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Enav

Environmental & Social Information Mar 29, 2018

4036_10-k_2018-03-29_384ea3c3-062e-444f-b8f8-3c5422923c6d.pdf

Environmental & Social Information

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Consolidated disclosure of non-financial information 2017 pursuant to Legislative Decree 254/2016

LETTER TO THE STAKEHOLDERS 4
NOTE ON METHODOLOGY 6
CHAPTER 1. THE ENAV GROUP 11
GROUP PROFILE 12
THE ACTIVITIES OF THE ENAV GROUP 15
NON-FINANCIAL RISKS IDENTIFICATION 17
GOVERNANCE 20
INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM 24
INTERNAL AUDIT 28
BUSINESS MANAGEMENT SYSTEM 29
REGULATORY COMPLIANCE 31
CHAPTER 2- ENAV'S PERFORMANCE IN 2017 32
CHAPTER 3 - COMMUNITY 33
SAFETY 34
ENAV ACADEMY 38
THE FLIGHT INSPECTION SERVICE TO INCREASE SAFETY IN FLIGHT 43
SECURITY 44
INVESTMENTS 47
CO-OPERATION WITH ORGANISATIONS, INSTITUTIONS AND INDUSTRY ASSOCIATIONS
50
CUSTOMER RELATIONSHIP QUALITY 54
SUPPLIER MANAGEMENT 55
ANTI-CORRUPTION PRINCIPLES 58
EXTERNAL COMMUNICATION 61
INVESTOR RELATIONS 62
BRAND DEVELOPMENT 63
WELFARE INITIATIVES IN FAVOUR OF THE COMMUNITY 64
CHAPTER 4 - ENVIRONMENT 65
FLIGHT EFFICIENCY PLAN AND FREE ROUTE: EFFICIENCY AND ENVIRONMENTAL
PROTECTION 66
SIGNIFICANT SOCIAL AND ENVIRONMENTAL FUNDING 68
GREEN PROCUREMENT 69
CONSUMPTION 72
WASTE MANAGEMENT 77
BIODIVERSITY PROTECTION 79
CHAPTER 5 - PEOPLE 81
MANAGERIAL AND SPECIALIST TRAINING 82
EQUAL OPPORTUNITIES 85
THE PROTECTION OF HUMAN RIGHTS 88
INTERNAL COMMUNICATION 90
INDUSTRIAL RELATIONS 92
REMUNERATION PRACTICES 95
HEALTH AND SAFETY OF WORKERS 97
ANNEX 1 99
NON-FINANCIAL INDICATORS 99
ANNEX 2 118
TABLE: GRI STANDARDS USED IN THIS DOCUMENT 118
OPINION EY 124

NOTE ON METHODOLOGY

The ENAV Group has prepared the Consolidated non-financial statement (hereinafter also referred to as "Statement") in accordance with the provisions of Article 5, paragraph 3 (b)) of Legislative Decree No. 254/2016 (hereinafter "Decree"). The document constitutes a separate report from the Report on Operations.

The Statement, prepared for the first year pursuant to Articles 3 and 4 of the Decree, in accordance with the Decree, contains information on the company's impact on five thematic areas, namely the environment, personnel management, social impacts, human rights and the fight against corruption and bribery.

The vast reporting boundary as well the quality of the reporting reflect the principle of relevance (or "materiality"), the element envisaged by the reference legislation and which characterises the GRI standards. The GRI standards require to provide information based on the materiality analysis, which reveals the relevant and priority topics to "the extent necessary for an understanding of the company, its performance, its results and the impact produced" or which is able to substantially influence the assessments and decisions of stakeholders (see section "Relevant topics for the Group").

In preparing the Statement, the company has adopted specific principles and methodologies provided by the most recent standards published in 2016 by the Global Reporting Initiatives ("GRI Standards - GRI-referenced option"), the independent authoritative body which provides models for non-financial reporting. In particular, the Statement refers to the GRI Sustainability Reporting Standards, published in 2016 by the GRI – Global Reporting Initiative as reported in the paragraph "GRI Standards used in this document" (pp. 118-123).

It should be noted that where the Group considered it unnecessary to adopt policies related to the areas referred to in Legislative Decree No. 254/2016, this is linked to the existence of effective corporate practices which do not require it to adopt specific policies on the above mentioned areas. For this reason it should be noted that the terms Policy refers to formalized documents, while the term "internal practices" applies to practices and praxes.

This document was approved by ENAV Board of Directors on March 12th , 2018.

The Legislative Decree No. 254/2016, provides that the Statement shall be subject to a limited assurance as established by the International Standard on Assurance Engagements (ISAE 3000 Revised) principle. The assurance was carried out by the company EY S.p.A.

The 2017 Consolidated disclosure of non-financial information is available on the Group's web site (www.enav.it).

Scope of Reporting

The qualitative and quantitative information contained in the non-financial Statement refers to the performances of the ENAV Group's (hereinafter also referred to as "the Group") for the year ended on December 31st, 2017. Where available, the information included in the Statement was provided in comparison with the previous financial year.

