evolve constantly, giving rise to a constant path of sustainable growth.
The six capitals (Financial, Manufacturing, Natural, Human, Intellectual and Relational) are behind the
business model, on which the organisation depends in order to guarantee its services. Aware that maintening these capitals can be the only key for sustainable growth and a solid presence in the long-term, A2A has defined a system of values, organisational instruments, policies and operating systems that, as a whole, support the Group's various business units in sustainable management.
Part of the capitals is consumed in the generation of the services offered by A2A to the community; this is why A2A has defined a strategy that integrates business objectives with sustainability objectives, defining an Industrial Plan through to 2022 and a Sustainability Policy through to 2030, aimed at returning value to each capital, to keep their capacity unaltered, with a view to sustainable development.
The A2A Group's values represent the cultural identity that inspires all of A2A's people and the rules of conduct that guide employees in their daily activities. Along with its mission, the Group's values underlie its business model, which consolidates and encourages increasingly deep integration with local communities and their members due to a business plan that allows development opportunities to be identified for the business and its stakeholders.
The Group's ambition is to establish a multi-utility model integrated into the local community, suited to the people who live there, capable of creating and distributing progressive, long-lasting social value to all of its stakeholders.
The A2A Group mission
standards of quality and efficiency development of the local community
Our strategy aims to develop a repositioning process that in 2020 will result in more modern multi-utility, leader in the environment, smart grids and new energy models, with a more balanced and profitable position, able to seize the opportunities that will be presented by the green economy and smart cities.
7 Natural capital 8 Human capital
Manufacturing capital
Letter to stakeholders Methodological Note 1
The A2A Group and its business model The A2A Group A2A's value chain Our business
2 Governance
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Sustainability strategy
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
GRI Content Index
The A2A Group's values
Innovation: we are building a future based on ideas, research and technology to face each new challenge bravely
Sustainability: we are striving to reduce the impact of our actions on the environment to a minimum and to ensure a sustainable tomorrow for future generations
Participation: we put people first, focusing on feedback, cooperation and sharing
Responsibilities: we are committed to creating value for the future, keeping our promises and being transparently responsible for our actions
Excellence: we are investing our skills with dedication and determination in order to ensure increasingly higher standards of quality
We aim to be a Group capable of providing cities with essential services that meet the highest due to their sustainability, and openness to change.
On May 15, 2017, the Shareholders' Meeting appointed for three years, with the mechanism of the list vote, the Board of Directors (BoD) consisting of 12 members, as indicated in the table below.
| POSITION | NAME | YEAR OF BIRTH | EXECUTIVE (E) - NON EXECUTIVE (NE) |
INDEPENDENCE - CODE |
INDEPENDENCE - CFA |
CONTROL AND RISKS COMMITTEE |
REMUNERATION AND APPOINTMENTS COMMITTEE |
SUSTAINABILITY AND TERRITORY COMMITTEE |
|---|---|---|---|---|---|---|---|---|
| Chairman | Giovanni Valotti | 1962 | E | - | - | - | - | C |
| Deputy Chairman | Alessandra Perrazzelli | 1961 | NE | X | X | - | C | - |
| Managing Director / General Director |
Luca Valerio Camerano | 1963 | E | - | - | - | - | - |
| Director | Giambattista Brivio | 1946 | NE | X | X | - | - | M |
| Director | Giovanni Comboni | 1957 | NE | - | X | M | - | - |
| Director | Enrico Corali | 1964 | NE | X | X | M | - | - |
| Director | Luigi De Paoli | 1949 | NE | X | X | C | - | - |
| Director | Alessandro Fracassi | 1969 | NE | X | X | - | - | M |
| Director | Maria Chiara Franceschetti |
1969 | NE | X | X | - | - | M |
| Director | Gaudiana Giusti | 1962 | NE | X | X | M | - | - |
| Director | Secondina Ravera | 1966 | NE | X | X | - | M | - |
| Director | Norberto Rosini | 1959 | NE | X | X | - | M | - |
Note: C: Chairman - M: Member
In compliance with the provisions of the Code of Corporate Governance for Listed Companies, the Board of Directors conducted its assessment for the year 2017, on the size, composition and functioning of the Board and its Committees. The results of the Board Review were presented and discussed during the session of the Board of Directors of March 01, 2018.
All the information relative to the A2A governance model is given in the Report on Corporate Governance and Ownership Structures published together with this document and available on the website www.a2a.eu.
The information given on the fees of the Board of Directors is available in the Report on Remuneration available on the website www.a2a.eu.
Responsibility for sustainability issues is left to the Sustainability and Territory Committee, tasked with playing an evaluative, advisory and propositional role in assisting the BoD, Chairman and Chief Executive Officer of the Group in defining guidelines, orientations and initiatives relating to the promotion of a strategy and tools that integrate sustainability into business processes, so as to ensure the creation of value over time for the shareholders and all other stakeholders.
The Committee must be composed of no fewer than three directors and at least one member must have adequate experience in the field of the environment, sustainability and corporate social responsibility, to be assessed by the BoD upon appointment.
The Committee reports to the BoD on the activity performed with quarterly frequency. In 2017, the Sustainability and Territory Committee met 11 times.
at providing suitable knowledge of the sector, company dynamics and their evolution, in 2017 too, an induction session was held for the BoD on sustainability matters.
Under the scope of director training, aimed
Financial capital 6 Manufacturing capital
7 Natural capital
8
9
Stakeholder engagement and materiality analysis
5
Letter to stakeholders
Human capital
Intellectual capital
10 Relational capital
Independent Auditor's Report
GRI
Content Index
A2A has equipped itself with various instruments aimed at supporting the company in guaranteeing an effective, efficient and transparent management, namely:
↗ All documents mentioned above are available at www.a2a.eu
All of the A2A Group's activities and relations, both internal and external, are inspired by observance of the principles, values and rules of conduct set out in the Code of Ethics, which is a fundamental component of the Organisation, Management and Control Model pursuant to Legislative Decree No. 231/2001. The Code identifies requirements aimed at ensuring that the enterprise's activities are inspired by the following principles:
Main aspects of the A2A practised policy related to human rights are included in the Group Code of Ethics and, in 2017, there were no Code violations.
46 Group companies have adopted their own Organisation, Management and Control Model in accordance with Italian Legislative Decree No. 231/2001 (OMM), covering 99% of employees. On September 21, 2017, the OMM of A2A S.p.A. was updated. The Board of Directors of each of the above companies has appointed a Supervisory Body entrusted with the task of supervising the functioning and compliance of the Model and its constant updating.
All Group stakeholders can report through appropriate channels of confidential information, any violation or suspected violation of the Code, to the Supervisory Body or Internal Audit organisational structure. Reports can be made through the communication channels established (e.g. e-mail, ordinary mail) per the "Management of anonymous and other reports of the A2A Group" guideline published on the Group website.
The Group companies are systematically monitored with regards to risks connected with corruption. In line with that reported in the corporate Code of Ethics, the Group
bans all forms of corruption, unlawful favours, collusive conduct, requesting of advantages, conferral of material and immaterial benefits and other advantages aimed at influencing or remunerating representatives of institutions or their relatives, and Group employees. In 2017 there were no incidents of corruption and there were no pending cases relating to corruption incidents with the exception of a single proceeding, relating to a previous manager of AMSA, in which the company has filed an appearance as civil party. The first instance proceedings concluded with a conviction of the defendant, against which he subsequently lodged an appeal.
Moreover, in 2017, a total of 6,089 hours of training were delivered on Italian Legislative Decree no. 231/2001 and on the Code of Ethics, both in the classroom and in e-learning mode, involving 29% of employees.
With reference to the policies adopted by the company in respect of sustainability matters, A2A has, over time, equipped itself with specific Group-wide policies, aimed at ensuring the homogeneous management of governance, environmental and social aspects.
More specifically, reference is made to the: - Group Quality, Environment and Safety (QES) Policy, updated and approved in July 2017, whereby A2A undertakes to guarantee, under the scope of its activities and in compliance with the OMM, the Code of Ethics and the company values, increasing stakeholder involvement, solid compliance with legislation regarding the company, a careful focus on the protection of worker health and safety (through advanced tools for the identification and assessment of risks), a constant eye on technological innovation and a tendency to develop its human capital;
A2A has also prepared various internal procedures and guidelines on sustainability aspects, adopted on a Group level and replicated into the specifics by the Group companies, such as, for example: Guideline 001.0020 (Water discharge management), Guideline 001.0023 (Atmospheric emissions), Guideline 001.0028 (Environment, Health and Safety System management) and procedure 201.001 (Selections and recruitment in A2A). A Group anti-corruption procedure, formalizing the current policies already practiced by the Group, is currently being validated.
These policies are partly implemented through certified management systems according to the major voluntary standards recognised at the international level, such as ISO 14001 for the environment, ISO 9001 for quality and OHSAS 18001 for health and safety at work, or within the European Community, such as EMAS Registration, which refers to Regulation (EC) No 1221/2009.
Figure 02_Group certifications
| TOTAL NUMBER OF ACTIVE CERTIFICATES AND REGISTRATIONS |
QUALITY ISO 9001 |
ENVIRONMENT ISO 14001 |
SAFETY OHSAS 18001 |
EMAS |
|---|---|---|---|---|
| 2015 | 19 | 18 | 18 | 24 |
| 2016 | 20 | 18 | 16 | 24 |
| 2017 | 34 | 29 | 29 | 28 |
AWARENESS OF ASPECTS LINKED TO THE ENVIRONMENT, HEALTH AND SAFETY
In recent years, a great deal of attention has been paid to awareness of the operative world to HSE matters (Health and Safety and the Environment).
In 2017, a series of workshops were held, dedicated to the employer lines, with the aim of together reasoning about the elements qualifying the role of employer and safety and environment delegate and reassessing the tools available by which to effectively implement these roles.
A total of 9 days of meetings were held with the employer lines of all Group companies, including LGH, and 3 days were dedicated to the Group HSE structures, with which the points that had emerged from discussions with the delegates, were shared.
Moreover, the Leadership in Health and Safety (LHS) project continued with the Networks and Heat BU, involving safety supervisors, who were given the tools to handle any unsafe conduct in the company, in all working situations and at all levels of
the hierarchical chain. Simultaneously, from September to November, the LHS project was also launched for the Environment BU and the Generation and Trading BU, involving, through 5 workshops, more than 120 top managers.
Finally, the development of the application ARIAL was pursued on all modules.
5 Financial capital
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance Sustainability governance
guidelines Analysis and management of risks and opportunities
Sustainability strategy
3
4 Stakeholder engagement and materiality analysis
6 Manufacturing capital
7 Natural capital
8 Human capital 9
Intellectual capital
10 Relational capital
Independent Auditor's Report
The A2A Group has implemented a risk measurement and detection process on the basis of the Enterprise Risk Management (ERM) method, developed in order to make business risk management an integral and systematic part of the business management processes. Such activities are carried out in accordance with the "Guidelines for the Internal Control and Risk Management System"2 approved by the Board of Directors and adopted by Group companies.
Through the involvement of all corporate structures, the risk measurement process is regularly activated, enabling the identification of the most significant critical issues, the measures to monitor them and the mitigation plans. The risk profiles of the Group and its companies , identified in the periodic assessment process , are analysed by the respective boards of directors and during the business review meetings. In 2017, a project has been developed to define and monitor risk factors through specific key risk indicators capable of providing the board with a prospective vision of possible changes , in the Group's risk profile.
Following the determination of the new standards ISO 14001 and ISO 9001, which envisage the risks and opportunities assessments as key elements of the respective management systems, a method has been developed by which to integrate ERM risk management with the Quality, Environment and Safety Management systems. On this matter, internal courses have been launched dedicated to middle managers and those dealing with HSE, with the aim of supporting certifications, spreading the risk culture and starting an exchange of ideas for the further discussion of any relevant matters. In 2017, the Environment BU and Generation BU - thermoelectric area were involved and the remaining companies/plants should be involved in 2018.
The process takes into account all possible risks and assesses their impact on the company, as regards both the financial and reputational aspects. To this end, the main risk factors considered relate to the company's mission and relationship with the community, the nature and diversification of its business units, its growth plan, strategic objectives, competitive, legislative and regulatory environment, macroeconomic and social-environmental scenario and the expectations of interested parties, characterised by increasing awareness towards environmental, health and safety issues, and sustainability issues more generally.
In 2017, an analysis process was launched for the management of opportunities, integrated with both the ERM process and the QES management systems. This method will be applied to some "pilot areas" in 2018, in order to thereafter be progressively extended to the whole Group.
The risk management process adopted by Enterprise Risk Management seeks to create and maintain the business value. In these terms, it is important to stress that sustainability matters are integrated ab origine into the ERM process. This is proven by the fact that the risk model includes, for example, environmental risks, those relating to health and safety, climate change, human resource management and customer service levels and the fact that the risks are assessed with reference not only to the economic-financial impact but also to the impact on image.
In 2017, dialogue continued between the Corporate Social Responsibility and the Enterprise Risk Management functions to further explore risk issues related to sustainability objectives
and to discuss the possibility of synergistically managing risk management activities and the results of stakeholder engagement activity, even through the monitoring of risk factors tied to the theme of consent. The risks model has been updated with additional areas of analysis linked to sustainability aspects, adding the risk types "Social-environmental context", "Procurement" and "Compliance".
In addition, an analysis was conducted of the associated risks and safeguards in place for material issues, and the details are illustrated in the tables presented at the beginning of each capital, apart from those linked to governance matters, which are given in the table below.
| MATERIAL ASPECTS | DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | Sustainability strategy |
|---|---|---|---|---|
| ETHICAL PURSUIT OF BUSINESS |
Ethical conduct in the pursuit of business (adoption of non competitive behaviour, anti-corruption policies, compliance with laws and regulations, adhesion to the main national and international social and environmental agreements); promotion of specific mechanisms and procedures for reporting irregularities and lawful conduct, also in connection with the fight against corruption. |
Possibility of unethical conduct, with specific reference to matters of corruption and relations with black list subjects under the scope of commercial activities and/or development in foreign countries. Non-compliance with regulation on sustainability matters, with specific reference to Italian Legislative Decree no. 254/2016 and reference legislation for Group activities. |
Adoption of the Code of Ethics. Adoption of a policy to monitor risks through careful specialised monitoring and mitigation of risk through the preparation of organisational models in accordance with Italian Legislative Decree no. 231/2001 as subsequently amended and integrated. Monitoring of compliance with regulations structured according to subject matter and over several organisational levels. Preliminary analysis for the implementation of a anti corruption management system. Adoption of a reporting procedure for the preparation of the Disclosure of Non-Financial Information. Continuous monitoring of the main environmental parameters subject to regulatory compliance. |
4 Stakeholder engagement and materiality analysis 5 Financial capital 6 Manufacturing capital 7 Natural capital 8 Human capital 9 Intellectual capital |
| RESPECT FOR HUMAN RIGHTS IN THE GROUP VALUE CHAIN |
Promotion of rights throughout the value chain (suppliers, employees, customers); facilitation of access to electricity, gas and water services by disadvantaged consumers. |
Possibility of unethical conduct, in particular as regards suppliers, employees and customers. Failure to respect human rights by employees, suppliers, customers and partners. |
Adoption of supplier qualification procedures that envisage the stipulation of the "legality protocol"; start up of supplier reputational analysis procedures and supplier audits, with specific reference to human rights. Compliance with rules governing human rights by Group employees. Maintenance of high quality and ethical standards in the supply of products and services. Creation of a non-profit organisation aiming to fight poverty and social vulnerability, including through the payment |
10 Relational capital Independent Auditor's Report GRI Content Index |
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
Sustainability governance Corporate governance guidelines Analysis and
management of risks and opportunities 3
engagement and materiality analysis Financial capital Manufacturing capital Natural capital
↗ For more information about risks and how they are managed, please refer to the 2017 Report on Operations and the Investors section of the A2A website: www.a2a.eu/it/investitori/strategia/gestione-rischio
of urgent costs such as energy.
For more than twenty years now, matters relating to sustainability are a focus point in the political agendas of countries, also in view of the common and increasing awareness of the need to take concrete action to guarantee sustainable development.
In this sense, the definition of the 2030 Agenda by the UN, which includes the 17 Sustainable Development Goals (SDGs) for the period 2015-2030, has played a key role, determining a significant increase in the effort made by countries, businesses and civil society to pursue and achieve a more sustainable world.
In order to monitor the achievement of the Sustainable Development Goals for each individual country, the UN Statistics Commission has identified a set of 240 statistical indicators (IAEG-SDGs). The monitoring of the 2030 Agenda and the SDGs is envisaged as part of the High Level Political Forum (HLPF), which brings together all Ministers once a year and seeks to assess the progress made, results achieved and challenges recorded in all countries.
In line with the commitments being made by many countries, in this last year also Italy has put in place numerous initiatives, on different institutional levels, aiming to make an active contribution towards achieving the SDGs.
In addition to the initiatives taken by governments, the definition of the SDGs has also stimulated the development of multiple initiatives by companies and civil society, aimed at making a more concrete contribution towards achieving the sustainable development goals3 .
Sustainability is one of the key values on which A2A bases its mission; consequently, matters relating to sustainable development are very much integrated with the A2A strategy and its Business Plan. In 2016, A2A redesigned its sustainability strategy through the definition of a Sustainability Plan and Policy. As part of this integration project, sustainability is configured with a holistic, circular approach, with a view to creating shared sustainable value, as described in the chart below.
The A2A Group sustainability strategy also takes concrete form in the active participation in national and international associations and networks on matters of sustainable development, as well as in the voluntary submission to assessment of ESG parameters by ethical ratings agencies (see page 54).
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
Background
The Sustainability Policy The Sustainability Plan
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural
8 Human capital
capital
9 Intellectual capital
10 Relational
capital Independent
Auditor's Report
Since 2013, A2A has been a member of the United Nations Global Compact, subscribing to the 10 founding principles relating to human rights, working conditions, the environment and the fight against corruption. As part of the network, every year A2A publishes its own Communication on Progress (CoP), which coincides with this document. In 2017, A2A once again took part in the working parties launched by the Italian Global Compact network and the Italian Business & SDGs Annual Forum.
In 2017, A2A adhered to We Mean Business, a global non-profit association that fights climate change. As part of this association, A2A is committed on two fronts: responsible environmental policies and improved access to and quality of water.
In 2017, A2A subscribed to the Business Alliance for Water and Climate, undertaking to analyse, measure and report on the risks connected with the consumption of water as a resource, and changes to such as a result of climate change.
The Climate and Clean Air Coalition (CCAC) aims to construct, share and foster the implementation of policies and practices aimed at reducing climate-altering gases over the next ten years. More specifically, the Coalition supports action in the field through 11 initiatives. Since 2017, A2A has been one of the players involved in the initiatives aiming to mitigate climate-altering gases in the municipal solid waste sector.
A2A is an active member of the CSR and Sustainability Working Party of Utilitalia. In this group, A2A has taken part in consultations run by the Ministry for the Economy and Finance and Consob on Italian Legislative Decree no. 254/2016 and the Asvis working parties.
In 2016, the A2A Group AEM Foundation adhered to the Italian Alliance for Sustainable Development and has since played an active part in its activities and working parties.
Prize during the V edition of the 2017 Top Legal Corporate Counsel Awards. The prize, which was instituted in 2015, rewards businesses that effectively manage the social and ethical impact issues within them and in the territorial areas in which they operate. The prize has been assigned to the Group because "in 2015, A2A began, first in Italy, publishing sustainability reports with reference to the specific territories in which it operates, undertaking a path toward the community and extending its stakeholder engagement model".
Moreover, again in 2017, A2A took part, and was one of the finalists, in the ABIS Sustainability Award, an international prize rewarding initiatives and projects aiming to help achieve the SDGs. A2A put itself forward with the process finalised for the construction of its sustainability strategy, focussing on the definition of the Sustainability Plan and Policy, in line with the UN 2030 Agenda and their integration with the Business Plan and business objectives.
2 Governance
The A2A Group and its Business Model
Letter to stakeholders Methodological Note 1
3 Sustainability strategy Background
The Sustainability Policy The Sustainability
Plan 4 Stakeholder engagement and materiality analysis 5 Financial
capital
7
6 Manufacturing capital
Natural capital 8 Human
9 Intellectual capital
capital
10 Relational capital
Independent Auditor's Report
With the Sustainability Policy, A2A has set itself the aim of helping the communities in which it operates to be more sustainable, through the responsible management of its activities.
In actual fact, the Policy is based on 4 pillars that are crucial to A2A's business and consistent with the international approach given by the UN through the SDGs: Circular economy, Decarbonisation, Smartness in networks and services and People Innovation.
For each of these pillars, A2A has defined not only the approach but also the objectives through to 2030, with a view to making a concrete commitment towards achieving the SDGs.
Letter to stakeholders
1 The A2A Group
Methodological Note
and its Business Model
2 Governance
The Sustainability
25% reduction in the weighted accident rate with respect to the 2013-2015 average
The Sustainability Plan is a tool that allows for the continuous quantification and verification of the progress made on the identified sustainability goals, in line with the priorities and timing set out in the Business Plan.
The goals, divided up into the 4 Sustainability Policy pillars, contain timely actions and specific indicators, monitored once every six months or once a year.
protected species, monitoring and protecting biodiversity
in the territories of competence
| In 2017, the first monitoring took place of the |
|---|
| Sustainability Plan, revealing that the Group is working |
| in the right direction to achieve the challenging goals |
| set for both 2020 and 2030. |
In line with the definition of the new Business Plan, also for the Sustainability Plan has been launched a process, seeking to update the goals with the new time frame of 2018-2022. The review of the planning document had become necessary also following the change to the scope of consolidation, due to the acquisitions made by A2A in 2016/2017. In reviewing the planning document, the objectives that had been achieved were eliminated, those confirmed were updated to 2022 and some new targets were added.
The new Plan was approved together with this document during the A2A meeting of the Board of Directors held on March 20, 2018.
The table below shows the result of the update, comparing, where possible, the objective of the 2016-2020 Plan with the new 2018-2022 Plan.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
Background information The Sustainability
Policy
The Sustainability Plan
| ACTION | KPIs | 2015 | 2016 | 2017 | 2020 OBJECTIVE | NEW 2022 OBJECTIVE |
|---|---|---|---|---|---|---|
| Percentage of municipal waste collected sent for recovery of material or energy |
99% | 99% | 99% | 99% | 99% | |
| Percentage of separate waste collection in the municipalities served (apart from Milan) |
58% | 60% | 70% | 67% | 71% | |
| Percentage of separate waste collection in the city of Milan | 53% | 52% | 54% | 60% | ||
| RECOVERY AND TREATMENT To improve the recovery process of waste collected (including through their transformation into energy) and |
Material recovery capacity at the Group's plants out of total municipal waste subject to sorted collection |
31% | 84% | 82% | 80% | 100% |
| promote separate waste collection to help reduce the environmental impact of cities |
Waste treatment capacity (municipal + special waste) aimed at recovering material at the Group's plants (kt) |
354 | 658 | 888 | 888 | 1,239 |
| Δ compared to 2015 | - | 86% | 151% | 151% | 250% | |
| Waste treatment capacity aimed at energy recovery at the Group's plants (kt) |
1,385 | 1,405 | 1,676 | 1,565 | 1,939 | |
| Δ compared to 2015 | - | 1% | 21% | 13% | 40% | |
| REDUCTION POLICIES | Percentage of territories reached with waste recovery, reduction and reuse activated projects |
- | 90% | 98% | 100% | 100% |
| To reduce the production of waste through a prevention, reduction and reuse policy |
Investments allocated to the development of technologies and services linked to the circular economy (M€) - cumulative figures 2018-2022 |
- | - | 49 | NEW | 450 |
| RISK MANAGEMENT To verify that the system used to identify, manage and prevent business risks adequately covers sustainability risks (and, in particular, social-environmental risks), also in organisational terms |
Specific risk intelligence system for sustainability risks | - | - | launched | start-up | finalise integration |
| Linear water losses (m3 /km/days) - Group average |
- | - | 24.75 | NEW | 20.52 | |
| WATER | Δ compared to 2017 | - | - | - | - | -17% |
| To implement actions aimed at reducing water consumption in the collection and distribution processes, so as to improve water quality and reduce water dispersion |
Percentage of equivalent inhabitants served by the purification service with respect to total equivalent inhabitants not served in 2016 (142,904 E.I.) |
- | - | 1% | 60% (with respect to those not served in 2015) |
65% |
| Reduction in the rate of exceeding of limits in the samples of waste water discharged with respect to 2017 (%) |
- | - | - | NEW | -15%/year | |
| BIODIVERSITY To adhere to projects aiming to protect the soil and |
Plants monitored with respect to the protection of biodiversity | - | - | 0% | 100% | 100% |
34 35
DECARBONISATION
| ACTION | KPIs | 2015 | 2016 | 2017 | 2020 OBJECTIVE | NEW 2022 OBJECTIVE |
|---|---|---|---|---|---|---|
| Volumes served by district heating and district cooling (Mm3 ) |
96 | 98 | 111 | 109 | 118 | |
| ∆ compared to 2015 | - | 3% | 16% | 14% | 23% | |
| DISTRICT HEATING To help reduce the environmental impact of the cities, |
NOx avoided thanks to the extension of district heating (t/year) | - 103 | - 125 | - 138 | - 194 | - 180 |
| paying close attention to air quality, implementing district heating and district cooling |
CO2 avoided thanks to the extension of district heating (t/year) |
- 164,022 | - 161,498 | - 181,136 | - 234,000 | - 220,000 |
| Development of a new district heating system structure in Brescia, which eliminates carbon (CO2 reduction from 110 g/kWh to 80 g/ kWh) |
- | - | - | NEW | fulfilment | |
| Number of new heaters installed to end customers with VAS commercial offers - cumulative value |
0 | 69 | 220 | 500 | 1,500 | |
| EFFICIENCY IN END USE To develop energy efficiency interventions on the public and private real estate assets |
CO2 avoided thanks to interventions to promote energy efficiency in end uses: LED activities (SME+Industrial revamping+Domestic uses+LED bulb kit) - installation of high-efficiency heaters - industrial ESCO |
- | - 28,000 | - 702,000 | - 36,200 | - 750,000 |
| SUSTAINABLE MOBILITY To develop sustainable mobility solutions (low-emission |
Number of new low environmental impact waste collection vehicles (Euro 6 vehicles, methane gas, electric) - cumulative value |
- | 417 | 996 | NEW | 1,800 |
| waste collection vehicles and vehicle fleet, replacement of obsolete vehicles with new ones) |
Percentage of Unareti vehicles with low environmental impact (methane gas and electric powered) - (% of total) |
- | - | 36% | NEW | 60% |
| CO2 emissions of electric power generation plants (kt CO2 ) |
5,603 | 5,047 | 6,299 | 6,270 | 6,270 | |
| Δ on average levels for 2008-2012 (9,500 kt CO2 ) |
-41% | -47% | -33% | -34% | -34% | |
| EMISSIONS To develop actions aiming to reduce the environmental |
Emissions factor for power production plants (gCO2 /kWh) |
445 | 420 | 419 | 394 | 394 |
| footprint, like direct and indirect emissions of greenhouse gases |
Δ on average levels for 2008-2012 (438 gCO2 /kWh) |
2% | -4% | -4% | -10% | -10% |
| Total emissions avoided due to methane leaks from distribution networks - cumulative values with respect to 2015 (tCO2eq) |
- | -6,216 | -17,145 | NEW | -112,000 | |
| RENEWABLES To increase (keep high) the proportion of energy |
Percentage of thermal energy produced from renewable sources and process recovery with respect to total thermal energy collected into the district heating network (Networks and Heat BU) |
48% | 50% | 50% | 49% | 49% |
| produced from renewable sources | Thermal energy recovered from third party production processes (GWh) |
- | - | 45 | NEW | 60 |
| GREEN MARKETING | Green energy sold to the mass market segment (GWh) | 404 | 545 | 909 | 808 | 1,818 |
| To raise customer awareness and to implement communication campaign |
Δ compared to 2017 | - | - | - | 100% (Δ compared to 2015) |
100% |
Letter to stakeholders
Sustainability
The Sustainability
The Sustainability
capital 10
Relational capital
Independent Auditor's Report
GRI Content
Index
AND SERVICES
| ACTION | KPIs | 2015 | 2016 | 2017 | 2020 OBJECTIVE | NEW 2022 OBJECTIVE |
|---|---|---|---|---|---|---|
| QUALITY To maintain high quality standards of the services supplied by keeping high customer satisfaction levels |
Total CSI of "Reference multi-client customer satisfaction" of CERVED - Databank for customers of A2A Energia |
- | 92.4 (national average 90.3) |
Domestic gas 90.1 (national average 89.4) Domestic electricity 91.2 (national average 89.7) |
> 2% vs national average and never < 90% |
> national average and never < 90% |
| CSI for call centres of A2A Energia | 96.5 (national average 92.5) |
97.1 (national average 91.0) |
95.7 (national average 93.2) |
> sector national average |
> sector national average |
|
| Number of energy customers registered with the on-line service | 227,028 | 268,818 | 356,155 | 400,000 | 550,000 | |
| DIGITAL To develop innovative channels and services (web, mobile, gamification) to increase customer loyalty |
Number of energy customers registered with the bollet@mail service |
248,638 | 289,613 | 350,580 | 400,000 | 600,000 |
| Number of interventions on Group sites for evolved interactivity | - | - | - | NEW | 10 | |
| Users with smart gas meters (G4-G6) - Unareti perimeter | 10% | 28% | 46% | 100% | 98% | |
| SMART NETWORKS | Annual average number of outages per LV user in high concentration environment due to long outages without notice |
1.31 | 1.54 | 1.36 | NEW | 0.78 |
| To develop solutions to offer a better information access infrastructure (Smart Grid) and improve the network |
Δ compared to 2017 | - | - | - | - | -43% |
| resilience | Number of new generation water meters installed | - | - | - | NEW | 46,000 (to 2020) |
| Investments in Smart Grids (M€) - cumulative value 2018-2022 | - | 3 | 13 | 62 (cumulative 2016-2020) |
45 | |
| Smart City services activated | - | - | - | 5 | 30 | |
| Municipalities with Smart City services activated | - | - | - | 3 | 10 | |
| Number of parking places managed as smart parking | - | - | - | NEW | 500 | |
| SMART CITIES To support the development of the smart city in the |
Number of businesses served with new smart land services | - | - | 1 | NEW | 2 |
| territory in which the Group operates, including through new business models that exploit the technological |
Number of smart environmental bins | - | 0 | 300 | 2,000 | 20,000 |
| component (Smart Grids and big data) | Number of new LED light points installed on PL - cumulative value | 150,035 | 196,431 | 213,817 | 250,000 | 350,000 |
| Number of electric vehicle charging stations installed | - | - | - | NEW | 500 | |
| LED traffic lights installed - cumulative value | - | 12,069 | 12,069 | 11,000 (to 2018) | 22,000 (to 2018) | |
| DISADVANTAGED GROUPS To promote beneficial tariffs or other solutions for users in difficulty (e.g. "Banco dell'Energia") |
Funds collected by means of the Banco dell'Energia - 2nd phase (M€) |
- | - | - | NEW | 1 (to 2019) |
Letter to stakeholders
information The Sustainability
The Sustainability
10 Relational
capital
Independent Auditor's Report
PEOPLE INNOVATION
| ACTION | KPIs | 2015 | 2016 | 2017 | 2020 OBJECTIVE | NEW 2022 OBJECTIVE |
|---|---|---|---|---|---|---|
| RESPONSIBLE PROCUREMENT | Value of orders assigned to certified suppliers (% of the total) | 76% | 77% | 80% | 75% | 75% |
| To develop initiatives aiming to spread the culture of health and safety at work amongst contractors and other |
Activated suppliers with sustainability requirements (% of the total) | - | 23% | 42% | 50% (qualified) | 50% (activated) |
| suppliers; to develop green procurement policies | Number of inspections carried out on road worksites | - | 1,406/year | 727/year | 4,000 (cumulative) | 1,000/year |
| HEALTH AND SAFETY To consolidate the training and prevention plan to reduce injuries and develop new initiatives for workers health and safety |
Weighted accident index (frequency index*severity index) | 23.2 | 30.7 | 26.1 | 19.27 | 18.20 |
| MbO | Executives with Sustainability MbO (% of the total) | 0% | 33% | 85% | 100% | 100% |
| To add sustainability objectives to the MbO sheets (correlation between Management remuneration and |
Percentage weight of sustainability MbO of total variable | - | - | 5% | NEW | 10% |
| Sustainability KPIs) | Employees assessed according to CSR parameters (% of the total) | 0% | 0% | 0% | 100% | 100% |
| TRAINING To implement training routes aimed at optimising and |
Employees involved in sustainability awareness/training (% of the total) |
0% | 0% | 100% | 100% | 100% |
| requalifying competences and professional development (including on matters such as sustainability, anti |
Employees involved in training on the Code of Ethics (% of the total) | - | - | 61% | 100% | 100% |
| corruption and human rights) | Average level of approval of training (scale 1-7) | - | 6 | 6 | > 5 | > 5 |
| CHANGE MANAGEMENT | Employees involved in at least one change management project per year (% of total office employees) |
- | - | 100% | NEW | 100% |
| To develop change management projects to improve the organisational culture |
Employees subjected to induction (% of total graduates aged under 35) |
- | - | 32% | NEW | 100% |
| INTERNAL ENGAGEMENT To develop a systematic listening system to employees, promoting dialogue and collaboration |
Employees involved in feedback surveys (% of the total) | 0% | 100% | 100% | 100% | 100% |
| WELFARE To develop innovative welfare policies, also in connection |
Employees involved in the smart working project (% of total office employees) |
- | 5% | 5% | 20% | 20% |
| with the promotion of gender equality, and optimise competences through a generational bridge that allows |
Employees involved in welfare and diversity initiatives (% of total) | - | 21% | 38% | 100% | 100% |
| for the transfer of knowledge and experience between the junior and senior populations |
Number of projects activated on the Skills Laboratory | - | - | 1 | NEW | 2/year |
| INNOVATION AND R&D To develop investments in research and development, increasing the number of partnerships with international research centres and universities, to develop new technologies and technological innovation patents |
Number of research projects activated and partnerships with primary research institutes and universities |
- | 9 | 10 | 5/year | 5/year |
| BRAND PERCEPTION To implement a system for measuring and monitoring the Group's notoriety and perception, also on a territorial level |
Multistakeholder measurement model of the perception of the Group |
- | - | activated | to activate a tool to assess the Group sentiment in the media |
to activate |
| TRANSPARENCY To develop integrated reporting and a suitable information system for planning and control |
Territories with territorial sustainability reports prepared (number) | 1 | 3 | 6 | 8 | 8 |
| STAKEHOLDER ENGAGEMENT To develop external stakeholder engagement activities, |
Number of structured engagement workshops held | 1 | 2 | 2 | 15 (cumulative 2015-2020) |
10 (cumulative 2018-2022) |
| to strengthen the relationship with the territory and to construct permanent methods for multistakeholder involvement |
Number of actions ensuing from structured engagement workshops |
5 | 6 | 5 | 30 (cumulative 2015-2020) |
20 (cumulative 2018-2022) |
| Number of visitors to plants | 17,690 | 21,000 | 31,300 | 21,200 | 37,560 | |
| EDUCATION To consolidate and, where possible, improve the |
Δ compared to 2017 | - | - | - | - | 20% |
| environmental education and promote the awareness of risks associated with climate change in the public opinion |
Participants involved in the A2A school project | na | 29,000 | 34,600 | NEW | 41,500 |
| Δ compared to 2017 | - | - | - | - | 20% |
Letter to stakeholders
4 Stakeholder engagement and materiality analysis
The A2A Group hinges its strategy on understanding the needs of its stakeholders, through continuous dialogue and the implementation of focussed listening initiatives. The stakeholder listening process stems from the need to generate value in a harmonic, long-term manner and results in a conciliation of the Group's interests with those of its interlocutors.
In 2013, A2A introduced a stakeholder engagement reporting system based on the input of data, by the main corporate functions, into a database that maps significant stakeholders once every six months, as well as involvement activities implemented and matters broached.
In 2017, more than 270 engagement initiatives were developed. The groups of stakeholders most involved were national and local institutions, investors, the local community, schools and consumer and environmentalist associations.
All the matters arising from the listening activities were grouped into macro categories of themes that thereafter enter the process of defining the A2A materiality matrix. More details on the initiatives developed are given in the Supplement to this document.
associations Customers
Employees
2017 saw the continuation of the forumAscolto programme launched in 2015, in a bid to strengthen the Group's connection with the communities in which it operates. The forumAscolto are opportunities for stakeholder sharing in the generation of ideas to be developed in the territory. After each forum, the proposals are assessed by the Territory and Sustainability Committee and by the Group's Business Units, according to defined criteria. Thanks to the forumAscolto held in 2016 in Valtellina-Valchiavenna and Bergamo, 6 projects were developed.
| AREA OF REFERENCE | PROJECTS CREATED |
|---|---|
| • "Energy" school > the school designated as having the best energy efficiency promotion project in schools was rewarded in May; |
|
| Valtellina and Valchiavenna |
• Energy cycle path > opened in May at the Grosio plant, a panoramic cycle path that runs through the A2A hydroelectric plants; |
| • Alternation of school-work > the three-year pilot project has been launched for the Sondrio ITIS Mattei, which involves 25 students in 22 hours of lessons on matters relating to hydroelectric production. |
|
| • Transparent communication > a totem was opened in October to supply information on the operation of the Via Goltara waste-to-energy plant (heat, energy produced and atmospheric emissions); |
|
| Bergamo | • Action 2 Art > the school teaching path was launched in September, aimed at developing seating for public areas, inspired by concepts of ecodesign with recycling materials; |
| • Reuse centre > opened in November in the ecological platform in Goltara street, it is a dedicated, equipped covered structure, where citizens can freely confer objects they no longer want, to prolong their life cycle. |
After the positive experience of Brescia, Valtellina-Valchiavenna and Bergamo, in 2017, the Group gave the cities of Milan and Varese the chance to speak out, along with the communities of the provinces of Udine and Gorizia.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis The forumAscolto
programme Materiality matrix and analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
8 Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
| AREA OF REFERENCE |
WHEN | NUMBER OF STAKEHOLDERS INVOLVED |
ISSUES DISCUSSED | IDEAS CHOSEN |
|---|---|---|---|---|
| 4 ideas chosen: Smart Mobility > action plan to contribute towards a smart, sustainable mobility system, including an app to monitor the progress made on the Group's road sites, the development of a company fleet of 100 electric cars and an innovative charging infrastructure; |
||||
| 50 + on-line communities through the |
4 work groups on: • Smart city and energy efficiency |
Public lighting > artistic LED lighting project on buildings chosen by citizens; |
||
| Milan | January 30, 2017 | forumAscolto Facebook page and the platform www.forumascoltoa2a.eu |
• Circular economy • Environmental culture • Urban regeneration |
Urban decoration > programme of communication actions to sensitise dog owners to the issue of dog excrements; |
| Reduction in food waste > actions to foster the dissemination of good practices for the fight against food waste - recovery of food not sold at open air markets, in large-scale retail and collective catering establishments, sharing the initiatives with the territory's most important players. |
||||
| Stipulation of a "Letter of commitments" for the development of: |
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| - vademecum specific to the user target on separate waste collection; |
||||
| October 2016 - | 4 sessions with: - condominium administrators; - residents and |
Separate waste collection - under the scope of the "Varese manca poco" |
- update of the app "PULIamo" to include information on the collection days and information on how to correctly handle waste; |
|
| Varese | March 2017 | commercial activities of the city centre; - associations of foreigners; |
communication campaign aiming to achieve 65% separate waste collection. |
- ad hoc information and training about separate waste collection for foreign citizens; |
| - schools. | - supply, on free loan for use, of additional containers for separate waste collection in commercial businesses and schools; |
|||
| - information campaign in schools (meetings and distribution of dedicated informative materials). |
||||
| Udine and Gorizia |
December 18, 2017 |
31 | 3 macro-themes: • Environment and energy • Culture and tourism • Economic development |
March 2018 launch of the call CreiAMO FVG to choose two entrepreneurial ideas intended to foster sustainable tourism in Friuli Venezia Giulia, through an economic contribution and a light incubation process. |
The ideas chosen are communicated to stakeholders and the community in dedicated press conferences, in which the Territorial Sustainability Reports are also presented. To date, the Territorial Sustainability Reports prepared are those of Brescia (third edition), Valtellina-Valchiavenna (second edition), Bergamo (second edition), Milan (first edition), Varese (first edition),
Friuli Venezia Giulia, with a special focus on the provinces of Udine and Gorizia (first edition).
Both the reports and the information on the progress made on projects stemming from the forums are available on-line at the dedicated website www.forumascoltoa2a.eu.
Note 1
Letter to stakeholders Methodological
The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis The forumAscolto
programme Materiality matrix and analysis
5 Financial capital
6
Manufacturing capital
7 Natural capital
8 Human capital 9 Intellectual
capital 10
Relational capital
Independent Auditor's Report
In 2017, the A2A Group materiality matrix was updated. The themes were assessed on a scale of 1 to 5 (where 1 identifies a theme as irrelevant and 5 as strategic), aligning the assessment scale with that adopted to measure the level of risk or opportunities of these same aspects, in a logic of close correlation between the two analyses.