Please note that, "the ENAV Group" refers the set of companies composed by the Parent company, ENAV S.p.A. and its subsidiaries, consolidated through the line-by-line method in the financial statements: Techno Sky S.r.l., ENAV Asia Pacific Sdn Bhd and ENAV North Atlantic LLC. Please note that the terms "ENAV" and "the Company" refer exclusively to the Parent Company ENAV S.p.A. Any limitations in the reporting scope are reported in the "Scope of identified material topics" table on page 9.

Relevant topics for the Group

On the basis of the provisions of the Decree and the principles defined by the GRI Standards, a materiality (significance) analysis of the non-financial topics of the ENAV Group has been carried out, which has allowed to identify all the aspects to report in the Statement.

The materiality analysis was conducted through three main steps: preliminary identification, evaluation and definition of the topics and, finally, their prioritisation.

The starting point of the materiality analysis were the instructions given by Legislative Decree No. 254/16, followed by the identification of potentially relevant issues on the basis of an analysis of the activities conducted by the ENAV Group, the characteristics of the sector, the approaches adopted by comparable national and international companies and the topics suggested by GRI for each economic sector. Subsequently, the topics preliminarily identified were discussed and evaluated by the top management during meetings, with the purpose of defining the most representative aspects related to the social and environmental impacts generated by the Group, as well as those topics that are able to influence the decisions of its stakeholders.

Finally, the topics identified were assessed by the same Departments based on a "priority scale" which reflected the relevance of the impact of the topic both for the Group and for its stakeholders. These topics are represented in the following materiality matrix.

In addition to the aspects represented in the matrix, the Group considers the topic linked to "Effective Governance" as an essential prerequisite for carry out its business activities.

The results of the materiality analysis did not identify as "material" water consumption and polluting emissions.

The table below outlines the scope of each material topic, highlighting both the internal (Group Company)) and external scope. To date, none of the topics reported in this document have a significant impact on entities external to the Group.

It should be noted that where the topic did not concern the whole Group, it was not considered relevant to the excluded company(ies) given the type of activity carried out and/or the relative geographical areas.

In addition, with reference to the topics linked to the personnel, the SICTA Consortium was also included in the 2016 scope (in particular, the relevant topics in which the SICTA Consortium is included for 2016 are "Employee relations", "Adequacy of human capital", "Equal opportunities", "Health and safety of workers"). The SICTA Consortium was placed in liquidation on March, 28th 2017.

Finally, for topics related to "Employee relations", "Health and safety of workers" and "Waste management", information related to ENAV Asia Pacific Sdn Bhd was not collected.

Legislative
Decree No.
254/2016
areas
Material topics identified GRI Standards Aspect scope
Safety Customer Health and
Safety
ENAV S.p.A and Techno
Sky
Service quality Approach to
stakeholder
engagement
Group
Security Customer Health and
Safety
ENAV S.p.A and Techno
Sky
Relations with Organisations and
Institutions
Membership of
associations
Group
Social Customer relations Approach to
stakeholder
engagement
Group
Payment of suppliers Approach to
stakeholder
engagement
Group
Respect for social and
environmental criteria in the
supply chain
Supplier Social
Assessment
Supplier
Environmental
Assessment
Group
Electromagnetic emissions Local Communities ENAV S.p.A and Techno
Sky
Relations with industry
associations
Membership of
associations
Group
Regulatory compliance Environmental
Compliance
Socioeconomic
Compliance
Group
Employee relations Labour/Management
Relations
Group
Employment Adequacy of human capital Training and
Education
Group
matters Health and safety of workers Occupational Health
and Safety
Group
Company welfare provisions Employment Group
Equal opportunities Diversity and Equal Group

Table: Scope of identified material topics

Legislative
Decree No.
254/2016
areas
Material topics identified GRI Standards Aspect scope
Opportunity
Diversity in management and
audit bodies
Diversity and Equal
Opportunity
ENAV S.p.A and Techno
Sky
Anti
corruption -
active and
passive
Anti-corruption Anti-corruption Group
Respect for human rights in
business transactions
Human Rights
Assessment
ENAV S.p.A. and ENAV
Asia Pacific Sdn Bhd
Human rights Respect for human rights in the
company
Human Rights
Assessment
Non-discrimination
Group
Waste Management Effluents and Waste Group
The
environment
Greenhouse gas emissions Energy
Emissions
Group
Biodiversity Biodiversity ENAV S.p.A and Techno
Sky

GRI Standards used in this document

The annex "GRI Standards used in this document" (pp. 118-123) lists the GRI Standards referred to in this Statement, as provided by the Standard GRI 101: Foundation, section 3.

CHAPTER 1. THE ENAV GROUP

The ENAV Group provides air navigation services to its customers, the airlines that fly in Italy, guaranteeing 24-hour safety and punctuality to approximately 1,860,000 flights per year (2017 data), from the Control Towers of 45 airports and from 4 Control Centres.

The Group's Mission is:

  • To ensure safety and punctuality to the millions of passengers flying in Italian airspace;
  • To contribute to the growth of national and international air transport through ongoing efficiency and innovation;
  • To construct, on the pillars of safety, an increasingly customer-oriented strategy that modernises systems, creates value and further strengthens the Group's presence in the international context.

Long considered to be among the "Big Five" in Europe for operational performance and innovation, the ENAV Group is a fundamental component of the international Air Traffic Management System (hereinafter, ATM). It participates in research and development in coordination with the national and international control bodies of the sector. It is also one of the main players in the implementation of the Single European Sky programme, the purpose of which is to harmonise air traffic management throughout the European Union with the aim of enhancing the safety and efficiency of continental air transport.

For years the ENAV Group has also been committed to protecting the environment thanks to its constant optimisation of routes to reduce the consumption of aircraft and the use of technologies and alternative energy sources that improve the efficiency of its own infrastructures.

4 AREA CONTROL CENTRES

45 CONTROL TOWERS

732,000 Km2 OF MANAGED AIRSPACE

1.86 MILLION FLIGHTS HANDLED

6,575 PEAK OF MANAGED FLIGHTS PER DAY

4,181 EMPLOYEES

GROUP PROFILE

Through its structures, ENAV manages all stages of an aircraft's flight: the Route Services are entrusted to air traffic controllers operating in the ACC (Area Control Centre) and refer to the traffic overflight of Italian airspace with or without a stopover, while the Control Towers deal with the Terminal Services, take-offs and landings involving national airports within a radius of about 20 kilometres.

Safety and quality of service are the key words that inspire the ENAV culture, and therefore it is recognised as one of the best service providers at an international level, with an increasingly customer-oriented approach also aimed at defining a strategy capable of creating constant value for the growth of air transport.

The ENAV Group also includes the subsidiaries Techno Sky SRL, ENAV Asia Pacific Sdn Bhd and ENAV North Atlantic LLC. Thanks to these, in addition to providing air navigation services pursuant to the law and by-laws, the Company is able to guarantee the installation, maintenance and constant monitoring of the flight assistance systems and related hardware and software, to develop and test new technologies, and to be present abroad with business consultancy activities and the provision of services on international markets.

Specifically, Techno Sky, the logistics and maintenance company of the ENAV Group, ensures full, seamless operating efficiency and availability of Italy's ATC (Air Traffic Control) installations, systems and software products.. It manages and maintains:

4 AREA CONTROL CENTRES

45 AIRPORTS

45 RADAR SYSTEMS

117 TELECOMMUNICATIONS CENTRES

84 WEATHER SYSTEMS

247 NAVIGATIONAL AID SYSTEMS

50 SOFTWARE SYSTEMS FOR A TOTAL NUMBER OF 24,565 ATM APPLICATIONS (AIR TRAFFIC MANAGEMENT) IN OPERATION

Techno Sky operates through its network present throughout Italy in order to meet each technical, implementation and management requirement in an effective and prompt manner..

As ENAV's mission critical systems integrator, Techno Sky controls the full value chain, i.e. research and development, system engineering, design, ATM software development, weather system development, installation, integration, training, logistics, maintenance, measurement instrumentation calibration, spare-part management and repair management.

Techno Sky has a rich background of knowledge, technologies and expertise gained in more than forty years of activity as a market leader in ATM systems at ENAV's service. This was also possible through its partnerships with major global ATM, ICT, meteorological and security system manufacturers. It markets its own services and is also involved in the development of projects on behalf of Italian and international organisations (ATM providers, agencies, institutions and airport managing authorities).ENAV Asia Pacific and ENAV North Atlantic, respectively established in 2013 and 2014, are based abroad.

ENAV Asia Pacific (EAP) is wholly-owned by ENAV. It was established as a private company limited by shares with head office in Kuala Lumpur, Malaysia, in March 2013. ENAV Asia Pacific provides air traffic control management and consultancy services, as part of marketing and sales activity, as well as other essential air navigation services.ENAV's committed presence in the region makes it a reliable partner for all local companies, organisations and institutions. ENAV Asia Pacific aims to build long-term relations with its clients by meeting all needs in a structured, efficient and effective manner.

ENAV North Atlantic, also wholly-owned by ENAV, was established on 29 January 2014 in the form of a limited liability company under U.S. law. Its main objective is to manage ENAV's investment in the share capital of Aireon LLC, a limited liability company under U.S. law whose corporate purpose is the provision of instrumental services for the surveillance activity of air navigation through a global satellite surveillancesystem. ENAV's shareholding in the capital of Aireon through the subsidiary ENAV North Atlantic could reach a maximum of 12.5% of the relative preferred interest. Note that ENAV North Atlantic, due to the activity it carries out, has no employees.