To measure the importance for stakeholders, the assessments were considered as emerging from: - an investigation promoted in January 2018 by means of an on-line questionnaire administered to the main Group stakeholders (approximately 450 people); - a survey carried out during the annual kick-off meeting for the 2017 Report that involved around a hundred
people from the different Group companies/departments; - the evidence that emerged from the forums of the various territories; - the analysis of the database of the engagement
initiatives carried out during the year.
In order to measure the relevance to A2A, the various matters have been assessed by the company's front lines, with one-to-one interviews and consideration was given to whether or not the theme was included in the Group Sustainability or Business Plan.
The themes were therefore presented in the Sustainability Committee and Territory and are shown in the following materiality matrix.
| CAPITAL | NO. THEME | ||
|---|---|---|---|
| Governance | 1 | Ethical pursuit of business | Letter to stakeholders |
| Governance | 2 | ESG (Environmental, Social, Governance) elements in governance | Methodological Note |
| Governance | 3 | Risk management and sustainability opportunities | 1 |
| Governance | 4 | Respect for human rights in the Group value chain | The A2A Group and its Business |
| Financial capital | 5 | Creation of sustainable economic value | Model 2 |
| Manufacturing capital | 6 | Efficient management of Group infrastructures | Governance |
| Natural capital | 7 | Circular economy | 3 Sustainability |
| Natural capital | 8 | Efficient water use | strategy |
| Natural capital | 9 | Fight against climate change and atmospheric emissions | 4 Stakeholder engagement |
| Natural capital | 10 | Protection of biodiversity | and materiality analysis |
| Natural capital | 11 | Quality of distributed water | The forumAscolto programme |
| Natural capital | 12 | Sustainable mobility | Materiality matrix and analysis |
| Human capital | 13 | Protection of health and safety at work | 5 |
| Human capital | 14 | Development of human capital | Financial capital |
| Human capital | 15 | Diversity and company welfare | 6 Manufacturing |
| Intellectual capital | 16 | Technological innovation and smart cities | capital |
| Relational capital | 17 | Responsibility, safety, quality and innovation in the provision of services | 7 Natural capital |
| Relational capital | 18 | Active local and environmental education | 8 |
| Relational capital | 19 | Relationship with Group stakeholders | Human capital |
| Relational capital | 20 | Responsible management of the supply chain | 9 Intellectual |
Compared to previous years, the list of issues to be assessed was updated to keep pace with changes in general trends in the industry described on page 28.
The theme "Relationship with Group stakeholders" also includes the themes that last year were divided up into "Lobbying and public policy" and "Relationship with the local community".
The final analysis identified 20 issues that embrace the six types of capital and the Group's governance system. A materiality threshold has been defined, for which 4 aspects assessed are considered as relevant, but not material, i.e. the protection of biodiversity, sustainable mobility, integration of ESG elements in corporate governance and risk management and sustainability opportunities.
Stakeholder engagement and materiality The forumAscolto
Materiality matrix and analysis
Intellectual capital
Independent Auditor's Report
| MATERIAL ASPECTS |
DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| CREATION OF SUSTAINABLE ECONOMIC VALUE |
Promotion of sustainable economic performance that helps to assure the redistribution of the economic value generated to the Group stakeholders; optimisation of the social and environmental aspects, so as to develop solid relations with the financial community and stimulate the appeal of new investors sensitive to sustainability matters. |
Reduction of the economic value produced and distributed to stakeholders. Negative assessments of ESG (Environmental, Social and Governance) components by ratings agencies. Ineffective communication of the Group's social and environmental performance. Change in market conditions and failure to identify potential business opportunities deriving from sustainability. |
Implementation of structured financial management programmes and processes to guarantee suitable levels of profitability to the invested capital. Monitoring and mapping of ESG themes aimed at limiting/ managing impacts on economic performance generated by the performance of market prices of the main commodities. Integration of ESG aspects in investment decisions and company conduct. Involvement of ESG investors and transparent, effective communication of sustainability performance. Integration of the identification and management of opportunities within the ERM (Enterprise Risk Management) process. |
Presence of ethical investors amongst the shareholders, such as Norges Bank and Etica Sgr. Inclusion in 6 ethical indices. Multiple communication tools with financial stakeholders. Developed and structured engagement with the main Proxy Agencies. 17% of investments were for environmental aspects. |
CIRCULAR ECONOMY - Reduction policies - Risk management SMARTNESS - Smart grid |
Please note that the Group has restated the data as at December 31, 2016, following completion of the purchase price allocation ("PPA") consequent to the acquisition of 51% of the LGH Group and reclassification for IFRS 5 of the economic items of the EPCG Group following the exercise of the put option over the entire share package held by A2A S.p.A., the effectiveness of which was completed on July 3, 2017.
It is specified that the economic data as at December 31, 2017 includes the full consolidation of the entire year of the LGH Group, the RI.ECO-RESMAL Group and the company Consul System S.p.A. that in fiscal year 2016 were consolidated in the second half of the year. The scope of consolidation as at December 31, 2017 has also changed from the previous year, mainly following the establishment in July 2017 of the company A2A Rinnovabili S.p.A., which has progressively acquired a portfolio of 13 SPVs (special purpose vehicles) owning photovoltaic plants, as well as following the change in the consolidation method, from equity to line-by-line, of the companies Azienda Servizi Valtrompia S.p.A and LumEnergia S.p.A., as a result of the acquisitions of additional investment shares.
For more details, please refer to the Consolidated Financial Statements as at December 31, 2017.
Value added is the wealth that the Group generates in the year. It is the difference between revenues on the one hand and the intermediate costs and accessory and extraordinary items on the other. This parameter measures the financial effect of the business of the A2A Group on its main stakeholders and therefore the Group's capacity to create value for its stakeholders. To determine the formation of value added, A2A uses the methodology defined Social Accounts Group (Gruppo per il Bilancio Sociale - GBS).
In 2017, the gross global value added distributed by the Group was 1,655 million euros (+4% on 2016). Most of this was allocated to company remuneration (550 million euros, +8% on 2016), staff compensation (475 million euros) and transfers to the Public Administration (268 million euros). Transfers to the local community have increased (+3% on 2016). Remuneration of the risk based capital has also increased (+27% on 2016).
The parent company, A2A S.p.A., is listed on the Milan Stock Exchange. The A2A share is traded on the electronic stock market and belongs to the FTSE-MIB segment and falls within the "Public Utilities - Electricity" sector. Under article 9 of the company's By-laws, no single shareholder other than the Municipalities of Brescia and Milan may hold more than 5% of share capital. Shares held in excess of the 5% limit have no voting rights.
Figure 13_Share indicators
divided between institutional investors and retail investors.
Institutional investors hold approximately 36.2% of the share capital (33.8% in 2016). 25.5% of the free float in the hands of institutional investors is held by US investors, 20.9% by British investors, 14% by investors based in Luxembourg and 12.1% by Italian investors. There are also French (7.2%) and German (4.1%) institutional investors. Please note that there are also ethical investors amongst the shareholders, such as Norges Bank and Etica Sgr.
Treasury shares Market Municipality of Brescia Municipality of Milan
Retail investors total approximately 75 thousand and together hold 11.1% of share capital (12.9% of 2016). 99.6% of the retail shareholding is resident in Italy and in particular, 58.5% in Lombardy. Investors residing in the provinces of Milan and Brescia hold 26.8% and 13.3%, respectively, of the total retail4 .
* Dividend proposed by the Board of Directors.
capital 7 Natural capital
Manufacturing
6
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
3
4 Stakeholder engagement and materiality analysis
5 Financial capital Value added produced and distributed Relations with shareholders Relaunch of investments
8 Human capital
10 Relational capital
Independent Auditor's Report
GRI Content Index
In 2017, the average share price was 1.422 euros, an increase of 21% compared to 2016. Among the factors affecting share performance in 2017 were those arising from macro-economic and government policy trends, as well as capital flows on the international financial markets.
On the other hand, the company-specific factors include:
the progressive improvement of indications of senior management on the 2017 results;
The figures relating to institutional and retail investors have been prepared on the basis of the shareholders' register updated as of the distribution of the dividend on May 24, 2017.
• the exercise of the put option over the equity
• the completion of various acquisitions in the
A2A forms part of the following indices: FTSE MIB, STOXX Europe, EURO STOXX, WisdomTree International, MSCI Europe Small Cap and S&P
• developments in terms of sector consolidation of
investment held in EPCG;
local utilities;
photovoltaic sector.
Global Mid Small Cap.
One of the ways in which sustainability applies to finance is the practice of socially responsible investing (SRI), according to environmental, social and/or governance considerations integrate the financial assessments carried out at the time the choice is made to buy or sell a security. SRI is implemented with the inclusion of listed companies on ethical indices.
In recent years, the number of initiatives promoting the upholding of ESG (Environmental, Social and Governance) criteria in different ways, in the assessment of financial investments, has increased exponentially. Sustainable finance should therefore be implemented with the inclusion on the ethical indexes of listed companies meeting the main criteria of environmental, social and economic responsibility.
The Group is currently listed in the following ethical indices:
Since May 2013, A2A has also been included in the ETHIBEL EXCELLENCE Investments Register and in the Ethibel Pioneer Investment Register.
A2A also takes part in the annual assessments of the CDP (Carbon Disclosure Project) Climate change and Water questionnaire, of Vigeo-Eiris, RobecoSAM, ETICA SGR and the "Top 100 Green Utilities" (of the Energy Intelligence Group).
In 2017, at its first year of participation, A2A was included in the LEADERSHIP section of the CDP Water questionnaire assessment relative to the matter of water as a resource, whilst it obtained a B rating on the climate change questionnaire.
A2A is constantly committed to providing answers as precise and exhaustive as possible to the needs and specific requests of financial stakeholders. To this end, various communication tools and channels are used: • company documents (Financial Statements, interim Reports, corporate Presentations);
• documentation ad hoc (Investor Guidebook, Investor Databook, documents of the Library for the investor); • press releases;
As for the coverage of the analysts, at the end of 2017, A2A was followed by 11 different brokers.
Internet communication is particularly important (website and mailing). In 2017, the Investors section of the website has been expanded:
• the subsection "Library for the investor" was enriched with further contents, with the publication of specific studies regarding the markets, the businesses in which the Group operates and the regulatory context; • new information was added to the Investor Guidebook, a document that provides a comprehensive overview of A2A through the use of the
main public information available;
• the set of economic/financial data of the Investor Databook has been expanded upon and now includes both the historic data since 2008 (with quarterly details for the last 4 years) and a series of prospective data useful to analyst model-making.
The web also provides an effective communication channel with retail investors: the A2A website publishes the answers to the most frequently asked questions (FAQs). The Investor Relations unit also provides timely responses to specific questions raised by small investors and savers (especially by e-mail). Finally, the engagement with the main proxy agencies has been extended and structured, which supply the institutional investors with voting recommendations on the items of the agenda of the Shareholders' Meeting.
Figure 14_Investments by business unit (percentage)
Figure 15_Environmental investments (millions of euro)
and Trading Business Unit
Investment classification Generation
the main Group waste-to-energy plants.
install catalysts in the Gissi Plant.
17% of investments related to environmental aspects, such as: actions to reduce emissions, increase
Networks and Heat Business Unit
Emissions reduction 2.1 4.6 6.4 - 13.1 Energy efficiency 0.4 4.1 25.8 - 30.3 Renewable sources 13.2 5.3 7.6 - 26.1 Innovation 0.5 - 7.7 0.4 8.6 Total 16.2 14.0 47.5 0.4 78.1
Environment Business Unit
Investments mainly regarded energy efficiency interventions connected with plant improvements on
For the development of renewable sources, in 2017 investments were made in hydroelectric plants and
Innovation at the plants mainly regarded investments for the start-up of the plastic treatment plant in
To reduce emissions, 2017 saw investments made to purchase new low-emission AMSA vehicles and
a woody biomass cogeneration plant was purchased from and strengthened by LGH.
Cavaglià and maintenance work on the glass section plant of Asti.
Letter to stakeholders Methodological
Note 1
The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
energy efficiency, development of renewable sources and innovation. 5 Financial
Corporate
Business Unit TOTAL
capital Value added produced and distributed
Relations with shareholders Relaunch of
6 Manufacturing capital
7 Natural capital 8
Human capital
9
Intellectual capital
10 Relational capital
Independent Auditor's Report
| MATERIAL ASPECTS | DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| EFFICIENT MANAGEMENT OF GROUP INFRASTRUCTURES |
Efficient management of Group infrastructures, promoting technological innovation, improved performance, continuity and reliability of service; development of waste processing plant capacity, investments in renewable energy and renewable technology, including through the acquisition of new companies strategic to the Group; guarantee of high safety standards in infrastructure management. |
Failure to achieve objectives relating to energy efficiency, waste recovery and processing and generation of energy from renewable sources. Malfunctions and interruptions in plant activities and network infrastructures. Possible vulnerabilities of ICT infrastructures and applications for IT, logical and viral attacks and/ or system failures. |
Preparation of organisational devices structured into corporate functions focussed on the development of energy efficiency initiatives; construction and commissioning of plants for waste recovery and processing and the acquisition of energy generation assets from renewable sources. Efficient management of plants and networks so as to prevent any disservices or failures and guarantee the reliability and performance in operation, also thanks to preventive maintenance and a careful management of emergency intervention teams to cope with emergency situations. Adoption of mechanisms to defend and protect against logical and viral attacks and/ or possible system failures; projects to improve the infrastructures of the DPCs (Data Processing Centres) and segregation of accesses to information, thanks to the definition of a multi-year master plan of initiatives linked to cybersecurity in Group infrastructures. |
Launched the construction of 2 plastic selection plants. Designed 2 plants to recover organic fraction (FORSU). Optimisation of biomass plant of Cremona. Established A2A Rinnovabili and acquired 34 photovoltaic plants. Continued improvements to the CCGT. Expanded upon the joint replacement plan to improve the resilience of the city of Milan. Implementation of a network of sensors and control units that generates synergy between the supplies of the Networks and Heat BU. Renewed the networks remote control rooms of the two district heating sites of Brescia and Milan. |
CIRCULAR ECONOMY - Recovery and treatment - Water DECARBONISATION - District heating - Renewable SMARTNESS - Smart grid - Smart city |
The plants managed by the Environment Business Unit cover all phases of the integrated waste cycle: from recycling management, ecological platforms and landfills through to energy and material recovery and processing plants.
| TYPE OF PLANTS | NUMBER OF PLANTS | CAPACITY |
|---|---|---|
| Material treatment and recovery | 20 | 1,519,000 t/y |
| ITS | 6 | 570,000 t/y |
| Waste-to-energy plants | 7 | 255 MWe 622 MWt |
| Landfills | 9 | 7,326,000 m3 |
| Biogas production | 16 | 25 MWe |
Waste-to-energy plant
Waste collection area Under management
Material recovery plants
6 Manufacturing capital
The manufacturing Business Unit
The manufacturing capital in the Generation and Trading Business Unit
The manufacturing capital in the Networks and Heat Business Unit
7 Natural capital
8 Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
GRI Content Index
Already starting 2016, the Group has consolidated its presence throughout the integrated waste cycle, with acquisitions of businesses already operating in waste processing and recovery (the Rieco-Resmal Group and the LGH Group).
The Rieco-Resmal Group manages 5 waste recovery plants in Cernusco, Buccinasco, Liscate and Novate Milanese (Mi).
Letter to stakeholders
Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
3
4 Stakeholder engagement and materiality analysis
5 Financial capital
Optimisation of biomass
Following an analysis of the performance of the Cremona biomass plant, various aspects have been identified that, thanks to a redesigning of the heater section, have successfully increased
has enabled a reduction in the blockages caused by ash, which resulted in a reduction in load (to reduce the temperature of the fumes entering the convection section) and an increase in the tail ventilator operating regime to overcome these obstructions, as well as frequent down time to quickly clean the plant. Moreover, the inclusion of new refractory sections will entail a reduction in corrosion of the stainless steel hopper walls and casing of the convection section, with consequent
plant of Cremona
lesser undue air intake.
With a view to increasing the Group's material recovery capacity, two new plastic selection plants are currently under construction in Cavaglià (Bi) and Muggiano (Mi), sites for which started in May and December 2017.
As compared with 2016, the Group has strengthened its monitoring along the chain, increasing the material recovery and treatment capacity of the BU (+80% on 2016). In all, waste treated in Group plants totalled 3.6 million tonnes (+41% on 2016). BU production of thermal energy remained constant, coming in at 1,362 GWht .
The Group has envisaged the construction of 4 FORSU recovery treatment plants, the process of which can yield two products:
One plant will be in Bedizzole (Bs) and will have a treatment capacity of 75 thousand t/year, able to produce approximately 5 million m3 /year of biomethane and approximately 14 thousand t/year compost. A request was submitted to the Province of Brescia in June 2017; following obtaining of the authorisation, the site will be started and will run in about two years.
Another plant is designed within the existing Integrated Centre of Cascina Maggiore, between the municipalities of Giussago (Pv) and Lacchiarella (Mi); this will have a capacity
of 100 thousand tonnes of waste per year, with a potential biomethane production expected of around 7 million m³/year and compost of approximately 20 thousand t/year. The request to obtain authorisation was submitted to the Province of Pavia in October 2017. In this case too, site duration is estimated as approximately two years.
The Plan also includes the development of two more plants, with a capacity of 55 thousand t/year each, which use the same technology.
Letter to stakeholders
the plant's operative efficiency. This intervention Methodological Note 1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
The manufacturing Business Unit
The manufacturing capital in the Generation and Trading Business Unit
The manufacturing capital in the Networks and Heat Business Unit
Natural capital
7
8 Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
The Generation and Trading Business Unit manages the Group's electricity and heat production, through:
which one was decommissioned in 2012) and one that uses heavy fuel oil;
The LGH Group manages hydroelectric plants in the province of Brescia, for a total power installed of 74.6 MWe .
| TYPE OF PLANTS | NUMBER OF PLANTS | CAPACITY |
|---|---|---|
| Hydroelectric plants | 5 | 2,086 MWe |
| Thermoelectric plants* | 9 | 6,895 MWe |
| Photovoltaic plants | 40 | 39 MWe |
* Does not include Scandale Plant (participated at 50% by Ergosud S.p.A.)
At the start of 2017, the Generation Business Unit restructuring project was completed, which envisaged the corporate unification of the homogeneous generation assets, by means of infra-group operations. More specifically, as from January 1, 2017, the hydroelectric plants of Edipower (Mese Plants and Friuli Plants) have been flowed, by means of merger by acquisition, into A2A S.p.A.
Moreover, in line with the A2A Group strategic plan and the sustainability goals, in 2017, A2A decided to invest in renewable sources, both through the implementation of innovative tests and by seizing the most of market opportunities for focussed investments and the development of new plants.
In July 2017, A2A Rinnovabili was established, and in the last four months of the year acquired 34 photovoltaic plants organised into 13 different corporate vehicles, for a total installed capacity of 34.8 MW and with an estimated annual production of approximately 46 GWh/ year. 80% of these are ground-based plants; the remaining 20% are plants installed on the roofs of industrial clients in Apulia, Tuscany, Emilia Romagna, Piedmont and Trentino Alto Adige.
Letter to stakeholders
Methodological Note 1
The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital The manufacturing
capital in the Environment Business Unit The manufacturing
Trading Business
The manufacturing capital in the Networks and Heat Business Unit
Natural capital
7
Moreover, the development programme for the photovoltaic plants within the Group sites is far from negligible. In December 2017, in fact, the first photovoltaic plant was developed (300 kWp) at the A2A Ambiente plastic recovery plant being
In 2017, the BU significantly increased
production (+28.6% on 2016) due to the greater use of thermoelectric plants that, given the greater demand from the system, recorded an increase in production of 3,570 GWh. Although hydroelectric production has dropped (3,572 GWh) as a result of a year characterised by dry seasons, for renewable production, we highlight the net increase in photovoltaic energy linked to the recent acquisitions described above.
Below are some important renewal or maintenance projects that involved some plants of the BU in 2017.
developed in Cavaglià.
8 Human
capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report GRI
Content Index
In addition to the priority seismic checks on the structures of the dams already performed in accordance with 2014 legislation, since 2016, A2A hydroelectric plants have also been subject to the seismic checking of the accessory works of the dams, with the aim of verifying any need to adjust such. Various different types are involved by the analysis (bulkheads of hydraulic works, walkways on crests at the spill lights, electricity cabinets, manoeuvring chambers, technical rooms and buildings) for a total of more than 100 accessory works on the 4 hydroelectric plants involved. At end 2017, approximately 70% of the accessory works scheduled had been inspected and assessed.
In August 2017, exceptional major landslides involved the dam of Villa di Chiavenna, which bars the Mera river near the Italian-Swiss border. In order to guarantee the dam' safety and that of the territory downstream, the envisaged emptying of the reservoir took place promptly and, consequently, liaising with the competent Authorities, the solid materials that had accumulated inside, were removed. In performing complex restoration operations, in just one month, the dam and plant of Chiavenna were returned to regular operation, also thanks to the implementation of a dam
In 2017, the plants of Cassano d'Adda, Chivasso and Sermide were included in the plan of interventions to optimise road lighting in the plants.
In 2017, the technical specifications were prepared for the purchase of lighting bodies at the Cassano Plant, whilst the intervention will be carried out in 2018. As regards the hydroelectric plants, LED lighting of the plants and dams in Calabria was completed.
At end 2017, moreover, works were started relative to the remediation plan of the coating of floors containing vinyl asbestos at the Cassano Plant. All activities are expected to be completed within the first few months of 2018. Moreover, the controls, regular checks and, where necessary, the disposal of materials containing asbestos fibres, still present on some equipment and components, continued on sites - in particular at the plants of Piacenza, Cassano and Sermide.
management protocol shared with the Authorities, aimed at guaranteeing the complete operation of the basin and simultaneous safety of the central territory below.
At the Friuli plants, in 2017 major extraordinary maintenance work was carried out on the supply pipe of the Ampezzo Plant. Also thanks to the innovative technologies used, the works were successfully completed and with a substantial reduction in the plant downtime.
As regards the plants of Calabria, in 2017, the by-pass pipe of the Calusia Plant was developed so as to guarantee, including during interruptions to the plant's activity, the release downstream of the capacity necessary for plant watering and drinking, in accordance with current legislation.
Extraordinary maintenance works are envisaged at the hydroelectric Plant of Mazzunno (Bs) with the installation and commissioning of two new conducts with a nominal diameter of 1,400 mm. On August 21, 2017, the Region of Lombardy issued the authorisation for the intervention, which will be developed in approximately 4 years, by spring 2018.
In 2017, flexibility was increased of the combined cycle termed Unit 1 of the Chivasso Plant, with the carrying out of interventions on the thermal cycle and plant auxiliaries, improving the performance of the whole of the 800 MW production unit, with consequent further savings on fuel.
In August 2017, works were carried out to increase the flexibility of 2 turbogases of the 800 MW unit of the Sermide Plant, with the installation of similar hardware and software packages to those installed in Chivasso in order to improve plant performance, reducing flue emissions and improving production unit management.
The Networks and Heat Business Unit is responsible for coordinating, implementing and maintaining the electricity, gas, heat and water cycle network distribution infrastructure as well as for managing plants used to produce thermal energy and electricity. The maintenance and evolution of these infrastructures are amongst the key factor necessary to achieve the national and European energy policy goals.
The electricity distribution network extends for over 14,900 km in high, medium and low voltage (of which 85.5% underground), with 31 primary stations and sub-stations and more than 9,300 secondary stations.
The length of the gas distribution infrastructure is more than 11 thousand km, in medium and high pressure, with 189 primary stations (REMI) and
more than 2,400 secondary stations.
Moreover, through the subsidiary A2A Illuminazione Pubblica, the Group manages more than 213,800 lighting points in the municipalities of Milan, Bergamo and Brescia and another 4 municipalities of Lombardy (Stradella, Cassano d'Adda, Pieve Emanuele and San Giuliano Milanese).
5 Financial capital
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
3
4 Stakeholder engagement and materiality analysis
6
Manufacturing
capital
The manufacturing
capital in the
Environment
Business Unit
The manufacturing
capital in the
Generation and
Trading Business
Unit
The manufacturing Networks and Heat Business Unit
7 Natural capital 8 Human capital 9
Intellectual capital 10
Relational capital Independent Auditor's
Report GRI Content Index
64
In addition to the distribution areas of Unareti, the LGH Group distributes electricity in Cremona, for more than 45 thousand customers and 1,000 km of network, and gas to 99 municipalities in the provinces of Bergamo, Brescia, Cremona, Lodi, Padua, Parma, Pavia and Vicenza; ASVT, on the other hand, manages gas distribution services in the municipalities of Gardone Valtrompia, Lumezzane, Sarezzo and Villa Carcina in the province of Brescia.
In 2017, electricity distributed came to 11,590 GWh. Gas distributed has increased to 2,480 million cubic metres, thanks to the acquisition of the service in the municipalities managed by the LGH Group and by ASVT.
In December 2015, Milan City Council and A2A announced an extraordinary four-year plan to improve the resilience of the electricity grid in the most critical parts of the city, thereby making it able to support any exceptional electrical loads, with a total investment of 13 million euros. The initial plan value envisaged the
replacement of more than 11,500 joints, with the aim of carrying out around 3 thousand interventions per year. In 2017, the plan was extended to envisage the replacement of a total of 14,500 joints by 2020.
At end 2017, 9,288 joints had been replaced. Although complex and articulated, almost 65% of the work has therefore already been completed, making for a network that is already more reliable. The cathode protection system is an integral part of the gas distribution infrastructure in preventing corrosion of metal materials , that safeguard the integrity of the pipes, increasing network safety. Unareti has completed, a year ahead of time with respect to the commitments of AEEGSI resolution 574/13, the plan for the application of cathode protection to its steel pipes. Through the subsidiary Retragas S.r.l., the Group also manages the regional transmission of natural gas in Lombardy, Trentino Alto Adige and Piedmont, with more than 395 km network and moving more than 369 million cubic metres of natural gas each year.
An important renewal project has been launched by Unareti on its vehicle fleet. In July 2017, the office of Via Ponte Nuovo in Milan opened the largest, most technologically advanced electric car charging hub in Italy. Thanks to an inter-functional working team and together with important partners like Renault and Nissan, the new e-hub numbers 74 charging stations that can deliver up to 7.2 kW (single-phase) or 22 kW (three-phase). Another 58 charging stations have already been prepared and the channels for the integration of photovoltaic roofing in the car park. The hub at the south receiver station of viale Giovanni da Cermenate in Milan is still being completed, where, in the first few months of 2018, 30 charging stations should be developed.
The definitive project will see the replacement of 106 vehicles of the Unareti fleet that goes from being petrol and diesel to 100% electric.
The new model Hub, which will consist of a live laboratory to test new charging products and services in a public and private environment, has been designed to successfully minimise the power used without renouncing the effectiveness of the charging: the model in fact envisages the preparation of stations that can be used during peak times in slow mode, able to charge vehicles, optimising power and exploiting the hours available by night, whilst during off-peak times, the fast charging at 22 kW can be used, thereby reducing the time necessary to the operation. The A2A system is also based on the concept of Smart Grids and makes it possible to modulate the power that can be obtained, in total from the network, according to the network needs. Finally, in terms of improving efficiency, the hub will allow for the automatic acquisition of the main vehicle data and uses to monitor and manage the main elements of mobility management.
Through the acquisition of ASVT, the A2A Group, which is already present in the integrated water cycle service by means of the subsidiaries A2A Ciclo Idrico and Aspem, has expanded on its scope of competence to include all municipalities of Valtrompia (Bs).
ASVT distributes drinking water to 15 municipalities of Valtrompia, for 412 km of
aqueduct network and also manages the drains systems, comprising 374 km of network.
In all, in 2017 the Group distributed 69 million cubic metres of water. In the municipalities overseen for the sewage and purification service too, approximately 49 million cubic metres of waste water were treated.
TYPE OF PLANTS EXTENSION Aqueduct network 5,305 km Sewers network 2,551 km Purifiers 73 Treatment capacity 46,411,627 m3 2 Governance
The A2A Group and its Business Model
Letter to stakeholders Methodological Note 1
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
The manufacturing capital in the Environment Business Unit The manufacturing capital in the Generation and Trading Business Unit
The manufacturing Networks and Heat Business Unit
7
| Natural |
|---|
| capital |
| 8 |
| Human |
| capital |
| 9 |
| Intellectual |
| capital |
| 10 |
| Relational |
| capital |
Independent Auditor's Report GRI Content Index
Under the scope of programmes to improve the water service and in consideration of the ARERA indications for the dissemination of water smart metering, A2A Ciclo Idrico intends to speed up renewal of the fleet of meters installed in the municipalities served, with the aim of improving the quality of consumption data and increasing its monitoring and control. The 2018 A2A Ciclo Idrico smart metering plan, in accordance with the 2018-2020 replacement plan and in compliance with Ministerial Decree 93/2017, envisages the mass changing of approximately 32,500 meters in the municipality of Brescia, which will have a periodic communication module of the reading data. Already in 2017, an experiment was launched in the district of Folzano, Brescia, where in all approximately 690 smart meters were installed.
For users, the main benefits of smart metering are: the elimination of estimated bills and the nuisance of the meter reader having to visit; the immediate reporting of probable plant losses; and the optimisation of the water balance between the volume released to the network and that billed.
The A2A Ciclo Idrico water loss reduction policy, in accordance with the objectives defined by the recent AEEGSI Resolution 917/2017, includes actions aiming to reduce all components, both real and apparent (measurement errors) that define the volumes of losses on the aqueduct system.
For 2018, approximately 34 km of network are to be replaced for a value of 4 million euros, as well as a reduction in operative pressure of networks to be achieved by means of the installation of both pressure reducing systems with differential calibration and controlled pumping systems at critical points, in order to obtain the minimum pressure necessary for operation on the network. More specifically, in 2018, 8 new pumping systems should be installed and at least 5 reduced pressure areas developed (Brescia zona Prealpino, Violino and Folzano, Vobarno, Odolo).
As regards the reduction in measurement errors of user meters (apparent losses) due to obsolescence, in 2018, in line with that indicated by Ministerial Decree 93/2017, approximately 65 thousand user meters will be replaced.
The plan also envisages the strengthening of the loss monitoring and analysis structures by means of the installation of new capacity meters on the network for a better definition of the water balance and the implementation of dedicated computer tools that can improve manager response time to consumption anomalies seen on the network.
In organisational terms, in January 2018, a new structure was established aimed to implement the the plan to reduce water losses.
66 67
The Group has 13 cogeneration plants producing heat released to the district heating network managed. Of these, 5 are owned by the LGH Group, for an increase of 190 MWt and 29 MWe installed capacity.
The BU's heat production came to 1,324 GWh (+42% on 2016).
Figure 20_Plant types, geographic location and extension of the cogeneration and district heating network
| TYPE OF PLANTS | NUMBER OF PLANTS |
INSTALLED CAPACITY |
|---|---|---|
| Cogeneration plants | 13 | 149.0 MWe 793.8 MWt |
| Thermal solar plant | 1 | 0.7 MWt |
| Thermal plants | 20 | 645.3 MWt |
| Heat exchange | 6 | 224.0 MWt |
| Heat pump | 2 | 30 MWt |
As compared with the 2016 scope, the district heating network has extended with the inclusion of the district heating network of the LGH Group. The service is developed and managed in the cities of Milan, Sesto San Giovanni (MI), Novate (MI), Cassano d'Adda (MI), Brescia, Bovezzo (BS), Concesio (BS), Bergamo and Varese, Cream (Cr), Cremona, Lodi and Rho (Mi).
In 2017, heating and cooling energy distributed increased by 34%, reaching 3,133 GWht .
| 2015 | 2016 | 2017 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| DISTRICT HEATING NETWORK |
BUILDINGS CONNECTED* (USERS) (NO.) |
VOLUMES SERVED (Mm3) |
NETWORK DEVELOP MENT** (DOUBLE PIPE) km |
APARTMENT EQUIVALENTS |
USERS* (NO.) |
VOLUMES SERVED (Mm3) |
NETWORK DEVELOP MENT** (DOUBLE PIPE) km |
APARTMENT EQUIVALENTS |
USERS* (NO.) |
VOLUMES SERVED (Mm3) |
NETWORK DEVELOP MENT** (DOUBLE PIPE) km |
APARTMENT EQUIVALENTS |
| Province of Bergamo |
545 | 6.2 | 69.1 | 25,800 | 585 | 6.5 | 71.2 | 27,100 | 614 | 6.8 | 74.7 | 28,100 |
| Province of Brescia |
20,726 | 41.9 | 665.4 | 174,600 | 20,392 | 42.1 | 669.2 | 175,400 | 20,487 | 42.2 | 671.0 | 175,800 |
| Province of Milan*** |
3,109 | 44.9 | 280.6 | 187,100 | 3,181 | 47.0 | 298.8 | 195,800 | 3,389 | 49.7 | 330.9 | 202,300 |
| Province of Varese |
146 | 2.7 | 16.0 | 11,150 | 145 | 2.7 | 16.0 | 11,150 | 147 | 2.7 | 16.0 | 11,150 |
| Province of Cremona |
- | - | - | - | - | - | - | - | 721 | 6.4 | 76 | 26,700 |
| Province of Lodi |
- | - | - | - | - | - | - | - | 206 | 2.9 | 26.0 | 12,100 |
| TOTAL | 24,526 | 95.7 | 1,031.1 | 398,650 | 24,303 | 98.3 | 1,055.2 | 409,450 | 25,564 | 110.7 | 1,195 | 456,150 |
* May not coincide with a single housing unit.
** The network is intended as the sum of heat transmission, distribution and supply pipes.
*** Province of Milan, including, in 2017, the district heating service of Rho Nord and Rho Sud.
From a systems viewpoint, the Group has a system that maximises the environmental and energy efficiency of the heat generation process. In actual fact, thanks to the main use of renewable sources of energy (deriving from the waste-toenergy process) and recovery, the remaining plants, which are also managed with operating priorities, supply supplementary thermal energy, making the district heating service highly efficient and environmentally friendly. Some of these plants also have a heat pump with ground water section (renewable source) that enables a further reduction in fuel consumption.
In 2017, an important innovation project of two important district heating sites, Brescia and Milan, was completed. The Brescia "Lamarmora" remote management and control room has been completely renewed thanks to digitisation and modernisation interventions (25 km optic fibre laid and 2,700 processing points between signals, commands and measurements) that guarantee
technical simplifications, the speeding up of processes and the improvement of monitoring and performance. The second requalification intervention involved the Canavese Plant (Mi), inside which a new remote control room has been developed from which production can be monitored of all district heating plants of the Milan area, thereby ensuring the correct release of hot water to the network. This intervention has also been characterised by the digitisation of the equipment and the installation of a new high-speed optic fibre network (42 km), which will allow for the inter-connection of all district heating systems of Milan. Again at the Canavese Plant a second heat pump is to be installed, which will enable the full recovery of the portion of energy, today dissipated, making it useful to the city district heating network, improving the total performance of the cogeneration section by almost seven percentage points (from approximately 82% to approximately 89%).
5 Financial capital
In 2017, a plan was implemented to improve the performance of some cogeneration plants, belonging to the LGH Group, regarding their production performance and the reduction of electricity consumption. The initiative involved all the Group's cogeneration plants.
| PLANT | SCHEDULED ACTIONS | STATUS AS AT 12/31/2017 |
|---|---|---|
| CTEC CREMONA | Achievement of turbine cogeneration yield of 75% |
82.1% |
| CREMA | Achievement of total cogenerator yield of 80% |
84.0% |
| LODI AND RHO | Reduce electricity consumption with respect to plant production (kWhe /MWht < 27) |
23.2% Rho 26.4% Lodi |
Letter to stakeholders
Methodological
Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Environment Business Unit The manufacturing capital in the Generation and Trading Business Unit
The manufacturing Networks and Heat Business Unit
7
| Natural |
|---|
| capital |
| 8 |
| Human |
| capital |
| 9 |
| Intellectual |
10 Relational capital
capital
Independent Auditor's Report
| MATERIAL ASPECTS |
DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| CIRCULAR ECONOMY |
Use of waste as a resource, from collection to disposal, through management that, where applicable, favours the recovery of materials, the minimisation of waste sent to landfills, including through waste to-energy processes; the development of separate waste collection, the efficient management of landfills, sludge and waste water, including through the development of biogas production technologies. |
Failure to achieve the objectives set forth in the Sustainability Plan linked to the recovery and treatment of waste and separate waste collection. Failure to consider the relevance, in terms of market scenarios, of the impact of business activities linked to the circular economy. Failure to identify business opportunities linked to the development of the circular economy. Failure to oversee, on an institutional level, in the definition of circular economy policies and on a community level, in the incorporation of expectations and emerging needs. |
Annual review of the Sustainability Plan in line with the Business Plan; adoption of the best waste management and treatment techniques so as to guarantee achievement of the goals set. Careful planning of business growth and development strategies linked to the circular economy, which considers possible variations in the market scenario. Development of the capacity to listen and dialogue with local and institutional interlocutors on matters relating to the circular economy. Start-up and participation in technical round tables and organisation of opportunities for a comparison of ideas, able to incorporate the requests and expectations of the communities. |
Growth of separate waste collection in all municipalities served. 99% of municipal waste collected sent for recovery of matter or energy. Doubled the value of secondary raw materials recovered from Group plants, thanks to the acquisition of the LGH Group and Rieco-Resmal. Increased the portion of waste produced by the Group's BUs sent for recovery. |
CIRCULAR ECONOMY - Recovery and treatment |
| EFFICIENT USE OF WATER |
Efficient management of the water resource, reduction of water losses throughout the distribution network and adoption of policies and good practices able to stimulate a responsible use of water, promoting careful, sustainable consumption. |
Failure to achieve the goals set in the Sustainability Plan. Possibility of an interruption to the drinking water distribution service in the municipalities served. Little attention paid to the optimisation of water consumption, failure to invest and develop innovative programmes on the matter. |
Annual review of the Sustainability Plan in line with the Business Plan and adoption of more cutting-edge electronic systems for detecting losses. Development of projects and initiatives aimed at optimising procurement and the efficient management of the water resource. Limitation of network losses through specific electronic systems to detect and institute dedicated coordination and working parties. Promotion of initiatives on the awareness and importance of saving water, amongst customers and citizens. |
Feasibility study developed, with the aim of reducing the need for water both from the well and from the river, of the Group's CCGT plants. Started a plan to reduce water losses on the aqueduct service. |
CIRCULAR ECONOMY - Water |
| FIGHT AGAINST CLIMATE CHANGE AND ATMOSPHERIC EMISSIONS |
Promotion of strategies to reduce atmospheric emissions and develop renewable energies; promotion of energy efficiency initiatives in the Group plants and sites and in final uses, such as: district heating, LED lighting and commercial offers linked to the sale of renewable energy and value added services. |
Failure to achieve the goals set in the Sustainability Plan. Little attention paid to the internationally-relevant matter of decarbonisation and energy efficiency. Failure to achieve the decarbonisation objectives set out by the National Energy Strategy. |
Annual review of the Sustainability Plan with decarbonisation objectives that are in line with the Group's Business Plan. Preparation of an offer that includes innovative energy services with a reduced impact on climate (e.g. energy efficiency services in final uses). Planning of appropriate Investment plans linked to the development of renewable energies. Definition of a strategy on GHG emissions in line with the provisions of the National Energy Strategy. |
2.5 million tonnes of CO2 avoided thanks to the technologies used to produce energy. Daily emissions of the waste-to-energy plants and thermoelectric plants published on the Group's websites. Increased production from photovoltaic sources with 34 new plants acquired. New interventions to enhance the flexibility of CCGT plants. Plan to replace 106 vehicles of the Unareti fleet with 100% electric cars. |
DECARBONISATION - District heating - Emissions - Renewable |
| QUALITY OF DISTRIBUTED WATER |
Efficient management and consumption of water resources with specific reference to the biological, chemical and physical quality of the water distributed in the various municipalities served by the Group. |
Failure to comply with regulations governing consumption, water drains and the quality of the water distributed. Failure to oversee the incorporation of expectations and emerging needs of the communities served. |
Systematic monitoring of the quality of water collected and distributed. Cutting-edge treatment of water before distribution. Strengthening of purification plants, where appropriate, and continuous improvement of purification processes in the water cycle. |
4,200 controls carried out per million m3 water supplied, for a total of 16,500 samples taken and 297,800 parameters analysed. |
CIRCULAR ECONOMY - Water |
All the Group's activities are closely interconnected and interdependent with the ecosystem in which it operates. The Group uses countless natural resources from the environment, which it transforms and returns in the form of assets and services useful to the local communities.
In this context, in 2017 A2A continued in its integrated approach to environmental governance, thanks to its Quality, Environment and Safety Policy, in the Sustainability Policy and the Sustainability Plan (see page n. 22), enabling the development of a reference model that is valid for all Group employees and collaborators.