ENAV also owns a significant shareholding (16.6%) in ESSP S.A.S., a company established under French law, which provides the GPS satellite signal enhancement service called EGNOS. As a result of the transformation in 2008 of the European Economic Interest Group (EEIG) established in 2001, ESSP has carried out in favour of the European Commission the first contract for EGNOS operations and for the provision of three services: OS (Open Service), SoL (Safety of Life) and EDAS (European Data Access Service). Together with ENAV, ESSP's shareholders are another six of the largest providers of European air navigation services: DFS, DGAC-DSNA, ENAIRE, NATS, NAV-Portugal, Skyguide.

In 2013 ESSP was awarded the contract, issued by the European Agency for GNSS (GSA), for the supply of the EGNOS service from 2014 until 2021.

THE ACTIVITIES OF THE ENAV GROUP

Air traffic control

ENAV provides air navigation assistance to all aircraft en route, whether for overflight of the Country or landing to one of its airport, through the four Area Control Centres (ACC) of Rome, Milan, Padua and Brindisi; each has clearly defined airspace jurisdiction. In addition, it is responsible for air navigation services at 45 Italian civil airports where it handles take-offs, landings and on ground movement of aircraft from the control towers.

Air space design

ENAV's responsibility is to supervise the organisation of airspace through the design of flight procedures, both conventional and satellite navigational, and the definition of a system of routes appropriate for the fulfilment of the objectives of safety, capacity, environment, flight efficiency and cost containment.

Meteorology

weather reports and forecasts of meteorological conditions are released in real time on international networks and telecommunications. Observation bulletins and weather messages for synoptic meteorology are issued from airport weather stations, hourly or half-hourly, as provided by the World Meteorological Organization (WMO).

Aeronautical Information

ENAV provides an aeronautical information services to to flight crew by collecting, disseminating and updating information over the whole of Italy.. Essential aeronautical information for navigators is released through the Integrated Aeronautical Information Package (IAIP), which is also available on the institutional website: ENAV.it.

Flight Inspection

Thanks to its air fleet, ENAV guarantees the continuous monitoring of the national radio aids that provide the pilot with information about the exact position of the aircraft. The continuous verification of the accuracy of the radio electric signals make it possible to fly in total safety.

Engineering and Maintenance

Planning, realisation and operation of the entire technological infrastructure necessary for flight assistance. The planning activities are integrated with standardisation and development processes at an international level, and with numerous joint projects with other service providers. Techno Sky provides services related to the management and maintenance of air traffic control equipment and systems.

Research and Innovation

Research and Innovation are centralised at a European level within the SESAR programme, Single European Sky ATM Research. In close coordination with the European Commission, ENAV participates in multiple projects aimed at defining and verifying new operational concepts, technologies and systems, with the aim of improving the capacity and performance of the international system of air navigation services.

Training

It is the only Company in Italy authorised to select, train and update the different professional profiles that operate in the civil air traffic control services. ENAV Academy assures high level specialist training, providing both initial training and continuous staff updating.

NON-FINANCIAL RISKS IDENTIFICATION

Through a "bottom up" approach, the Group involved various corporate units in order to identify the main risks related to the five areas referred to in the Decree: environment, social impact, personnel management, human rights and the fight against corruption and bribery.

The analysis conducted shows that the activity carried out by the Group is exposed to non-financial risks, mainly attributable to safety and security, personnel management, the environment, corruption, human rights and the supply chain. The following chapters include a description of the policies and activities undertaken by the Group to manage them.

Risks related to air navigation services: safety and security

The main risks managed by the Group in terms of safety are strongly linked to the company's main business activities and are at core of ENAV's mission. Safety risks refer to the possible occurrence of the so-called aeronautical accident as well as to the reduction of operations in the provision of air navigation services. In addition to these types of risks, there are Security risks, which consist mainly of possible damages to third parties, the company's personnel, its infrastructures, technological systems and data, and threats to the protection of public security and national defense, both internal and external. Furthermore, they represent possible risks of loss or serious impairment of the availability, integrity and confidentiality of information and violations of the security system by the employees and the external staff.

Personnel Management

The risks to which the Group's employees may be exposed to in terms of health and safety in the workplace are associated with the type of working activity. Such risks may depend on: microclimate, natural and artificial lighting, noise, indoor air quality , video-terminal activities, electromagnetic fields, natural sources of ionizing radiation, fire, work equipment and work-related stress, maintenance activities at height and correlated risks of falling for those who carry out maintenance activities of installed equipment on pylons.

Furthermore, considering the critical nature of the infrastructure and the sensitive objective of each operating site, the Group's personnel is exposed to the risk of potential terrorist attacks and other types of criminal intents.

Other types of risks may arise during the recruitment. Such risks may stem from insufficient advertising of the job postings, lack or poor objectivity in relations to the skills required for the position and with respect to the position level (role and remuneration).

Another risk may lie in the inadequacy of human capital in relation to the operating model and the evolution of strategic business needs. In this respect, it should be noted that during 2017, the company implemented an assessment of the personnel management process, which allowed the identification of risks related to the failure or untimely communication of the training needs for the

preparation of the Annual Training Plan. Such risk may cause the Plan to be incomplete and/or non-aligned to the expressed needs, to be inconsistent with the allocated Budget, and to not be properly communicated to employees. Furthermore, it could also lead to the selection of instructors did not have the proper requirements, as well as to the inadequate monitoring of the attendance recording tools, and finally, to the improper dissemination of information/data relevant for privacy purposes.

The company also identified risks that were generated by external factors related to changes in the reference international and national regulations, which impose a substantial modification to the training programmes and in the technological paradigm that involve the modification/adaptation of the simulation systems in use.

The Group is also subject to the risk of union disputes, which may cause possible strikes deriving, for instance, from claims concerning the articulation of work shifts.

The environment and local communities

As far as the environment is concerned, the main risks associated with the activities of ENAV's subsidiary companies may result from incorrect management of waste (e.g., used oil and filters from generators, batteries, toner and all electronic components in case of equipment renewal), from pollution due to direct and/or indirect emissions of greenhouse gases resulting from the operation of offices and infrastructures, from the impact on the environment due to the installation of infrastructure (in terms of landscape pollution) and the presence and management of the radiogenic radar components.

Lastly, it should be noted that the surveillance and air navigation systems, installed at the airports and remote sites of the national territory, emit high frequency electromagnetic waves that can reach significant values in the area surrounding the apparatus. Some of these systems are located within or near areas subject to environmental protection.

Corruption

Given the operational national context in which the ENAV Group operates and the international commercial activities it has recently undertaken, the Group has identified the risk of corruption as one of the possible risks to which the Group is exposed.

In particular, the Group identified the potential risk of corruption and bribery. Significant at-risk processes refer to: procurement, sales, financing and contributions, selection and recruitment of staff, corporate transactions of acquisition or sale of investments or the establishment of Joint Ventures.

In addition to these processes, the Group identified specific areas that are susceptible to corruption and bribery risks, namely, gifts, hospitality, entertainment expenses, contributions, liberalities, donations, non-profit initiatives, payments, brokerage and agency contracts and incentive system for personnel, as well as wider accounting and budget management activities.

Human rights

Given the nature and geographical location of the activities carried out by the Group, there are no particularly significant risks of human rights violations, as defined in the Universal Declaration of Human Rights of the United Nations in 1948. However, there are other risks which fall within the broader definition of human rights and are normally inherent in business activity (managed according to regulatory requirements or dedicated initiatives). Such risk may concern discrimination in the workplace (addressed under the initiatives of the Equal Opportunities Committee) and the violation of the right of privacy and safety of the worker.

Supply Chain

Failure of suppliers to comply with social and environmental regulations and standards could lead to a violation of the ethical principles adopted by the Group.

GOVERNANCE

The governance system

This Report illustrates ENAV's corporate governance system, which is composed of a series of bodies, principles, rules and procedures that comply with the principles set out in the Code of Conduct, with the recommendations formulated by CONSOB on this subject and, more generally, with the best practices internationally applied. ENAV's corporate governance system, also taking into account the social significance of the Company's operations, pursues the main objective of creating value for its shareholders over the medium-long term and adequately balancing and fostering all relevant interests.

ENAV's corporate governance system is structured according to the traditional Italian model and is characterised by the presence of the Shareholders' Meeting, the Board of Directors and the Board of Statutory Auditors. The Board of Directors –following the Shareholders' Meeting of 28 April 2017 composed by nine members – plays a central role in the leadership and management of the Company. In addition to the duties attributed pursuant to the law and the Articles of Association, the Board of Directors has the exclusive competence in relation to the most significant strategic, economic and financial decisions, or in terms of the structural impact on the management or functional for monitoring and directing the Company. The Board of Statutory Auditors, which is composed of 3 standing Auditors and 2 alternate Auditors monitors the compliance with the law, regulations and the Articles of Association, the principles of correct administration and particularly the adequacy of the organisational, administrative and accounting structure adopted by the Company and its actual operation, as well as the adequacy and functionality of the overall risk management and control system. It also exercises the tasks referred to in Legislative Decree No. 39/2010. ENAV is furthermore subject to the control over the management of the financial statements and its assets by the Italian Corte dei conti which, through the Magistrate delegated to ENAV's control, reports annually to the Parliament pursuant to Article 12 of Law 259 of 21 March 1958, on the legitimacy and regularity of the management and operation and on the functioning of the internal controls. The Corte dei conti Magistrate attends at the meetings of the corporate bodies.

The criteria for appointing governing bodies

The Board of Directors - Appointment and replacement

Pursuant to the Articles of Association, the Company is administered by a Board of Directors composed of no less than five and no more than nine members. The Shareholders' Meeting shall determine the number within the aforementioned limits.