The principle of the protection and sustainable use of the "natural capital" explained in the Group policies seeks to guarantee the effectiveness of the environmental protection from any potential irreversibility of damages that can be caused to the environment. The following objectives and strategies are implemented:
Under the scope of environmental management, 29 Group companies are UNI EN ISO 14001 certified and 28 sites are EMAS registered.
Letter to stakeholders
Model 2 Governance
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Sustainability strategy
Manufacturing capital 7 Natural capital
The natural capital in the Environment Business Unit The natural capital in the Generation and Trading
Methodological Note 1 The A2A Group and its Business environmental aspects, in addition to adhesion to certified systems, is to create shareable and shared competences for people operating in an environmental area.
In 2017, the environmental training programme investigated the following aspects: waste management, waste water discharges, atmospheric emissions, fluorinated greenhouse gases that harm the ozone layer and civil thermal plants. The Group's guidelines relating to the management of potential contamination events and environmental aspects in tenders, were also presented.
One essential element in the management of
Finally, in 2017, a project was launched for the sensitisation of the whole of the employer line on the management of HSE risks (see page 23 for more details).
2017 saw the adoption by the whole of the A2A Group of the Arial-Simpledo software, which contains a specific section for recording and analysing incidents. Analysing incidents and identifying their causes in fact allows for the identification of corrective factors that can reduce the probability of such events recurring. When classifying incidents, a distinction is drawn between incidents and near-misses. An "incident" is classified as an event that, in connection with the substances at hand and the conditions in which it took place, caused consequences on the environment; instead an "environmental near miss" is an event that did not have any consequences on the environment but that, had it occurred in different circumstances, could have potentially caused such. In 2017, a total of 3 minor environmental incidents occurred and 9 near-misses; the analysis of events recorded showed that none of these had negative impacts on the environment.
Business Unit The natural capital in the Networks and Heat Business Unit 8
Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
2017 saw a general increase in CO2 emissions, mainly due to an increase in electricity production (+27.7% on 2016) following the increase in demand by the national electric system. The Group's direct emissions (Scope 1) in 2017 in fact grew by 25% and came to approximately 8.1 million tonnes. 98% of Scope 1 emissions are in fact due to combustion processes. The remaining 2% is due to the methane that leaks collection in the landfills and the use of fuels for vehicles. The methane leakages have increased by 92% due to the inclusion in the scope of the landfills managed by the LGH Group, which account for approximately 50% of these emissions. Moreover, in 2017 the calculation method also changed for the emissions due to the dispersion of methane from the gas distribution networks. The new method considers the natural gas dispersed from road leaks, following a detailed analysis that showed how these represent the greater volumes of gas dispersed (two sizes larger than other possible dispersions). In previous years, total gas not booked was considered, but as this figure is mainly due to errors in measurement or theft, the decision was made to only consider effective leaks.
The Group's average CO2 emissions factor, calculated by adding all emissions due to energy production and comparing this with the total quantity of electricity and thermal energy released to the network, came to 420 g/ kWh, 4% more than 2016, due to the inclusion of new non-cogeneration plants in the consolidation perimeter.
No major changes were noted in indirect emissions (Scope 2) due to the purchase of energy, the physiological increase of which (2%) is connected with the increase in business.
In 2017, Scope 3 emissions are reported to be 1.8 million tonnes. This value includes both emissions from plants managed for third parties (boilers for heating buildings, the waste-to-energy plant in Acerra and STIR in Caivano), which are just under 800 thousand tonnes, and also the greenhouse gas emissions produced during refining and extraction of the fuels used by the Group, equal to more approximately 1 million tonnes of CO2 , which this year increased in connection with said increased production from fossil sources.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Total greenhouse gas emissions - Scope 1* | 7,043,084 | 6,455,679 | 8,057,008 |
| Indirect greenhouse gas emissions - Scope 2 | 126,723 | 119,937 | 122,286 |
| Other indirect greenhouse gas emissions - Scope 3 | 1,781,924 | 1,638,017 | 1,780,755 |
* Scope 1 emissions for the years 2015 and 2016 have been updated with respect to a review of the method used to calculate emissions dispersed from methane on the distribution networks.
Thanks to the use of the best technologies available, such as the combined production of electricity and thermal energy and the creation of integrated energy and environment systems, the Group can guarantee savings in CO2 emissions with respect to the same production with the average of the national plants. A method was therefore finalised for the calculation of emissions avoided of CO2 and the energy savings applicable to all Group energy processes and plants. This method is updated once a year on the basis of the national thermoelectric emission factors and parameters, published by Terna and ISPRA.
In 2017, a total of 2.5 million tonnes of emissions were avoided, making for energy savings of 1 million TOE.
A2A is very much involved in the environmental markets incorporating EU Directors and national legislation by means of mechanisms such as "Cap and Trade" (based on the setting of an emissions threshold and a trading mechanism), which make it possible to achieve environmental targets at a lower total economic cost for system.
23 Group plants are subject to the Emissions Trading Scheme with a portion of emissions authorised of 152,576 tonnes of CO2eq.
A2A Energy Solutions and its subsidiary, Consul System, develop energy efficiency projects as accredited ESCO, for the purchase of TEEs (Energy Efficiency Certificates). In 2017, the white certificates issued to the 818,793 tonnes of CO2eq.
Letter to stakeholders
Methodological
Note 1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Financial capital 6
Manufacturing capital
5
7 Natural capital
The natural capital
in the Environment Business Unit The natural capital in the Generation and Trading Business Unit The natural capital
in the Networks and Heat Business Unit
8 Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
One of the most important "natural capitals" for the A2A Group is, without doubt, water. Optimisation of this capital takes different forms as raw material for the production of energy and distribution to users for human consumption and as an element necessary to industrial processes.
Water is, in fact, used to cool plants and combustion slag, for the regeneration of water treatment plants, the production of steam, cleaning roads, washing ground after clearing and vehicles used for city services; it is also the fluid with which heat is conveyed to users by means of district heating and district cooling.
2017 was characterised by a long period of drought that resulted in a major water crisis. In recent years, the phenomenon of the water crisis had already started to rear its head, highlighting the weaknesses of the hydrogeological system of the Italian territory, also fostered by the scarcity of systematic structural interventions.
Under the scope of the hearing requested by the Chamber Environment Commission, as a preliminary inquiry into the water emergency and the measures necessary to deal with it, A2A pointed out the factors that would allow, over the medium/long-term, to improve the water system as a whole, as well as a series of essential interventions to be performed, using advanced recording technologies envisaged in the 2018 plan to reduce water losses (see also page 68).
The scarcity of the water resource and growing competition for its use may partly be coped with by means of a greater reuse of treated waste water; the Group has already started doing this, including through the recovery of rainwater for watering green areas, filling the fire-fighting reservoirs and recycling washing water.
The other methods for making responsible use of the water resource adopted on a plant level and in management, include:
In 2017, a first feasibility study was also developed aiming to reduce the need for water, both from wells and the river, of the Group's CCGT plants. The study envisages an analysis of the internal recirculation system of both waste water and rainwater on the individual production site, so as to eliminate the discharge of waste water apart form the portion that cannot be stored as a result of significantly high rainfall.
In 2017, the Group as a whole consumed 11 million m3 water, 75% of which came from wells.
The A2A Group operates in harmony with regional, natural and cultural features, and is aware of the extraordinary wealth of biodiversity present. Some Group plants are located in or near sites characterised by high natural value, parks or protected areas: for example in the Parco Regionale Adda Nord, in the Parco regionale del Mincio, in the Parco Nazionale dello Stelvio and in the Parco Nazionale della Sila. These parks record the presence of more than 40 species included on the Red List of the International Union for the conservation of Nature (IUCN).
In order to minimise the environmental impacts, the A2A Group takes specific action to protect and safeguard the environment, also carrying out interventions to improve the territory and assessing the impact on the landscape context. In line with the National Sustainable Development Strategy, made official in 2017, A2A sets itself the aim of optimising the natural component, carrying out interventions that foster the knowledge and, therefore, the conservation of the local natural heritage.
A2A Ambiente has financed a study on the numerous environmental requalification interventions, situated in the municipalities of Rho, Settimo Milanese and Milan, near Cascina Ghisolfa. The study has allowed for the qualification of the area's fauna populations, characterised by the presence of nesting birds, bats and micro and meso mammals, particularly in connection with and their possible development; it is a
In 2017, forestry interventions were also carried out at the Piccaluga fountain near the Silla2 waste-to-energy plant of Milan, with the aim of requalifying the area, introducing trees and shrubs of types typical of the locations.
To reduce the deterioration of the natural environments, improve the quality of the soil and subsoil and, in some cases, return them to the local communities, A2A also carries out reclamation works using specific structures. In 2017, an area in Milan was reclaimed with various interventions involving the demolition of the unauthorized sheds built on the site, the disposal of the waste, the removal of flooring present and a surface layer of earth. The area will be involved by a project of compensation interventions aiming to improve the forest. The company Linea Energia, of the LGH Group, also carried out reclamation works near Darfo Boario Terme (Brescia).
For hydroelectric production plants, it is essential to guarantee respect for the Minimum Vital Flow (MVF), in compliance with European, national and regional regulations aimed at protecting the river habitats in the water courses involved by withdrawals made for the production of hydroelectric energy. These regulations in fact establish that a minimum water flow shall be guaranteed in the river. At present, the MVF values are defined and agreed with the competent authorities.
Figure 24_Water released for MVF (thousands of m3) 500,000
The total value of water released for the minimum vital flow has risen on 2016, entirely due to the inclusion of the LGH hydroelectric plants in the reporting scope (the MVF pertaining to LGH is in fact 35 million m3 ).
In 2017, Linea Energia delivered the Region of Lombardy the projects for the continuous remote monitoring of the MVF relative to the hydroelectric plants of Darfo, Mazzunno and Resio. These projects follow on from the provisions of current regional regulations (Regional Council Resolution of July 3, 2015).
Letter to stakeholders
Note 1
Methodological
The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
The natural capital in the Environment
Business Unit The natural capital in the Generation and Trading Business Unit
The natural capital in the Networks and Heat Business Unit
8 Human capital
Intellectual capital 10 Relational
9
Independent Auditor's Report
capital
In the Environment Business Unit, waste is the main raw material input into the process, together with conventional resources such as fossil fuels, vehicle fuels, water and chemical products.
Efficiency in collection and the optimisation of waste through its recovery and transformation into secondary raw materials, waste-to-energy systems and district heating for the recovery of the energy content, are all elements characterising the A2A Group processes, which are a proper part of the sustainable route called Circular Economy and included in the National Sustainable Development Strategy.
Waste comes from collection and, in particular, for municipal waste, from the separate collection of all fractions of waste paper, glass, plastic, metal, kitchen and canteen waste, harvest and garden pruning, etc., targeting both private individuals and businesses municipal waste (comparable to municipal waste). Separate waste collection has been confirmed as an essential public service, which, however, requires strong motivation and citizen participation and is carried out in different ways, designed according to the needs of the municipalities served.
The special waste collection, transport and treatment services are instead mainly intended for artisan and industrial businesses and professionals.
In 2017, generally, in all municipalities served, there was still a positive trend for differentiated collection due to the campaigns of citizenship awareness and above all to improvements and new measures introduced in the service (see also page 133). This is particularly evident for Brescia, which gains more than twenty percentage points, going from 44.5% to 67.7%. Collection in the municipalities for which the LGH Group is competent (provinces of Cremona and Lodi) also make a positive contribution, leading the Group average to 63.2%.
Of the 1.6 million tonnes of municipal waste collected (+21.5% on 2016) the separated fractions totalled more than 990 thousand tonnes.
| 2015 | 2016 | 2017 | |||||
|---|---|---|---|---|---|---|---|
| QUANTITY COLLECTED (t) |
INDEX % | QUANTITY COLLECTED (t) |
INDEX % | QUANTITY COLLECTED (t) |
INDEX % | ||
| Bergamo | 41,351 | 65.7 | 42,112 | 66.3 | 44,689 | 71.2 | |
| Brescia | 50,395 | 37.5 | 59,075 | 44.5 | 77,043 | 67.7 | |
| Como | 23,997 | 61.7 | 25,200 | 62.9 | 28,523 | 72.1 | |
| Milan | 352,291 | 52.7 | 352,042 | 52.4 | 361,868 | 53.8 | |
| Varese | 23,842 | 60.7 | 25,228 | 62.2 | 26,590 | 66.2 | |
| Cremona | N/A | N/A | N/A | N/A | 27,109 | 73.4 | |
| Lodi | N/A | N/A | N/A | N/A | 13,857 | 73.0 | |
| Province of Bg | 4,205 | 59.3 | 4,347 | 59.7 | 5,789 | 70.8 | |
| Province of Bs | 188,945 | 72.8 | |||||
| Province of Mn | 109,512 | 67.3 | 119,207 | 69.1 | 27,182 | 88.0 | |
| Province of Mi | 69,296 | 58.5 | 75,783 | 58.4 | 83,523 | 60.5 | |
| Province of Va | 11,134 | 68.7 | 21,247 | 70.1 | 25,079 | 74.7 | |
| Province of Cr | N/A | N/A | N/A | N/A | 52,787 | 73.6 | |
| Province of Lo | N/A | N/A | N/A | N/A | 29,210 | 69.7 | |
| Total/average | 686,022 | 59.1 | 724,239 | 56.2 | 992,195 | 63.2 |
Figure 25_Differentiated collection in the Municipalities where Group companies operate*
* The data refers to only the municipalities where A2A is the sole party assigned the service and for the entire year; a further 10,435 t of separated fractions was collected in the other municipalities. The quantity collected and differentiated collection rate have been calculated on the basis of the indications of the Res. by the Reg. Council (Lombardy) no. X/6511 of April 21, 2017.
99% of municipal waste collected is used to recover materials or energy; the dry residue is sent entirely for energy recovery by means of waste-to-energy plants. 1% of municipal waste collected cannot be recovered and is sent to landfills or disposal plants; this consists of a portion of cumbersome waste and liquid residues that cannot be otherwise recovered.
In 2017, a total of 3.6 million tonnes of waste
The plants aim to recover materials and energy
• the recovery of glass, paper and cardboard, plastic, wood, unusable tires, ferrous materials, etc. (mainly by selecting waste obtained through differentiated collection, bulky waste and any
• recovery of sludge from the biological
• interim storage of waste to be sent for subsequent recovery or to a lesser extent to disposal at the Group's plants or external plants.
purification of waste water and that intended for agriculture, with the production of biogas from
• recovery of inert materials, sand and gravel, certified in accordance with standards UNI for use in construction (by means of the treatment and washing of the street sweeping grounds); these materials can be reused directly as raw materials, e.g. to prepare cement or bituminous conglomerates and to prepare road beds; • the production of solid secondary fuel (SSF) to be used in waste-to-energy plants (through mechanical selection processes and the biodrying of non-differentiated urban waste); • the treatment of solid residues from waste incineration and fly ash from waste-to-energy plants through recovery and inerting operations;
were processed by the plants.
Recovery and storage include:
other fractions);
anaerobic fermentation;
special.
and are differentiated so as to be able to cope with various types of waste, ranging from municipal to The recovery platforms, comprising both recovery and simple storage plants, allowed for the 2017 recovery of more than 342 thousand tonnes of secondary raw materials/end of waste. These values have almost doubled on 2016 due to the extension of the scope to include the LGH
recovery plants. The non-recoverable waste as a raw material is sent for energy recovery and used as fuel in the processes of waste-to-energy to supply the district heating networks as well as to generate electricity, thereby saving fossil fuels and avoiding the related CO2 emissions.
Electricity produced from waste in 2017 was 7.2% of the total electricity produced by the Group, while thermal energy from waste accounted for 51.8% of total thermal energy produced and allocated to the district heating networks, in line with last year's values.
An average of 778 kWh of electricity and 816 kWh of thermal energy was produced from every tonne of waste. These values are indicative of the use of the waste resource in energy production, but do not directly represent an energy production value, which is instead linked to the structure of each waste-to-energy plant.
Letter to
Sustainability strategy
Manufacturing capital 7 Natural capital Group environmental management
The natural capital in the Generation and Trading Business Unit The natural capital in the Networks and Heat Business
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
Unit 8 Human capital
The collection and transport of waste take significant quantities of fuel. In 2017, these total approximately 659 terajoules (TJ) (mainly diesel and methane), with an increase of 31% due to the inclusion in the perimeter of the LGH Group companies, which also deal with collection.
In 2017, consumption of fossil fuels (724 TJ), mainly natural gas used as a combustion support in the transit phases of the waste-to-energy plants grew by 48%, both due to inclusion in the perimeter of the LGH Group plants and some downtime involving the Silla 2 wasteto-energy plant, which required the start-up of the auxiliary heater to make up for the associated district heating network demands for heat. Again in 2017 and again in Silla 2, the extraordinary maintenance works were completed on lines 1 and 2 (bringing about a 15% increase in the plant's rated power) and their start-up required a greater consumption of methane.
The consumption of electricity, which was not particularly significant for the Environment BU, remained virtually unchanged in 2017 (approximately 53 GWh).
90% of water used in the treatment processes and obtained from industrial wells is used in waste-toenergy plants. In 2017, civil consumption dropped by a total of 11%, whilst use for processes (water for heaters, evaporation towers, vehicle cleaning, etc.) rose by 20%, essentially connected with the inclusion of new plants and new areas served for waste collection in the scope, consumption of which accounted for 72% of the total increase.
Specific plant consumption has not changed, coming in at 1.6 m3 process water per tonne of waste treated or sent for waste-to-energy processes, both in 2016 and 2017.
As regards chemical products and materials, the greatest consumption is due to the use of inert materials (sand, clay, cement) and solid neutralisers (sodium bicarbonate, lime, etc.). In all, 2017 recorded a considerable increase in the use of inert products as compared with 2016, due to the inclusion of LGH Group landfills in the reporting scope as from 2017.
The significant emissions of the Environment BU plants mainly come from the waste-to-energy plants. Emissions are monitored and kept under control both by means of continuous monitoring systems (CMS) and by means of regular samples and analyses, as in the case of micro pollutants such as dioxins, polychlorobiphenyls (PCB) and benzofurans. More specifically, emissions of these micro pollutants, which are a particular focus of public opinion for this type of plant, are extremely limited and, on an annual basis, far less than a gram.
The increases in the absolute quantities emitted, given in the Supplement tables, are due generally to the expansion of the reporting perimeter with the inclusion of the Cremona and Parona wasteto-energy plants, which account for approximately 20% of total emissions.
Average daily emissions of the waste-to-energy plants are updated continuously and available for consultation on the A2A websites.
The Environment BU plants do not generally have significant discharges. Almost all discharges into surface water are due to the Gerenzano plant and derive from the remediation in progress at the site, which entails the processing and subsequent discharge of considerable quantities of table water (around 1 million m3 per year). The quantity of water discharged in 2017 at the site has in any case reduced by 31% on the previous year.
Another contribution, albeit far smaller, comes from the Parona waste-to-energy plant (120 thousand m3 ).
In all, the organic load of the water discharged from the BU has remained virtually constant (27 t COD - Chemical Oxygen Demand).
The processes of the Environment BU in turn generate both solid waste (mainly slag, ash and powders from fume treatment in the waste-toenergy plant) and liquid waste (percolate and waste water-based solutions from discharges and other plants). In 2017, an increase was recorded with respect to 2016 of non-hazardous waste (+16%) and hazardous waste (+24%) due to the extension of the perimeter to include the LGH plants (mainly the landfills). 52% of the waste produced is sent for recovery.
management The natural capital in the Generation and Trading Business Unit The natural capital
in the Networks and Heat Business Unit 8
Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
GRI Content Index
stakeholders Methodological Note
Letter to
1 The A2A Group and its Business
2 Governance
Model
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Manufacturing capital 7 Natural capital Group environmental
5 Financial capital 6
Several sources, such as water, sun and fossil fuels are used to generate electricity in the Generation and Trading Business Unit. In addition to these essential "natural capitals", substances and chemical reactors are added, as well as electricity itself.
Electricity is produced using various sources. These include a predominant role played in the A2A Group by natural gas, which is used in the combined cycle plants, followed by water, which powers the hydroelectric plants. In 2017, net hydroelectric energy production accounted for 24% of total BU production. The remaining 76% is produced using fuels, as shown in the table.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Natural gas | 27,786 | 31,689 | 56,472 |
| Coal | 22,100 | 23,315 | 20,999 |
| Petroleum derivatives (heavy fuel oil, diesel) |
26,935 | 15,410 | 16,415 |
In 2017, the quantity of natural gas used by the business unit plants almost doubled, as market conditions allowed for a greater use of combined cycle plants. The baseload production from carbon is confirmed, considering the more than two months of downtime as a result of the general revision of a Monfalcone plant. Production from heavy fuel oil, despite the start-up of the Sorgente-Rizziconi cable in May 2016, has risen on 2016 due to the greater production of the San Filippo del Mela plant.
The water in the Generation and Trading BU is mainly used for hydroelectric production and to cool the thermoelectric plants. In both cases, the resource is returned to the water body with the same qualitative characteristics, apart from a slight increase in temperature in water used for cooling.
The A2A Group has decided to start procedures quantity of HFO present in the tanks of some management and thereby allow these sites to exit the classification of "Plants at Risk of Major Accidents" (RMA) and the application of the "Seveso Directive". In 2017, activities began to 50 thousand m3 of the Brindisi thermoelectric plant, in order to also obtain their certification by June 2018. The same procedure state-ofthe-art then be launched in 6 HFO tanks each 50 thousand m3 at the Sermide thermoelectric plant, which in 2016 completed the procedure for leaving the application of the "Seveso Directive". In 2017, the technical specifications were processed and the tender launched for residue removal. The site is expected to start up in April 2018.
The water derived for hydroelectric use has remained virtually unchanged, despite the lesser production, for the volumes derived from the LGH hydroelectric plants, which account for 19% of the total.
The increased used of cooling water is proportional to the increased thermoelectric production.
Additional water is collected mainly for process uses and is partly recovered in the production cycle; in 2017, the percentage recovery was 34%.
In order to manage and reduce atmospheric emissions at the thermoelectric plants, various systems are used, including: the use of low sulphur fuels, the adoption of low NOx fuel systems and the installation of plants to lower emissions. Moreover, all plants are equipped with continuous monitoring systems of the main pollutants. The results of the atmospheric emissions management are shown in the graph below. 0,00 0,00 0,00
NOx emissions have increased as a result of the greater production of combined cycles; total SO2 emissions remain unchanged, whilst powders have increased by 10% in connection with the increased production from heavy fuel oil. As can be seen from the chart, emission factors have in any case improved.
Letter to stakeholders
Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
3
4 Stakeholder engagement and materiality analysis
5 Financial capital
The main chemical products used to produce electricity are used to eliminate pollutants and condition process water; the quantity used depends on production levels. In 2017, 94% of all products and materials used consists of neutralising substances (lime, calcium carbonate, etc.).
The chemical products used
The reduction in the consumption of these substances, mainly used in heavy fuel oil (HFO) powered plants and carbon plants, is related to the reduction in total energy production from these types of plants.
The consumption of ammoniacal solution used to remove the nitrogen from fumes (DeNOx ) has reduced, both in connection with the lesser production of the Monfalcone Plant and the optimisation of the function of the DeNOx system. The increase in thermoelectric production has resulted in an increased consumption of sodium hydroxide to produce the demineralised water necessary to the production cycle.
6 Manufacturing capital
Group environmental management The natural capital
in the Environment Business Unit
The natural capital in the Networks and Heat Business Unit 8 Human capital 9 Intellectual capital 3.000
10 Relational capital
Independent Auditor's Report
Process waters are discharged into surface water after treatment in purification plants. The concentration of substances contained in waste water is regulated by authorisations. The values of BOD (Biochemical Oxygen Demand) and COD (Chemical Oxygen Demand) are reported, which represent the load of organic substances present in the water released, which, although fluctuating, remains at low values of little significance.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| BOD | 10.4 | 14.0 | 22.9 |
| COD | 38.4 | 47.6 | 58.8 |
The main waste generated from electricity production consists of light ash from fumes treatment, heavy ash and slag, residues from the desulphurisation process of fumes and sludge from water treatment. Most of this waste is recovered.
In 2017, the quantity of waste produced was 45,386 t, to a large extent deriving from desulphurisation residues of the Thermoelectric Plant of San Filippo del Mela. The percentage recovery has grown on 2016, up to 91%. Gypsum produced by the Thermoelectric Plant of Monfalcone is not included in the total; this meets the requirements for classification as a by-product and is therefore managed as such.
The Networks and Heat Business Unit deals with the operation and maintenance of the cogeneration plants and the distribution on the territory of network services. The main resources used to provide the services are:
The fuel most used in the Networks and Heat BU is natural gas, which powers the cogeneration and heat production plants. The Lamarmora Plant of Brescia also uses coal, consumption of which has not changed on that recorded in previous years.
As can be seen from the table below, in 2017, a 50.3% increase was recorded in the use of natural gas, of which more than 92% of the total is due to the contributions resulting from the inclusion of the LGH Group in the perimeter.
| SOURCE | 2015 | 2016 | 2017 |
|---|---|---|---|
| Natural gas | 3,356 | 2,804 | 4,215 |
| Coal | 1,812 | 1,846 | 1,828 |
| Petroleum derivatives (heavy fuel oil, diesel) | 0.3 | 0.5 | 0.3 |
| Biogas (from the Group's treatment facilities) | 8 | 7 | 7 |
As concerns the use of fuels to run the networks, consumption is almost entirely due to the use of fuel for vehicles needed to carry staff in charge of emergency interventions and maintenance work on the infrastructures. For 2017, no significant differences in value were recorded with respect to previous years' consumption.
In the Networks and Heat BU, water is an important element, both because it is used in the distribution of heat by means of the district heating network and because the business unit's activities include the integrated water service.
In 2017, the Integrated Water Service recorded a rise of 11% in the quantities of water withdrawn, for a total of almost 124 million m3 and a 16% increase in network losses (including water not booked), which come to almost 44 million m3 .
In order to guarantee the quality of the water distributed, almost 4,300 controls are run per million m3 water supplied, for a total of close to 16,500 samples taken and 297,800 parameters analysed.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing
capital
Group environmental management Natural capital in the Environment Business Unit
Human capital
8
9 Intellectual capital
10 Relational capital
Independent Auditor's Report GRI Content Index
85
The atmospheric emissions of the BU are mainly due to the production of thermal energy and electricity. In 2017, no significant changes in the production of powders were recorded. Instead, a variation of 27.6% is recorded in the NOx , correlated to the increased production.
The CO2 emitted, deriving from combustion processes, has increased by 24% on last year, both due to an increase in heat production and the inclusion of new plants in the reporting perimeter (to which 72% of the increase is connected). The CO2 emitted by vehicles has not changed significantly.
The trend relative to methane losses, due to leaks on the gas distribution network, has dropped by 12% on the value relative to 2016. As explained on page 76, in 2017, a new calculation methodology was applied for this contribution, hence values have been updated with respect to that declared in the previous Report.
In 2017 75% of discharges of the Networks and Heat BU were into the drains, whilst 25% of discharges went into surface water bodies. During the year of calculation, 2,300 m3 of water was recovered within the production cycles.
With respect to 2016, the values of pollutant loads of discharges into surface water deriving from the business unit activities dropped by more than 50% as a result of the reduction of discharges into surface water, obtained by means of the separation of rainwater from industrial waste water of the Cogeneration Plant of Lamarmora.
As part of the integrated water service, the BU manages the waste water collection and treatment processes of the province of Brescia. The performance of the removal of polluting loads (COD, BOD, Nitrogen and Phosphor) are in line with the figures recorded in previous years, as shown in the graph below.
Waste produced by the activity of the Networks and Heat BU mainly derives from combustion processes and the maintenance of networks, plants and infrastructures, under the scope of the distribution of gas and electricity. Activities managed by A2A Ciclo Idrico instead generate waste consisting of sludge deriving from the purification processes and used granular active carbon used in the drinking water processes. In addition to these, there is also waste deriving from
the maintenance of networks and plants. 2017 waste production was in line with that of 2016. 99% of waste produced is special, nonhazardous, deriving above all from cogeneration processes and the production of sludge in the purification plants. The remaining 1% instead consists of hazardous waste. The percentage of (hazardous and nonhazardous) waste sent for recovery is 92% and has therefore remained unchanged on last year.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
Sustainability
3
| RISK | |||||
|---|---|---|---|---|---|
| MATERIAL ASPECTS | DESCRIPTION | FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
| PROTECTION OF HEALTH AND SAFETY AT WORK |
Promotion of practices and systems for the management of health and safety at work, the monitoring of incidents and prevention measures, also through training in health and safety, for both employees and contractors. |
Failure to achieve the goals set in the Sustainability Plan. Risks to workers health and safety. Non-compliance with applicable regulations. |
Continuous monitoring of the matter thanks to the presence of the dedicated EHS (Environmental, Health & Safety) Structure. Delivery of dedicated training on Health and Safety. Activation of dedicated programmes and procedures in line with that required by current regulations. |
LGH has also decided to adhere to the WHP (Workplace Health Promotion) network, Lombardy. The LHS (Leadership in Health & Safety) sensitisation process has been expanded upon. Various different projects have been activated to promote healthy eating, non smoking and physical exercise. |
PEOPLE INNOVATION - Health and safety |
| DEVELOPMENT OF HUMAN CAPITAL |
Promotion of professional development and attraction and retention of talents; creation of development and training opportunities aiming to strengthen technical, managerial and organisational skills of employees; activation of systematic systems for listening to employees, promoting dialogue and collaboration initiatives. |
Possibility of significant middle management and technical staff leaving. Loss and poor optimisation of managerial skills. Lack of Group level policies and procedures for HR selection, management and development. Non-compliance with employment law. Failure to integrate the human resources management systems (e.g. management and employee assessments) and matters relating to sustainability. |
Mapping of roles and profiles, identifying the resources of greatest value on the basis of specific indicators and specific management plans. Introduction of job rotations, training and initiation plans of resources with competence/ professionalism not present in the company. Development of initiatives aiming to increase the visibility of middle/top management in corporate processes. Adoption of suitable compensation systems with respect to the market benchmarks. Continuous monitoring of the main news and/or changes in employment law and related communication with employees. Implementation of performance assessment and dedicated employee training. Adoption of policies for the assessment and remuneration of employees with respect to sustainability performance. Continuous integration of sustainability elements in the corporate MbOs (Management by Objectives). |
81 research projects activated by means of job posting. The School-Work alternation project has been launched. Trade union agreement on equal treatment regarding working hours and permits. ABC managerial development project. Skills laboratory in the Networks and Heat BU. 2 training masters courses activated. Welfare listening survey activated. The AD Incontra project continues |
PEOPLE INNOVATION - Change Management - Training - MbO |
| DIVERSITY AND COMPANY WELFARE |
Development of working conditions and practices able to ensure equal opportunities to all employees, including through a generational bridge that enables the transfer of knowledge and experience between junior and senior populations; promoting the well-being of employees through welfare policies aiming to guarantee a good working environment and a conciliation of private and professional life. |
Possibility of discrimination and lack of respect for a work-life balance. Little attention to employee well being. High employee turnover. Failure to oversee the incorporation of employee expectations and needs, with consequent staff dissatisfaction. |
Development of actions able to favour diversity, a conciliation of private and working life and employee well-being. Activation of specific projects to increase awareness and knowledge of diversity matters in the company. Optimisation of matters of respect and social inclusion. |
Agreement to offer incentives for electric mobility. Activated 974 subscriptions to public transport. Smart working project continues. Social-psychological assistance service developed further. |
PEOPLE INNOVATION - Internal engagement - Welfare |
The A2A Group acknowledges that its human resources are a focal, distinctive point of all the business strategy and has defined a development plan on this basis, aiming to optimise their quality and skills, on the basis of a selection, training and management process and remuneration systems. As at December 31, 2017, the Group's total workforce numbered 11,416. As compared with the 2016 figure, the number of employees has grown by 17% as a result of both new employees hired and the inclusion into the perimeter of companies acquired in 2016 (LGH Group, Rieco-Resmal Group, LA BI.CO DUE Srl and Consul System SpA), consolidated in the non-financial reports as from fiscal year 2017.
In 2017, 906 new employees were hired and 676 left. The total number of new employees hired with respect to last year has increased significantly (+24.5%), whilst the number of employees that left has remained basically constant (+2%).
Work stability remains a Group prerogative. 95% of Group employees are hired on permanent contracts; just 5% are on fixed-term contracts.
The turnover rate was 5.9%, down 1 percentage point with respect to the previous year and by approximately 4 percentage points in the threeyear period.
The staff recruitment process is supported by Employer Branding activities, aimed at constantly consolidating the image and appeal of A2A on the employment market. As regards the activities carried out with the University, in 2017 a total of 28 events were organised, including 12 Career Days and 16 round tables, testimonials and guidance activities. Moreover, as for the previous years, the listening activity continued with an on-line questionnaire aiming to gain a better awareness of the positioning of the A2A Group on the employment market.
Thanks also to the collaboration of Universities, Schools and research Entities, in 2017, 47 internships and 81 apprenticeships were activated.
To increase the opportunities for development and internal mobility, during the year 81 searches were performed using the job posting tool (13% more than in 2016), of which 36% were successful, as well as 15 searches still in progress as at December 31, 2017.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital 7
Natural capital
human capital Health and safety at work Employees development Internal communication and listening Welfare and diversity Remuneration
9 Intellectual capital
10 Relational capital
Independent Auditor's Report GRI Content
Index
• 20 plant tours; • 22 "sector experts" involved; • 96 traineeships activated at the various
In short, a few figures relative to the project
• 274 hours of training delivered at schools;
Group establishments.
in 2017:
Launched in December 2016, the project involves approximately 350 students and 12 Schools (11 Technical Institutes and 1 High School) throughout national territory. The project envisages a series of meetings, at each school involved, with testimonials by industry experts of A2A, interventions by the A2A Group Civil Protection volunteers Association, project work and tours of the company plants. Approximately 100 students can apply for a traineeship at the Group in order to have a direct experience with the competences required of the working context.
SCHOOL-WORK ALTERNATION
Relations of all A2A Group employees are regulated by National Collective Bargaining Agreements.
In 2017 too, multiple trade union agreements were stipulated, including those of a transversal nature to Group companies in connection with the following matters:
• equal treatment of all employees with the "energy area" harmonisation agreement: A2A has introduced family protection and welfare solutions that are cutting-edge in Italy. The Group has, in fact, harmonised the various corporate contracts of Group staff to guarantee equal treatment of all employees in terms of working hours, fiduciary timetable and permits, paying careful attention to the protection of maternity and paternity. A2A working mothers are entitled to an extra month, over and above the compulsory leave remunerated 100%, which therefore rises to 6 months as compared with the legal requirement of 5 months;
component for employees with an electricity contract: following the Enel-Sen decision to no longer manage operations connected with the recognition of the benefit to employees, former employees/surviving spouses (more than 5 thousand people) who were entitled to such, it had become necessary to assure a corporate definition of new ways by which to maintain said contractual right. A2A negotiated with the Trade Unions on a corporate level to obtain a right to a benefit in the delivery at very special conditions of a certain quantity of electricity, choosing A2A Energia as supplier;
• bonus based on Group Productivity and simultaneous creation of a new "corporate welfare" governance model with the establishment of a "bilateral joint welfare committee" that is to define a single company health fund, a single "Recreational Circle" and new products and services for employee welfare.
In September 2017, A2A adhered to the Project F.A.S.I. (Training - Assistance - Sensitisation - Inclusion) promoted by AFOL Milan (Training, Guidance and Employment Agency), also partnering Assolombarda. The project aims to support companies, within the related working contexts, in the capacity to manage a process of improvement and the search for solutions with respect to situations of "ill-being/disability" observed by the company or reported by the workers and also through the introduction and training of the "key" figure of the Disability Manager, as the party assigned to facilitate the relationship between the company organisation and the disabled person.
98% of employees work according to the Health and Safety at Work Management System OHSAS 18001. All companies of the A2A Group organise, during the year, regular meetings with the Employer, Appointed Physician, the Prevention and Protection Service Manager and the Workers' Safety Representative in representation of all workers, during which the following matters are discussed:
• risk assessment document;
over the next few months.
safety leaders.
As described on page 23, in 2017 various safety projects were pursued with a view to speeding up the cultural change that affects worker conduct, not only in order to generate greater awareness and responsibility, but also to create real, proper
The results of the injury indices report, in 2017, an improvement on the previous year, with an injury frequency index that drops by 11% and a severity index that drops by 10% despite the 16% increase in hours worked, as a result of the inclusion of the LGH Group, LA BI. CO DUE and the Rieco-Resmal Group (approximately 14%).
• trend of injuries, occupational diseases and
PROMOTING HEALTH
health surveillance;
LGH has also decided to adhere to the WHP (Workplace Health Promotion) Network, Lombardy,
On February 10, 2017, the congress was held on "Workplaces promoting health", after which the companies of the 2016 WHP Network that had taken significant health promotion initiatives in the
15
29.61
Figure 39_Accident indices*
0.79
LGH presented a focus on the area of "Safe, sustainable mobility" for the prevention of road accidents and safe driving of company vehicles, as well as other initiatives that will be implemented
as an action in the favour of corporate well-being and sustainable development.
LGH INCLUDED AMONGST WORKPLACES
favour of their employees, were rewarded, including LGH.
2015 2016 2017
0.91
35.66
More than 79% of injuries are recorded in the Environment Business Unit (in line with previous years), mainly due to environmental hygiene activities involving greater operations.
31.80
0.82
Frequency index FI Severity index SI
* Figures for 2015 and 2016 have been updated. Further information on page 27 of the Supplement.
4 Stakeholder engagement and materiality analysis
Sustainability strategy
3
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance
Financial capital 6 Manufacturing
5
capital 7
Natural capital
8
Human capital Responsible management of human capital Health and safety at work Employees development Internal communication and listening Welfare and diversity
Remuneration 9 Intellectual capital
10 Relational capital
Independent Auditor's Report
With a view to reducing the health and safety risks of operators called to carry out critical inspections in pipes that are difficult to access, in October 2017, the innovation function and Generation and Trading BU completed an experiment on the use of drones to replace critical operations.
The experiment involved a circular section intake pipe, approximately 400 m long with 30 cm of sludge on the base and characterised by 2 sharp curves and a significant change in height. In order to visually inspect for the presence of surface anomalies on the pipe walls and at the joints between the various modules comprising the pipe, a probe carried out a piloted inspection, allowing operators to wait outside and supervise operations on a monitor. The rover, renamed Derrick in honour of the famous and ingenious inspector, performed a highly satisfactory inspection, noting discrepancies that in conditions of poor light may have escaped man.
These inspections and, in the future, a great many other similar operations, may be carried out by robots or drones with the important result of minimising human intervention in all operations entailing high risks to health and safety.
In 2017, 15 injuries were recorded to workers of contractors, with a prognosis of more than three days to recover, for a total of 354 working days lost. This results in a frequency index of 6.38, in line with that recorded in 2016 and a severity index of 0.15 down 44% with respect to that recorded last year.
Constant attention has been paid to the promotion of safety, also amongst external contractors working at the Group plants: in 2017, more than 4,506 hours of specific training were delivered to approximately 2,353 people.
The Group constantly monitors the workplace through health monitoring, assessing the specific risks involved in the various tasks. The Group activities that have a significant biological risk are those that operate in the sector of environmental sanitation and those that deal with civil water purification. Thanks to targeted activities of prevention and protection, in the last three years there have been no cases of illness caused by contact with work-related pathogens.
The health surveillance service is offered mainly in the approximately 41 medical units distributed throughout national territory, and with authorised external facilities. In 2017, 8,787 medical check-ups and 13,772 clinical assessments in compliance with the health protocol were held. The change in visits and assessments with respect to 2016 is due to the two-yearly expiry dates and recoveries of the previous year, as well as to the inclusion of Rieco Resmal, LA BI. CO DUE and the LGH Group. 357 clinical examinations were carried out over and above those envisaged by the health plan; these were voluntary and not related to occupational diseases. 282 specific visits were also carried out, mainly to establish the need to assign customised personal protection equipment (PPE). The appointed physicians carried out 100 site inspections at the workplaces.
In 2017, 8 occupational disease procedures were opened by appointed physicians or signalled by INAIL.
Letter to stakeholders
seeking to promote health in the workplace, continuing to adhere to the WHP programme promoted by the region of Lombardy. The LGH Group also envisaged initiatives aiming to promote safety in the workplaces in 2017: • promotion of a protective diet through the review of contents of the company vending machines, eliminating snacks and fizzy drinks. Information has also been added near the vending machines, about protective eating; • no smoking campaign by creating a "smoke free" zone at the new LGH Cremona office, promoting, together with the local ATS and appointed physician, an initiative aiming to reduce exposure of all workers to passive smoking and proposing a specific table for those intending to stop smoking;
In 2017, the A2A Group took part in initiatives
• promotion of physical exercise through the preparation of a specific bicycle stand at company offices. A bike sharing area is envisaged at the new LGH office, to be used to travel in and out of Cremona centre.
The LGH Group has adopted a heart protection programme through the installation of defibrillators in easily accessible areas of 8 Group sites. At end 2017, A2A also completed its definition of a heart protection plan that will result in the purchase and installation of a first set of 30 defibrillators in 2018.