The members of the Board of Directors shall remain in office for a period not exceeding three years which will expire on the date of the Shareholders' Meeting convened for approval of the financial statements for the last year of their office.

Directors are appointed by the Shareholders' Meeting based on slates presented by the shareholders, in which the candidates must be listed using progressive numbers. For the purpose of presenting the slates, the Articles of Association require a minimum shareholding threshold of 2.5% or the different measure established by Consob in a Regulation; through resolution No. 20273 of 24 January 2018, Consob set this threshold at 1% of the share capital. Each slate must include at least two candidates who possess the requisites of independence, distinctly mentioning the proposed subjects and indicating which one is preferred.Slates with a number of candidates that is equal to or higher than three must include candidates of a different gender, as indicated in the Shareholders' Meeting notice of call of the, so as to ensure that the composition of the Board of Directors is compliant with the applicable laws on gender balance.

Each Shareholder may present and vote for only one slate. Controlling parties, subsidiaries and companies subject to joint control cannot submit lists or contribute to submitting other lists or vote for them, not even through an intermediary or trust company, with the definition of subsidiaries pursuant to Article 93 of the TUF (Consolidated Finance Act) which is applicable from time to time or as eventually replaced. Each candidate may present him/herself in one list only; otherwise said candidate shall no longer be eligible for election. The curriculum vitae of each candidate must be submitted together with each list, upon penalty of inadmissibility, as must the statements with which the individual candidates accept their candidacy and certify, under their own responsibility, that there are no causes for ineligibility or incompatibility, that they fulfil the requirements of integrity, professionalism and subsequent independence as prescribed by the applicable laws for their respective offices. The directors who are appointed must immediately inform the Board of Directors if they no longer fulfil any of the requirements which are indicated, as well as regarding the existence of any causes for ineligibility or incompatibility. Each person entitled to vote shall vote for only one slate.

The office of director is subject to possession of requirements of integrity and professionalism as provided by the law, the current regulatory provisions in effect and by the Articles of Association.

In particular, in accordance with Article 11-bis. 1 of the Articles of Association: the directors must be chosen according to criteria of professionalism and competence from among persons who have acquired overall experience of at least one three-year period through the exercise of management or control activities (i.e., managerial tasks in enterprises), professional activities or university teaching in legal, economic, financial or technical-scientific matters, relevant or, in any event, related to business activities, that is, administrative or managerial functions, in public institutions or

public administrations, operating in sectors relevant to the business of the company, or in institutions or public administrations which do not have a bearing on those sectors, provided that the functions involved the management of economic and financial resources.

Moreover, a number of directors not less than that required by law, including regulations periodically in force, must possess specific requirements of independence. To this end, the following are not considered as independent directors: i) the spouse, family and relatives within the fourth degree of directors of the company, directors, the spouse, family and relatives within the fourth degree of directors of subsidiaries, parent companies and companies subject to joint control; ii) those who are linked to the company or its subsidiaries or parent companies or companies subject to joint control or to directors of the company and the subjects pursuant to letter i) by independent or subordinate employment or by other relations of a financial or professional nature that compromise independence. The Board shall assess the independence and integrity of the directors annually and the non-existence of causes of ineligibility and incompatibility.

Regarding ENAV's diversity approach, and in particular regarding gender representation in the composition of the Board of Directors, ENAV's Articles of Association require that the composition of the collective Body shall respect the gender balance, as established in the applicable legislation. The substitution and supplementing mechanisms of the Board of Directors are consistently inspired to such criteria, shall any events requiring similar interventions take place.

Committees

The Board of Directors has established the Risk and Related Parties Control Committee (with competence also with regard to transactions with related parties and related entities), and the Remuneration and Appointments Committee, in line with the requirements of the Self-Governance Code adopted by Borsa Italiana S.p.A., to which the Company adheres. The Board of Directors may also establish additional committees to assign advisory and proactive functions on specific matters or to arrange the bundling of one or more committees.

Remuneration and Appointments Committee

On May 4th , 2017, the Board of Directors immediately proceeded to reconstitute the Remuneration and Appointments Committee, consisting of four non-executive directors, the majority independent, including the Chairman.

Pursuant to the relevant rules of operation adopted by the Board of Directors on June 21st 2016, the Committee shall be responsible for the instructive, proactive and consultative tasks regarding the Board of Directors regarding remuneration and appointments pursuant to Articles 5 and 6 of the Self-Governance Code.

Risk and Related Parties Control Committee

On May 4th 2017, the Board of Directors also proceeded to establish the Risk and Related Parties Control Committee, consisting of three non-executive directors, the majority of whom are independent, including the Chairman.

The Committee, pursuant to the relevant rules of operation adopted by the Board of Directors on June 21st, is tasked with proactive and advisory functions regarding the matters inherent in the Internal Control and Risk Management System referred to in Article 7 of the Corporate Governance Code, in addition to transactions with related parties referred to in the Regulation on Related-Party Transactions adopted by Consob through Resolution No. 17221/2010 and the Procedure for Transactions with Related Parties adopted by the Company and published on the website www.enav.it.

The criteria for appointing governing bodies

Pursuant to Article 21 of the Articles of Association, the Shareholders' Meeting shall appoint the Board of Statutory Auditors which shall be composed of three standing Auditors, amongst which it elects the Chairman, and two alternate auditors.

Standing and alternate Auditors shall be appointed by the Shareholders' Meeting based on a slate submitted by the Shareholders, in which the candidates must be listed with a progressive number and the number of candidates proposed must not exceed the number of members to be elected.

The auditors will maintain office during three financial years and shall expire on the date of the Shareholders' Meeting convened for the approval of the financial statements of the third financial year of their office. The members of the Board of Statutory Auditors will be selected from among those that possess the requirements of professionalism and integrity indicated in the applicable laws and regulations.

As regards the composition of the Board of Statutory Auditors, with reference to the situations of non-eligibility and the limitations to cumulation of offices that can be covered by the members of the Board of Statutory Auditors, the applicable provisions of law and the regulations shall apply.

The composition of the Board of Statutory Auditors must comply with the provisions of the law and the regulations regarding gender balance, where applicable.

If during the course of the mandate, one or more of the standing auditors are no longer available, the alternate auditors will replace them in an order that will ensure compliance with the aforementioned provisions of the law and the regulations regarding gender balance.

INTERNAL CONTROL AND RISK MANAGEMENT SYSTEM

The Guidelines of the Internal Control and Risk Management System ("SCIGR"), describe the internal control system adopted by ENAV covering all the activities of the Company.

In particular, ENAV's SCIGR is comprised of the overall array of instruments, organisational structures, corporate regulations and rules that ensure identification, measurement, management and monitoring of the main risks and implementation of the controls for achievement of the corporate objectives of:

  • Safeguard of Company assets;
  • effectiveness and efficiency of the corporate processes;
  • reliability of financial reporting;
  • compliance with the laws, the regulations, the Articles of Association and the corporate internal procedures.

The SCIGR, which takes into account the recommendations of the Corporate Governance Code and references national and international best practices, is divided into three separate levels of internal control:

"first level" The set of control activities that the individual group areas,
or "line management and corporate structures perform on their own
controls" processes in order to ensure that transactions are performed
(risk correctly. These control activities are carried out under the main
ownership) responsibility of the management and they are considered an
integral part of every corporate process. The corporate
structures are therefore the main entities that are responsible for
the internal control and risk management process. In the course
of its regular operations, these structures are required to
identify, measure, evaluate, manage, monitor and report the
risks arising from ordinary business operations in accordance
with the mandatory standards, regulations and internal
procedures applicable
"second Assigned to the structures specifically in charge of carrying out
level" this work, (such as Risk Management, Planning and Control,
controls Safety, Security, Quality, Management Systems and HSE)
which are autonomous as well hierarchically and functionally
distinct from the "first level" corporate structures, with specific
duties and responsibilities of control over different areas/types
"third level" of risks.
Carried out by the Internal Audit department, which provides
controls independent and objective assurance on the adequacy and the
actual operation of the first and second level controls, and, more
generally, on the SCIGR. This level of control, therefore, has the
task of verifying the structure and operation of the SCIGR
overall, including through monitoring the line controls and the
second level controls, both for ENAV and the Group.

The following chart summarises the players of the SCIGR of ENAV, with evidence of the architecture based on the three levels of control.

* Also as an Executive Director of the SCIGR

The Executive Director in charge of the SCIGR supervises the functionality of the Internal Control and Risk Management System, to which the tasks referred to in the application criterion 7.C.4 of the Self-Governance Code are given. These include:

(i) identifying the main risks while taking into account the characteristics of the business areas in which the Company and the Group operate, submitting said risks to the Board of Directors for periodic review;

(ii) executing the guidelines of the SCIGR, handling the planning thereof, realisation and management and verifying constant adequacy and efficacy;

(iii) adapting this system to the operating conditions and legislative and regulatory environment;

(iv) after consulting with the Chairman of the Board of Directors, submitting to the Board of Directors the proposals regarding the appointment, revocation and remuneration of the head of the Internal Audit Department, ensuring that the latter has the appropriate staff available for the discharge of his or her responsibilities;

(v) together with the Chairman of the Board of Directors, examining the work schedule prepared by the head of the Internal Audit Department, submitting his/her own evaluations in this regard to the Board of Directors which is called upon to approve this schedule;

(vi) is entitled to request the Internal Audit Department to carry out checks on specific operational areas, as well as checks on compliance with internal rules and procedures in the performance of business operations, at the same time informing the Chairman of the Board of Directors, the Chairman of the Risk and Related Parties Control Committee and the Board of Statutory Auditors of such requests; -

(vii) promptly report to the Board of Directors on problems or critical situations that may have emerged in the performance of his/her duties, or that were otherwise brought to his/her knowledge, so that the Board may take the necessary measures.