Methodological
Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
human capital
Internal communication and listening Welfare and diversity Remuneration
9 Intellectual capital
10 Relational capital
Independent Auditor's Report
A2A has always paid careful attention to the development of human resources, as it acknowledges that people are right at the heart of the processes necessary to achieve the business objectives and create shared value. In this sense, over the years, an articulated assessment system (performance management) has been implemented, which has become the basis for the definition of development routes for individuals
or professional groups. The cornerstone of the new "people strategy" is the dissemination of a more entrepreneurial managerial culture, with the aim of attracting, developing and keeping its human capital.
Continuing on from the action taken in 2016, 2017 saw A2A pursue and implement change management and personal development initiatives.
The ABC managerial development project was conceived with the aim of involving all employees in the following areas: experience of change in the company, relations with the management, relations with co-workers and climate. Thanks to the three phases of the project (listening, return of results and change phase) developed in 2016 and 2017, a great many actions were taken, which will take concrete form in 2018. Some examples of initiatives launched are: the "e-learning pills" dedicated to all employees on common themes such as meeting management and writing effective e-mails; the launch of the management training course structured into classrooms dedicated to the various themes emerging during the ABC course; the induction course dedicated to newly-hired graduates aged under 35, structured into 3 classroom meetings, during which the managers are actively involved, as facilitators and first owners of the development of their co-workers.
"The power of water" is an important project for A2A employees operating in hydroelectric generation, aimed at maintaining know-how through the optimisation of the knowledge and competences of each member. Through a series of interviews with managers, it was possible to redefine the tasks and responsibilities required of each role and each employee was called to self-assess their own competences. At the end of this phase and for the whole of 2018, on the basis of the results and evidence that has emerged, a diversified plan of action has been launched, which allows the colleagues involved to improve their professionalism through training, flanking in the field and experience in different activities.
As part of the project to review and model Group talent, a pilot phase has been launched for the Networks and Heat BU, with the aim of investigating the method used to construct transversal development paths within specific Bus, optimising on skills and professional experience. These paths aim to prepare people to hold key roles in the organisational structure. Following the experiment and on the basis of the feasibility evidence, the model will also be extended to the other Group BUs in 2018, defining specific paths for the various areas.
Through training, the A2A Group aims to stimulate and expand upon its employees' professional skills. In 2017, a total of 212,956 hours of training were delivered, for an average of 18.7 hours per person, up 11.3% on 2016. The significant increase mainly involves middle management and managers and is connected with the managerial development project and the increase of participants in language training. 92% of Group employees received training during the year: the percentage has grown by approximately 17 percentage points in the three years.
Differently to previous years, the investment made in training (approximately 3 million euros), includes the costs incurred by other Group companies. In 2017, 29% of training costs were covered by interprofessional funds.
Some of the main training courses launched in 2017:
Letter to stakeholders
technical skills, explore sector evolutions, reference trends and the customer centric approach;
• "SicurA2A" masters: security management course aimed at security professionals within the Group, so as to protect the companies from risks threatening the security of company property and people, as well as intangible assets (data);
• Environment masters for Sales Staff: as part of the project "Retail Sales Skills Value Added" project aiming to develop and redefine the mission of the commercial structure and increase the customer focus, a training course has been designed aiming to strengthen environmental knowledge.
The Master, which is open to the 23 employees operating in the Sales area of the companies of the Environment BU, is structured into 6 training sessions for a total of approximately 330 hours of training;
• "Contract management in A2A" course: aimed at explaining the "expenditure cycle" process to all interlocutors involved, so as to enhance efficiency. Launched in 2017, it will conclude in the early months of 2018 and envisages the involvement of approximately 1,150 employees throughout the territory, for a total of approximately 2,300 hours of training;
• "Category Leader": training on category management and strategic sourcing envisaged within the "Polaris" project. This course, dedicated to a first group of buyers and managers from the Purchases area, aimed to create a group of category leaders dedicated to the development of purchasing strategies for goods transversal to the various BUs. The project involved 27 employees, for a total of approximately 1,000 hours of training;
• "Hunting risk": a "live" route in the workplaces of the A2A Group with the aim of identifying potential risks and dangers, creating a greater awareness and responsibility in the employee with respect to the risks connected with his duties.
1 The A2A Group and its Business
Methodological Note
2 Governance
Model
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital 6 Manufacturing
capital 7 Natural
Responsible
capital
management of human capital Health and safety at work
Internal communication and listening Welfare and diversity Remuneration
Intellectual capital
10 Relational capital
9
Independent Auditor's Report
As has now been consolidated practice for several years, in 2017 too, a team building event was organised for certain employees of the A2A Group. The event focussed on a social matter: the "Together to Conserve" Project aiming to help towards the restructuring of Cascina Nascosta di Parco Sempione (Milan), managed by Legambiente. With the help of the association volunteers, the 38 employees of the legal area carried out carpentry works and painting both inside and outside the structure.
For the Group, implementing listening initiatives, both formal and informal, on all levels with various tools and methods, is essential to understanding the needs of employees and to launching projects that can create shared value. In 2017, the communication campaigns of the most important Group projects continued, through news, magazine articles, videos in shared spaces, leaflets, dedicated blogs, questionnaires, live meetings and webinars. Below are the most important activities.
The initiative that enables the CEO to meet and get to know the employees of A2A, finding out more about projects currently in progress and sharing with them the Group themes and strategies continued in 2017; the CEO met with colleagues of the operational plant and waste-toenergy plant of Brescia, the sites of Primaticcio, Zama and Ricevitrice Nord di Milano, the wasteto-energy plant of Acerra and the plant of Monfalcone.
April saw the launch of the welfare listening project in A2A, aiming to assess current welfare services and express the needs so as to develop a tailor-made plan. The absolute majority of respondents was fairly satisfied with the current welfare services offered, of which the main benefits expected are connected with the conciliation of private life and work and the provision of services relating to medical costs and children's education. In all, there is very high interest ("very" or "fairly" interested was reported by approximately 80% of the sample) in the activation of an on-line area in which to share information.
The Mistral project started in July, the new A2A Group Operative Excellence programme that, with the collaboration of all employees, will enable an improvement in A2A's day-to-day activities and the company processes. A great deal of internal communication activities to disseminate this throughout the Group: specific video interviews (for the intranet and company walls), dedicated community on yammer, leaflets, storytelling and satisfaction surveys. Moreover, to facilitate the exchange of information and knowledge about the project, breakfast meetings were organised at the Milan Mistral Factory, dedicated to Group management.
The project works on the redesigning of the main Group processes, applying agile methodology and exploiting the levers of innovation and digitisation. The more than 250 colleagues involved are accompanied along a route that involves classroom and field training, an alignment of the strategic vision and operative objectives and a sharing of best practices with companies and experts both on a national and international level.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Financial capital 6
5
Manufacturing capital
7 Natural capital
management of human capital Health and safety at work
Employees development Internal communication and listening Welfare and
diversity Remuneration 9
Intellectual capital
10 Relational capital
Independent Auditor's Report
GRI Content Index
In July, A2A Energia launched the "Digital Champion" project, an initiative aimed at launching interfunctional working tables involved in making relations and interactions with customers ever more digital and effective. Participants included a selected team of 12 resources who showed the best quality, investigation and motivation in the route.
Of the more than 300 ideas put forward, 4 were selected as having the greatest benefit for the company and quickest to make feasible.
The redesign of the digital experience of customers using the chat service is already at an advanced stage: the team has found solutions that can significantly increase the number of chats handled, response times and customer satisfaction.
The Group believes in optimising diversity by identifying and overcoming all stereotypes linked to gender, age, disability, ethnic origin, religious beliefs and sexual orientation. A2A ensures working rights for people with disabilities, as required by current legislation. 506 persons with disabilities were employed by the Group in 2017, of whom 24% women.
Also as regards the work-life balance, the Group meets the needs of employees, in 2017 granting 324 part-time solutions (3% of all employees), of whom 88% are women. A total of 335 parental leaves have been agreed, 33% more than 2016. 91% of the people granted parental leave in 2017 returned to work in the same year.
The offer in terms of company welfare comprises numerous services offered to employees:
| A2A SOCIAL POLICIES | |
|---|---|
| Work-life balance services | Mobility Services: again in 2017, beneficial tariffs were applied for the purchase by employees of subscriptions with public local transport services; 974 subscriptions were taken out. Moreover, thanks to the agreement reached by A2A with the company circles of Craem Milano, Cral ASm Bergamo, Crasm, Fidas and the vehicle manufacturer Nissan, for all employees so requesting, a 100% electric car is available on a long-term rental, paying a special-rate monthly charge, as well as a free card with unlimited top-ups for 12 months, to be used at the Group's e-moving circuit stations. |
| Smart Working: the smartWorking project has continued, an innovative working method that involves, for one day a week, working from home or from a place other than the office, using the company's equipment to perform work activities. 2 surveys have been run to assess the quality and quantity impact of the initiative on 3 different targets: the smart workers, their colleagues and their managers. The favourable opinion expressed on the initiative by all targets and the positive results highlighted have strengthened the company's desire to work on a future extension of the project. |
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| Company Daycare at the Lamarmora office in Brescia: in 2017, 22 children of employees were registered. |
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| Health and well-being services | Social-Psychological Assistance Services: present in 14 sites of the A2A Group. In 2017, the service involved 3,037 employees. In 2017, the service was also assessed. In actual fact, AMSA employees were asked to fill out a short satisfaction questionnaire, with the possibility of making suggestions for its further improvement. The numerous questionnaires collected to date suggest an extremely high level of satisfaction. |
A2A guarantees that new graduates will be paid the minimum wage established by the applicable National Collective Employment Agreement for the category into which they fall. For qualified, experienced figures, remuneration is assured in line with market standards and internal remuneration practices, so as to guarantee both a suitable level of external competitiveness and internal fairness. In defining the type of contract and salary, A2A complies scrupulously with Italian legislation, which excludes any distinction of gender in remuneration. As in previous years, the differences in average remuneration within the different qualifications are minor. The differences with respect to 2016 are due to the expansion of the scope of companies consolidated in the 2017 Integrated Report.
| CATEGORY | 2015 MEN/WOMEN |
2016 MEN/WOMEN |
2017 MEN/WOMEN |
|---|---|---|---|
| Managers | 101.0% | 102.3% | 103.7% |
| Supervisors | 97.0% | 95.7% | 96.0% |
| White-collar workers | 89.1% | 89.6% | 89.4% |
| Blue-collar workers | 91.1% | 92.7% | 95.3% |
The Group's remuneration policy is mainly conceived to acknowledge and optimise the commitment, competences and behaviour of employees and to guarantee the correct remuneration positioning of people in connection with their duties.
For all employees, remuneration is structured into fixed and variable monetary components and provides for a package of benefits in support of income or similar such additions (medical and social security insurance, projects and initiatives for employees and their families, promotions and benefits of various types). The variable monetary component is based on systems of a direct connection between company performance and individual performance ("Management by Objectives") or on discretionary mechanisms for the recognition of working performance and conduct in terms of "one-off" bonuses. In 2017, in line with the objectives of the A2A Group Business Plan, extraordinary incentive plans continued for the sale of energy efficiency services and incentive plans were launched in line with the objectives of optimising smart city technologies.
In 2017, new tools were also tested for rewarding the participation of certain employees in extraordinary projects, using non-monetary awards and prizes, such as, for example, vouchers to be spent on-line to purchase everyday goods, chosen directly by the employee.
The variable remuneration system is also supplemented by a collective incentive tool (a "Results Bonus"), which is based on Group productivity and profitability goals, aimed at guaranteeing the involvement of all staff, including those not assigned MbOs, in company performance. The phase of investigation and comparison of ideas also continued, to allow employees meeting the income limits envisaged by current legislation, to choose, as from 2018, whether to convert a part of the "2017 results bonus" into services.
To involve employees more closely in the Group's objectives and increase their participation in the achievement of company results, the MbO system has been further extended to include more and more people, in 2017 reaching around 100% of managers, 28% of middle managers and 2% of employees. More specifically, a significant increase is noted with respect to 2016 for the population of middle managers, also in view of the extension of the scope of companies considered.
Finally, in order to facilitate the implementation of the Sustainability Plan initiatives defined by the A2A Group, a structured model of sustainability objectives has been integrated into the management incentive systems, which envisaged the inclusion of at least one sustainability objective into all 2017 management MbOs (excluding LGH Group and new consolidated companies managers).
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6
Manufacturing capital 7
Natural capital
management of human capital Health and safety at work Employees development Internal communication and listening Welfare and diversity Remuneration
9
capital 10 Relational
Independent Auditor's Report
capital
INPUTS
| MATERIAL ASPECTS | DESCRIPTION | RISK FACTOR FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| TECHNOLOGICAL INNOVATION AND SMART CITIES |
Optimisation of the Group competences and know-how through research and development activities that stimulate a continuous evolution of services and infrastructures, contributing towards the development and creation of the Smart City of the future, which integrates all energy, environment, water, heat, networks and optic fibre services in a single centre. |
Failure to achieve the goals set in the Sustainability Plan. Failure to identify potential business opportunities deriving from research, development and innovation activities. Failure to protect intellectual property. |
Support to research and innovation initiatives linked to the development of Smart Cities, through cooperation with Universities and excellent networks. Involvement of the community and entrepreneurial fabric in research and innovation projects involving production processes. Identification of business opportunities linked to the matter of clean technologies and the development of new solutions in the matter. Continuous monitoring of intellectual property. |
Start-up of projects on: - integration and connectivity of the distribution network; - development of the circular economy; - new application of technologies (Internet of Things); Promotion of the e-moving project. Development of internal simplification projects. |
PEOPLE INNOVATION - Innovation SMARTNESS IN NETWORKS AND SERVICES - Smart city - Smart grid |
In 2017, A2A activities continued for the search for new smart solutions as a qualifying tool in the development of a "smarter" product/service.
New projects are currently being studied to identify any integrated planning opportunities between gas, district heating and electricity carriers, in order to optimise the mutual sizing of infrastructures, reducing energy peaks in production or distribution.
The EU "MAGNITUDE" project comes under the scope of the European Commission "Horizon 2020" programme for research and innovation. In October 2017, A2A Calore & Servizi, together with other 15 partners, launched the "Magnitude" project for the study of possible advantages offered by the integration of various different energy carriers, the relative business mechanisms and the tools for coordinating the flexibility of the European electricity system, strengthening synergies between electricity, heating/ cooling systems and gas.
For Italy one "case study" will be the Canavese plant of A2A Calore & Servizi, in which various different energy systems already today contribute towards assuring a greater efficiency in heat production, through cogeneration technologies, geothermal heat pumps, heat storage and plants under construction such as: an electrode boiler and a system for recovering heat from low temperature engine waste.
The district heating system of Brescia has been chosen as a demonstration site of the EU "TEMPO" project (TEMPerature Optimization for Low Temperature District Heating across Europe). The aim is to lower the network operating temperatures with the following advantages:
• reduction in network heat losses (effectively increasing the efficiency of the transmission and distribution system);
• extension of the useful life of the system (at high temperatures, the pipes are most stressed); • possibility of receiving recovery heat from low temperature sources (e.g. purification plants, waste heat from industrial processes).
The S.U.N. project (Smart Utility Network) envisages the implementation of a network of sensors and control units that generate synergy between the supplies of the Networks and Heat Business Unit (distribution of electricity, gas, water and heat) with the aim of optimising the resources through the sharing of the network and platforms. Through the S.U.N. project, all the connectivity needs will emerge of distribution and the most appropriate solutions identified to connect the points through fibre, power lines/wireless broadband technology or other wireless networks (LoRa or 169MHz WM-Bus). This will enable the integrated, BU centralised management of signals, alarms and anomalies on the network.
The projects currently launched to optimise the network envisage the use and installation of sensors (on the water network) for the
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Other projects envisage the introduction of thermostats for the detection of environmental parameters in the cabinet, detectors for the opening of closures and an "electronic nose" to detect the decree of odorising substances released into the network.
detection of water parameters at critical times of the day and for the sampling, control of parameters necessary to the water balance and
Moreover, the installation of anti break-in sensors will allow for a control of accesses to plants for which authentication will be required, thereby guaranteeing greater security. Through the use of magnetic or infrared commercial sensors, the possibility of monitoring the more isolated cabinets, will be
detecting network pressure.
extended.
Natural capital 8 Human capital
Manufacturing capital 7
9
Grid projects Research and development
for the circular economy A2A for the smart cities of tomorrow
spillover
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Content
In collaboration with Brescia University (UNIBS), the Group has pursued multiple projects directly involving the A2A Ambiente plants, such as:
at guaranteeing suitable technical and environmental performance, at the same time also promoting the recovery products market;
A2A Ambiente is a member of the Industrial Advisory Board of the European DEMETO project (financing of 10 million euros against the Horizon 2020 fund) aimed at succeeding in the construction of a pilot plant on a semi-industrial scale for the recovery of the basic constituents of PET production through the treatment of coloured PET and polyester, through the depolymerisation by basic hydrolysis with microwave heating. The innovative nature of the project lies precisely in the exploitation of microwaves as a catalyst of the depolymerisation reaction. The process has been extensively tested on a laboratory scale and prototype scale, whilst the pilot plant will be finalised mid-2018 and completed by end 2019, with all auxiliary sections, enabling the definition of performance and detailed characteristics of the future development on an industrial scale.
Differently to transparent PET, coloured PET is difficult to recycle in any other way and is widely used both in the packaging and textile industries. At present, worldwide more than 70% PET continues to be disposed of by means of waste-to-energy, landfill or dispersion into the environment. In terms of the circular economy, the project is particularly interesting because the materials recovered (terephthalate acid and glycol) have an extremely high economic and environmental value, because they replace the same materials produced in a refinery from non-renewable sources.
Through its company A2A Smart City, A2A seeks to lead the offer of smart, digital services for the city of the future, through innovative IoT (Internet of Things) digital technologies to be applied to the management of dedicated territorial services, such as: security, energy savings, environmental sustainability, mobility, etc.
The A2A Smart City offer of smart services is expanded on constantly: from smart water for the smart management of water meters and losses on the network through to the manholes reporting that they are full, to smart mobility for smart parking and traffic lights, smart building for buildings the dialogue in the network, enabling optimal consumption management, smart green to manage crops, farms and greenhouses, smart roads, a tool for the infrastructural management
of the road network and an advanced concept of smart security.
In addition to the smart city services run for cities, A2A Smart City has also developed proposed IoT technologies applied to private areas, to offer services such as outdoor/indoor environmental monitoring, smart heating, monitoring and control of electricity loads and anti break-in systems. For these services, A2A Smart City has used its know-how in the field of IoT telecommunications and, in particular, the LoRa network, optimised for these types of applications. The data collected from these devices relative to one's own home/condominium can be controlled by users in real time, who can therefore interact with them anywhere.
The installation of a traffic control and road safety video camera is often an expensive operation. This is why A2A Smart City has developed a stand-alone video camera that can be easily carried and positioned on a pole or other supports, with wireless transmission of the video flows (wi-fi or 4G), a battery that can guarantee autonomous function for 16 hours and a specific photovoltaic panel to charge it. Video analysis algorithms can then be installed on the video camera to control traffic or perform other types of monitoring, depending on the use required.
Video analysis tools also drastically simplify video surveillance. These applications can, in fact, automatically detect all types
In June 2017, with the acquisition of Patavina Technologies, a spin-off of Padua University, A2A Smart City brought competences into the Group and a software platform enabling the LoRaWAN (Long Range Wide Area Network) protocol to enable IoT.
of movements considered as suspicious (presence of people or vehicles within a specific area, crossing of a predefined line, etc.), notifying the operator of this. Video analysis can be applied both to optical video cameras and thermal ones.
A2A Smart City supports security in museums, installing protection systems that can guarantee an extremely high level of reliability. The result is a system that can detect any attempt to tamper with works, by means of movement, pressure, laser curtain sensors and other technologies, guaranteeing the use of systems that are not invasive, so as to avoid affecting the aesthetic value of the works to be monitored.
Letter to stakeholders Methodological
Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6
Manufacturing capital 7
Natural capital
8 Human capital
9 Intellectual capital Smart Grid projects
Research and development for the circular economy
A2A for the smart cities of tomorrow Knowledge
spillover
10 Relational capital
Independent Auditor's Report
In 2017, A2A and Qwant, the search engine created in France in 2013 and which has just reached Italy, stipulated a partnership agreement to make the wealth of information available from the qualifying platform of A2A Smart City available to citizens.
Thanks to this agreement, Qwant users can consult various different items of useful information detected by the numerous sensors installed by and to be installed by A2A Smart City in the territories of Milan, Brescia, Bergamo, Cremona and Pavia, and conveyed by means of the innovative technology LoRaWan. Indications as to how the data on air quality and transmission can be found by users, simply by querying Qwant, which, in remaining true to its mission, will guarantee the protection of personal privacy and sensitive data.
This partnership with Qwant will allow A2A to offer its territories new services and new ways of exploiting the cities, bringing the Group even closer to citizens on a daily basis.
Linea Com, a company of the LGH Group, has been operating for some time in technological projects in support of agriculture. At the Astino botanical vegetable garden (Bg), Linea Com has installed weather data and fine dust monitoring sensors. The data collected allows anyone assuring plant growth and development to prevent the proliferation of disease, constantly verify conditions and understand the benefits of a green area on air quality and, therefore on the life of local citizens.
With five councillors and 14 partners, the City Council of Brescia has implemented a project, financed by the Council Chair, called "Oltre la strada" to re-launch the district of Porta Milano through smart services, increasing the social aspects, culture and assuring better quality housing.
A2A Smart City will be developing the optic fibre network, the wi-fi network and the RF network, with the aim of restoring value to the district, allowing residents to benefit from a series of useful, innovative services, subsequently able to be exported to existing and new-creation urban realities. More specifically, the installation is envisaged of a set of sensors designed to collect data: from environmental data to mobility and safety data.
Linea Com has also developed an innovative technological solution for monitoring the microclimatic and physical-pathological conditions of vineyards. The "Smart Vineyards" project was developed at the wine-growing company VitiOviTec of Fregona (Tv); it consists of the positioning of a weather station, two air humidity and temperature sensors and two volumetric humidity sensors in the soil. This technology can reduce the number of treatments to be administered to the vineyard, consequently increasing the quality of the grapes.
After a European tender, A2A Smart City has launched development of an infrastructure for the supply of connectivity services to schools for which the municipality of Brescia is competent, in line with the Urban Digital Agenda developed by the city. In total, 106 schools have been reached by the new optic fibre connectivity infrastructure and related services. The initiative seeks to eliminate the isolation of the schools (reducing the digital divide) and to improve both safety and security, as well as living conditions and teaching quality in the schools.
The project will continue with the development of a prototype "smart school" in which various technologies will be used, to make building management more efficient, improve services and the well-being of those using it (teachers, staff, students) and increase the capacity to use the technological infrastructure for teaching purposes. The interventions envisaged include total cover with wi-fi both inside and outside the school; the installation of safety detection systems (emergency lighting, anti break-in systems and video cameras), teaching devices and detectors of environmental parameters and energy efficiency (consumption).
In the field of electric mobility, A2A is already a case of excellent, in Milan managing the most capillary network in an urban environment in Italy, the most diversified in terms of uptakes and powers available, with more than 500 charging points able to supply up to 22 kW in alternating current and the main urban public charging network in Italy offered by quick charging stations at 50 kW in direct current, comprising 13 fast chargers installed as part of a partnership with Nissan and Milan Municipality.
To date, e-moving service customers in not only Milan, but also Brescia and the province of Sondrio, number approximately 600, of whom approximately 400 are private and the remainder are company vehicles flanked by the main electric car-sharing solutions operative in Lombardy.
In 2017, more than 100 thousand charges were performed by means of the A2A network, which disbursed in total more than 1,000 MWh, or 6 million km travelled at zero emissions6.
Moreover, only a year after the installation of the 13 fast charging stations - installed for the 2016 Champions League final - 10 thousand charges have been recorded, with a withdrawal of 140 MWh, equal to 850 thousand km travelled at zero emissions. All the electricity supplied by the charging points is certified 100% renewable energy supplied by A2A Energia, thereby making a further contribution towards the elimination of pollution.
Starting October 2017, a new consumption tariff has been launched for Business customers (companies offering the transport of goods and people, deliveries, vehicle hire with or without drivers, taxi services, car sharing and similar, trade of vehicles and light vehicles), recording the adhesion of approximately 100 subjects.
In December 2017, A2A Energia launched an integrated electric mobility solution for its customers, which envisages the hire of an electric car at special conditions, the installation of a domestic charging point, a card giving free access for one year to public charging stations and a contract for the supply of electricity produced 100% from renewable sources.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
Sustainability strategy 4
3
Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
8 Human capital
Grid projects Research and development for the circular economy
Knowledge spillover
10 Relational capital
Independent Auditor's Report
GRI Content Index
The value of a business depends not only on its capacity to innovate in the quality of services offered, but also on its capacity to generate and spread awareness internally of new distinctive competences, better management and organisational processes.
Below are some organisational projects implemented by A2A in 2017, which aim to improve the Group's internal processes.
A new governance tool has been designed and developed, called the "Organisational Compass"; this is a sort of "pact" between customers (business) and internal suppliers (staff), able to regulate the relationship and modulate their mutual expectations, in a logic of continuous collaboration. The Compass defines, for each of the 24 staff processes identified, the mission, nature and responsibilities assigned to customers and
internal suppliers. For each area of activities, qualitativequantitative measurement parameters have also been identified and service levels fixed that, upon completion of the current test phase, will be made public, becoming an integral part of this agreement, with a spirit of continuous improvement and also in line with future additional evolutions of the tool to be carried out in 2018 and which are currently being studied.
As part of the ABC programme, the Steering Committee (CODIR) has examined the main matters that emerged during the listening and feedback phases, so as to deal with these and assign monitoring to certain working parties ("Steering Cabinets") established by said members of the CODIR. One of the matters identified regards the need to simplify business processes and the related procedures, at the same time improving their
In the last few months of 2017, the Steering Cabinet on the simplification of procedures launched their own activities, in particular: • the first 3 processes for which revision will be started, have been identified; • the connection between the procedural body and processes will be made public, so as to provide the process owners and all organisational structures with evidence of the competent procedures; • methods will be identified and implemented by which to improve use of the documents in terms of structure, layout and contents.
In 2017, an application platform aimed at the understanding, communication and governance of corporate processes was designed and developed. More specifically, the platform will enable a sharing of the architecture of company processes (what they are called, what they consist of and how they are inter-related); the strengthening of its governance (who the owners and organisational structures involved are); increasing people's awareness of their role within the processes; progressively enriching the information heritage connected with business processes in a participatory manner; sharing process and organisational changes in a more streamlined, modern fashion and offering a virtual space where everyone can share ideas and points for improvement.
The two years 2016-17 of the Lean Programme with approximately 40 sites open in both staff areas and the 4 business units, have allowed us to develop important change management initiatives, generate economic savings and assure a series of qualitative advantages, such as resource engagement or the transformation of the way of working. The programme has now reached a point of maturity that has allowed it, already in 2017, to play a key role in making the changes concrete on an operative level, working synergically with the other transformation programmes. Synergy that has been strengthened by the additional expansion phase launched end 2017, with new coordination mechanisms, new ways of activating sites and a renewed follow-up method. More specifically, the Lean Paths have been activated: clusters of activities that are transversal to all BUs (e.g. logistics) where Lean has shown its potential and can be replicated with a greater level of standardisation and more quickly. The sites have enabled the active involvement and training of approximately 300 people, more operative resources with respect to other projects active in the Group, less frequently impacted by transformation programmes.
In order to implement the security processes and infrastructures within the Group, an organisational unit has been created dedicated to cybersecurity. The activities carried out mainly consist of: • defining the policies, processes and standards of IT security to be applied within the Group and the security measures to be adopted during the design and supply
of the ICT services (Security Operation Centre for the analysis and identification of security threats); • assessing IT risks, identifying and
implementing the suitable mitigating actions (Vulnerability Assessment and Penetration Tests on critical applications and infrastructures);
• defining the governance model and service access profiles in compliance with corporate policies and processes;
In 2017, an incident management and safety monitoring service was prepared. There is no evidence of information on customer data and no claims have been received from private individuals or institutions regarding any violations.
Intellectual capital Smart Grid projects Research and development for the circular economy
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
Manufacturing capital 7 Natural capital 8 Human capital 9
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
A2A for the smart cities of tomorrow
Knowledge spillover
10 Relational capital
Independent Auditor's Report
INPUTS
| MATERIAL ISSUES | DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| RESPONSIBILITY, SAFETY, QUALITY AND INNOVATION IN THE PROVISION OF SERVICES |
Safety and reliability in the delivery of services and development of emergency management plans, aiming to prevent and/or mitigate potential external factors that could compromise the continuity of services; promotion of high quality services and capacity to meet customer expectations, through correct communication and marketing practices (including personal data protection) and by means of new digital services. |
Possible interruptions to public services. Failure and/ or incorrect management of customer/user relations. Poor quality of services provided. Possibility of unfair commercial practices, implemented directly by the Group or by third parties. Failure to protect customers' personal data. |
Development of specific monitoring of service provision processes. Adoption of specific update plans and improvements to the information systems in support of customer relations (CRM). Adoption of contractual instruments and regular controls aimed at guaranteeing the correctness of commercial practices. Observance of industry standards and continuous development of services thanks to specific customer satisfaction initiatives. Involvement and comparison of notes with consumer associations, aimed at preventing and reporting fraud and damages to consumers. Development and continuous update of information systems and archiving of sensitive data, through the adoption of defence mechanism and the protection of ICT infrastructures. |
Promotion of green energy commercial offers and services with added value to sensitise citizens to energy saving. New chatbot service for the A2A Energia call centre. Customer satisfaction surveys carried out for both customers of energy sales and citizens provided with the municipal hygiene service. Toll-free number for fraud prevention activated. 82 conciliation procedures started (see page 142 - Community). |
SMARTNESS IN NETWORKS AND SERVICES - Quality - Digital |
In 2017, the total number of customers of gas and electricity services remained basically in line with last year's results, as shown in the tables on pages 31-32 of the Supplement, apart from the portions for which Linea Più is competent, included in the 2017 figure, which is approximately 80 thousand electricity customers and 214 thousand gas customers.
As compared with last year, an increase has been recorded in the large gas and electricity customers segment, respectively of 10% and 35% and a decline in condominium customers for the gas service.
As compared with 2016, there has been a reduction in the protected market in the favour of the free market, for both commodities. The change is due to the commercial actions taken with a view to promoting free market offers, also in relation to the expected variations by the ARERA for the protected market.
and 97% of volumes of electricity sold).
Despite the Commercial BU effort to extend its business in the whole Italian territory, in 2017 major sales are still in Lombardy (as shown in the charts above), due to the increased share in the Large Customers of A2A Energia segment and the inclusion of the performance of Linea Più; indeed, Linea Più volumes sold in both commodities are mainly in this region (respectively 96% of volumes of gas sold
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital 8
Human capital 9
capital 10
Intellectual
with Customers
Relations with the Community Relations with Suppliers
Independent Auditor's Report
GRI Content Index
The campaigns run during the the year, aimed to promote and support commercial initiatives seeking to sell new products and services for energy efficiency (VAS), at the same time pursuing the proposed gas and electricity commodity offers, including through the use of 100% renewable green energy. 0 10
In 2017, 1,273 GWh of green energy was sold, thereby making for an increase for A2A Energia of 36% on 2016 and a contribution made by Linea Più of 228 GWh. The offers that promote green energy are identified by the "ENERGIA A2A Rinnovabile 100%®" brand, which ensures respect for the environment.
As confirmation of the company's commitment to matters of sustainability, the aim for 2018 will be to propose a portfolio of offers for the residential segment, comprising entirely green energy products.
The 100% renewable green energy offers proposed in 2017 will include Bonusa2a, Sicura2a, Prezzo Chiaro A2A and Prezzo Sicuro Verde, the latter in continuity with previous years.
More specifically, for the definition of the Prezzo Chiaro A2A and Bonusa2a offers, the needs and preferences expressed by customers when listening and during discussions organised by the company, were duly considered.
Within the idea generation project, Futura2a, which in 2016 involved the younger members of the A2A Group, the suggestions was made to propose an offer dedicated to senior customers, which should be simple and clear, with favourable economic components and dedicated services. Thus the Sicura2a offer was born, reserved to domestic users aged over 65, which offers: - free injury insurance cover; - a dedicated toll-free number to speak to A2A Energia operators, with privileged access; - electricity produced 100% from renewable sources
In line with the new commercial strategy that also identifies it as a value added service consultant, in a partnership with market leaders, in 2017 A2A Energia has proposed new products and services to sensitise customers towards low energy consumption sustainable solutions. Among these:
LED kit, offered to residential customers through all available sales channels, with a prize-giving operation "Win supply vouchers with the LED KIT", promoting its more widespread use. As from March 2017, it has also been offered to small business customers through the agency channel. Moreover, an APP has been developed dedicated to the sales channels (agencies, KAN and direct sales) for the proposal of LED relamping offers aimed at ensuring the massive replacement of traditional bulbs in offices and businesses (8 relamping projects sold);
Caldaia2a, an offer that envisages the sale of energy efficient heaters for domestic customers on the free market, integrated into a large package of services (free site inspection, installation and testing, 5-year warranty and services thanks to a select network of technicians). During the year, 195 heaters were sold and the sales process optimised, also according to customer feedback with contact made through dedicated surveys. The offer has also been offered by Linea Più with the same methods (CaldaiaPiù);
↗ For more information: http://clima2a.a2aenergia.eu/
offer activated by Linea Più that includes the possibility of installing, at one's own home and with a customised project, a high technical quality plant, guaranteeing the customer not only after-sales assistance but also complete management of administrative practices towards all entities proposed;
↗ For more information: http://e-moving.a2aenergia.eu
stakeholders Methodological
Letter to
Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
8 Human capital
9
10
Intellectual capital
with Customers Relations with
the Community Relations with Suppliers
Independent Auditor's Report
2017 saw the continuation of the commercial partnership between A2A Energia and A2A Calore & Servizi to help promote and sell services involving the adjustment, transformation, efficiencyenhancing, requalification and management of heat systems and heat allocation systems in Lombardy.
More specifically, with the campaign "We have 3 plans for your condominium", solutions have been proposed to administrators and condominiums, such as:
the transformation of diesel-powered thermal units to methane plants, which are more efficient and less polluting;
the requalification of methane powered thermal plants with more modern, efficient units; - the installation of video surveillance systems in the common areas;
the allocation and recording of heat by means of thermostat valves, read using wireless systems that can limit the temperature in premises that are not as used and limit consumptions.
↗ For more information: http://condomini.a2aenergia.eu/
Linea Più, in its reference territory and in collaboration with Linea Reti e Impianti, has promoted and implemented energy efficiency projects with energy management services for various welfare structures (e.g. the agreement with ARSAC Cremona) and the development of projects/plants aimed at ensuring energy savings (consultancy and analysis of abnormal consumption for large, energivorous customers).
A2A Energia satisfies all its customers' needs, offering a complete, multi-channel listening service. In addition to traditional call centre and branch services, customers also have new digital channels available, namely:
requests form customers to receive information or stipulate a new contract. In 2017, optimisation and continuous
improvement of the digital experience of the A2A Energia website and Customer Area, continued. More specifically, a project was launched for the complete redesign and simplification of the user experience in stipulating contracts for the supply of gas and electricity, so as to allow customers to complete the process of adhering to an offer as quickly as possible in just a few simple steps. The customer can also upload payment receipts and plans for payments by instalment signed following agreements reached with A2A Energia, directly to the Customer Area. Starting February 2017, when a request is made for a sales contract, the customer can choose whether to receive contract documentation by e-mail, thereby dematerialising the sending of the sales contract, which will otherwise be sent in the traditional manner.
As from January 2017, moreover, A2A Energia has made available a portal of services dedicated to condominium administrators in the Customer Area, within which, in just a few clicks, the administrator can consult the supply data of the condominiums he administers, download and pay all gas and electricity bills and activate numerous other services. The portal has proved very popular: since it was first launched, more than 200 administrators have started using it to great satisfaction, saving time.
Customer satisfaction and attention to customer needs are the drivers behind all the activities seeking to improve and expand upon the functions of the A2A Energia website and
stakeholders Methodological Note CHATBOT FOR THE A2A
1 The A2A Group and its Business Model
Letter to
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Manufacturing capital 7 Natural capital 8 Human capital 9 Intellectual capital 10 Relational capital Relations with Customers Relations with the Community Relations with Suppliers
5 Financial capital 6
customer area, on which there has been an 14% increase in registrations with respect to last year.
system.
The chatbot is an item of software that aims to interact with people in a conversation, automatically providing structured, sensible answers that are pertinent to the questions asked of it. Under the scope of its call centre, A2A Energia has decided to introduce this new communication channel with its customers. In 2017, a trial was organised in this sense, which will be concluded in the early months of 2018 and will lead to the implementation of the Group's first chatbot
ENERGIA CALL CENTRE
In July and August, A2A Energia carried out a survey investigating the level of satisfaction with on-line services offered via its website and the private customer area. The survey was carried out over the internet and proposed to 4,462 domestic customers and 263 business customers registered, revealing that: almost 90% of those interviewed had used the on-line services in the last six months (with respect to 69% in 2016); of those registered for more than a year (80%), more than half (62%) had noticed changes and considered them to be a good thing (7.2 out of a scale of 1-10). The website compared well with that of other energy operators and, of the services that may be interesting to improve or develop, customers mentioned real time monitoring of consumption, searching for the most appropriate tariff and on-line chat services with an operator for requests for information.
Linea Più has also updated its web channel, releasing a new website in November 2017, with a simpler, clearer, more user-friendly interface for customers (both current and potential), including commercial offers divided up according to user segment in the forefront and optimising searches and adhesions on-line. There is also the possibility of viewing wait times at customer branches on the website, distinguishing between the service supplied.
For supplies of electricity and gas, in 2017, A2A Energia issued around 11.7 million bills, of which approximately 16% in electronic format.
Independent Auditor's Report GRI Content Index
In 2017, all-digital customer communication processes were once again promoted:
the Bollett@mail service (in addition to the Bolletta Express service offered by Linea Più, operative since September 2017), which has now reached 332 thousand adhesions, up approximately 15% on last year;
the Bollet@free service, which enables customers on the free market to browse and consult the bill from any device (PC, tablet and smartphone), at any time. The service is free of charge and available by accessing the website customer area and/or for those who have already activated the Bollett@mail service;
use of certified e-mail for business customers, thanks to which a communication digitisation project has been able to be launched for payment reminders; this has optimised the time and efficiency of contact with customers. In 2017, the service generated a volume of approximately 80,200 outgoing electronic
communications, thereby eliminating the costs connected with the production/printing/posting of similar requests made as hard copies; this benefit has been transferred to the customer, with the elimination of the reminder costs generally envisaged; - pilot project Registered mail delivery with digital deposit, launched in October 2017. The new product enables addressees to download recorded deliveries over the internet. A quick, sustainable manner by which to make communication to customers more effective, giving them the chance to choose how to collect correspondence.
Customers have various different methods available by which to pay the bills: SEPA direct debit, which is still the most widespread choice for more than 58% of all payments, followed by pre-filled postal bulletins, bank transfers, Sisal and Lottomatica lottery outlets, commercial branches, credit card and some supermarkets.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| A2A Energia* | 248,638 | 289,613 | 325,580 |
| Linea Più | - | - | 6,405 |
| Total | 248,638 | 289,613 | 331,985 |
| Increase (percentage) | 9.7% | 16.5% | 14.6% |
* Since April 2017, Aspem Energia has been fully integrated into the A2A Energia computer systems. The AEN figure , therefore also includes bolett@mail activations by Aspem clients.
In 2017, the commercial branches of A2A Energia and Linea Più welcomed more than 286 thousand visitors with an average wait time of approximately 7 minutes for A2A Energia and 12 minutes for Linea Più.
In compliance with unbundling legislation, as from January 1, 2017, the commercial spaces and interfacing channels have been separated for customers on the free market and protected market. A2A Energia has therefore opened the new fittings of the Milan and Brescia branches, with the simultaneous aim of improving quality of service and customer satisfaction and experience. Again in terms of customer experience, A2A Energia has unified the queue management system in the Milan, Brescia and Bergamo offices to offer the same high level of service to all its customers. A2A Energia has chosen to be ever closer to its customers, also preparing numerous mobile contact points to explain the advantages of certain commercial offers proposed and answer all requests.
A2A is particularly committed to ensuring customers with a service based on maximum transparency and fairness and over time, also in collaboration with the Consumer Associations, it has adopted various tools by which to simplify the information supplied to customers and regulate conduct clearly: from activation of the service through to joint settlement, in 2009, to the stipulation of the institute agreement of the Observatory on unfair commercial practices with the application of the Code of Commercial Conduct, the activation of the toll-free "antifraud" number and the Self-regulation protocol between 2011 and 2013. These actions have always gone hand-in-hand with constant training of sales staff and service staff in direct contact with customers.
Under the scope of consumer protection, the tollfree "anti-fraud" number received 2,841 calls. Of these, 1,121 relate to unfair commercial practices implemented by other operators (of which 1,090 unknown companies). In a parallel fashion, A2A Energia recorded a further 30 notifications
of unfair commercial practice through its own contact channels.
In 2017, the Group did not receive any sanctions for situations of non-conformity with laws or regulations relating to the supply and related services, for marketing, sponsorship and communication activities. In October, however, the Antitrust Authority (AGCM) applied a sanction for failure by A2A Energia to promptly adjust the on-line bill payment channel using credit cards to comply with the new features of the Consumer Code in force as from June 2014. The company has appealed to the Lazio regional administrative court against this fine.
August saw the conclusion of two proceedings brought by the AGCM in November 2016 against A2A Energia and Linea Più, concerning the methods used to stipulate remote contracts, with the archiving of the position of the companies following assessment that the procedures adopted were indeed correct and fulfilment of the request to remove any possible non-conformities.
Letter to stakeholders
Methodological Note 1
The A2A Group and its Business Model
2 Governance
3 Sustainability strategy 4
Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
Human capital
capital
with Customers Relations with
the Community Relations with Suppliers
Independent Auditor's Report
The Group has always been close to citizens to improve and maintain access to electricity by more disadvantaged populations through various solutions.
A2A disburses the social bonus, as per provisions of the ARERA, allowing family units in particular financial difficulties or in which one of the members suffers from severe physical difficulties, to save on the energy bill.
The physical bonus is only recognised on supplies of electricity and the amount varies according to the meter power and consumption bracket established by the ASL (local health authority).
70% of A2A Energia customers entitled resides in the lower bracket of 173 euros/year, whilst the remaining 30% is split up between the other 5 brackets with an average of approximately 450 euros/year.
| 2015 | 2016 | 2017 | ECONOMIC VALUE OF THE BONUS | |
|---|---|---|---|---|
| Gas bonus | 18,580 | 16,459 | 16,649 | From 31 to 207 euros per year |
| Electricity bonus | 17,023 | 16,658 | 18,532* | From 112 to 165 euros per year for family units and from 173 to 620 euros for the customers with physical difficulties |
* Of which, 1,129 physical bonuses.
A2A Energia has also continued to support the Banco dell'Energia project (see page n. 140), offering its customers the possibility of supporting the initiative, by means of recurring donations through its bill and conveying communication towards private customers, business customers and towards its suppliers.
Attention to the more vulnerable groups has also become concrete, also with other initiatives aiming to meet the needs of:
• sight-impaired customers - the bill that has been overprinted "black and Braille" for several years , to allow for easy reading by seeing and sight-impaired customers alike, has also been adjusted to the new layout of the Bill 2.0;
• foreign customers - multilingual information brochures are available in the main offices and the "Guide to reading the bill" in 7 languages: Italian, English, French, Spanish, Arabic, Chinese and Rumanian, revised with Bill 2.0; • customers with motor difficulties - at the main public branches, facilitated, priority access is available for
customers with physical difficulties, including: disabled, pregnant women and the elderly.
↗ For more information, see the Info Point section of the website www.a2aenergia.eu
A2A monitors its customers' satisfaction in order to gain awareness of the perception of its services to identify areas for intervention with view to ensuring the continuous improvement of the quality of services supplied.
The "2017 Cerved Energy Monitor" survey, which has now reached its X edition, acknowledged A2A Energia, for the sixth year running, as playing a role of excellence in its customer satisfaction levels. A2A Energia therefore confirms its positive performance, maintaining its podium position and, in particular, coming in with an absolute first in the gas business segment.
| 2015 | 2016 | 2017 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SERVICE SUPPLIED |
BUSINESS SEGMENT |
CSI | MARKET STANDARD |
POSITION* | CSI | MARKET STANDARD |
POSITION* | CSI | MARKET STANDARD |
POSITION* | |
| Domestic | 90.7 | 88.1 | 1 of 7 | 91.6 | 91.2 | 2 of 7 | 90.1 | 89.4 | 3 of 7 | ||
| Gas | VAT reg. & SME |
90.9 | 86 | 1 of 6 | 93.3 | 89.7 | 1 of 6 | 92.4 | 92 | 1 of 6 | |
| Domestic | 92.3 | 89.4 | 1 of 8 | 93 | 90.4 | 2 of 8 | 91.1 | 89.7 | 3 of 8 | ||
| Electricity | VAT reg. & SME |
89.9 | 85.5 | 2 of 10 | 92 | 87.4 | 1 of 10 | 90.7 | 89.5 | 2 of 10 |
* The position in the rankings derives from the comparison of the performance of A2A Energia with that of the main market players, apart from the macro category of "Other suppliers", which combines several operators and whose results cannot be read individually due to the number of associated interviews.
In 2017, a quantitative survey was run, in collaboration with the Doxa institute, with the aim of detecting the level of free market customer satisfaction. The survey involved a sample of customers, gathering a total of 2,906 interviews, of which 1,663 residential and 1,243 business, through telephone and web-based interviews (mixed CATI/CAWI system).
The survey recorded a good position of A2A Energia, an improvement on last year both in absolute values and with respect to the sector benchmark and confirmed the excellent satisfaction levels both amongst residential and business customers, respectively with satisfaction indexes of 73.7 and 72.8 (average score on a scale of 0-100).
A2A Energia stands out above all for the deep roots in the territory, its reliability and its attention to the environment; moreover, the Contact Centre is appreciated above all for its competence and capacity to solve queries, with the results also coming in positively in respect to the likelihood of recommending the brand to acquaintances.
Linea Più also performs an annual customer satisfaction survey. The survey carried out in 2017 involved a sample of 1,150 customers (domestic and small businesses) distributed in a weighted fashion in the territories of supply. The study revealed a good level of satisfaction, with a CSI (Customer Satisfaction Index) of 72/100 (in line with the 2016 results). The contact channels are particularly popular with customers.
As for last year, a survey was conducted on the fan page of the social network, Facebook, run by A2A Energia to verify the value contributed by the relational marketing initiatives in terms of belonging to the brand, image, experience and loyalty. The results show an increase in "longstanding" fans (31% more than six months), which showed a closer relationship with the fan page. The percentage of those who had carried out at least one activity with the fan page has gone from 28% to 45% of the sample, whilst the lack of knowledge of the fan page amongst non-fans has dropped by 10%. Appreciation of the page contents and brand is growing.
Finally, in 2017, a qualitative survey was conducted on the brand awareness of A2A Energia, in a similar fashion to that carried out at end 2016, with the aim of measuring the impact of the communication campaign and penetration of brand awareness on the territories added recently. The on-line survey involved 802 panellists, resident in the main regions of the north (excluding Lombardy), of whom 300 exposed to the national press and/or television communication campaign and 502 not exposed. The results show a brand awareness that is in line with that noted last year, remaining stable with a result of 33% (35% in 2016).
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Financial capital 6
5
Manufacturing capital 7
Natural capital 8 Human capital
9 Intellectual
capital 10
the Community Relations with Suppliers
Independent Auditor's Report
In 2017, A2A Energia received a total of almost 2 million calls to the call centre.
ARERA carries out surveys every six months on the quality of national telephone services received by end customers. Even in the first half of 2017, customers of A2A Energia confirmed the appreciation for the call centre service of the company, measured by a Customer Satisfaction Index (CSI) of 95.7% (2.5 percentage points more than the national average), similar to the last figure recorded in 2016.
Figure 50_Customer satisfaction on call centre operations
| 1st HALF 2015 |
2nd HALF 2015 |
1st HALF 2016 |
2nd HALF 2016 |
1st HALF 2017 |
|
|---|---|---|---|---|---|
| A2A Energia | 96.5% | 94.4% | 97.1% | 95.7% | 95.7% |
| Linea Più | - | - | - | 94.5% | 93.2% |
| National average | 92.5% | 89.8% | 91.0% | 92.4% | 93.2% |
| 20 |
The "after call" survey records the level of satisfaction of users with the call centre services after completing a telephone call. Also for 2017 survey results were again very positive for A2A Energia with 93.1% of customers satisfied and very satisfied. 0
In 2017 too, a survey was run to analyse the level of satisfaction with the service at the branches of Bergamo, Brescia, Milan and Varese. Approximately 97% of users gave a positive opinion approximately 1 percentage point higher than last year, which already recorded excellent results.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Positive | 92.00% | 95.90% | 96.84% |
| Negative | 8.00% | 4.10% | 3.16% |
March 31, 2017 marked the conclusion of the Chiara2a loyalty programme. Customers registered were able to redeem the points collected with the programme until April 30. Throughout the programme duration, approximately 44 thousand requests were made for prizes, above all energy vouchers and other physical rewards available from a catalogue. The programme played a key role in supporting charity initiatives such as "A meal for life" in collaboration with Cesvi in 2015 and the Banco dell'Energia in 2017, for which, in the last phase of the programme, customers registered were given the opportunity of redeeming their points to donate energy to those most in need. The initiative proved to be a great success with customers and resulted in the collection of more than 200 thousand euros.
As part of the Programme, during the last year the new initiative "La Casa dell'Efficienza" was launched, with the aim of sensitising and educating customers to optimise the energy consumption of their home in a simple, fun manner. The most virtuous participants were
↗ For more information: https://energylink.a2aenergia.eu
Letter to stakeholders
Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
Manufacturing capital 7 Natural capital 8 Human capital 9
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
rewarded for the excellent results achieved in terms of sustainable, efficient behaviour.
In autumn 2017, the competition was launched "Tu sei energia", which gave the possibility of winning a series of prizes, including an electric bicycle, promoting its use through information pills included in the gaming phase.
Again in educational terms, in December 2017, "Energylink" was launched, the new A2A Energia advantage programme defined in a synergy with Linea Più. The initiative targets free market domestic customers and all natural persons who are not A2A Energia customers. In a first phase, they were asked to register for the programme with the possibility of winning one of the exclusive catalogue prizes offered in the competition "Iscriviti e Vinci". Thereafter, from 2018 the engagement phase will start with gaming aspects and contents, aimed at stimulating virtuous customer behaviour and sensitising them to matters of energy efficiency and sustainability.
Intellectual capital 10
with Customers Relations with the Community
Relations with Suppliers
Independent Auditor's Report
The Group operates in the production, distribution and sale of heat in the cities of Milan, Sesto San Giovanni (Mi), Novate (Mi), Cassano d'Adda (Mi), Brescia, Bovezzo (Bs), Concesio (Bs) and Bergamo, through the company A2A Calore & Servizi; in the area of Varese by means of the company Varese Risorse; and in the cities of Lodi, Cremona, Crema (Cr) and Rho (Mi) by means of the company Linea Reti e Impianti. 20
This service is currently delivered to over 25,600 users (individual residential units in the case of independent heating or whole buildings in the case of centralised heating), for a total served volume of approximately 111 million cubic meters (+13% vs. 2016). The change in users is mainly connected with the inclusion of the LGH Group in the consolidation perimeter, equal to 1,031 users. 0
Another service managed by the Group companies relates to the rationalisation of energy management of properties through interventions to improve efficiency, such as the conversion to methane of thermal power stations powered by liquid fuels, heat management in condominiums and energy management for large property complexes and public administrations.
In 2017, through the specialised companies, the Group carried out 40 plant conversions for a total of 16,918 kW in installed power, respectively 8,148 kW for A2A Calore & Servizi and 8,770 kW Linea Reti e Impianti, an LGH Group company.
The "Cold Summer" project is the new frontier in district heating. After years of study, tests and further investigations, today district heating in Brescia not only supplies hot water to heat homes but can also, thanks to the technology used of absorption machines, cool them during the summer. In 2017, the "commercial phase" was launched, which in addition to the plant developed at the users selected for the pilot project (A2A office block in via Lamarmora), saw the installation of another 4
plants in the city: the Santa Giulia museum, the ATS of Viale degli Abruzzi, the council of via Marchetti and the Tosio Martinengo art gallery. Other projects have already been planned, thereby being able to confirm that the "Cold Summer" project opens a new era in the sector of climate control systems able to exploit sustainable sources and recovery that would otherwise be dispersed into the atmosphere, adding value to the quality of our cities and creating conditions for an ever "greener" energy future.
To promote the district heating service and facilitate access to information, A2A offers multiple communication channels.
The Group has equipped itself with a Quality Charter establishing the principles and criteria for the management of the district heating service, so as to guarantee customer satisfaction.
Moreover, citizens are provided with communication on the development of the district heating network in their district, through the capillary distribution of leaflets.
Additionally, with the twofold aim of informing potential customers of the environmental and safety benefits of district heating and encouraging network connections, in 2017, A2A implemented a promotional campaign involving approximately 200 administrators and 30 thousand citizens with flyers distributed in the district markets and door-to-door.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Manufacturing capital 7 Natural capital
8 Human capital
9 Intellectual capital
Relations with Customers
Relations with the Community
Relations with Suppliers
Independent Auditor's Report
GRI Content Index
Through the companies A2A Ciclo Idrico, ASVT and Aspem the Group operates in integrated water cycle services in the territories of Brescia, Varese and their respective provinces. 50000
In 2017, 886 thousand inhabitants were covered by the aqueduct service, with a 9% increase due to the consolidation of ASVT. 0
economic damages. The promotion envisages a contribution for the expenses incurred for moving the water meter to the edge between private property and public property and a contribution for the purchase of a manometer. An insurance policy can be stipulated (reserved to domestic users) against water leaks, at beneficial conditions.
During the year, 1,528 requests were submitted for relief due to water loss downstream of the delivery point, of which 931 have already been dispatched, for an equivalent of reimbursements to users of approximately 1.5 million euros. Moreover, requests for new subscriptions of the insurance policy numbered 748 and 53 users benefited from the service.
The integrated water service is regulated by the ARERA which monitors certain parameters, like grid connection time or response to estimates requested.
| DATA IN DAYS | 2017 | |||
|---|---|---|---|---|
| A2A CICLO IDRICO | ASPEM | ASVT | ||
| Response time to requests for estimate for connection to the aqueduct |
5.16 | 5.1 | 2.30 | |
| Response time to requests for estimate for connection to the sewers |
3.21 | - | 1.67 | |
| Aqueduct connection times | 5.78 | 2.92 | 2.61 | |
| Supply activation time | 2.47 | 1.77 | 1.65 | |
| Sewer connection times | 15.74 | - | 6.60 |
The drinking water distribution service was not interrupted in 2017, except for some segments that were disconnected to allow for the repair of accidental failures.
The water undergoes special tests and disinfecting treatments, and chemical-physical or biological purification treatments where necessary before it is fed into the network. The primary objective is, in fact, to supply quality water and this is why, in compliance with regulations, qualitative checks are performed on the entire production chain (see also page n. 85). All the water supplied by the aqueducts of A2A Ciclo Idrico is compliant with the limits established by the law and, therefore, no orders of water being unfit for drinking have been issued.
The Group provides various channels, as well as informative materials, to communicate with citizens. In 2017, the A2A Ciclo Idrico call centre processed 118,231 calls, 49% more than last year, maintaining excellent service quality levels with an average wait time of 78 seconds, showing a slight rise with respect to the increased call volumes. The ASPEM call centre service also obtained a clear improvement in terms of successful calls (96.2% in 2017), despite the increased number of calls (by 37%).
In 2017, the A2A Ciclo Idrico branches served 30,778 customers (an increase of 73% on 2016), who were served in an average of 15 minutes. Although there was a considerable increase in the number of visitors in 2017, user satisfaction at branches remains very high, with 85% of users having expressed opinions of being "satisfied" or "very satisfied" using the emoticons.
In December 2016, A2A Ciclo Idrico launched the initiative termed the "Bonus Idrico" in support of economically disadvantaged families. The initiative is intended for citizens of Brescia and another 73 municipalities across the province, served by A2A Ciclo Idrico. Activation of the bonus is on a voluntary basis, decided independently by the company, which stresses the Group's attention to the territory and the economically weaker groups of the population. The discount on the water bill was applied by A2A Ciclo Idrico, assigning each person entitled a bonus 55 litres of water per day, making for an annual consumption of 20 cubic metres. In 2017, 3,603 requests were received via the portal to adhere to the bonus.
By resolution 897/2017/R/idr of December 21, 2017 and with the approval of the integrated text of the application methods of the social water bonus for the supply of water to domestic users in financial difficulty (TIBSI), ARERA implements the system of compensating expenses incurred for the
↗ for more information, see the Customer section of: www.a2acicloidrico.eu
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
Manufacturing capital 7
6
Natural capital 8
Human capital 9
Intellectual capital 10
Relations with the Community Relations with Suppliers
Independent Auditor's Report
Through the companies Amsa, Aspem, Aprica, Linea Gestioni and Rieco, the Group manages the municipal hygiene services of 258 municipalities of Lombardy, for a total of more than 3.5 million citizens served, in the provinces of Milan, Brescia, Bergamo, Varese, Como, Lodi, Lecco, Monza and Brianza, Mantua and Cremona. 0
In 2017, Aprica acquired the environmental hygiene service in some new municipalities: 10 of the province of Mantua (Borgo Virgilio, Curtatone, Ostiglia, Villimpenta, Piubega, Gazoldo degli Ippoliti, Sustinente, Serravalle a Po, Commessaggio and Dosolo), 8 of Val Trompia in the province of Brescia (Bovegno, Collio, Irma, Lodrino, Marcheno, Marmentino, Pezzaze and Polaveno), 1 in the province of Como (Montano Lucino) and 1 in the province of Bergamo (Gorle).
After the trial run on the collection of the organic fraction in 15 open air markets of the city of Milan, as from October 2017 collection has been activated in the 24 open air markets in the north-west of the city and by end 2018, the new service will be extended to all markets of Milan. The main aim is to recover the considerable quantities of organic waste produced by the weekly markets. To this end, Amsa has distributed both the materials necessary to the separate conferral of organic waste (perches, bag rings and biodegradable bags) and informative materials giving instructions on how to correctly confer the waste, to all sellers.
Amsa and Novamont have been rewarded with the
Sodalitas Social Award 2017, in the category of "Sustainable lifestyles and consumption", an award that rewards the most effective initiatives in terms of contributing towards achievement of the challenges at the heart of the United Nations Sustainable Development Goals (SDGs).
The initiative stood out for its innovative nature. The project in fact envisaged the active involvement of all players in the environmental sector, the creation of a multistakeholder partnership (Milan City Council, trade associations and municipal police force), training of travelling salesmen and the environmental life cycle assessment of the entire trial.
Over the years, the Group companies have increased their commitment in the promotion of responsible conduct in the management of resources and waste, in respect of the environment and people.
Below are the main communication campaigns developed in 2017 in order to inform and sensitise citizens.
On September 20, 2017, with the start-up of the service in the red zone (historic centre of Brescia), Aprica completed the new system of combined home waste collection, which began in April 2016. The territory, involved by the new collection system was immediately and has been constantly monitored by ecological inspectors who are devoted to controlling and informing citizens and tradesmen so as to ensure the correct conferral of waste and the maintenance of the city's décor. The positive effect of the new waste collection method was seen in the total percentage of separate waste collection that was 67.7% in 2017 (new calculation methods envisaged by Ministerial Decree of May 26, 2016).
With reference to the work of Amsa, a gradual extension is underway of the joint collection of paper and cardboard throughout Milan, already tried out in 2016. The extension started in October 2017 and has involved the department of Silla. As from April 1, 2018, the project will be extended to the department of Primaticcio and, thereafter, to that of Zama. This extension should assure a 1.8% increase in the total separate waste collected.
Moreover, Amsa, Ecodom and Coop Lombardia have decided to start a trial collection of small electric and electronic equipmentk that is no longer in use, in Milan. From June to December 2017, thanks to the CRM Recovery Project, in fact, at two Coop Lombardia sales outlets, it was possible to confer small electrical appliances no longer functioning, thereby helping ensure the recovery of critical materials like gold, silver, cobalt, graphite and platinum, without having to go to the ecology island. In this way, it was possible to collect approximately 2,700 kg of
WEEE (Waste Electric and Electronic Equipment). Thereafter, specific smart mobile containers were positioned (WEEE parking) that allowed for the autonomous conferral of WEEE, using the Regional Service Charter.
Amsa has instituted a new customer service, the Mobile Office, which has been functioning since September 2017. Thanks to this new initiative, on a specific day of the week, citizens can find an extra information point in the city, where they can obtain answers to their questions, book the collection service of cumbersome waste and receive information about the new services. In 2017, 12 days were planned at the district markets of the north-west of Milan. As from 2018, the service will travel in various different points of the city. Citizens can view the calendar with the stations, days and service hours of the mobile office at: www.amsa.it.
Crema City Council, Linea Gestioni (LGH) and Coop Lombardia have launched a project aimed at providing information about the correct method of conferring food oil and facilitating its collection. In actual fact, informative flyers have been given out to all families and 4 specific containers have been installed in the Gran Rondò Shopping Centre, where used vegetable oil can be conferred. Aprica, by agreement with Bergamo City Council and with the operative support of Cooperativa Ruah, has also started collecting used food oils produced by domestic users, positioning 31 specific containers throughout the city. Containers have been installed at senior social centres, schools, offices, public parks and the supermarkets of the chains Coop, Auchan, Carrefour, NaturaSì, Il Gigante and Alco/Despar.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
Manufacturing capital 7 Natural capital
6
8 Human capital 9
Intellectual capital
Relations with Customers
Relations with the Community
Relations with Suppliers
Independent Auditor's Report
GRI Content Index
Linea Gestioni and the city of Crema have been awarded the 2017 Comieco prize for the best collection of paper and cardboard in northern Italy, exceeding 71 kg/inhabitant/year of per capita collection. Another four centres served - Ripalta Arpina (Cr), Longhena (Bs), Torbole Casaglia (Bs) and Villachiara (Bs) - received the special Comuni Rifiuti Free prize, assigned to the administrations that not only exceeded a percentage of 65%, but also limited per capita production of dry waste to less than 75 kg/year, per inhabitant.
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
Manufacturing capital 7 Natural capital 8 Human capital 9 Intellectual capital 10 Relational capital Relations with Customers
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Amsa, Aprica and Aspem maintain a direct relationship with the citizen and customer through different channels. As regards the call centre service, the levels of customer satisfaction are extremely high.
| AMSA | APRICA | ASPEM | |
|---|---|---|---|
| Accessibility of lines and services (time when line is free vs operator presence time) |
100% | 100% | 100% |
| Average waiting time on the telephone (seconds) | 76 | 52 | 87 |
| Percentage of successful calls | 94% | 72% | 65% |
The services offered by Amsa, Aprica, Linea Gestioni (LGH Group) and Rieco are regulated by a specific Service Charter, which describes the terms, methods and quality of services offered to citizens in the municipalities served. The Service Charters can be consulted on the various companies' websites.
Moreover, by way of support service and to increase customer accountability, all Group companies dealing with environmental hygiene have made an application available to citizens, all about separate waste collection. The application is called "PULIamo" and is dedicated to separate waste collection and environmental services offered by Amsa, Aprica and Aspem; it provides users with indications as to the days on which waste is collected from their homes and all the information necessary to ensure correct separation. Moreover, where available, it allows for a request to be made to collect cumbersome waste, abnormal situations to be reported and information to be provided on the location of the ecological platforms. The two companies dealing with environmental hygiene that were recently acquired by the A2A Group also have their own application: Linea Gestioni, through the app "rifiutiAMO", makes it possible to discover how to confer all waste types, to control calendars of "door-to-door" collection in the municipality and to find the nearest collection sites; Rieco has instead created its app "Junker", which on the one hand enables an improvement of the effectiveness of separate waste collection, indicating, after having scanned the product barcode, into which the waste should be disposed of and, on the other, to find out, through geolocation, the calendar of "door-to-door" collection and the location of the nearest collection points.
Finally, Aprica has activated a new software, integrated with the operative units for the traceability and monitoring of reports, claims and requests for information received from the various communication channels (telephone, web, e-mail, social networks and apps).
Just like every year, a customer satisfaction survey has been run on the services offered by Amsa to citizens of Milan, with the aim of verifying the satisfaction levels of residents of the city with regards to the services supplied and to identify the relevant strengths and any areas for intervention. The questionnaire prepared has been administered to more than 5 thousand citizens residing in Milan, of whom 694 are foreign. All waste collection services achieved a satisfaction index of at least 7, with peaks of 8.2 and 8.3 respectively for the service of the home collection of cumbersome waste and recycling (included in the questionnaire for the first time).
The on-line booking service for the collection of cumbersome waste was the most popular
contact channel with users (scoring 7.9), followed by the toll-free number (7.6) and the website (7.6).
AMSA surveyed the satisfaction level (global, reasoned) of citizens also in 12 surrounding municipalities (Bresso, Buccinasco, Cesate, Cormano, Corsico, Novate Milanese, Pero, San Donato Milanese, Segrate, Settimo Milanese, Trezzano Sul Naviglio, Pioltello) in which the company goes about its business.
The 1,500 interviews revealed that, in general, local satisfaction has increased on 2016, going from an overall satisfaction with the services of 7.8 to 8.1.
In October 2017, Aprica carried out its own customer satisfaction surveys, both for domestic users and commercial users in the municipalities of Gardone Valtrompia and Flero.
With reference to domestic users, the overall satisfaction index with the service came to 8.01
Satisfaction is also good for some specific aspects of the service, both for domestic and commercial users, as shown in the table below.
Figure 59_Assessment of certain aspects of the service in the Aprica Customer Satisfaction survey
| FLERO | GARDONE VALTROMPIA | |||
|---|---|---|---|---|
| DOMESTIC USERS |
COMMERCIAL USES |
DOMESTIC USERS |
COMMERCIAL USES |
|
| Municipal waste collection service | 8.41 | 8.15 | 8.25 | 6.89 |
| Collection times | 8.66 | 8.28 | 8.50 | 7.64 |
| Frequency of collection of the various waste fractions |
8.28 | 7.89 | 8.20 | 6.89 |
| Information on how to separate waste | 8.62 | 8.09 | 8.64 | 7.85 |
| Cleaning of areas after collection | 7.91 | 7.26 | 7.76 | 6.70 |
| Road and pavement cleaning | 7.22 | 7.02 | 7.24 | 6.70 |
| Freephone contact number | 8.00 | 8.33 | 7.93 | 6.63 |
Relations with the Community Relations with Suppliers
Independent Auditor's Report
| MATERIAL ISSUES | DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| RELATIONSHIP WITH GROUP STAKEHOLDERS |
Development of business activities in complete respect of stakeholders, promoting transparent communication and collaboration; participation in round tables with entities and institutions able to influence national and international strategies; promotion of projects for the creation of shared value in the territory and local communities (e.g. urban regeneration activities); identification of the needs of stakeholders through project activities that can effectively meet their expectations (e.g. social needs). |
Incorrect perception of the activities and business carried out by the Group. Failure to meet stakeholders' expectations with respect to social and environmental themes. Lack of transparency in relations and communication. Failure to adjust the business to fit with the continuously evolving regulatory scenarios. |
Dissemination of a correct perception of the Group's business, with specific reference to the social and environmental impacts in the territory. Development of communication and listening plans dedicated to the specificity of the territories in which the Group operates. Stakeholder engagement initiatives. Development of continuous dialogue with the national and supranational institutions linked to matters of the energy and environment. Active, transparent collaboration in the definition of safe, sustainable scenarios for the development of the sector and regulated business activities. |
Establishment of an internal Regulatory and Institutional Committee. Participation in the main consultations set in 2017 (See pages 30, 78). Numerous research and engagement projects have been activated with the universities of Milan and Brescia. Relational activities and involvement of the main consumer and environmental associations. The Doniamo Energia tender was promoted, aimed at supporting situations of social and economic vulnerability throughout Lombardy territory. Territorial initiatives sponsored for 1.3 million euros. LED public lighting plan aimed at optimising the artistic and cultural heritage of the territory of Brescia. |
PEOPLE INNOVATION - Stakeholder engagement - Transparency - Brand perception |
| ACTIVE LOCAL AND ENVIRONMENTAL EDUCATION |
Sensitisation of the local community to a responsible use of resources, energy and the importance of reusing materials so as to minimise waste; promotion of environmental education initiatives (e.g. schools), of active citizenship and knowledge of Group activities, including through the organisation of tours to plants. |
Lack and/ or superficial knowledge, by public opinion, of sustainability matters. |
Promotion of sensitisation initiatives of sustainability matters amongst citizens. Organisation of environmental education activities with school students. Organisation of tours of Group plants. |
School project with 25 thousand students at Group plants, of whom 7 thousand at Casa dell'Energia e dell'Ambiente (House of Energy and the Environment). "La nostra energia per l'ambiente" (Our energy for the environment) – TV quiz show on energy "Il gioco delle 4R" (The game of the 4 Rs) - interactive teaching exhibition on the waste cycle. Workshop for teachers and school heads. |
PEOPLE INNOVATION - Education |
The role and nature of the A2A business require constant dialogue and a comparison of notes with the national institutions, regional authorities and local entities. The instrument that defines and regulates relations with the entities and institutions is the Code of Ethics of A2A, within which it is explained that the Group does not make any contributions directly or indirectly to any political party, movement, political and trade union organisation and committee, nor to their representatives or candidates, in Italy and abroad, apart from contributions due in accordance with specific regulations.
A2A considers collaboration with the world of universities and research an activity of strategic relevance, optimising it in particular in the territories where the Group operates. This allows it to have innovative and cutting-edge competences, to offer its areas of activity as spaces within which to trial innovation projects and, at the same time, to contribute, through activities of involvement and testimonials, towards a university training that is better focussed on the world of work.
In 2017 too, in fact, interactions and exchanges between the world of university and that of business are essential in facilitating reciprocal learning and, in general, the dissemination of good practices within the communities. With the aim of promoting the development of a diffused culture on matters of energy - environmental sustainability amongst citizens in Brescia, a round table has been established on the "Circular economy". The table stems from the collaboration framework agreement, signed in 2016 with the University of Brescia and the Cattolica University (Brescia site), which undertook to guarantee the development of video materials and the construction of a format to be used on the Facebook platform. The page will be enhanced with multimedia documentation that can be used and consulted by users.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
8 Human capital
9
Intellectual capital
with Customers Relations with
the Community Relations with Suppliers
Independent Auditor's Report
Moreover, in connection with the agreement reached with the two universities of Brescia, the work of the "Banco dell'Energia" working party continued and was completed successfully, with the preparation of four studies in support of the project:
With reference to the sensitisation of students to the matter of separate waste collection, a communication campaign was run at the Milan sites of the Cattolica University entitled "Separate waste collection? top marks" aiming to inform students and teaching staff of the rules for the correct separation of waste, to as to optimise the fraction of the separate waste collection that can be recycled. This activity was also supported by a reorganisation of containers in the common areas and food areas. Given the excellent results obtained, the future aim is to replicate this system for the other universities too.
Moreover, in order to have university students better understand their activities and at the same time collect innovative ideas in strategic areas, at the request of Bocconi University, A2A has created the A2A Group Project Award, a contest for students working towards a degree in "Economics and Management of Government and International Organizations" from Bocconi University of Milan. Divided into groups, the students challenged each other in the search for innovative ideas focussed on specific areas of intervention reported by the company (e.g. local community services, CSR, sustainable innovation, etc.). The winning project proposed a new commercial approach for A2A Energia on the free energy market, hinged on a rich, customisable offer. The winning team was invited to Valtellina where it was able to expand upon its knowledge of the electrical sector, visiting the A2A production plants.
The A2A Group operates in highly regulated sectors whether they are managed under natural monopoly (such as infrastructure for the distribution and transport of electricity and gas, the integrated water cycle and district heating) or under free market regime (such as generation and the sale of energy carriers and other services to customers). The 2018 Budget Law, moreover, has extended the regulatory and control competences of the Authority for Electricity, Gas and Water System (AEEGSI, which changes its name to ARERA - Regulatory Authority for Energy, Networks and the Environment) to include the separate and combined municipal and equivalent waste collection cycle.
The Group adopts a policy for monitoring and managing legislative and regulatory risk, in order to mitigate the negative effects as far as possible. The monitoring consists of an oversight system, structured into several levels, which involves first and foremost collaborative dialogue with the institutions (ARERA, the Antitrust Authority, the Authority for Communications Guarantees and the Ministry of Economic Development) and with local sector technicians (Energy Services Manager, Energy Markets Manager, Terna) and thereafter the active participation in trade associations and working parties established by these entities. Monitoring and control instruments have been implemented (such as the quarterly regulatory review or the regulatory agenda prepared during the budget/ planning); these are constantly monitored and updated to consider the potential impacts of the regulation on Group companies and envisage constant dialogue with Business Units, not only to simulate impacts on current business but also to assess new initiatives.
Also the view to European regulations, following the work of Brussels through participation in the tables of Eurelectric and Cedec, allows seeing "in advance" the subject of transposition into Italian law.
Relations and dialogue with the reference territory underlie the very identity of the Group and have a major impact on the degree of acceptance of the business activities. This dialogue is also based on constant relations with the national and territorial associations (approximately 20 consumer and environmental associations) and the numerous local territorial committees.
Continuing on from the previous years, in 2017 various activities were carried out with the associations and committees, including:
of the environmental services in the municipalities managed by Aprica;
• promotion of the A2A "Mission: Earth" project in the territory of Campania and other environmental education initiatives, including "The game of the 4 Rs" carried out at a school of the Neapolitan district of Scampia, in collaboration with the associations Acssa, Adiconsum, Amici della Terra and Lega Consumatori (see also page 146).
9 Intellectual capital
Letter to stakeholders Methodological Note 1
The A2A Group and its Business Model 2 Governance
Sustainability strategy
Manufacturing capital 7 Natural capital 8 Human capital
3
4 Stakeholder engagement and materiality analysis
5 Financial capital 6
Relations with Customers Relations with
the Community
Relations with Suppliers
Independent Auditor's Report
GRI Content Index
138 139
Social and institutional initiatives
Sports initiatives
Figure 60_Sponsorships by area of activity
14
25
%
7
Environmental initiatives
Cultural initiatives
With reference to conciliation activities, 2017 was the year in which the new Memorandum of Understanding was started between A2A and the national consumer associations for the promotion of joint multiservice conciliation, aimed at ensuring an amicable settlement of any disputes that may arise between consumers and A2A in respect of the supply and distribution of gas, electricity, water and district heating. Following the adoption of the new consumer protection tool, a considerable increase has been recorded in the amount of conciliations with respect to the previous year. A significant increase has also been seen in the number of conciliations received by means of the service managed by the Sole Buyer.
As regards the Conciliation Service managed by the Sole Buyer, in 2017, 62 requests were received: 33 by A2A Energia, 21 by LineaPiù and 8 by Unareti. Unareti also received 51 (compulsory) summonses as technical aide insofar as necessary and essential to the correct, effective processing of the disputes for conciliations started by customers of other sales companies.
As concerns joint conciliations, the conciliation secretariat of the ADR A2A-Consumer Associations body has received 41 requests from gas and electricity customers mainly relating to aspects connected with the measurement of consumptions and billing.
According to that introduced by the Integrated Conciliation Act (TICO) approved by ARERA, as from January 2017, electricity and gas customers, domestic and otherwise, must apply for conciliation to settle any disputes the settled through complaints made to operators. The compulsory conciliation attempt can be made through the organisations envisaged by the TICO, including ADR A2A - Consumer Associations, as well as the Chambers of Commerce and other recognised organisations. The obligation to seek conciliation will also apply progressively to other regulated sectors. In the event of failure, an attempt at conciliation is an essential condition in order to be able to proceed with a lawsuit, whilst the minutes of the agreement constitutes executive deed between the parties.
In 2017, the initiative entered its most important phase, through the Doniamo Energia tender, promoted in collaboration with the Cariplo Foundation, choosing the projects to receive contributions for a total of 2 million euros. More specifically, the 15 initiatives, promoted by partnerships of 68 entities, aiming to support situations of social and economic vulnerability throughout the territory of Lombardy, were selected and published on-line. The final addressees (approximately 6 thousand people) will be intercepted by the entities and involved in a path that will flank payment of urgent expenses (such as bills of any energy operator) with a more global support
programmes by contacting the lead partners directly, according to their territory.
To take part in the fund-raising, in addition to using the bill, a free donation can be made on their postal bill, bank transfer or credit card.
A2A has made a contribution by doubling donations made by domestic customers of A2A Energia with the aim, which was reached, of rising to 1 million euros by December 31, 2017.
Banco dell'energia Onlus, with the support of A2A and the AEM and ASM Foundations, has already activated the new fund-raising session, together with a round table with the Cariplo Foundation, for the definition and support of another edition of the tender.
The Group has always offered its support to multiple social activities and initiatives, which have allowed it to collaborate closely with the reference community.
In 2017, the Group's total investment in the community came to approximately 5.8 million euros including contributions made in sponsorships, donations and support of the Group Foundations.
Sponsorships of sports, social, environmental and cultural activities in favour of the territory come to approximately 1.3 million euros.
The main sponsorships include:
• the IX National Conference on Energy Efficiency and the Forum "Quale Energia?" 2017, two of the most important national events dedicated to energy matters, with a focus on climate policies and sustainability issues;
54
This year, once again A2A stays close to communities most in difficulty with the valuable contribution of the 8 volunteers from the Group's Civil Protection Association, which have reached some areas of Abruzzo struck by the earthquake, to help remove the thick layer of snow that has settled on the house roofs and avoid further collapses.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital 8
Human capital
9 Intellectual capital
Relations with Customers
Relations with the Community
Relations with Suppliers
Independent Auditor's Report
In line with the aim of spreading the culture of energy savings, A2A has pursued an important LED public lighting plan aimed at optimising the artistic and cultural heritage of the territory of Brescia. Thanks to the collaboration between A2A and Brescia City Council, the artistic and monumental LED lighting plan of 37 sites, including monuments, buildings, churches and town squares, has been completed.
On June 1, 2017, an important new technical lighting event was also opened to optimise the Vittoriale degli Italiani. Thanks to A2A, more than 200 LED appliances have been installed, including projectors, built-in solutions, wall-mounted lights, bars and relamping solutions.
Art, music and technology take a starring role in Cremona, in the installation "L'anima della città". The work of art, designed by architect Palù and made interactive by Linea Com (LGH) is built from highlyecological stainless steel and reproduces a violin that stands eight metres tall. The instrument represents the symbol of the city. Well-defined in the lower part, it gradually changes colour until its semblances are lost and it becomes an abstract figure in the upper part. It is the first example of interactive sculpture in the city; thanks to the presence of sensors, in approaching the installation, a pleasant melody is diffused, recorded using musical instruments on display in the Violin Museum. A QR code gives access to the dedicated website for more information about the work and its author.
For A2A, environmental education is the main way by which the younger generation can get to know the complex interactions of the natural world and humans. The Group therefore implements numerous activities aiming to sensitise the general public in this respect. The main aim is to foster the growth of an environmental conscience and an aware conduct aiming to improve the quality of our territories.
As part of the School Project, the Group offers guided tours of its sites and plants, all year round. In 2017, participation grew strongly (+48%), with more than 31 thousand visitors, of whom 25 thousand students from more than 3 thousand schools.
Casa dell'Energia e dell'Ambiente in Milan remains the most visited site, with 7 thousand entries recorded. This structure, the operational premises of the AEM Foundation, is a museum open to schools and to the public, where it is possible to learn about and explore the issues relating to the world of energy and sustainability. The AEM Foundation has always been committed to supporting scientific research, training and the development of innovative knowledge and skills in the field of energy and environmental sustainability throughout Lombardy and in particular in the areas of Milan and Valtellina. In a parallel fashion, the ASM Foundation, with activities dedicated to social aspects, the promotion of art and culture, as well as support for training and environmental protection, operates in the territories of Brescia and Bergamo.
The table below shows the main environmental education projects, on both a national and territorial level, that involved primary and secondary schools in 2017.
| INITIATIVE | DESCRIPTION | REFERENCE AREA |
6 |
|---|---|---|---|
| Message from space - Energy from the universe |
Educational test intended for schools on national territory, which required young boys and girls to create "efficient" digital planets, examples of sustainable life for the earth. 1,237 teaching kits were given out in 1,045 schools, involving more than 620 thousand teachers, students and families. |
National | capital 7 Natural capital |
| Il Gioco delle 4R (The Game of the 4Rs) |
Interactive teaching exhibition focussed on the waste cycle (reduction, reuse, recycling and recovery), intended for primary and middle schools (for more information, see the box on page 144). |
National | 8 Human |
| Ogni cosa al suo posto (Everything in its place) |
The second edition of the theatrical installation, developed thanks to the support of the ASM Foundation at the Natural Science Museum, with the participation of more than 2 thousand students, who learnt about the methods and advantages of the new separate waste collection system run in the city. |
Brescia | capital 9 Intellectual capital |
| La nostra energia per l'ambiente (Our energy for the environment) |
Seventh edition of the traditional television quiz that involved the students of 6 primary schools and 6 secondary schools. |
Brescia | 10 Relational capital |
| Natur.acqua | Scientific-cultural route developed in collaboration with AmbienteParco, which involved more than 2 thousand children from primary and middle schools. |
Brescia | Relations Relations with |
| Brescia in Circolo | Sunday event dedicated to families and schools, based on theatrical installations and performances on environmental sustainability, organised for the first time in collaboration with Brescia Mobilità. |
Brescia | Relations with Suppliers |
| Action 2 Art | Teaching project on recycling and the circular economy, which involves 10 classes of the secondary schools visiting plants, teaching laboratories and a final educational test involving the design and development of seating for public spaces, using recovered materials/objects. This initiative stems from the A2A forumAscolto programme. |
Bergamo | Independent Auditor's Report |
| Scuola Energetica (Energy school) |
The project involved 280 students from the local secondary schools, supported by experts, in informative meetings, energy diagnoses and the development of proposed interventions, with a final prize for the most environmentally-sustainable school. This initiative stems from the A2A forumAscolto programme. |
Valtellina | GRI Content Index |
| Varese manca poco (Varese isn't far off) |
Campaign to promote awareness towards separate waste collection, which involved 1,880 students from the city's secondary schools, through training meetings, the free distribution of informative materials and ecological islands for the collection of paper and cardboard, plastic and metals. This initiative stems from the A2A forumAscolto programme. |
Varese | |
| La scuola in bolletta (The school on the bill) |
The project stems from the scientific collaboration of the world of services (LGH), research (RSE) and the school, aimed at promoting energy efficiency and energy saving interventions in schools. Students from forty or so secondary schools were involved in the energy audits and the construction of an energy database of school buildings. |
Crema, Cremona, Lodi, Rovato |
1 The A2A Group and its Business Model
Methodological Note
2 Governance
3
Sustainability strategy 4 Stakeholder engagement and materiality
analysis
5 Financial capital
Manufacturing capital Natural
Human capital
capital 10
the Community Relations with
Independent Auditor's Report
Apart from the visits and territorial initiatives, public meetings were proposed and lessons in the classroom on matters relating to environmental education and sustainability that involved 1,200 people of the Milan province and almost 13 thousand in Brescia, Como and Mantua.
Moreover, events and initiatives dedicated to school teachers and heads were organised, including some workshops, like that in Brescia, with more than 70 participants, and the event in Milan, hinged on food wastage discussed at a round table.
In 2017, Amsa and A2A Ambiente, in collaboration with the AEM Foundation, have proposed "The game of the 4Rs", an interactive teaching exhibition focussed on the waste cycle and intended for primary and middle schools. The game is a fun route that helps reflect on four keywords: reduction, reuse, recycling and recovery. Through interactive teaching paths, hinged on quizzes and games, sustainable, responsible conduct is stipulated towards the
environment that surrounds us, thereby managing to adopt behaviour that helps foster recycling and reuse practices. As an "edutainment" tool that is both involving and interactive, the exhibition was proposed in Naples, Brescia and Milan and involved approximately 2,300 visitors. In particular, in Naples, in just 3 months, 39 classes were hosted (975 students), in Brescia, at the Ambiente Parco, more than 700 children took part and in Milan, at Casa dell'Energia e dell'Ambiente, more than 500 children were involved.
In 2017, the Press Office produced a total of 344 media communications. 76% of the communications were given out as Press releases with the remaining 24% taking the form of letters. In 2017, there were more than 300 opportunities to meet with journalists, amongst interviews and one-to-one dialogues, press conferences and press visits.
The A2A Group is present on the following social channels: Facebook, LinkedIn and Twitter. Social communication allows for a more direct contact with citizens, sensitising them to key matters for the Group, such as, for example, separate waste collection and energy saving. It is also possible to start up social media caring flows to promptly intercept critical issues and reports to be conveyed to customer care channels and, finally, to get to know and collect the main issues discussed on the internet, as opportunities for development to be implemented in new services and products.
In 2017, a three-year path was launched aimed at ensuring the creation of a "digital ecosystem" for the Group, with the aim of creating value for
stakeholders as well as improving the Group's digital positioning. The route entails the passage from a logic of pure information to one of communication, which envisages the involvement of users also from a value viewpoint. This entails a new editorial approach focussed on the valuation of services offered and projects, with particular attention paid to integrated and transversal services; the offer of new on-line services, which aim to improve the quality of life in the cities and territories and to facilitate contact with Group companies; further investigation of matters of innovation; the launch of on-line communication campaigns that stimulate the involvement of internal and external stakeholders.
To best present the Group, the corporate news and business activities, in 2017 the new corporate website www.a2a.eu was therefore designed. The website dedicated to sustainability reporting (www.valoresostenibilea2a.eu) and the website of the new company A2A Illuminazione Pubblica (www.a2ailluminazionepubblica.eu) were also developed.
capital Relations with Customers Relations with the Community Relations with Suppliers
Independent Auditor's Report
GRI Content Index
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy 4
Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital
8 Human capital 9
Intellectual capital 10 Relational
144 145
| MATERIAL ISSUES |
DESCRIPTION | RISK FACTORS FOR SUSTAINABILITY |
MANAGEMENT METHOD | 2017 ACTIONS | SUSTAINABILITY PLAN ACTION |
|---|---|---|---|---|---|
| RESPONSIBLE MANAGEMENT OF THE SUPPLY CHAIN |
Adoption of supplier, collaborator and commercial partner selection policies to ensure that they apply fair, transparent processes integrating sustainability criteria; the promotion of social responsibility practices amongst suppliers, stimulating the improvement to reliability and safety in supplying services. |
Risks to the health and safety of workers of third party companies. Possibility of unethical conduct. Non compliance with environmental law. |
Continuous involvement of suppliers with the aim of spreading awareness of sustainability issues. Adoption of controls to verify the requirements of supplier suitability, QAS certifications and any other specific certifications for the type of goods. Adaptation of company procedures to envisage the stipulation by a supplier of an ethical clause and a declaration of compliance with the legality protocol. Progressive development of a process for the qualification and choice of suppliers, commercial partners and collaborators integrating sustainability. |
New functions in terms of e-collaboration on the A2A Suppliers Portal. Launched a Supplier Chain Management transformation plan to make purchases more competitive and sustainable. Site controls and engagement activities continued. |
PEOPLE INNOVATION - Responsible procurement |
43-44.
26
Commercial Generation and Trading
Other
For more detailed information, which allows for a better comparison of data of different years, see the tables available for consultation in the Supplement, on pages
Figure 61_Order value by business unit
3
10
17
%
44
Networks and Heat Environment
In order to create value in the long-term, the A2A Group aims to establish a responsible relationship with its supply chain, through which to consolidate fair, transparent relations.
During the year, 21,549 orders were issued by Group companies for supplies, services or works, making for a total value of more than 1 billion euros. 95% of orders are placed with Italian suppliers.
The 2017 figures refer to a different consolidation perimeter than 2016. The total number of orders and value ordered in 2017 in fact consider the purchase volumes of the LGH Group companies, as well as the companies LA Bi.CO DUE and Rieco-Resmal, which in 2016 had not been included in the perimeter. 0 10 20
In addition to the amount spent on supplies, works and services, approximately 1.2 billion euros were spent on the purchase of fuels used in Group plants or conveyed as carrier to end customers, of which 83% for natural gas. Carbon purchases were made 16% from Russia, 65% from Colombia and 19% from Kazakhstan.
The A2A Suppliers Portal is an on-line platform through which the businesses wishing to collaborate with Group companies can request inclusion on the list, start/renew the qualification process for their category of products, take part in on-line tenders and request authorisation to subcontract, using
SUPPLIER PORTAL
For suppliers registered with the A2A list, the portal is a sort of "showcase" towards all Group companies, to be supplemented with information and documents that are always up-to-date. Next year, a specific qualification process will be started for start-ups offering
the A2A Group innovation projects.
In 2017, the Portal was enriched with new functions, with a view to assuring e-collaboration, also in order to make the purchase order generation process more
an entirely digital process.
Letter to stakeholders
Methodological Note
2 Governance
1
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Financial capital 6
Manufacturing capital 7 Natural capital 8 Human capital 9
5
introduction of a new vendor rating system
necessary to prepare contracts, eliminating all hard copy stages, both internally and externally, assuring greater traceability of the process phases and the collection and exchange of documents with suppliers when activating the contract. The whole process is entirely digital. The dematerialisation process will continue in 2018 and mainly regards the European
sustainable (elimination of paper, reduction of use of printers, etc.). More specifically, a new section has been added, called "Contract Management", through which the purchase contract is issued, completed and activated, thereby significantly reducing the time
Qualification Systems in compliance with Italian Legislative Decree no. 50/2016. The is also being studied, through the real time monitoring of supplier performance.
Intellectual capital 10
Relations with Customers Relations with
the Community
Relations with Suppliers
Independent Auditor's Report
Control visits were therefore carried out on a sample of road sites (considering the census of sites open and the various types of intervention), to assess compliance with provisions on health and safety at work (Italian Legislative Decree no. 81/2008) and environmental ones (Italian Legislative Decree no. 152/2006), with the help of specific check-lists and photographs, thereafter sharing the results of the inspections in periodic analytical reports sent to the company structures
The Group operates with suppliers that apply high standards in terms of staff health and safety and environmental protection. To this end, A2A has adopted a specific system by which to assess the suitability of companies, so as to ensure the technical and economicfinancial capacity in line with the legal requirements and the provisions of the Group Code of Ethics (in respect of the Organisational Model pursuant to Italian Legislative Decree no. 231/2001).
In the selection and validation of suppliers, A2A is open to all companies interested in participating in tenders called by the Group, ensuring the maintenance of a Qualified Vendor List by product category, which buyers must refer to for the definition of "vendor list" of a tender.
Qualification remains valid for 36 months but may be revoked early if risk factors should arise or there should be negative changes in performance assessments.
Each supplier is assigned a global score, calculated as the average of the preventive assessment, made on the
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| ISO9001 | 2,741 | 2,800 | 1,981 |
| ISO14001 | 920 | 915 | 566 |
| OHSAS18001 | 620 | 662 | 610 |
| SA8000 | - | 22 | 62 |
| Respondents to the TenP (Global Compact) questionnaire | - | 22 | 71 |
| With at least one certification | 2,768 | 2,843 | 2,215 |
* Does not include new consolidated companies according to the 2017 scope.
basis of the information collected during qualification (incident indexes, certificates obtained, financial rating, etc.) and the assessment of performance, given by the supplier's conduct during contract performance. If the global scoring assigned to a supplier is insufficient, A2A reserves the right to take steps such as suspending,
The qualification process needed for subscription or renewal to the Supplier Register also requires information, according to the risk class assigned to the goods category, to further investigate specific aspects relevant to sustainability (such as, for example, impacts deriving from waste management, the carbon footprint, the impacts on safety at work, etc.).
revoking qualification or starting an audit.
In 2017, the Supply Chain Management launched a transformation plan that envisages the introduction of a series of initiatives (including purchase planning, lean procurement, design to cost and strategic sourcing) aimed at making Group purchases more competitive and sustainable.
In recent years, the Group has paid increasing attention to employee safety throughout the supply chain, assigning responsibility and sensitising above all contracting companies. In particular, 2016 saw the Networks and Heat BU carry out strict controls over site management for works assigned to external companies.
Checks particularly regard: effective implementation of the commissioned works, respect for timing, use of established materials, performing the tests requested, environmental and social impact and the provisions of the tender specifications.
| 2016 | 2017 | |
|---|---|---|
| Sites visited | 1,406 | 727 |
| Companies concerned |
Unareti, A2A Ciclo Idrico, A2A Calore & Servizi, A2A Illuminazione Pubblica |
Unareti, A2A Ciclo Idrico, A2A Calore & Servizi, A2A Illuminazione Pubblica |
| Areas concerned |
Province: Milan, Bergamo and Brescia | Province: Milan, Bergamo and Brescia |
| Action taken | Training and information action planned that, during the early months of 2017, will involve both internal operators and contractors. |
Completion of training planned in 2016. Introduction of the tablet for line controls. Constant information on the results of inspections to all parties concerned. |
| Results expected |
Minimise anomalies with a consequent improvement to safety, reduction in environmental impacts, improvement in quality of works and guarantee of complete compliance with current standards. |
involved.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
Financial capital 6
5
Manufacturing capital
7 Natural capital
8 Human capital 9
Intellectual capital
Relations with Customers
Relations with the Community
Suppliers
Relations with
Independent Auditor's Report
stakeholders Methodological
The A2A Group and its Business
Governance
Sustainability strategy
Stakeholder engagement and materiality
Financial capital
Manufacturing
Natural capital
Human capital
Intellectual capital
Relational capital
Content Index
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
Manufacturing capital
6
7 Natural capital 8
Human capital 9
Intellectual capital
Relational capital
10
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | |
|---|---|---|---|
| Organizational profile | |||
| D 102-1 Name of the organization | 10 | ||
| D 102-2 Activities, brands, products, and services | 10 - 15 | ||
| D 102-3 Location of headquarters | Colophon | ||
| D 102-4 Location of operations | 12, 13, 59, 62, 65, 67, 68 | ||
| D 102-5 Ownership and legal form | 53 | ||
| D 102-6 Markets served | 10-17, 115, 126, 127, 130 |
||
| D 102-7 Scale of the organization | 12, 13 | ||
| D 102-8 Information on employees and other workers | 89 - 91 | 21, 22 | |
| D 102-9 Supply chain | 14, 15, 147-151 | ||
| D 102-10 Significant changes to the organization and its supply chain | 4 - 7 | ||
| D 102-11 Precautionary principle or approach | 24, 25, 52, 58, 72, 90, 104, 114, 136, 148 |
||
| D 102-12 External initiatives | 30 | ||
| D 102-13 Membership of associations | 30, 137 | ||
| EU 1 | Installed capacity, broken down by primary energy source and by regulatory regime |
59, 62, 68 | |
| EU 2 | Net energy output broken down by primary energy source and by regulatory regime |
12 | 9, 13 |
| EU 3 | Number of residential, industrial, institutional and commercial customer accounts |
114, 115 | 31 |
| EU 4 | Length of above and underground transmission and distribution lines by regulatory regime |
65 | 10 |
| EU 5 | Allocations of CO2e emissions allowances or equivalent, broken down by carbon trading framework |
75 | |
| Strategy | |||
| D102-14 Statement from senior decision-maker | 2,3 | ||
| D102-15 Key impacts, risks and opportunities | 16, 17, 22-25, 32-41, 52, 58, 72, 90, 104, 114, 136, 148 |
||
| Ethical aspects | |||
| D102-16 Values, principles, standards, and norms of behavior | 16, 17, 22, 23 | ||
| D102-17 Mechanisms for advice and concerns about ethics | 22 | ||
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | |
|---|---|---|---|
| Governance | |||
| D102-18 Governance structure | 20, 21 | ||
| D102-20 Executive-level responsibility for economic, environmental,and social topics |
20, 21 | ||
| D102-21 Consulting stakeholders on economic, environmental, and social topics |
20 | ||
| D102-22 Composition of the highest governance body and its committees | 20, 21 | ||
| D102-23 Chair of the highest governance body | 20, 21 | ||
| D102-27 Collective knowledge of highest governance body | 20, 21 | ||
| D102-32 Highest governance body's role in sustainability reporting | 4-7, 20-21 | ||
| Stakeholder engagement | |||
| D102-40 List of stakeholder groups | 44 | 2-4 | |
| D102-41 Collective bargaining agreements | 92 | ||
| D102-42 Identifying and selecting stakeholders | 44 | ||
| D102-43 Approach to stakeholder engagement | 44 - 47 | 2-4 | |
| D102-44 Key topics and concerns raised | 48, 49 | 2-4 | |
| Reporting practice | |||
| D102-45 Entities included in the consolidated financial statements | 6, 7 + CFS* | ||
| D102-46 Defining report content and topic Boundaries | 4 - 7, 48 - 49 | ||
| D102-47 List of material topics | 48, 49 | ||
| D102-48 Restatements of information | 4 - 7 | ||
| D102-49 Changes in reporting | 49 | ||
| D102-50 Reporting period | 4-7 | ||
| D102-51 Date of most recent report | 4-7 | ||
| D102-52 Reporting cycle | 4-7 | ||
| D102-53 Contact point for questions regarding the report | Colophon | ||
| D102-54 Claims of reporting in accordance with the GRI Standards | 4-7 | ||
| D102-55 GRI Content Index | 156 - 160 | ||
| D102-56 External assurance | 152 - 155 |
* Consolidated Financial Statements 2017 - Annex 3 - List of companies included in the CFS.
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality
analysis 5
Financial capital
6 Manufacturing
capital 7 Natural capital 8 Human capital
9 Intellectual capital
10 Relational capital
Independent Auditor's
GRI Content Index
Report
General Standard Disclosure
Specific Standard Disclosure
| REFERENCES AND OMISSIONS | ||||
|---|---|---|---|---|
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | ||
| Economic performance (GRI 201) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 52 | 4, 5 | ||
| D 103-2 The management approach and its components | 52 | |||
| D 103-3 Evaluation of the management approach | 52 | |||
| D 201-1 Direct economic value generated and distributed | 52 | 6-8 | ||
| D 201-4 Financial assistance received from government | 6 | |||
| Indirect economic impacts (GRI 203) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 52 | 4, 5 | ||
| D 103-2 The management approach and its components | 52 | |||
| D 103-3 Evaluation of the management approach | 52 | |||
| D 203-1 Infrastructure investments and services supported | 55, 60, 61, 64, 66, 67, 69 | |||
| D 203-2 Significant indirect economic impacts | 129, 136, 140, 147 | |||
| Procurement practices (GRI 204) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 148 | 4, 5 | ||
| D 103-2 The management approach and its components | 148 | |||
| D 103-3 Evaluation of the management approach | 148 | |||
| D 204-1 Proportion of spending on local suppliers | 147, 148 | 43 | ||
| Anti-corruption (GRI 205) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 25 | 4, 5 | ||
| D 103-2 The management approach and its components | 25 | |||
| D 103-3 Evaluation of the management approach | 25 | |||
| D 205-1 Operations assessed for risks related to corruption | 22 | |||
| D 205-3 Confirmed incidents of corruption and actions taken | 22 | |||
| Anti-competitive conduct (GRI 206) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 25, 114 | 4, 5 | ||
| D 103-2 The management approach and its components | 25, 114 | |||
| D 103-3 Evaluation of the management approach | 25, 114 | |||
| D 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices |
45 + CFS + RO* | |||
| Materials (GRI 301) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 72 | 4, 5 | ||
| D 103-2 The management approach and its components | 72 | |||
| D 103-3 Evaluation of the management approach | 72 | |||
| D 301-1 Materials used by weight or volume | 71, 76, 79, 80, 82, 83, 85 | 14, 16, 18, 20 |
* Consolidated Financial Statements 2017 - Paragraph 3 - Notes - Other information - 7) Update of the main legal and tax disputes still pending. ** Report on Operations as at December 31, 2017 - Paragraph 3 - Evolution of the regulation and impacts on the Business Units of the A2A Group.
| REFERENCES AND OMISSIONS | |||||
|---|---|---|---|---|---|
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | |||
| Energy (GRI 302) | |||||
| D 103-1 Explanation of the material topic and its Boundary | 72 | 4, 5 | |||
| D 103-2 The management approach and its components | 72 | ||||
| D 103-3 Evaluation of the management approach | 72 | ||||
| D 302-1 Energy consumption within the organization | 71, 80, 82, 85 | 14, 16, 18, 20 | |||
| D 302-3 Energy intensity | 79 | 13 | |||
| D 302-4 Reduction of energy consumption | 64, 66-69, 74 | ||||
| Water (GRI 303) | |||||
| D 103-1 Explanation of the material topic and its Boundary | 72 | 4, 5 | |||
| D 103-2 The management approach and its components | 72 | ||||
| D 103-3 Evaluation of the management approach | 72 | ||||
| D 303-1 Water withdrawal by source | 76, 80, 82, 83, 85 | 14, 16, 18, 20 | |||
| Emissions (GRI 305) | |||||
| D 103-1 Explanation of the material topic and its Boundary | 72 | 4, 5 | |||
| D 103-2 The management approach and its components | 72 | ||||
| D 103-3 Evaluation of the management approach | 72 | ||||
| D 305-1 Direct (Scope 1) GHG emissions | 71, 74 | 15, 17, 19, 20 | |||
| D 305-2 Energy indirect (Scope 2) GHG emissions | 71, 74 | 15, 17, 19, 20 | |||
| D 305-3 Other indirect (Scope 3) GHG emissions | 71, 74 | 13 | |||
| D 305-4 GHG emission intensity | 74 | ||||
| D 305-5 Reduction of GHG emissions | 36, 37, 63 | ||||
| D 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions |
71, 81, 83, 86 | 13, 15, 17, 19, 20 | |||
| Effluents and waste (GRI 306) | |||||
| D 103-1 Explanation of the material topic and its Boundary | 72 | 4, 5 | |||
| D 103-2 The management approach and its components | 72 | ||||
| D 103-3 Evaluation of the management approach | 72 | ||||
| D 306-1 Water discharge by quality and destination | 71, 81, 84, 86 | 14, 16, 18 | |||
| D 306-2 Waste by type and disposal method | 81, 84, 87 | 15, 17, 19, 20 | |||
| Environmental compliance (GRI 307) | |||||
| D 103-1 Explanation of the material topic and its Boundary | 25 | 4, 5 | |||
| D 103-2 The management approach and its components | 25 | ||||
| D 103-3 Evaluation of the management approach | 25 | ||||
| D 307-1 Non-compliance with environmental law and regulations | 13, 46 |
Letter to stakeholders
Methodological Note
1 The A2A Group and its Business Model
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing capital
7 Natural capital 8 Human capital
9 Intellectual capital 10
Independent Auditor's Report
GRI Content
Index General Standard Disclosure Specific
Standard Disclosure
| REFERENCES AND OMISSIONS | ||||
|---|---|---|---|---|
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | ||
| Supplier environmental assessment (GRI 308) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 148 | 4, 5 | ||
| D 103-2 The management approach and its components | 148 | |||
| D 103-3 Evaluation of the management approach | 148 | |||
| D 308-1 New suppliers that were screened using environmental criteria | 40, 41, 149, 150 | |||
| Employment (GRI 401) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 90 | 4, 5 | ||
| D 103-2 The management approach and its components | 90 | |||
| D 103-3 Evaluation of the management approach | 90 | |||
| D 401-1 New employee hires and employee turnover | 89, 91 | 22, 23 | ||
| EU 17 | Days worked by third-party employees involved in construction, operation and maintenance |
27 | ||
| EU 18 | Percentage of third-party employees that have undergone relevant health and safety training |
94 | 27 | |
| Occupational health and safety (GRI 403) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 90 | 4, 5 | ||
| D 103-2 The management approach and its components | 90 | |||
| D 103-3 Evaluation of the management approach | 90 | |||
| D 403-1 Workers representation in formal joint management - worker health and safety committees |
28 | |||
| 89, 93 | 27-29 | |||
| D 403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities |
The information needed to calculate the lost day rate, by gender, is not currently available. The Group undertakes to make this indicator available over the next few years. |
|||
| Training and education (GRI 404) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 90 | 4, 5 | ||
| D 103-2 The management approach and its components | 90 | |||
| D 103-3 Evaluation of the management approach | 90 | |||
| D 404-1 Average hours of training per year per employee | 89, 97 | 26 | ||
| Diversity and equal opportunity (GRI 405) | ||||
| D 103-1 Explanation of the material topic and its Boundary | 90 | 4, 5 | ||
| D 103-2 The management approach and its components | 90 | |||
| D 103-3 Evaluation of the management approach | 90 | |||
| D 405-1 Diversity of governance bodies and employees | 20, 21 | 21, 24, 25 | ||
| D 405-2 Ratio of basic salary and remuneration of women to men | 101 |
| REFERENCES AND OMISSIONS | |||
|---|---|---|---|
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | |
| Non discrimination (GRI 406) | |||
| D 103-1 Explanation of the material topic and its Boundary | 25 | 4, 5 | |
| D 103-2 The management approach and its components | 25 | ||
| D 103-3 Evaluation of the management approach | 25 | ||
| D 406-1 Incidents of discrimination and corrective actions taken | 22 | 44, 45 | |
| Freedom of association and collective bargaining (GRI 407) | |||
| D 103-1 Explanation of the material topic and its Boundary | 90 | 4, 5 | |
| D 103-2 The management approach and its components | 90 | ||
| D 103-3 Evaluation of the management approach | 90 | ||
| D 407-1 Freedom of association and collective bargaining | 92 | ||
| Human rights assessment (GRI 412) | |||
| D 103-1 Explanation of the material topic and its Boundary | 25 | 4, 5 | |
| D 103-2 The management approach and its components | 25 | ||
| D 103-3 Evaluation of the management approach | 25 | ||
| D 412-2 Employee training on human rights policies or procedures | 22 | ||
| Local communities (GRI 413) | |||
| D 103-1 Explanation of the material topic and its Boundary | 136 | 4, 5 | |
| D 103-2 The management approach and its components | 136 | ||
| D 103-3 Evaluation of the management approach | 136 | ||
| D 413-1 Operations with local community engagement, impact assessments, and development programs |
45-47, 139-144 | ||
| Supplier social assessment (GRI 414) | |||
| D 103-1 Explanation of the material topic and its Boundary | 148 | 4, 5 | |
| D 103-2 The management approach and its components | 148 | ||
| D 103-3 Evaluation of the management approach | 148 | ||
| D 414-1 New suppliers that were screened using social criteria | 40-41, 149-150 | ||
| Public policy (GRI 415) | |||
| D 103-1 Explanation of the material topic and its Boundary | 136 | 4, 5 | |
| D 103-2 The management approach and its components | 136 | ||
| D 103-3 Evaluation of the management approach | 136 | ||
| D 415-1 Political contributions | 137 | ||
| Consumer health and safety (GRI 416) | |||
| D 103-1 Explanation of the material topic and its Boundary | 114 | 4, 5 | |
| D 103-2 The management approach and its components | 114 | ||
| D 103-3 Evaluation of the management approach | 114 | ||
| D 416-2 Incidents of non-compliance concerning the health and safety impacts of products and services |
45, 46 | ||
| EU 25 | Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases |
46 |
| REFERENCES AND OMISSIONS | |||
|---|---|---|---|
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | |
| Marketing and labelling (GRI 417) | |||
| D 103-1 Explanation of the material topic and its Boundary | 114 | 4, 5 | |
| D 103-2 The management approach and its components | 114 | ||
| D 103-3 Evaluation of the management approach | 114 | ||
| D 417-2 Incidents of non-compliance concerning product and service information and labeling |
121 | 45, 46 | |
| D 417-3 Incidents of non-compliance concerning marketing communications | 121 | ||
| Consumer privacy (GRI 418) | |||
| D 103-1 Explanation of the material topic and its Boundary | 114 | 4, 5 | |
| D 103-2 The management approach and its components | 114 | ||
| D 103-3 Evaluation of the management approach | 114 | ||
| D 418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data |
111 | ||
| Socioeconomic compliance (GRI 419) | |||
| D 103-1 Explanation of the material topic and its Boundary | 25 | 4, 5 | |
| D 103-2 The management approach and its components | 25 | ||
| D 103-3 Evaluation of the management approach | 25 | ||
| D 419-1 Non-compliance with regulations in the social-economic area | 44-46 |
| REFERENCES AND OMISSIONS | ||||
|---|---|---|---|---|
| INDICATORS | MAIN DOCUMENT |
SUPPLEMENT | ||
| Electric Utility Sector Supplement | ||||
| Demand side management | ||||
| D 103-1 Explanation of the material topic and its Boundary | 104 | 4, 5 | ||
| D 103-2 The management approach and its components | 104 | |||
| D 103-3 Evaluation of the management approach | 104 | |||
| Research and Development | ||||
| D 103-1 Explanation of the material topic and its Boundary | 104 | 4, 5 | ||
| D 103-2 The management approach and its components 104 |
||||
| D 103-3 Evaluation of the management approach | 104 | |||
| Efficient management | ||||
| D 103-1 Explanation of the material topic and its Boundary | 58 | 4, 5 | ||
| D 103-2 The management approach and its components | 58 | |||
| D 103-3 Evaluation of the management approach | 58 | |||
| EU 11 | Average generation efficiency of thermal plants by energy source and by regulatory regime |
13 | ||
| EU 12 | Transmission and distribution losses as a percentage of total energy | 19 | ||
| Accessibility of the service | ||||
| D 103-1 Explanation of the material topic and its Boundary | 114 | 4, 5 | ||
| D 103-2 The management approach and its components | 114 | |||
| D 103-3 Evaluation of the management approach | 114 | |||
| EU 28 | Power outage frequency | 35, 36 | ||
| EU 29 | Average power outage duration | 35 | ||
| EU 30 | Average plant availability factor by energy source and by regulatory regime |
9 |
Letter to stakeholders Methodological
1 The A2A Group and its Business
2 Governance
3 Sustainability strategy
4 Stakeholder engagement and materiality analysis
5 Financial capital
6 Manufacturing
capital 7 Natural capital 8 Human capital
9 Intellectual capital 10 Relational
Independent
Auditor's Report
GRI Content
Index General
Standard Disclosure
Specific Standard Disclosure
T [+39] 030 35531 F [+39] 030 3553204
Managerial and administrative headquarters: Corso Porta Vittoria, 4 - 20122 Milan T [+39] 02 77201 F [+39] 02 77203920
Created by:
S.O. Corporate Communication and Media Relations S.O. Environment, Health and Safety T [+39] 02 77201 - [email protected] - www.a2a.eu
We would like to thank all our colleagues of A2A who worked on the preparation of this Report.
Graphic design and layout: BOUTIQUE CREATIVA MERCURIO GP
Translation: TransEdit Group
Printing: AGEMA S.p.A.
Milan, March 2018
www.a2a.eu
2017
Consolidated Non-Financial Disclosure in accordance with Italian Legislative Decree no. 254/2016
Supplement to the Integrated Report
| Stakeholder engagement and materiality analysis | 2 |
|---|---|
| Financial capital | 6 |
| Manufacturing capital | 9 |
| Natural capital | 13 |
| Human capital | 21 |
| Relational capital | 31 |
| STAKEHOLDERS INVOLVED |
MODE OF COMMUNICATION AND INVOLVEMENT |
ISSUES ADDRESSED DURING ENGAGEMENT ACTIVITIES, IDENTIFIED BY BU |
|---|---|---|
| Networks and Heat BU | ||
| Previous items of the Integrated Water Service (Milan) | ||
| Commercial BU | ||
| • Meetings (physical, telephone and Web) • Convention/press conferences/events |
Market and competition practices (Milan) | |
| Consumer | Corporate BU | |
| Associations | Update on Group activities (Lombardy) | |
| • Work groups/ | Joint conciliation methods and presentation of new ADR platform (Milan) | |
| committee | Environment BU | |
| WEEE (Milan) | ||
| Customer satisfaction survey Aprica (Bergamo) | ||
| Networks and Heat BU | ||
| Heater replacement promotion campaign (Milan) | ||
| Environmentalist | • Meetings (physical, telephone and Web) |
Corporate BU |
| Association | • Plant tours | Circular economy with a focus on the plants of Sicily and Puglia (Rome) |
| Generation and Trading BU | ||
| Project for the reconversion of the San Filippo del Mela plant | ||
| Networks and Heat BU | ||
| Energy regulation and telecommunications regulation (Milan) | ||
| Vittoriale lighting project (Brescia) | ||
| Corporate BU | ||
| ADR system for the water cycle too (Milan) | ||
| A2A School-Work Alternation (Milan) | ||
| Technical round table for reports of nuisance fumes in the Municipality of Pero (Milan) |
||
| Memorandum of Understanding for civil protection activities (Brescia) | ||
| Collaboration on "COMMUNITY" Project with the Metropolitan City of Milan (Milan) |
||
| Institutions, Regulatory |
• Meetings | "Energy Cycle Path" (Bormio, So) |
| Entities and control |
• Conferences (physical, telephone |
Environment BU |
| Authorities | and Web) | Technical round table on the Memorandum of Understanding Silla2 (Milan) |
| Development of biomethane in transport (Rome) | ||
| Expansion of the Integrated Centre of Cascina Maggiore (Corteolona, Pv) | ||
| Brescia environmental hygiene Quality of Service Charter (Brescia) | ||
| Participation in the 3rd "Waste and Life Cycle Thinking" Workshop presentation of PET project (Como) |
||
| Generation and Trading BU | ||
| Hydroelectric plant concessions (Milan) | ||
| Carnia Bike Project (Monfalcone) | ||
| Requalification of the Ponti sul Mincio Plant Flue - Preparation of call for tenders of ideas |
| STAKEHOLDERS INVOLVED |
MODE OF COMMUNICATION AND INVOLVEMENT |
ISSUES ADDRESSED DURING ENGAGEMENT ACTIVITIES, IDENTIFIED BY BU |
|---|---|---|
| Corporate BU | ||
| Plenary ADR organisation meeting (Rome) | ||
| Melograno Project (Milan) | ||
| forumAscolto Milan, Varese | ||
| • Convention/press conferences/events |
Environment BU | |
| Introduction of separate waste collection in Bollate Prison (Milan) | ||
| Multi stakeholders |
• Meetings (physical, telephone and Web) |
Support to the production of biomass plants (Brussels) |
| • Work groups/ | Engagement activities with foreign communities in the favour of correct separate waste collection in the municipality of Pioltello (Pioltello) |
|
| committee | Brescia environmental hygiene Quality Council of service Charter (Brescia) |
|
| Generation and Trading BU | ||
| forumAscolto (Udine) | ||
| Reconversion of the Brindisi plant (Brindisi) | ||
| Corporate BU | ||
| Shareholders | • Meeting (physical, telephone and Web) |
Presentation of results for 2016, 2017 - 2021 Strategic Plan and announcement of 2017 quarterly results (Milan, London and Lugano) |
| Investors | Update on strategic options within the European Utilities Conference and the Italian Equity Roadshow (London) |
|
| Sustainability meeting in A2A - Focus on the Circular Economy as part of the Italian Sustainability Day of Borsa Italiana (Milan) |
||
| Commercial BU | ||
| • Studies/surveys | Surveys aimed at verifying the value contributed by the relational marketing initiatives |
|
| Customers | Qualitative survey into A2A Energia brand awareness on the impact of the communication campaign |
|
| Quantitative customer satisfaction surveys on the main communities served |
||
| Large customer retention programmes (Milan) | ||
| Commercial BU | ||
| e-moving presentation in piazza della Vittoria (Brescia) | ||
| Environment BU | ||
| • Meetings (physical, | Project for the collection of used food oil at large-scale retail (Milan) | |
| Local Community/ |
telephone and Web) • Convention/press |
Circular economy and social inclusion as part of the project "Quartieri Ricicloni" (Milan) |
| Citizens | conferences/events | "Blue bag" separate waste collection trial (Segrate) |
| • Studies/surveys | Corporate BU | |
| Collaboration with Brescia Mobilità for environmental education (Brescia) |
||
| A2A reputation survey and satisfaction with services offered | ||
| "Energy cycle path" launch event (Grosio, So) | ||
| Environment BU | ||
| Media | • Convention/press | Launch of separate Waste Collection red zone in Brescia |
| conferences/events | Generation and Trading BU | |
| Requalification of Ponti sul Mincio Flue |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
| STAKEHOLDERS INVOLVED |
MODE OF COMMUNICATION AND INVOLVEMENT |
ISSUES ADDRESSED DURING ENGAGEMENT ACTIVITIES, IDENTIFIED BY BU |
|---|---|---|
| Environment BU | ||
| Team-building initiatives (Milan) | ||
| Commercial BU | ||
| Team-building initiatives (Milan) | ||
| • Meeting (physical, | Corporate BU | |
| telephone and Web) | Induction initiatives "virtual buddy" and "A2A new employee induction" (Milan) |
|
| Employees | • Events | "AD Meetings" initiatives (Italy) |
| • Focus Groups | ABC managerial development project (Milan) | |
| • Studies/Surveys | Generation and Trading BU | |
| Self-census of competences as part of the "Power of water" project (Italy) |
||
| Networks and Heat BU | ||
| Interviews with junior managers as part of the resource optimisation project (Italy) |
||
| Generation and Trading BU | ||
| Trade associations/ |
• Meetings (physical, | Evolution of national and European legislation regarding tariff reforms and energy communities (Milan) |
| professional Orders/Civic and |
telephone and Web) | Clean Energy Package (Milan) |
| spontaneous | • Work groups/ committee |
Networks and Heat BU |
| Committees | Evolutions of regulations and market regarding White Certificates (Milan) |
|
| Corporate BU | ||
| Separate waste collection | ||
| • Meetings (physical, telephone and Web) |
School-Work Alternation Projects (Milan) | |
| Schools | • Convention/press | Generation and Trading BU |
| conferences/events | University scholarships | |
| • Studies/Surveys | Networks and Heat BU | |
| Connectivity and culture of innovation projects in the schools of Brescia (connected schools) |
| MATERIAL ASPECTS FOR A2A |
CORRESPONDING GRI ASPECTS |
SCOPE/ INTERNAL BOUNDARY |
SCOPE/ EXTERNAL BOUNDARY |
|---|---|---|---|
| Ethical pursuit of business |
• Anti-competitive behavior (GRI 206) • Anti-corruption (GRI 205) • Environmental compliance (GRI 307) • Social compliance (GRI 419) |
Group | - |
| Respect for human rights in the Group value chain |
• Non discrimination (GRI 406) • Freedom of association and collective bargaining (GRI 407) • Human rights assessment (GRI 412) |
Suppliers* | |
| Creation of sustainable economic value |
• Economic performance (GRI 201) • Indirect economic impacts (GRI 203) |
Group | Shareholders/ institutions |
| Efficient management of Group infrastructures |
• Energy (GRI 302) • Efficient management (EU Supplement) |
Group | - |
| • Materials (GRI 301) Circular economy • Effluents and waste (GRI 306) |
Environment BU Networks and Heat BU |
Community |
| MATERIAL ASPECTS FOR A2A |
CORRESPONDING GRI ASPECTS |
SCOPE/ INTERNAL BOUNDARY |
SCOPE/ EXTERNAL BOUNDARY |
|---|---|---|---|
| Efficient water use | • Water (GRI 303) • Effluents and waste (GRI 306) |
Group | Suppliers* |
| Fight against climate change and atmospheric emissions |
• Energy (GRI 302) • Emissions (GRI 305) |
Group | Suppliers* Customers |
| Quality of distributed water |
• Consumer health and safety (GRI 416) | Group | Institutions |
| Protection of health and safety at work |
• Occupational health and safety (GRI 403) | Contractors | |
| Development of human capital |
• Employment (GRI 401) • Training and education (GRI 404) |
Group | - |
| Diversity and company welfare |
• Diversity and equal opportunities (GRI 405) | Group | - |
| Technological innovation and smart cities |
• Research and development (EU Supplement) • Demand side management (EU Supplement) |
Group | Institutions |
| Responsibility, Safety and Quality in the provision of services and products |
• Consumer health and safety (GRI 416) • Marketing and labelling of products and services (GRI 417) • Consumer privacy (GRI 418) • Service accessibility (EU Supplement) |
Institutions | |
| Active local and environmental education |
• Local community (GRI 413) | Group | - |
| Relationship with Group stakeholders |
• Local community (GRI 413) • Public policy (GRI 415) |
Group | - |
| Responsible management of the supply chain |
• Procurement practices (GRI 204) • Environmental assessment of suppliers (GRI 308) • Social impact assessment of suppliers (GRI 414) |
Group | Suppliers* |
* Boundary limitation: reporting relates solely to direct suppliers and not to level-two suppliers.
Natural capital
Manufacturing capital
Stakeholder engagement and materiality analysis
Financial capital
Human
capital
The figures as at December 31, 2016 have been restated insofar as they incorporate the economic effects deriving from the PPA (Purchase Price Allocation) of the LGH Group and the reclassification for IFRS 5 of the economic items of the EPCG Group.
| 2015 | 2016* | 2017 | ||
|---|---|---|---|---|
| +A) | Production value | 4,921 | 4,860 | 5,796 |
| Revenue from sales and services (- revenue adjustments) | 4,715 | 4,576 | 5,590 | |
| Change in inventory of products in progress, semi-finished products and finished products |
0 | 0 | 0 | |
| Change in contract work in progress | 17 | 5 | 0 | |
| Other revenue and income | 189 | 279 | 206 | |
| Government grants | 0 | 0 | 0 | |
| - B) | Intermediate production costs | 3,623 | 3,382 | 4,000 |
| Raw materials and consumables consumption | 169 | 176 | 296 | |
| Energy and fuel consumption | 2,135 | 1,938 | 2,554 | |
| Costs for services | 704 | 758 | 849 | |
| Other operating costs | 78 | 108 | 106 | |
| Bad debt provision for current receivables | 22 | 21 | 35 | |
| Provisions for risks | 57 | 50 | 10 | |
| Other write-downs of fixed assets | 359 | 245 | 34 | |
| Sundry operating expenses | 117 | 100 | 135 | |
| Material own work capitalised | -18 | -14 | -19 | |
| GROSS CORE VALUE ADDED | 1,298 | 1,478 | 1,796 | |
| - C) | Financial balance | -12 | -2 | 4 |
| Financial income | 9 | 16 | 19 | |
| Financial expenses other than interest on loans | -17 | -15 | -20 | |
| Unrealised gains and losses on equity investments in associates | -4 | -3 | 5 | |
| -D) | Auxiliary and extraordinary components | -23 | 116 | -145 |
| +/- auxiliary balance | -22 | 64 | -145 | |
| +/- extraordinary balance | -1 | 52 | 0 | |
| GROSS GLOBAL VALUE ADDED | 1,263 | 1,592 | 1,655 | |
| - Depreciation and amortisation | 395 | 403 | 410 | |
| NET GLOBAL VALUE ADDED | 868 | 1,189 | 1,245 |
* restated.
| 2015 | 2016* | 2017 | |
|---|---|---|---|
| REMUNERATION OF PERSONNEL | 466 | 450 | 475 |
| Wages and salaries | 414 | 389 | 420 |
| Employees' leaving entitlement (TFR) | 25 | 26 | 29 |
| Other costs | 27 | 35 | 26 |
| REMUNERATION OF EQUITY CAPITAL | -17 | 125 | 159 |
| Profits distributed | 113 | 126 | 153 |
| Minority net profit for the year | -130 | -1 | 6 |
| REMUNERATION OF DEBT CAPITAL | 125 | 159 | 138 |
| TRANSFERS TO THE GOVERNMENT | 261 | 286 | 268 |
| Direct taxes for the Treasury | 97 | 139 | 106 |
| Other taxes and duties for the Treasury | 1 | 1 | 2 |
| Social security charges | 163 | 146 | 160 |
| TRANSFERS TO THE LOCAL COMMUNITY | 73 | 63 | 65 |
| Direct taxes for local authorities | 14 | 28 | 26 |
| Local taxes and duties | 54 | 31 | 33 |
| Sponsorships | 2 | 1 | 1 |
| Contributions to AEM and ASM foundations, aid, donations and charity |
3 | 3 | 5 |
| COMPANY REMUNERATION | 355 | 509 | 550 |
| Reserves | -40 | 106 | 140 |
| Amortization | 395 | 403 | 410 |
| GROSS GLOBAL VALUE ADDED | 1,263 | 1,592 | 1,655 |
* restated.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Generation and Trading | 348 | 404 | 356 |
| Commercial | 102 | 144 | 159 |
| Environment | 210 | 240 | 261 |
| Networks and Heat | 353 | 397 | 448 |
| EPCG | 53 | 69 | 12 |
| Smart City | 0 | 6 | 7 |
| Corporate | -18 | -29 | -32 |
| Total | 1,048 | 1,231 | 1,211 |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
Relational
capital
| 2015 | 2016* | 2017 | |
|---|---|---|---|
| Net fixed capital | 5,829 | 6,136 | 5,780 |
| Working capital | 180 | 278 | 235 |
| Assets/liabilities held for sale | 147 | 1 | 224 |
| Net capital employed | 6,156 | 6,415 | 6,239 |
| Shareholders' equity | 3,259 | 3,279 | 3,013 |
| - Attributable to the Group | 2,646 | 2,726 | 2,878 |
| - Attributable to minorities | 613 | 553 | 135 |
| Net debt | 2,897 | 3,136 | 3,226 |
| Total sources | 6,156 | 6,415 | 6,239 |
| Gross debt | 3,815 | 3,817 | 3,961 |
* restated due to the sole conclusion of the PPP of the LGH Group.
| 2015 | 2016* | 2017 | |
|---|---|---|---|
| Turnover by permanent worker (millions of euro) | 0.40 | 0.44 | 0.51 |
| EBITDA per permanent worker (millions of euro) | 0.09 | 0.10 | 0.11 |
| Average number of permanent workers | 12,338 | 11,086 | 11,280 |
* restated.
| 2015* | 2016 | 2017 | |
|---|---|---|---|
| Generation and Trading | 65 | 36 | 64 |
| Commercial | 4 | 8 | 9 |
| Environment | 59 | 79 | 107 |
| Networks and Heat | 181 | 213 | 231 |
| Smart City | 0 | 6 | 10 |
| EPCG | 27 | 27 | 4 |
| Corporate | 9 | 17 | 29 |
| Total | 345 | 386 | 454 |
* Figures for 2015 have been updated, in line with the data communicated in the Report on Operations at 31 December 2016.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Average capitalisation (millions of euro) | 3,405 | 3,685 | 4,455 |
| Capitalisation at December 31 (millions of euro) | 3,929 | 3,853 | 4,831 |
| Average volumes | 17,204,368 | 11,140,269 | 9,729,351 |
| Average share price* | 1.087 | 1.176 | 1.422 |
| Maximum share price* | 1.352 | 1.287 | 1.635 |
| Minimum share price* | 0.792 | 0.956 | 1.232 |
* Euro per share (Source: Bloomberg)
| A2A AVERAGE AVAILABILITY FACTOR (%) | 2015 | 2016 | 2017 |
|---|---|---|---|
| Traditional coal-powered | 81% | 89% | 81% |
| Traditional heavy fuel oil | 73% | 80% | 75% |
| Combined cycle natural gas | 68% | 79% | 82% |
| Run-of-the river hydroelectric* | 82% | 86% | 86% |
| Basin hydroelectric | 86% | 88% | 89% |
| Storage hydroelectric | 78% | 88% | 85% |
| LGH AVERAGE AVAILABILITY FACTOR (%) | 2015 | 2016 | 2017 |
|---|---|---|---|
| Run-of-the river hydroelectric | - | - | 90% |
* Figures have been updated following a recalculation
Stakeholder engagement and materiality analysis
Financial capital
| Manufacturing | |||||
|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | capital | ||
| Thermoelectric plants* | 8,129 | 7,872 | 11,442 | ||
| Generation and Trading Business Unit |
Hydroelectric plants | 4,451 | 4,218 | 3,464 | |
| Photovoltaic plants (including energy consumed) |
3 | 3 | 12 | Natural capital |
|
| Networks and Heat Business Unit |
Cogeneration plants | 229 | 187 | 277 | |
| Environment Business Unit |
Waste-to-energy plants (including biogas) and natural gas boilers |
979 | 1,002 | 1,772 | Human |
| Total | 13,792 | 13,282 | 16,967 | capital |
* Does not include the production of the Scandale Plant, in line with the input and outcome data of the natural capital and Sustainability Plan.
| 2015 | 2016 | 2017 | ||
|---|---|---|---|---|
| Environment Business Unit |
Waste-to-energy plants (including biogas) and natural gas boilers |
1,238 | 1,348 | 1,362 |
| Networks and Heat Business Unit |
Cogeneration plants, natural gas thermal, heat pumps, biogas, solar panels |
1,010 | 931 | 1,324 |
| Generation and Trading Business Unit |
Heat recovery | 23 | 20 | 40 |
| Total | 2,271 | 2,299 | 2,726 |
Relational
Figure 13_Extension of electricity distribution service [EU4]
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Km of electricity network | 13,952 | 14,039 | 14,919 |
| of which underground cable | 11,922 | 12,013 | 12,745 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Km of natural gas network | 8,055 | 8,057 | 11,183 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Electricity distributed (GWh) | 10,227 | 11,204 | 11,590 |
| Natural gas distributed* (Mm3 ) |
1,832 | 2,096 | 2,480 |
| Natural gas transported* (Mm3 ) |
358 | 324 | 370 |
* The 2015 and 2016 data have been updated with respect to the 2016 Integrated Report, in line with the data communicated in the Report on Operations.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Light points (no.) | 206,587 | 210,805 | 213,817 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Video cameras | 1,716 | 1,902 | 1,999 |
| Traffic monitoring | - | - | - |
| SoS stations | 174 | 196 | 250 |
| Monitoring stations | 45 | 48 | 51 |
| Digital islands | 29 | 29 | 29 |
| Wi-Fi aerials | 900 | 1,140 | 1,140 |
| Remote natural gas reading concentrators | - | 170 | 540 |
| Environmental sensors installed | - | 50 | 100 |
| Museum sites: | |||
| Sites | - | - | 27 |
| Video cameras | - | - | 1,023 |
| Break-in sensors | - | - | 3,299 |
| Fire sensors | - | - | 2,622 |
| A2A offices: | |||
| Offices | - | - | 159 |
| Break-in sensors | - | - | 1,908 |
| Video cameras | - | - | 1,376 |
| Presence readers | - | - | 789 |
| TECHNICAL DATA | 2015 | 2016 | 2017 |
|---|---|---|---|
| Wells (no.) | 261 | 262 | 276 |
| Sources (no.) | 243 | 243 | 331 |
| Drinking water conversion plants (no.) | 63 | 65 | 94 |
| Total network length (km) | 4,814 | 4,878 | 5,305 |
| Water supplied to users and booked (Mm3 ) |
63 | 62 | 69 |
| Water withdrawn (Mm3 ) |
120 | 112 | 124 |
| Network losses and water not booked (Mm3 ) |
39 | 38 | 44 |
| TECHNICAL DATA | 2015 | 2016 | 2017 |
|---|---|---|---|
| Sewers - network length (km) | 2,186 | 2,203 | 2,551 |
| Waste water treated (Mm3 ) |
49 | 46 | 49 |
| Purifiers (no.) | 57 | 54 | 73 |
Figure 20_Waste collected
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Tonnes | 1,282,786 | 1,320,938 | 1,605,000 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Tonnes | 159,261 | 109,790 | 133,082 |
Financial capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Waste-to-energy plants | 1,386 | 1,411 | 1,676 |
| Landfills | 397 | 192 | 481 |
| Bio-drying plants and production of RDF | 468 | 481 | 541 |
| Recovery of materials and processing | 471 | 503 | 938 |
| Total | 2,722 | 2,587 | 3,636 |
* All incoming waste to the Group's plants is considered. The 2017 portion of waste disposal, net of intermediation (418 kt) and elisions (-688kt), is 3,366 kt.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| GWh | 2,675 | 2,885 | 3,133 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Renewable sources (hydraulic, renewable fraction of waste*, biogas, solar) |
36% | 36% | 25% |
| Coal | 16% | 17% | 13% |
| Natural gas | 28.5% | 34% | 51% |
| Petroleum products | 16% | 9% | 8% |
| Non-renewable fraction of waste | 3.5% | 4% | 3% |
* For non-hazardous waste, a renewable fraction of 51% was assumed (ref. Decree of the Ministry of Economic Development of December 18, 2008). Consequently, the non-renewable fraction was assumed to be 49%.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Average yield of thermoelectric plants | 39.0% | 41.1% | 44.0% |
| Yield of high-performance natural gas combined cycles | 49.0% | 49.9% | 51.0% |
| Yield of multi-fuel plants | 33.2% | 33.6% | 33.0% |
| Average yield of fossil fuel cogeneration plants | 80.3% | 78.0% | 77.0% |
| Average electricity produced from 1 t waste (kwh/t) | 773 | 803 | 778 |
| Average thermal energy produced from 1 t waste (kwh/t) | 899 | 918 | 816 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Total emissions of gases harmful to the ozone layer (KgR11eq) | 0 | 4.7 | 0.08 |
| Total acidifying emissions (tSO2eq) | 3,865 | 3,372 | 4,192 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Carbon footprint (tCO2eq/year) | 1,015,031 | 863,223 | 1,031,979 |
| Water footprint (thousands of m3 water) |
35,215 | 24,048 | 28,583 |
| 2017 | |
|---|---|
| Number | 8 |
| Value (euro) | 30,516 |
The most significant sanctions relate to the biodrying plants of Villafalletto and the plant complex of Corteolona (13,000 euros each). All sanctions relate to infractions of authorisation measures or administrative imprecisions that did not result in any damages or concrete temporary or permanent danger to the environment.
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Fuel (TJ) | |||
| Natural gas | 463 | 464 | 656 |
| Petroleum derivatives (heavy fuel oil, diesel) | 27 | 24 | 67 |
| Waste, biomass and CSS | 15,572 | 15,889 | 19,317 |
| Biogas (from landfills and treatment facilities) | 683 | 624 | 631 |
| Automotive fuels (TJ) | |||
| Petrol | 6 | 6 | 9 |
| Diesel | 379 | 398 | 552 |
| Methane | 99 | 96 | 98 |
| Electricity (GWh) | 61 | 52 | 53 |
| Water resource consumed (thousands of m3) | |||
| From aqueducts | 898 | 871 | 735 |
| From wells | 2,649 | 2,495 | 3,004 |
| Chemical products and materials (t) | |||
| Mineral acids | 1,748 | 1,771 | 1,305 |
| Water additives/conditioners | 291 | 310 | 263 |
| Ammonia (solution) | 4,739 | 5,223 | 5,722 |
| Lime and solid neutralisers | 22,768 | 26,068 | 32,124 |
| Active carbon | 1,064 | 1,052 | 1,293 |
| Cement, sand an inert materials | 161,030 | 136,605 | 216,722 |
| Sodium chloride | 2,434 | 98 | 1,704 |
| Technical gases (nitrogen, CO2 , hydrogen, oxygen) |
851 | 848 | 1,118 |
| Sodium hydroxide (solution) | 2,286 | 3,131 | 1,917 |
| Methanol, solvents and other products | 1,074 | 1,486 | 1,923 |
| Oils and lubricants | 76 | 58 | 141 |
| Urea (solution) | 1,714 | 1,139 | 2,032 |
| Total chemical products | 200,075 | 177,821 | 266,265 |
| 2015 | 2016 | 2017 | ||
|---|---|---|---|---|
| Volumes (thousands of m3 ) |
Discharged into sewers* | 402 | 404 | 491 |
| Discharged into surface water | 1,405 | 1,402 | 1,115 | |
| Recovered in the production cycle | 384 | 363 | 387 | |
| Used for cooling | 792 | 709 | 703 | |
| Pollutant discharges into surface water (t) |
BOD | 26.4 | 26.5 | 27 |
| COD | 82.9 | 114.4 | 69 |
* 2016 figure updated with respect to the 2016 Integrated Report due to a data entry error.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Special non-hazardous (t) | 492,071 | 443,791 | 515,353 |
| Special hazardous (t) | 79,970 | 84,306 | 104,612 |
| Total special (t) | 572,041 | 528,097 | 619,965 |
| Sent for recovery (% of total) | 46% | 47% | 52% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| CO2 from combustion processes (t) |
930,520 | 904,171 | 1,147,142 |
| CO2 from motor vehicles (t) |
33,893 | 35,060 | 46,430 |
| CO2 indirect from energy acquisition (t) |
20,576 | 16,982 | 17,558 |
| Fluorinated gases (t CO2eq) | 80 | 409 | 448 |
| NOx (t) |
611 | 621 | 893 |
| SO2 (t) |
11 | 16 | 17 |
| Powders (t) | 3.2 | 2.8 | 5.7 |
| Methane (CH4 ) - biogas losses released in landfills (t CO2eq) |
47,128 | 49,092 | 94,452 |
| Polycyclic aromatic hydrocarbons (kg) | 0.06 | 0.04 | 0.37 |
| Mercury (kg) | 20 | 15 | 14 |
| Other metals (Sb + As + Pb + Cr + Cu + Mn + Ni + V + Sn+Cd+Tl) (kg) |
206 | 166 | 321 |
| Dioxins (grams - toxic equivalency) | 0.024 | 0.016 | 0.030 |
| Dioxin-like PCBs (polychlorinated biphenyls) (grams - toxic equivalency) |
0.0042 | 0.0043 | 0.0038 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Thermal energy from waste-to-energy and biogas process (% on total) |
52% | 56% | 52% |
| Electricity from waste-to-energy and biogas process (% on total) |
7% | 8% | 7% |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Fuel (TJ) | |||
| Natural gas | 27,758 | 31,661 | 56,472 |
| Coal | 22,100 | 23,315 | 20,999 |
| Petroleum derivatives (heavy fuel oil, diesel) | 25,856 | 14,771 | 16,415 |
| Automotive fuels (TJ) | |||
| Petrol | 0.76 | 1.46 | 1.12 |
| Diesel | 7.86 | 5.09 | 3.99 |
| Methane | 0.02 | 0.04 | 0.02 |
| Electricity (GWh) | 160 | 172 | 154 |
| Water resource consumed (thousands of m3) | |||
| From aqueducts | 106 | 87 | 82.34 |
| From wells | 3,122 | 3,239 | 3,531 |
| From surface water | 1,064 | 660 | 984 |
| Chemical products and materials (t) | |||
| Mineral acids | 288 | 307 | 280.27 |
| Water additives/conditioners | 95 | 77 | 98.31 |
| Ammonia (solution) | 906 | 1,191 | 998 |
| Lime and solid neutralisers | 36,884 | 30,399 | 27,088 |
| Sodium chloride | - | 5 | 6 |
| Technical gases (nitrogen, CO2 , hydrogen, oxygen) |
32 | 39 | 66 |
| Sodium hydroxide (solution) | 267 | 227 | 243 |
| Methanol, solvents and other products | 8 | 8 | 29 |
| Oils and lubricants | 7,149 | 98 | 82 |
| Total chemical products | 45,628 | 32,350 | 28,890 |
| 2015 | 2016 | 2017 | ||
|---|---|---|---|---|
| Volumes (thousands of m3 ) |
Discharged into sewers* | 236 | 204 | 207 |
| Discharged into surface water* | 1,944 | 1,927 | 1,924 | |
| Recovered in the production cycle | 1,364 | 1,088 | 1,084 | |
| Used for cooling | 1,488,828 | 1,172,849 | 1,443,376 | |
| Water extracted for hydroelectric generation | 3,659,612 | 2,432,901 | 2,436,679 | |
| Pollutant discharges into surface water (t) |
BOD | 10.4 | 14.0 | 22.9 |
| COD | 38.4 | 47.6 | 58.8 |
* 2015 and 2016 data updated with respect to the 2016 Integrated Report due to a different classification of the discharge of the Thermoelectric Plant of Piacenza.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Special non-hazardous (t) | 53,848 | 36,040 | 42,322 |
| Special hazardous (t) | 4,522 | 4,903 | 3,064 |
| Total special (t) | 58,370 | 40,943 | 45,386 |
| Sent for recovery (% of total) | 66% | 72% | 91% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| CO2 from combustion processes (t) |
5,603,561 | 5,047,153 | 6,299,134 |
| CO2 from motor vehicles (t) |
635 | 483 | 376 |
| CO2 indirect from energy acquisition (t) |
54,074 | 55,647 | 51,261 |
| Fluorinated gases (t CO2 eq) | 2,330 | 2,906 | 1,576 |
| NOx (t) |
2,757 | 1,881 | 2,313 |
| SO2 (t) |
1,206 | 1,348 | 1,340 |
| Powders (t) | 107 | 114 | 126 |
| Polycyclic aromatic hydrocarbons (kg) | 0.04 | 0.02 | 0.02 |
| Mercury (kg) | 5 | 3 | 4 |
| Other metals (Sb + As + Pb + Cr + Cu + Mn + Ni + V + Sn+Cd+Tl) (kg) |
299 | 328 | 293 |
| Dioxins (grams - toxic equivalency) | 0.005 | 0.001 | 0.003 |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Fuel (TJ) | |||
| Natural gas | 3,356 | 2,804 | 4,215 |
| Coal | 1,812 | 1,846 | 1,828 |
| Petroleum derivatives (heavy fuel oil, diesel) | 0.3 | 0.5 | 0.3 |
| Biogas (from group purification plants) | 8 | 7 | 7 |
| Automotive fuels (TJ) | |||
| Petrol | 12 | 12 | 12 |
| Diesel | 18 | 18 | 18 |
| Methane | 10 | 10 | 7 |
| Electricity (GWh) | 136 | 128 | 145 |
| Heat energy (GWh - purchased from external sources) | 338 | 385 | 446 |
| Water resource consumed (thousands of m3) | |||
| From aqueducts | 722 | 673 | 806 |
| From wells | 1,990 | 1,857 | 1,764 |
| Chemical products and materials (t) | |||
| Mineral acids | 505 | 554 | 547 |
| Water additives/conditioners | 8,098 | 8,581 | 8,457 |
| Lime and solid neutralisers | 1,391 | 1,420 | 1,812 |
| Active carbon | 60 | 50 | 53 |
| Sodium chloride | 8 | 1 | 23.65 |
| Technical gases (nitrogen, CO2 , hydrogen, oxygen) |
153 | 162 | 174 |
| Sodium hydroxide (solution) | 159 | 176 | 159 |
| Methanol, solvents and other products | 633 | 738 | 678 |
| Odorants | 50 | 48 | 52 |
| Oils and lubricants | 11 | 22 | 43 |
| Urea (solution) | 474 | 439 | 520 |
| Total chemical products | 11,542 | 12,191 | 12,519 |
| 2015 | 2016 | 2017 | ||
|---|---|---|---|---|
| Volumes (thousands of m3 ) |
Discharged into sewers | 296 | 372 | 418 |
| Discharged into surface water | 151 | 170 | 143 | |
| Recovered in the production cycle | 1.5 | 3.8 | 2.3 | |
| Used for cooling | 14 | 18 | 15 | |
| Pollutant discharges into surface water (t) |
BOD | 0.9 | 0.9 | 0.4 |
| COD | 2.6 | 3.3 | 1.7 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Special non-hazardous (t) | 32,737 | 32,333 | 35,878 |
| Special hazardous (t) | 262 | 275 | 299 |
| Total special (t) | 32,999 | 32,608 | 36,177 |
| Sent for recovery (% of total) | 90% | 92% | 92% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| CO2 from combustion processes (t) |
365,706 | 338,675 | 419,238 |
| CO2 from motor vehicles (t) |
2,734 | 2,721 | 2,608 |
| CO2 indirect from energy acquisition (t) |
46,106 | 41,854 | 48,100 |
| Fluorinated gases (t CO2eq) | 2,636 | 2,154 | 292 |
| Methane (CH4 ) - losses from natural gas distribution networks* (t CO2eq) |
50,665 | 43,931 | 38,824 |
| NOx (t) |
210 | 203 | 259 |
| SO2 (t) |
144 | 118 | 123 |
| Powders (t) | 0.4 | 0.4 | 0.5 |
Financial capital
Stakeholder engagement and materiality analysis
Manufacturing capital
Natural capital
* Data updated with respect to the 2016 Integrated Report for a variation in the calculation method (see page 74 of the NFD).
| 2015 | 2016 | 2017 | Human | |
|---|---|---|---|---|
| Network electricity losses (GWh) | 383 | 323 | 389 | capital |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Water (thousands of m3) | 165 | 184 | 169 |
| Electricity (GWh) | 18 | 17 | 16 |
| Fuel (TJ) | |||
| Methane | 35 | 35 | 29 |
| Fuels (TJ) | |||
| Petrol | 2 | 2 | 4 |
| Diesel | 12 | 12 | 56 |
| Methane | 2 | 2 | 3 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Special non-hazardous (t) | 48 | 48 | 111 |
| Special hazardous (t) | 51 | 26 | 93 |
| Total special (t) | 99 | 74 | 204 |
| Sent for recovery (% of total) | 100% | 90% | 90% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| CO2 from combustion processes (t) |
1,938 | 1,940 | 1,613 |
| CO2 from motor vehicles (t) |
1,120 | 1,070 | 4,601 |
| CO2 indirect from energy acquisition (t) |
5,967 | 5,454 | 5,368 |
| Fluorinated gases (tCO2eq) | 137 | 536 | 276 |
Figure 46_Personnel by category and type of contract [GRI 102-8; 405-1]
| 2015 | 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| MEN | WOMEN TOTAL | MEN | WOMEN TOTAL | MEN | WOMEN TOTAL | ||||
| Managers | 121 | 24 | 145 | 121 | 24 | 145 | 147 | 27 | 174 |
| Supervisors | 368 | 112 | 480 | 381 | 112 | 493 | 458 | 135 | 593 |
| White-collar workers | 2,879 | 1,137 | 4,016 | 2,844 | 1,141 | 3,985 | 3,185 | 1,416 | 4,601 |
| Blue-collar workers | 4,600 | 193 | 4,793 | 4,527 | 193 | 4,720 | 5,241 | 205 | 5,446 |
| Permanent workers | 7,968 | 1,466 | 9,434 | 7,873 | 1,470 | 9,343 | 9,031 | 1,783 | 10,814 |
| of which, on-the-job training and first job contracts |
10 | 3 | 13 | 5 | - | 5 | 11 | - | 11 |
| Fixed-term workers | 183 | 22 | 205 | 406 | 28 | 434 | 551 | 51 | 602 |
| TOTAL | 8,161 | 1,491 | 9,652 | 8,279 | 1,498 | 9,777 | 9,582 | 1,834 | 11,416 |
| Workers with part-time contracts |
34 | 242 | 276 | 51 | 244 | 295 | 38 | 286 | 324 |
| Workers with full-time contracts |
8,127 | 1,249 | 9,376 | 8,228 | 1,254 | 9,482 | 9,544 | 1,548 | 11,092 |
| Workers with non-standard contracts* (temporary/interns) |
37 | 11 | 48 | 26 | 9 | 35 | 84 | 44 | 128 |
* Workers under non-standard contracts do not include consultants.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Executive contracts | 146 | 146 | 174 |
| Electrical contracts | 3,251 | 3,160 | 3,387 |
| Single natural gas and water contracts | 1,275 | 1,250 | 1,781 |
| Commercial contracts | 328 | 341 | 389 |
| Urban hygiene contracts | 4,068 | 4,246 | 4,756 |
| FISE contracts | 429 | 456 | 661 |
| Chemical contracts | 155 | 178 | 178 |
| Other contracts | - | - | 90 |
| Total | 9,652 | 9,777 | 11,416 |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| REGION | MEN | WOMEN | TOTAL | MEN | WOMEN | TOTAL | MEN | WOMEN | TOTAL |
| Abruzzo | 51 | 5 | 56 | 51 | 5 | 56 | 51 | 5 | 56 |
| Calabria | 77 | 1 | 78 | 79 | 1 | 80 | 78 | 1 | 79 |
| Campania | 192 | 15 | 207 | 192 | 15 | 207 | 192 | 16 | 208 |
| Emilia Romagna | 45 | 6 | 51 | 47 | 6 | 53 | 46 | 6 | 52 |
| Friuli Venezia Giulia | 188 | 5 | 193 | 156 | 5 | 161 | 151 | 5 | 156 |
| Lazio | 2 | 2 | 4 | 2 | 1 | 3 | 2 | 1 | 3 |
| Lombardy | 7,290 | 1,427 | 8,717 | 7,491 | 1,440 | 8,931 | 8,757 | 1,769 | 10,526 |
| Marches | - | - | - | - | - | - | 7 | 4 | 11 |
| Piedmont | 99 | 24 | 123 | 78 | 21 | 99 | 88 | 21 | 109 |
| Puglia | 54 | 2 | 56 | 28 | - | 28 | 48 | 2 | 50 |
| Sicily | 158 | 4 | 162 | 151 | 4 | 155 | 160 | 4 | 164 |
| Foreign | 5 | - | 5 | 4 | - | 4 | 2 | - | 2 |
| TOTAL | 8,161 | 1,491 | 9,652 | 8,279 | 1,498 | 9,777 | 9,582 | 1,834 | 11,416 |
Figure 49_Number of new employees by age and gender [GRI 401-1]
| 2015 | 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| AGE BRACKETS | MEN | WOMEN | TOTAL | MEN | WOMEN | TOTAL | MEN | WOMEN | TOTAL |
| Permanent workers | |||||||||
| Up to age 30 | 132 | 54 | 186 | 83 | 12 | 95 | 108 | 26 | 134 |
| From 31 to 40 | 71 | 12 | 83 | 67 | 8 | 75 | 90 | 16 | 106 |
| From 41 to 50 | 35 | 3 | 38 | 36 | 6 | 42 | 84 | 4 | 88 |
| Over 50 | 17 | 1 | 18 | 34 | - | 34 | 24 | - | 24 |
| Fixed-term workers | |||||||||
| Up to age 30 | 319 | 65 | 384 | 224 | 24 | 248 | 221 | 24 | 245 |
| From 31 to 40 | 135 | 29 | 164 | 144 | 8 | 152 | 157 | 6 | 163 |
| From 41 to 50 | 69 | 5 | 74 | 58 | 2 | 60 | 108 | 1 | 109 |
| Over 50 | 27 | 1 | 28 | 22 | - | 22 | 35 | 2 | 37 |
| Total | 805 | 170 | 975 | 668 | 60 | 728 | 827 | 79 | 906 |
| Percentage of new employees out of total workforce |
9.90% | 11.40% | 10.10% | 8.10% | 4.00% | 7.40% | 8.63% | 4.31% | 7.94% |
| 2015 | 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| MEN | WOMEN TOTAL | MEN | WOMEN TOTAL | MEN | WOMEN TOTAL | ||||
| Retirement | 177 | 11 | 188 | 133 | 7 | 140 | 168 | 10 | 178 |
| Voluntary resignation | 101 | 45 | 146 | 88 | 22 | 110 | 118 | 27 | 145 |
| Decease | 13 | 2 | 15 | 9 | 1 | 10 | 14 | - | 14 |
| Dismissal | 81 | 16 | 97 | 132 | 13 | 145 | 35 | 3 | 38 |
| Other (e.g., end of fixed-term contract) |
426 | 71 | 497 | 239 | 20 | 259 | 292 | 9 | 301 |
| Total | 798 | 145 | 943 | 601 | 63 | 664 | 627 | 49 | 676 |
| Turnover rate* | 9.78% | 9.73% | 9.77% | 7.30% | 4.20% | 6.80% | 6.54% | 2.67% | 5.92% |
* The turnover rate was calculated according to the following formula: (departures) / (employees) at December 31.
| 2015 | 2016 | 2017 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| UP TO 30 |
31-40 41-50 OVER | 50 TOTAL UP TO | 30 | 31-40 41-50 OVER | 50 TOTAL UP TO | 30 | 31-40 41-50 OVER | 50 TOTAL | Financial capital |
|||||||
| Retirement | - | - | - | 188 | 188 | - | - | - | 140 | 140 | - | - | - | 178 | 178 | |
| Voluntary resignation |
73 | 32 | 16 | 25 | 146 | 23 | 27 | 16 | 44 | 110 | 27 | 43 | 32 | 43 | 145 | |
| Decease | - | 2 | 1 | 12 | 15 | - | 1 | 3 | 6 | 10 | 1 | 1 | 5 | 7 | 14 | Manufacturing capital |
| Dismissal | 13 | 7 | 14 | 63 | 97 | - | 8 | 11 | 126 | 145 | 8 | 9 | 12 | 9 | 38 | |
| Other (e.g., end of fixed-term contract) |
272 | 130 | 73 | 22 | 497 | 113 | 74 | 39 | 33 | 259 | 116 | 92 | 63 | 30 | 301 | Natural |
| Total | 358 | 171 | 104 | 310 | 943 | 136 | 110 | 69 | 349 | 664 | 152 | 145 | 112 | 267 | 676 | capital |
| Turnover rate* 48.44% 9.78% 3.05% 8.25% 9.77% 16.77% 6.08% 2.16% 8.81% 6.80% 15.80% 6.50% 3.14% 5.69% 5.92% |
* The turnover rate was calculated according to the following formula: (departures) / (employees) at December 31.
Human capital
Stakeholder engagement and materiality analysis
| 2015 | 2016 | 2017 | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| AGE BRACKETS | MANAG ERS |
SUPERVI SORS |
WHITE COLLAR WORKERS |
BLUE COLLAR WORKERS |
TOTAL | MANAG ERS |
SUPERVI SORS |
WHITE COLLAR WORKERS |
BLUE COLLAR WORKERS |
TOTAL | MANAGERS | SUPERVISORS | WHITE-COLLAR WORKERS |
BLUE-COLLAR WORKERS | TOTAL | |
| Up to age 30 | - | - | 303 | 436 | 739 | - | 1 | 302 | 508 | 811 | - | 1 | 398 | 563 | 962 | |
| From 31 to 40 | 6 | 80 | 676 | 986 | 1,748 | 5 | 75 | 698 | 1,031 | 1,809 | 6 | 105 | 890 | 1,199 | 2,200 | |
| From 41 to 50 | 59 | 189 | 1,384 | 1,777 | 3,409 | 56 | 171 | 1,260 | 1,710 | 3,197 | 62 | 192 | 1,353 | 1,957 | 3,564 | |
| Over 50 | 81 | 212 | 1,691 | 1,772 | 3,756 | 85 | 247 | 1,766 | 1,862 | 3,960 | 107 | 297 | 2,041 | 2,245 | 4,690 | |
| Total | 146 | 481 | 4,054 | 4,971 | 9,652 | 146 | 494 | 4,026 | 5,111 | 9,777 | 175 | 595 | 4,682 | 5,964 | 11,416 |
| PROTECTED | 2015 | 2016 | 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| CATEGORIES | MEN | WOMEN | TOTAL | MEN | WOMEN | TOTAL | MEN | WOMEN | TOTAL | ||
| Cat. Pro. (Art.18 para.2 Law 68/99) |
33 | 16 | 49 | 34 | 16 | 50 | 36 | 18 | 54 | ||
| People with disabilities |
344 | 94 | 456 | 329 | 88 | 417 | 348 | 104 | 452 | ||
| Vulnerable groups (Mobility-C. Int.) |
5 | - | 5 | 5 | - | 5 | - | - | - | ||
| Total | 382 | 110 | 510 | 368 | 104 | 472 | 384 | 122 | 506 |
| 2015 2016 |
2017 | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| COMPANY SENIORITY |
MANAG ERS |
SUPERVI SORS |
WHITE COLLAR WORKERS |
BLUE COLLAR WORKERS |
TOTAL | % | MANAG ERS |
SUPERVI SORS |
WHITE COLLAR WORKERS |
BLUE COLLAR WORKERS |
TOTAL | % | MANAGERS | SUPERVISORS | WHITE-COLLAR WORKERS |
BLUE-COLLAR WORKERS |
TOTAL | % |
| Up to age 10 | 56 | 138 | 1,066 | 2,018 | 3,278 | 34.0% | 58 | 145 | 1,066 | 2,142 | 3,411 | 34.9% | 60 | 192 | 1,383 | 2,548 | 4,183 | 36.6% |
| From 11 to 20 |
44 | 100 | 671 | 1,107 | 1,922 | 19.9% | 42 | 102 | 631 | 1,125 | 1,900 | 19.4% | 59 | 141 | 845 | 1,433 | 2,478 | 21.7% |
| From 21 to 30 |
36 | 167 | 1,500 | 1,378 | 3,081 | 31.9% | 35 | 160 | 1,495 | 1,403 | 3,093 | 31.6% | 41 | 156 | 1,531 | 1,522 | 3,250 | 28.5% |
| Over 30 | 10 | 76 | 817 | 468 | 1,371 | 14.2% | 11 | 87 | 834 | 441 | 1,373 | 14.1% | 15 | 106 | 920 | 464 | 1,505 | 13.2% |
| Total | 146 | 481 | 4,054 | 4,971 | 9,652 100.0% | 146 | 494 | 4,026 | 5,111 | 9,777 100.0% | 175 | 595 | 4,679 | 5,967 | 11,416 | 100.0% |
| 2015 | 2016 | 2017 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MEN WOMEN TOTAL | % | MEN WOMEN TOTAL | % | MEN WOMEN TOTAL | % | |||||||
| Undergraduate degree |
653 | 390 | 1,043 | 10.8% | 703 | 408 | 1,111 | 11.4% | 927 | 533 | 1,460 | 12.8% |
| Secondary school diploma |
3,153 | 763 | 3,916 | 40.6% | 3,195 | 760 | 3,955 | 40.5% 3,548 | 917 | 4,465 | 39.1% | |
| Vocational degree | 611 | 83 | 694 | 7.2% | 606 | 78 | 684 | 7.0% | 796 | 93 | 889 | 7.8% |
| Compulsory schooling |
3,744 | 255 | 3,999 | 41.4% | 3,775 | 252 | 4,027 | 41.2% | 4,311 | 291 | 4,602 | 40.3% |
| Total | 8,161 | 1,491 | 9,652 100.0% 8,279 | 1,498 | 9,777 100.0% 9,582 | 1,834 11,416 100.0% |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |||||
|---|---|---|---|---|---|---|---|
| NUMBER OF HOURS |
AVERAGE HOURS PER EMPLOYEE |
NUMBER OF HOURS |
AVERAGE HOURS PER EMPLOYEE |
NUMBER OF HOURS |
AVERAGE HOURS PER EMPLOYEE |
||
| Managers | 2,805 | 19.2 | 4,322 | 29.6 | 6,691 | 38.2 | |
| Supervisors | 11,700 | 24.3 | 15,935 | 32.3 | 22,542 | 37.9 | |
| White-collar workers | 61,629 | 15.2 | 78,124 | 19.4 | 96,744 | 20.7 | |
| Blue-collar workers | 63,425 | 12.8 | 65,443 | 12.8 | 86,979 | 14.6 | |
| Total | 139,559 | 14.5 | 163,824 | 16.8 | 212,956 | 18.7 |
| 2015 | 2016 | 2017 | |||||
|---|---|---|---|---|---|---|---|
| NUMBER OF HOURS |
AVERAGE HOURS PER EMPLOYEE |
NUMBER OF HOURS |
AVERAGE HOURS PER EMPLOYEE |
NUMBER OF HOURS |
AVERAGE HOURS PER EMPLOYEE |
||
| Men | 121,322 | 14.9 | 144,317 | 17.4 | 185,338 | 19.3 | |
| Women | 18,237 | 12.2 | 19,507 | 13.0 | 27,617 | 15.1 | |
| Total | 139,559 | 14.5 | 163,824 | 16.8 | 212,956 | 18.7 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Training hours | 84,689 | 86,492 | 112,023 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| € | 2,036,198 | 1,800,223 | 3,013,190 |
| Percentage of training costs covered by inter-professional funds | 18% | 30% | 29% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Percentage of total employees | 75% | 87% | 92% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Number of attendees of training courses | 31,504 | 37,634 | 55,830 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Percentage of total employees | 48% | 47% | 47% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Number of employees involved | - | 1,691 | 2,353 |
| Training hours provided | - | 6,011 | 4,506 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Number of deaths | - | - | - |
| No. of incidents (excl. commuting) | 471 | 555 | 577 |
| No. of days of absence | 12,638 | 14,109 | 14,861 |
| Average duration | 26.83 | 25.42 | 25.76 |
| Frequency index FI | 29.61 | 35.66 | 31.80 |
| Severity index SI | 0.79 | 0.91 | 0.82 |
| Incidence index II | 10.46 | 11.52 | 10.00 |
| Commuting accidents | 103 | 112 | 113 |
* When calculating indices, only professional accidents , that result in at least one day of absence, not including the day of the event, are considered. Medications and unrecognised accidents are therefore excluded. Professional accidents also include those that occur in
Commuting accidents: accidents suffered by workers while commuting from home to work and vice-versa (but not while in service). The figures for 2015 and 2016 differ from those reported in the 2016 Integrated Report as they take into account updates in the
transit, with or without a vehicle. The table counts all injuries involving employees.
FI = frequency index (no. accidents x 1,000,000: hours worked). SI = severity index (no days of absence x 1,000: hours worked). II = incident index (no. commuting accidents x 1,000 : workforce).
recognition of accidents after the publication of the document.
engagement and materiality analysis
Stakeholder
Financial capital
Manufacturing capital
Natural capital
Human capital
Relational capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| No. of hours worked by contractors | 1,776,465 | 1,720,753 | 2,350,008 |
| Number of incidents | 15 | 11 | 15 |
| Days lost | 467 | 464 | 354 |
| Frequency index | 8.44 | 6.39 | 6.38 |
| Severity index | 0.26 | 0.27 | 0.15 |
| 2015 | 2016 | 2017 | |||||
|---|---|---|---|---|---|---|---|
| WOMAN | MAN | WOMAN | MAN | WOMAN | MAN | ||
| Number of injuries | 38 | 437 | 50 | 506 | 51 | 526 |
| GENERATION AND TRADING BU |
COMMERCIAL ENVIRONMENT BU BU |
NETWORKS AND HEAT BU CORPORATE BU |
TOTAL | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | 2017 | |
| Visits | 722 | 825 | 152 | 171 | 4,119 6,112 1,513 1,259 454 | 420 6,960 8,787 | ||||||
| Assessments | 1,414 1,715 | 95 | 174 | 7,604 8,789 1,793 2,633 366 | 461 11,272 13,772 | |||||||
| Vaccinations | 40 | 80 | - | 29 | 541 | 943 | 67 | 509 | - | 114 | 648 | 1,675 |
| Site inspections | - | 17 | - | 8 | - | 29 | - | 35 | - | 11 | 83 | 100 |
| Clinical examinations | - | 106 | - | - | - | 241 | - | 10 | - | - | 602 | 357 |
| Specific visits | - | 7 | - | - | - | 272 | - | 3 | - | - | 191 | 282 |
Figure 68_Workers represented in formal health and safety committees [GRI 403-1]
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Percentage of total employees | 100% | 100% | 100% |
Figure 69_Working days lost - Absentee Rate [GRI 403-2]
| 2015 | 2016 | 2017 | |||||||
|---|---|---|---|---|---|---|---|---|---|
| NO. DAYS |
ABSENTEE RATE |
WORKING DAYS PER STAFF MEMBER |
NO. DAYS |
ABSENTEE RATE |
WORKING DAYS PER STAFF MEMBER |
NO. DAYS |
ABSENTEE RATE |
WORKING DAYS PER STAFF MEMBER |
|
| Illness | 109,510 | 4.33% | 11.1 | 111,989 | 4.68% | 11.5 | 116,333 | 3.84% | 10 |
| Unpaid leave/absence 8,301 | 0.33% | 0.8 | 7,442 | 0.31% | 0.8 | 7,934 | 0.26% | 1 | |
| Company strikes | 398 | 0.02% | - | 3,135 | 0.13% | 0.3 | - | 0.00% | - |
| National strikes | 68 | 0.00% | - | 439 | 0.02% | - | 581 | 0.02% | - |
| Accidents* | 14,113 | 0.56% | 1.4 | 14,867 | 0.62% | 1.5 | 15,864 | 0.52% | 1 |
| Total | 132,390 | 5.23% | 13.5 | 137,871 | 5.76% | 14.1 | 140,712 | 4.64% | 12 |
* It should be noted that the figures presented in this table refer solely to working days lost due to accidents and not to calendar days lost, which are used to calculate the severity index.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Average number of employees in service | 9,829 | 9,748 | 11,268 |
| Total working days | 2,398,493 | 2,253,718 | 2,890,624 |
| Total hours worked | 15,888,689 | 15,622,092 | 18,144,130 |
| 2015 2016 |
2017 | |||||
|---|---|---|---|---|---|---|
| MEN | WOMEN | MEN | WOMEN | MEN | WOMEN | |
| Illness | 92,800 | 16,710 | 94,360 | 17,629 | 97,453 | 18,880 |
| Unpaid leave/ absence |
6,569 | 1,732 | 5,761 | 1,681 | 6,461 | 1,473 |
| Company strikes | 316 | 82 | 2,926 | 209 | - | - |
| National strikes | 65 | 2 | 410 | 29 | 497 | 84 |
| Accidents | 12,959 | 1,154 | 12,884 | 1,983 | 14,082 | 1,782 |
| Total | 112,709 | 19,680 | 116,340 | 21,531 | 118,493 | 22,219 |
Stakeholder engagement and materiality analysis
Financial capital
| 2017 | |
|---|---|
| Days lost due to injury or occupational disease | 15,864 |
| Lost day rate | 0.08% |
* "Lost days" are days that cannot be worked due to an accident or occupational illness. They are not counted if there is a partial return to working activity. "Occupational illness" is defined as an illness caused by the working environment or professional activity (e.g., stress or regular exposure to harmful chemical substances) or resulting from an accident.
| 2015 | 2016 | 2017 | ||||
|---|---|---|---|---|---|---|
| MEN | WOMEN | MEN | WOMEN | MEN | WOMEN | |
| Employees who took parental leave | 102 | 128 | 119 | 133 | 160 | 175 |
| of whom, employees who returned to work in 2015 |
80 | 87 | x | x | x | x |
| of whom, employees who returned to work in 2016 |
19 | 38 | 103 | 103 | x | x |
| of whom, employees who returned to work in 2017 |
- | - | 13 | 25 | 157 | 148 |
* Employees who did not return to work relative to 2017 have not necessarily resigned, but are continuing their leave.
capital
Manufacturing
Human capital
| 2015 | 2016 | 2017 | ||||
|---|---|---|---|---|---|---|
| N° | % | N° | % | N° | % | |
| Italy - members of union federations | 3,716 | 38.5% | 3,424 | 35.0% | 3,662 | 32.1% |
| Italy - members of other unions | 1,105 | 11.4% | 1,062 | 10.9% | 1,137 | 10.0% |
| Employees not enrolled in unions | 4,826 | 50.0% | 5,287 | 54.1% | 6,617 | 58.0% |
| Abroad - Employees not enrolled in unions | 5 | 0.1% | 4 | 0.0% | - | 0.0% |
| Total | 9,652 | 100.0% | 9,777 | 100.0% | 11,416 | 100.0% |
| 2015 | 2016 2017 |
||||
|---|---|---|---|---|---|
| TOTAL STRIKE HOURS |
STRIKE HOURS PER CAPITA* |
TOTAL STRIKE HOURS |
STRIKE HOURS PER CAPITA* |
TOTAL STRIKE HOURS |
STRIKE HOURS PER CAPITA* |
| 3,526 | 0.4 | 22,700 | 2.3 | 4,402 | 0.4 |
* Per capita hours are calculated on the average headcount.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Total (€) | 4,591,981 | 4,631,251 | 5,000,668 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Protected market | 717,353 | 674,551 | 619,114 |
| Free market | 267,717 | 321,746 | 472,003 |
| Total | 985,070 | 996,297 | 1,091,117 |
| 2015 | 2016 | 2017 | Financial | |
|---|---|---|---|---|
| Domestic | 804,341 | 820,420 | 895,041 | capital |
| SME | 119,864 | 111,179 | 128,704 | |
| Large customers | 27,021 | 30,954 | 34,292 | |
| Condominiums | 33,844 | 33,744 | 33,080 | capital |
| Total | 985,070 | 996,297 | 1,091,117 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Protected market | 881,530 | 813,729 | 841,282 |
| Free market | 215,950 | 276,898 | 453,141 |
| Total | 1,097,480 | 1,090,627 | 1,294,423 |
Manufacturing capital
Natural capital
Human capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Domestic | 1,026,914 | 1,022,433 | 1,212,980 |
| SME | 55,446 | 53,859 | 64,933 |
| Large customers | 5,454 | 4,997 | 6,748 |
| Condominiums | 9,666 | 9,338 | 9,762 |
| Total | 1,097,480 | 1,090,627 | 1,294,423 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Lombardy | 84% | 78% | 83% |
| Rest of Italy | 16% | 22% | 17% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Lombardy | 91% | 88% | 90% |
| Rest of Italy | 9% | 12% | 10% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| A2A Energia | 196,843 | 257,075 | 286,834 |
| Increase (%) | 34% | 31% | 12% |
* The figure is calculated as at 03/31/2017, the date on which the programme closed in accordance with the regulation.
| 2015 | 2016 | 2017 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SERVICE SUPPLIED |
BUSINESS SEGMENT |
CSI | MARKET | STANDARD POSITION* | CSI | MARKET STANDARD POSITION* |
CSI | MARKET STANDARD POSITION* |
||||
| Domestic | 90.7 | 88.1 | 1 of 7 | 91.6 | 91.2 | 2 of 7 | 90.1 | 89.4 | 3 of 7 | |||
| Gas | VAT no. & PMI | 90.9 | 86 | 1 of 6 | 93.3 | 89.7 | 1 of 6 | 92.4 | 92 | 1 of 6 | ||
| Domestic | 92.3 | 89.4 | 1 of 8 | 93 | 90.4 | 2 of 8 | 91.1 | 89.7 | 3 of 8 | |||
| Electricity | VAT no. & PMI | 89.9 | 85.5 | 2 of 10 | 92 | 87.4 | 1 of 10 | 90.7 | 89.5 | 2 of 10 |
* The position in the rankings derives from the comparison of the performance of A2A Energia with that of the main market players, apart from the macro category of "Other suppliers", which combines several operators and whose results cannot be read individually due to the number of associated interviews.
| ARERA | A2A ENERGIA | LINEA PIÙ | |||||||
|---|---|---|---|---|---|---|---|---|---|
| TARGET | 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |||
| Percentage of successful calls | ≥80% | 99.4% | 95.5% | 94.2% | 92.8% | 92.3% | 97.4% | ||
| Accessibility of lines and services (time when line is free vs operator presence time) |
≥80% | 99.9% | 98.8% | 99.3% 100.0% 100.0% 100.0% | |||||
| Average waiting time on the telephone (seconds) |
≤240'' | 77'' | 131'' | 140'' | 128'' | 147'' | 84'' |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| A2A ENERGIA - number of complaints | 2,672 | 2,823 | 3,447 |
| LINEA PIÙ - number of complaints | - | - | 2,399 |
| A2A ENERGIA - percentage "simple" complaints out of average no. of customers* |
0.14% | 0.14% | 0.17% |
| LINEA PIÙ - percentage "simple" complaints out of average no. of customers* |
- | - | 0.82% |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
* ARERA defines complaints as "simple" when they refer exclusively to the seller and do not require any data pertaining to the distribution company in order to prepare the answer. Percentages are based on the number of customers at 31/12/2016. Data at 31/12/2017 were not available yet.
| A2A ENERGIA | LINEA PIÙ | |||||||
|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |||
| Sales services | 226.53 | 216.05 | 245.16 | 248.14 | 266.51 | 264.52 | ||
| Network services | 219.78 | 215.35 | 206.04 | 217.56 | 213.84 | 206.35 | ||
| Tax | 21.77 | 21.79 | 21.82 | 21.79 | 21.79 | 21.79 | ||
| VAT | 46.81 | 45.32 | 47.30 | 48.75 | 50.21 | 49.27 | ||
| Total | 514.89 | 498.51 | 520.32 | 536.24 | 552.35 | 541.93 |
Human capital
Natural capital
Relational capital
* For electricity, the Authority took as an example a resident domestic use contract, with 3 kW of available power and an average annual use of 2,700 kWh.
| A2A ENERGIA | LINEA PIÙ | |||||||
|---|---|---|---|---|---|---|---|---|
| 2015 2016 2017 |
2016 | 2017 | ||||||
| Sales services | 477.82 | 401.88 | 411.56 | 559.44 | 488.88 | 421.68 | ||
| Network services | 224.98 | 209.62 | 214.75 | 213.11 | 212.75 | 212.16 | ||
| Tax | 242.46 | 224.68 | 224.68 | 224.68 | 224.68 | 224.68 | ||
| VAT | 169.03 | 170.55 | 173.20 | 178.36 | 165.68 | 153.55 | ||
| Total | 1,114 | 1,007 | 1,024.19 | 1,175.59 | 1,091.99 | 1,012.08 |
* For gas, domestic use with independent heating in the north-east and an annual use of 1,400 m3 was taken as the example by the Authority.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Total number of customers served | 275,288 | 300,814 | 285,550 |
| A2A Energia* | 275,288 | 300,814 | 200,140 |
| Linea Più | - | - | 85,410 |
| Average office waiting time (minutes) | |||
| A2A Energia | 05:03 | 13:48 | 07:30 |
| Linea Più | - | - | 12:13 |
* The 2015 figure refers to the offices in Milan, Brescia and Bergamo; as from 2016, it also includes Varese.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| A2A Energia | 248,638 | 289,613 | 325,580 |
| Linea Più | - | - | 6,405 |
| Total | 248,638 | 289,613 | 331,985 |
| Increase (%) | 9.7% | 16.5% | 14.6% |
* Since April 2017, Aspem Energia has been fully integrated into the A2A Energia computer systems. The AEN figure therefore also includes bolett@mail activations by Aspem clients.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Total number of visits | 1,956,964 | 2,686,178 | 4,144,495 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Government | 13% | 1% | 0.5% |
| Mass market | 64% | 71% | 68.4% |
| Others | 23% | 29% | 31.2% |
| Total GWh | 630.2 | 768.7 | 1,273 |
Figure 92_Extension of electricity distribution service
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Customers connected | 1,120,197 | 1,135,038 | 1,176,799 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Customers connected | 1,260,233 | 1,259,287 | 1,469,330 |
outages without notice
| MILAN | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SERVICE CONTINUITY INDICATOR |
HIGH DENSITY AREA | MEDIUM DENSITY AREA | LOW DENSITY AREA | ||||||||||
| 2015 2016 2017 ARERA 2017 | OBJECTIVE 2015 2016 2017 ARERA 2017 | OBJECTIVE 2015 2016 2017 ARERA 2017 OBJECTIVE |
|||||||||||
| Average annual minutes of outage per LV user due to long outages without notice |
23.77 26.63 24.83 | 25 | 41.75 36.67 13.43 | 40 | N/A | N/A | N/A | / | |||||
| Average annual number of outages per LV user due to long outages without notice |
1.31 | 1.54 | 1.36 | 1.12 | 2.11 | 1.71 | 0.88 | 2.04 | N/A | N/A | N/A | / |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
| BRESCIA | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| SERVICE CONTINUITY INDICATOR |
HIGH DENSITY AREA | MEDIUM DENSITY AREA | LOW DENSITY AREA | |||||||||
| 2015 2016 2017 ARERA 2017 | OBJECTIVE 2015 2016 2017 ARERA 2017 | OBJECTIVE 2015 2016 2017 ARERA 2017 OBJECTIVE |
||||||||||
| Average annual minutes of outage per LV user due to long outages without notice |
5.80 | 5.24 | 4.92 | 25 | 14.06 9.92 | 8.03 | 40 | 24.96 21.77 26.46 | 60 | |||
| Average annual number of outages per LV user due to long |
0.81 | 0.69 | 0.58 | 1.12 | 1.5 | 1.33 | 1.18 | 2.04 | 2.18 | 2.46 | 2.88 | 4 |
Natural capital
Human capital
Relational
capital
| CREMONA | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| SERVICE CONTINUITY | HIGH DENSITY AREA | MEDIUM DENSITY AREA | LOW DENSITY AREA | ||||||||
| INDICATOR | 2017 | ARERA 2017 OBJECTIVE |
2017 | ARERA 2017 OBJECTIVE |
2017 | ARERA 2017 OBJECTIVE |
|||||
| Average annual minutes of outage per LV user due to long outages without notice |
2.50 | 25 | N/A | / | 7.00 | 60 | |||||
| Average annual number of outages per LV user due to long outages without notice |
0.50 | 1.12 | N/A | / | 0.80 | 4 |
| MILAN | BRESCIA | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |
| No. MV customers with more than 6 interruptions per year for high density areas |
8* | 35* | 14 | - | - | - | - | - | - |
| No. MV customers with more than 9 interruptions per year for low density areas |
- | - | - | - | 18* | 12 | - | - | - |
In the event of an electricity shortfall, Terna - National Electrical Network requests that distributors implement a scheduled rotating outage plan in order to avoid a general blackout. There are five levels of severity of electricity shortfall used to determine the number of users involved and the frequency of outages. The disconnections, which will last up to 90 minutes, are notified by Terna 30 minutes in advance and can take place at any time during the specified time frames and not necessarily at their start. The scheduled outage plan prepared by Unareti and LD Reti, divided by day and time slot, is available from the companies' websites.
* Data updated with respect to the 2016 Integrated Report.
| LEVEL ARERA RES. 198/11 |
ARERA LEVEL RES. 646/15 OF |
SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) |
AVERAGE TIME TO EXECUTE THE SERVICE (DAYS) |
||||||
|---|---|---|---|---|---|---|---|---|---|
| 01/01/2016 | 2015 | 2016 | 2017 | 2015 | 2016* | 2017 | |||
| Time to prepare estimate for work on the network |
20 working days for LV 40 working days for MV |
10 working days for LV 30 working days for MV |
99.26% 99.61% 98.66% | 6.76 | 6.38 | 6.61 | |||
| Execution time for simple work | 15 working days for LV 30 working days for MV |
10 working days for LV 20 working days for MV |
99.56% 99.71% 99.32% | 5.75 | 5.06 | 4.71 | |||
| Execution time for complex work | N/A | 50 working days | N/A | 100.00% 99.86% | N/A | 9.19 | 10.14 | ||
| Activation time for LV/MV supply | 5 working days 5 working days 99.81% 99.89% 99.84% | 0.91 | 0.73 | 0.63 | |||||
| Supply de-activation time | 5 working days for LV 7 working days for MV |
5 working days 99.73% 99.81% 99.86% | 0.7 | 0.64 | 0.59 | ||||
| Reactivation time following suspension due to non-payment |
1 working day | 1 working day | 99.70% 99.87% 99.90% | 0.11 | 0.10 | 0.08 | |||
| Observance of time bracket for appointments |
Two hours | Two hours | 99.82% 99.85% 99.84% | N/A | N/A | N/A | |||
| Time to restore service following failure of meter equipment during working days from 8 AM to 6 PM on the LV network |
Three hours | Three hours | 87.82% 90.42% 88.01% | 2.30 | 1.77 | 2.01 | |||
| Time to restore service following failure of meter equipment during non working days from 6 PM to 8 AM on the LV network |
Four hours | Four hours | 92.22% 98.28% 97.02% | 2.19 | 1.40 | 1.52 | |||
| Time to report results of testing of LV/ MV meter equipment |
15 working days 15 working days 94.98% 97.16% 92.70% | 9.65 | 9.20 | 11.40 | |||||
| Time for notifying the result of the verification of voltage |
20 working days 20 working days 92.31% 96.55% 95.45% | 15.50 | 15.76 | 15.28 |
* Data updated with respect to the 2016 Integrated Report, in line with the communication to ARERA after the publication of the document.
| ARERA LEVEL RES. 646/15 OF 01/01/2016 |
SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) 2017 |
AVERAGE TIME TO EXECUTE THE SERVICE (DAYS) 2017 |
|
|---|---|---|---|
| Time to prepare estimate for work on the network | 10 working days for LV 30 working days for MV |
100% 100% |
3.34 8.88 |
| Execution time for simple work | 10 working days for LV 20 working days for MV |
98% 100% |
2.98 3.00 |
| Execution time for complex work | 50 working days for LV 50 working days for MV |
100% 100% |
14.45 10.50 |
| Activation time for LV/MV supply | 5 working days | 100% | 0.58 |
| Supply de-activation time | 5 working days for LV 7 working days for MV |
100% 100% |
0.5 4.00 |
| Reactivation time following suspension due to non-payment |
1 working day on zeroed 1 working day reduced 15% |
100% 100% |
0.11 0.6 |
| Observance of time bracket for appointments | Two hours | 100% | N/A |
| Time to restore service following failure of meter equipment during working days from 8 AM to 6 PM on the LV network |
Three hours | 100% | 1.10 |
| Time to restore service following failure of meter equipment during non-working days from 6 PM to 8 AM on the LV network |
Four hours | 100% | 1.10 |
| Time to report results of testing of LV/MV meter equipment |
15 working days | 100% | 13 |
| Time for notifying the result of the verification of voltage |
20 working days | na | na |
| SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| ARERA LEVEL |
UNARETI | LD RETI | |||||||||
| 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | ||||||
| Minimum percentage of detailed responses |
95% (LV) |
99.20% | 99.41% | 93.93% | - | - | 100% | ||||
| to written complaints or requests for information, provided within maximum period of 30 calendar days |
95% (MV) |
98.10% | 99.72% | 98.93% | - | - | 100% |
Stakeholder engagement and materiality analysis
Financial capital
Natural capital
Human capital
| SERVICES PROVIDED ON THE | ARERA | UNARETI | ASPEM | LD RETI | ASVT | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| INDICATED TIMETABLE (%) | LEVEL | 2015 2016 2017 2015 2016 2017 2015 2016 2017 2015 2016 2017 | |||||||||||
| Percentage of requests to execute complex work completed within the maximum period of 60 working days |
90 | 99.54 99.70 98.83 100.00 100.00 100.00 | - | - | 100.00 | - | - | - | |||||
| Percentage of detailed responses to written complaints or requests for information provided within the maximum period of 30 working days |
95 | 99.50 99.21 94.56 100.00 100.00 100.00 | - | - | 100.00 | - | - | 100.00 |
| BASE | BASE | BASE EFFECTIVE 2015 | BASE EFFECTIVE 2016 | BASE EFFECTIVE 2017 | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| LEVEL | REFERENCE | MILAN | BRESCIA | BERGAMO | VARESE | CREMONA | LODI | PAVIA | MILAN BRESCIA BERGAMO VARESE CREMONA LODI | PAVIA | MILAN BRESCIA BERGAMO VARESE CREMONA LODI | PAVIA | ||||||||||
| Annual percentage of the high and medium pressure network inspected |
30% | 90% | 58% | 86% | 100% | 68% | - | - | - | 73% 100% 100% 65% | - | - | - | 72% | 78% | - | 85% 100% 100% 100% | |||||
| Annual percentage of the low pressure network inspected |
20% | 70% | 59% | 58% | 100% | 92% | - | - | - | 62% | 63% 100% 77% | - | - | - | 56% | 56% | - | 97% 100% 100% 100% | ||||
| Annual number of leaks located per km of network inspected |
0.8 | 0.1 | 0.13 | 0.09 | 0.04 | 0.17 | - | - | - | 0.09 | 0.08 | 0.01 | 0.23 | - | - | - | 0.13 0.07 | - | 0.00 0.01 0.02 0.05 | |||
| Annual number of leaks located in response to reports from third parties per km of network |
0.8 | 0.1 | 0.26 | 0.09 | 0.04 | 0.07 | - | - | - | 0.23 | 0.08 | 0.03 | 0.06 | - | - | - | 0.20 0.07 0.03 0.08 | - | 0.01 0.02 | |||
| Conventional number of measurements of degree of natural gas odorant per thousand end customers |
0.19 | 0.5 | 0.95 | 1.82 | 3.66 | 1.39 | - | - | - | 0.94 | 1.73 | 4.80 | 1.39 | - | - | - | 0.63 1.70 4.48 1.39 1.70 1.80 1.10 |
| ANNUAL NUMBER OF CALLS TO THE SWITCHBOARD WITH A TIME TO ARRIVAL OF THE TEAM AT DESTINATION ≤ 60 MINUTES BASE LEVEL 90% BASE REFERENCE 95% |
2015 | 2016 | 2017 |
|---|---|---|---|
| Milan | 98.78% | 98.85% | 99.00% |
| Brescia | 99.85% | 99.72% | 99.81% |
| Bergamo | 100.00% | 100.00% | 100.00% |
| Varese | 99.74% | 100.00% | 100.00% |
| Cremona | - | - | 99.80% |
| Lodi | - | - | 100.00% |
| Pavia | - | - | 100.00% |
Figure 102_Gas commercial quality - specific indicators: Milan, Brescia, Bergamo and Chieti Area*
capital
Relational capital
| TYPE OF SERVICE | ARERA LEVELS RES. |
SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) |
AVERAGE TIME TO EXECUTE THE SERVICE (DAYS) |
||||||
|---|---|---|---|---|---|---|---|---|---|
| 574/13 OF 01/01/2014 |
2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |||
| Estimating time (simple work) | 15 working days |
99.46% | 96.34% | 85.86% | 7.09 | 9.03 | 10.58 | ||
| Execution time (simple work) | 10 working days |
98.03% | 92.79% | 80.97% | 7.14 | 7.13 | 8.5 | ||
| Estimating time (complex works) |
30 working days |
97.71% | 94.24% | 96.08% | 11.55 | 15.09 | 13.92 | ||
| Supply activation time | 10 working days |
99.93% | 99.93% | 99.86% | 2.85 | 3.72 | 3.31 | ||
| Supply de-activation time | 5 working days 99.87% | 99.49% | 99.51% | 3 | 3.09 | 3.05 | |||
| Reactivation time following suspension due to non-payment |
2 working days 96.42% | 97.59% | 97.07% | 1.15 | 1.24 | 1.18 | |||
| Observance of time bracket for appointments |
Two hours | 99.82% | 99.79% | 99.83% | - | - | - | ||
| Time to notify results of testing of meter equipment |
20 working days |
67.57% | 62.86% | 96.39% | 22.92 | 20.11 | 18.01 |
* Data updated with respect to the 2016 Integrated Report, in line with the communication to ARERA after the publication of the document.
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
Natural capital
Human
| TYPE OF SERVICE | ARERA LEVELS RES. |
SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) |
AVERAGE TIME TO EXECUTE THE SERVICE (DAYS) |
||||||
|---|---|---|---|---|---|---|---|---|---|
| 574/13 OF 01/01/2014 |
2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |||
| Estimating time (simple work) | 15 working days |
100.00% | 100.00% | 100.00% | 4.20 | 6.16 | 5.20 | ||
| Execution time (simple work) | 10 working days |
100.00% | 100.00% | 100.00% | 3.20 | 1.90 | 3.40 | ||
| Estimating time (complex works) | 30 working days |
100.00% | 100.00% | 100.00% | 4.20 | 6.00 | 5.50 | ||
| Supply activation time | 10 working days |
100.00% | 100.00% | 100.00% | 1.80 | 3.40 | 3.30 | ||
| Supply de-activation time | 5 working days 100.00% | 100.00% | 100.00% | 2.10 | 2.10 | 3.20 | |||
| Reactivation time following suspension due to non-payment 2 working days |
99.09% | 100.00% | 100.00% | 1.10 | 1.40 | 2.00 | |||
| Observance of time bracket for appointments |
Two hours | 99.99% | 100.00% | 100.00% | - | - | - | ||
| Time to notify results of testing of meter equipment |
20 working days |
- | - | - | - | - | - |
| TYPE OF SERVICE | ARERA LEVELS RES. 574/13 OF 01/01/2014 |
SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) |
AVERAGE TIME TO EXECUTE THE SERVICE (DAYS) |
|---|---|---|---|
| 2017 | 2017 | ||
| Estimating time (simple work) | 15 working days | 96.64% | 4.96 |
| Execution time (simple work) | 10 working days | 98.96% | 1.96 |
| Estimating time (complex works) | 30 working days | 100.00% | 3.00 |
| Supply activation time | 10 working days | 100.00% | 1.72 |
| Supply de-activation time | 5 working days | 100.00% | 1.70 |
| Reactivation time following suspension due to non-payment | 2 working days | 100.00% | 0.65 |
| Observance of time bracket for appointments | Two hours | 100.00% | - |
| Time to notify results of testing of meter equipment | 20 working days | 100.00% | 16.20 |
| TYPE OF SERVICE | ARERA LEVELS RES. 574/13 OF 01/01/2014 |
SERVICES PROVIDED ON THE INDICATED TIMETABLE (%) |
AVERAGE TIME TO EXECUTE THE SERVICE (DAYS) |
|---|---|---|---|
| 2017 | 2017 | ||
| Estimating time (simple work) | 15 working days | 100.00% | 3.95 |
| Execution time (simple work) | 10 working days | 99.81% | 3.16 |
| Estimating time (complex works) | 30 working days | 100.00% | 5.33 |
| Supply activation time | 10 working days | 99.58% | 3.05 |
| Supply de-activation time | 5 working days | 96.06% | 2.65 |
| Reactivation time following suspension due to non-payment | 2 working days | 97.33% | 1.23 |
| Observance of time bracket for appointments | Two hours | 98.89% | - |
| Time to notify results of testing of meter equipment | 20 working days | 67.35% | 18.31 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Municipalities served by aqueduct | 108 | 108 | 120 |
| Users served by aqueduct | 282,254 | 283,479 | 308,178 |
| Inhabitants served by aqueduct | 812,948 | 812,654 | 886,195 |
| Inhabitants served by sewers | 563,887 | 563,516 | 652,956 |
| Inhabitants served by purification | 549,636 | 549,311 | 641,194 |
| A2A CICLO IDRICO | ASPEM | |||||
|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |
| Service accessibility rate (free lines with respect to operator presence time) |
100.00% | 100.00% | 100.00% | - | 100.00% | 100.00% |
| Number of calls to the call centre |
81,761 | 79,277 | 118,231 | - | 9,494 | 12,966 |
| Average telephone waiting time for calls from end customers (seconds) |
84 | 73 | 78 | - | - | 87 |
| Percentage of successful calls | 88.10% | 87.70% | 64.67% | - | 47.50% | 96.20% |
Stakeholder engagement and materiality analysis
Financial capital
Manufacturing capital
| A2A CICLO IDRICO | ASPEM | ASVT | |||||||
|---|---|---|---|---|---|---|---|---|---|
| Data in days | 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | 2015 | 2016 | 2017 |
| Response time to requests for estimate for connection to the aqueduct |
3.98 | 7.37 | 5.16 | - | - | 5.10 | - | - | 2.30 |
| Response time to requests for estimate for connection to the sewers |
3.30 | 4.60 | 3.21 | - | - | - | - | - | 1.67 |
| Aqueduct connection times | 12.10 | 13.70 | 5.78 | - | - | 2.92 | - | - | 2.61 |
| Supply activation time | 2.40 | 2.70 | 2.47 | - | - | 1.77 | - | - | 1.65 |
| Sewer connection times | 12.30 | 19.30 | 15.74 | - | - | - | - | - | 6.60 |
Natural capital
capital
Relational capital
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Transformations (no.) | 18 | 13 | 40 |
| Capacity installed (kW) | 9,394 | 16,950 | 16,918 |
* These refer to replacement of methane with methane with a condensing boiler, of methane with district heating, of diesel with methane with a condensing boiler and of diesel with district heating.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Municipalities served | 101 | 117 | 258 |
| Population served (thousands) | 2,539 | 2,646 | 3,549 |
| CUSTOMERS SERVED | 2015 | 2016 | 2017 |
|---|---|---|---|
| Amsa | 8,167 | 9,206 | 9,091 |
| Aprica | 1,270 | 1,357 | 1,397 |
| La.Bi.Co. Due | - | - | 259 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Municipalities served | 952 | 962 | 988 |
| Companies served | 1,844 | 1,860 | 3,160 |
| AMSA | APRICA | ASPEM | |||||||
|---|---|---|---|---|---|---|---|---|---|
| 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | 2015 | 2016 | 2017 | |
| Number of calls to the call centre | 375,210 321,778 376,027 22,535 | 45,901 | 80,962 | - | - | - | |||
| Accessibility of lines and services (time when line is free vs operator presence time) |
100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Average waiting time on the telephone (seconds) |
97 | 70 | 76 | 62 | 60 | 52 | 139 | 23 | 87 |
| Percentage of successful calls | 93% | 94% | 94% | 69% | 82% | 72% | 53% | 47% | 65% |
| DISPUTES RECEIVED | GAS | % | ELECTRICITY | % | WATER | % | TOTAL REQUESTS |
% |
|---|---|---|---|---|---|---|---|---|
| BILLING | 3 | 15% | 4 | 20% | - | - | 7 | 17% |
| LATE PAYMENT AND SUSPENSION | 2 | 10% | - | - | - | - | 2 | 5% |
| METERING | 14 | 70% | 13 | 65% | - | - | 27 | 66% |
| CONTRACTS | 1 | 5% | 3 | 15% | - | - | 4 | 10% |
| MARKET | - | - | - | - | - | - | - | - |
| CONNECTIONS, WORKS AND TECHNICAL QUALITY |
- | - | - | - | - | - | - | - |
| LOSSES CONCEALED | - | - | - | - | 1 | 100% | 1 | 2% |
| OTHER (NOT INCLUDED IN PROTOCOL) | - | - | - | - | - | - | - | - |
| General total | 20 | 49% | 20 | 49% | 1 | 2% | 41 | 100% |
* The table does not include LGH Group conciliations, which numbered 21 in 2017.
| 2015 | 2016 | 2017 | ||||
|---|---|---|---|---|---|---|
| TYPE | NO. ORDERS |
AMOUNT (€) | NO. ORDERS |
AMOUNT (€) | NO. ORDERS |
AMOUNT (€) |
| Supplies | 2,865 | 220,661,934 | 2,649 | 220,281,621 | 7,158 | 304,069,078 |
| Works | 1,538 | 238,039,579 | 1,842 | 340,739,182 | 2,723 | 324,169,902 |
| Services | 2,300 | 231,330,697 | 2,088 | 273,847,724 | 7,127 | 250,124,004 |
| A2A Group orders | 6,703 | 690,032,210 | 6,579 | 834,868,527 | 17,008 | 878,362,983 |
| LGH orders | - | - | - | - | 4,541 | 124,628,004 |
| Total | 6,703 | 690,032,210 | 6,579 | 834,868,527 | 21,549 | 1,002,990,987 |
Financial capital
Manufacturing capital
Natural capital
Human capital
Relational capital
| 2017 | COAL | HEAVY FUEL OIL |
DIESEL | NATURAL GAS | TOTAL |
|---|---|---|---|---|---|
| Value of orders issued towards European suppliers |
83 | 109 | 2 | 979 | 1,173 |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Lombardy | 67.4% | 57.1% | 64.0% |
| Other regions of Italy | 30.3% | 39.6% | 31.2% |
| EU | 2.3% | 3.2% | 4.5% |
| Non EU | 0.0% | 0.1% | 0.3% |
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Total | 2,768 | 2,843 | 2,215 |
* Does not include new consolidated companies according to the 2017 scope.
| 2015 | 2016 | 2017 | |
|---|---|---|---|
| Percentage | 76% | 77% | 80% |
* Does not include new consolidated companies according to the 2017 scope.
42 43
| A2A GROUP QUALIFIED SUPPLIERS | 2015 | 2016 | 2017 |
|---|---|---|---|
| Large business (more than 250 employees) | 395 | 307 | 276 |
| Medium business (50-250 employees) | 763 | 804 | 687 |
| Small business (10-50 employees) | 1,482 | 1,745 | 1,459 |
| Micro business (1-10 employees) | 1,845 | 1,854 | 1,456 |
| na | 255 | 198 | 567 |
| Total | 4,740 | 4,908 | 4,445 |
| LGH GROUP QUALIFIED SUPPLIERS | 2017 |
|---|---|
| Micro business (1-5 employees) | 11 |
| Small business (6-15 employees) | 22 |
| Small-medium business (16 - 50 employees) | 21 |
| Medium business (51-100 employees) | 8 |
| Large business (more than 100 employees) | 11 |
| na | 12 |
| Total | 74 |
The total amount of Labour disputes in progress or concluded in 2017 brought by employees of A2A Group companies (including the LGH Group and excluding AMSA S.p.A.) is 42, 2 of wich concerned a challenge against lawful dismissal for misconduct, 2 challenged dismissal for having exceeded the conduct period and 3 challenged dismissal on objectively justified grounds. Moreover, 1 plaintiff requested the conversion of his contract of employment into a permanent one, 6 plaintiffs sought a higher-level classification and 2 plaintiffs complained of demotion. Additionally, in 2017, there were 7 cases pending for alleged occupational diseases or injuries at work (of which 2 settled during that same year). The remaining disputes related to various claims, such as remuneration differences other than higher level classification and appeals of disciplinary measures not involving termination.
As regards AMSA, labour disputes in progress or concluded in 2017 numbered a total of 156, of which 13 concerned challenges of dismissals, 6 requested the establishment of permanent subordinate contracts of employment, 15 requested a higher classification, 64 assessment of the existence ab origine of a contract of employment with AMSA due to alleged fictitious inclusion of labour and the right to have the related salary differences paid and 12 regarding the assessment of the unlawful nature of the business unit transfer. The remaining disputes related to various claims, such as challenges of interim disciplinary measures, remuneration differences other than higher level classification and damage compensation claims.
There were 29 labour disputes in progress or concluded in 2017 initiated by workers of contracting firms that worked on contracts awarded by A2A Group companies (including the LGH Group). There were 4 proceedings for compensation for damages resulting from occupational diseases or injuries allegedly contracted during the contract work. 3 plaintiffs claimed the establishment of a subordinate contract of employment with the client company and 15 plaintiffs summonsed the contractor, their employer, to court as well as the A2A Group company as client, so as to obtain, by virtue of the joint liability pursuant to Art. 29 of Italian Legislative Decree no. 276/2003 and Art. 1676 of the Italian Civil Code, their sentencing to pay the salary differences claimed. Finally, 7 of the claimants sought a judgment ordering the contractors and principal, jointly and severally, to compensate them for damages deriving from failure to grant them employment at the enterprise that they alleged intermediated in the cleaning contract ordered by the A2A Group company.
In 2017, as a result of breach of contribution obligations due to employees by a supplier, as ascertained during inspections performed by the Territorial Employment Inspectorate, in fulfilment of the related reports notified by the inspection entity, two Group companies had to pay the amounts relating to the failure to make contribution payments as assessed and in the capacity of clients jointly liable pursuant to Art. 29 of Italian Legislative Decree no. 276/2003 and Art. 1676 of the Italian Civil Code.
At end 2017, there were 20 (of which 3 relating to the LGH Group) lawsuits in progress relating to challenges connected with billing, as a result of tax issues with the application of excise duties to gas supplies, incorrect recording of consumption due to a meter malfunction, incorrect configuration of power available for the supply of electricity, incorrect transfer and supplies and, more general, failure and/or incorrect noting of electricity and/or gas consumption. There were 3 ongoing cases involving damages claimed due to delays in the activation of supply. One client, whose supply had been suspended for late payment, also submitted a claim for interruption of a public service; the asked prosecutor appointed, asked the case to be archived. In 2016, the Metrics Office of Milan Chamber of Commerce had charged Unareti (formerly A2A Reti Elettriche) with alleged administrative violations in connection with 63 electricity meters, assigning an administrative fine of 500 euros per meter. A fine was also levied against A2A Energia as the "intermediary" in the supply arrangement through the distributor's meters for 47 of the meters in question. All of the notices of violations and related penalties have been appealed by the two companies. As regards the sanctions charged by the Metrics Office of Milan Chamber of Commerce and as challenged, in 2017, the competent authority had not yet ruled. During 2017, two lawsuits were brought against the gas distribution company LD Reti, relative to gas metering: one was brought by the sales company Enercom, to obtain compensation for the damages equating to imbalance expenses and the penalty for having exceeded transmission capacity, for which the authority is regulating the reopening of the terms for recalculating material errors of metering; the other brought by a consumer for the malfunction of the gas meter, where the distributor has been summonsed to the case under the scope of the preventive technical assessment procedure brought by the customer against the sales company. In 2017, Linea Piu S.p.A. challenged 2016's ARERA resolutions 333 and 342, relative to the adoption to the adoption of prescription and sanction measures against conduct allegedly adopted by the company to the detriment of the TSO and indirectly of end users; in July 2017, the Lombardy Regional administrative court upheld the protective measure and suspended effect of the measures challenged.
In 2017, a dispute continued brought by a customer of AMSA, A2A Ambiente and Aprica, who is claiming termination of contract due to it having become excessively expensive; moreover, A2A Ciclo Idrico has been notified of a petition brought pursuant to Art. 702 bis of the Italian Code of Criminal Procedure by a credit institute, which has brought a suit opposing the transfer of credit, which has subsequently been joined by a parallel request for payment (for invoices issued in respect of works partially carried out) by the receiver of the contractor (which has, in the meantime, been declared bankrupt). August saw the conclusion of the proceedings brought by the Antitrust Authority in November 2016, with the archiving of the position of Linea Più S.p.A. following assessment that the procedures adopted were indeed correct and fulfilment of the request to remove any possible non-conformities.
Stakeholder engagement
At end 2017, the cases in which citizens requested compensation, for the most part of fairly small value, for financial damages or damages to property, were 71, while the cases seeking compensation for physical damages in respect of personal injuries were 40; these include 1 relating to a fatal road accident involving a Group company (an operative vehicle cleaning a cycle path).
There were also 2 cases pending relating to alleged violations of property rights (rights of way), 1 brought in 2006 by two citizens neighbouring a Group company plant, for physical damages deriving from an alleged exceeding of emissions limits, 3 cases relating to alleged damages to neighbouring crops, dating to previous years and a preventive technical assessment to ascertain the actual state of maintenance of a thermal plant, so as to note any fumes and/or noise affecting third party property.
As at December 31, 2017, 21 environmental procedures were underway or completed (of which 3 relative to the LGH Group), of which 7 were closed, 7 were new and 12 were already in progress, related to miscellaneous complaints of Integrated Environmental Authorisations (IEAs) issued to Group companies, other alleged irregularities in waste management and alleged non-compliance with other requirements of the law or regulations.
Moreover, in 2017:
an employee of A2A Ambiente has been investigated as part of an investigation into alleged unlawful waste management also involving, as party liable in accordance with Italian Legislative Decree no. 231/2001, the company. With regards to this latter, the prosecution has requested protective measures, which the examining judge has rejected on the basis of lack of grounds;
an employee of SED S.r.l. has been notified of a criminal decree sentencing him to pay a fine for violation of IEA provisions. Following opposition and admission of out-of-court settlement, the decree was revoked and the examining judge ruled that there was "no need to proceed";
• in connection with a report made to the prosecution for possible damages to the health of residents in the area around the waste-to-energy plant of Ecolombardia4, in rejecting the opposition brought against the archiving measure requested by the prosecution, the examining judge has ordered that the proceedings be definitively archived;
• for three criminal decrees ordering pecuniary fines notified previously to A2A Ambiente for violation of IEA provisions and challenged, in 2 cases a ruling of "no need to proceed" has been issued due to the extinguishing of the crime following an out-of-court settlement and in 1 case, a sentence of absolution "because the events are no longer considered by the law as a crime";
• in 2017, two former employees and one employee of Linea Ambiente S.r.l. were investigated as part of an investigation into the disposal of waste produced by the company SAPNA S.p.A., which also involved, as party liable in accordance with Italian Legislative Decree no. 231/2001, the company;
• the prosecution investigation, upon receipt of a report by the Regional Environmental Protection Agency of an exceeding of emissions limits by the waste-to-energy plant in Cremona, started in 2014, is still in progress and no specific liability has been claimed.
T [+39] 030 35531 F [+39] 030 3553204
Corso Porta Vittoria, 4 - 20122 Milan T [+39] 02 77201 F [+39] 02 77203920
S.O. Corporate Communication and Media Relations S.O. Environment, Health and Safety T [+39] 02 77201 - [email protected] - www.a2a.eu
We would like to thank all our colleagues of A2A who worked on the preparation of this Report.
Translation: TransEdit Group
Printing: AGEMA S.p.A.
Milan, March 2018
www.a2a.eu
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