INTERNAL AUDIT

Internal Audit (that functions pursuant to a mandate approved by the Board of Directors) shall have access to all information required for the performance of its duties and shall prepare periodic reports containing adequate information on its activities, the procedures through which risks are managed and compliance with plans for containing them. The periodic reports will contain an assessment of the appropriateness of the SCIGR, with regard to the audit activities established in the audit plan and any additional verifications that are requested.

The Internal Audit Department is not responsible for any operational area and reports to the Board of Directors (through the coordination of the Chairman of the Board of Directors). It shall prepare timely reports on events of particular significance, transmitting its periodic reports and those on particularly significant events to the Chairmen of the Board of Statutory Auditors, the Risk and Related Parties Control Committee, and the Board of Directors, and to the Executive Director in charge of the Internal Control and Risk Management System (SCIGR), and to the Financial Reporting Manager to the degree in which the matter involves his/her responsibility. Moreover, the audit plan will be used to verify the reliability of the Company's information systems, including its accounting systems.

The Internal Audit Manager, who is also an internal member of the Supervisory Body, is responsible, among other things, for verifying that the internal control and risk management system is functioning and adequate; in particular:

(i) to verify, on an ongoing basis and in relation to specific needs and in compliance with international standards, the operation and appropriateness of the SCIGR, through the audit plan and by conducting specific, unscheduled audits;

(ii) to prepare, at least annually, an audit plan, based on a structured process of analysis and identification of the priorities inherent in the main risks, to be submitted for the approval of the Board of Directors;

(iii) conduct specific verifications, where he/she considers it appropriate or upon the request of the Board of Directors, the Risk and Related Parties Control Committee, the Executive Director in charge of SCIGR or the Board of Statutory Auditors.

BUSINESS MANAGEMENT SYSTEM

Starting from the first certification in the area of Quality, obtained in 2007, the scope of the Group's Management Systems has gradually increased over time, now covering almost all of its business processes, and the same applies to the degree of depth in the description of the procedures, describing the precise dynamics among the various organisational roles within the individual departments and providing new control points.

The expansion of the range of business processes handled within the company Management Systems and their integration permits an overview of the whole of the company procedures of the ENAV Group as an effective Business Management System, intended as a system of rules and procedures for carrying out a wide range of business activities.

The management systems

Below is the list of management systems adopted by the Group:

  • ENAV Quality Management System (210 documents including procedures, guidelines and operating instructions);
  • ENAV Security Management System (30 documents including procedures, guidelines and operating instructions);
  • ENAV Safety Management System (16 documents including procedures and guidelines);
  • Techno Sky Quality Management System (131 documents including procedures, guidelines and operating instructions);
  • ENAV ASIA PACIFIC Quality Management System (3 procedures);
  • ENAV's Occupational Health and Safety Management System (12 documents including procedures, guidelines and operating instructions);
  • Techno Sky Occupational Health and Safety Management System (12 documents including procedures, guidelines and operating instructions).

Group Certifications

  • ISO 9001:2008 Certification of the ENAV Quality Management System issued by an accredited Certification Body;
  • ISO 9001:2008 Certification of the Techno Sky Quality Management System issued by an accredited Certification Body;
  • ISO/IEC 27001:2014 Certification of the ENAV Security Management System, issued by an accredited Certification Body for the information security part;
  • Certification issued by ENAC pursuant to Regulation (EU) No. 1035/2011 for ANS services (ATS, AIS, MET, CNS): Certification of ENAV as an air navigation service provider;
  • Certification issued by ENAC pursuant to Regulation (EU) 2015/340: Certification of ENAV as a training Organisation for air traffic controllers;

  • Certification issued by ENAC under the ENAC Regulation "Flight Information Service Operator License": Certification of ENAV as a training Organisation for flight information service operators;

  • Certification issued by ENAC under the ENAC Regulation "Requirements for personnel in the provision of meteorological services for air navigation": Certification of ENAV as a training Organisation for personnel in the supply of meteorological services for air navigation;
  • Certification issued by ENAC under the ENAC Regulation "Instrumental Flight Procedures": Certification of ENAV as an Organisation of planning of instrumental flight procedures;
  • The certification Capability Maturity Model Integrated for Development (CMMI-DEV) of Techno Sky for the development of products and services, attesting to the degree of maturity achieved in software development (Maturity Level 2);
  • Certification of recognition AQAP 2110/160 of Techno Sky's Quality Management System issued by the Ministry of Defence;
  • Certification of Conformity of Techno Sky with Regulation (EC) 303/2008 (F-GAS) for the services of "Installation, maintenance, or repair of fixed equipment for refrigeration, airconditioning and heat pumps containing fluorinated gases with greenhouse effects";
  • Accreditation of the Techno Sky LAT Centre No. 15 of as a calibration Laboratory pursuant to the international standard UNI CEI EN ISO/IEC 17025:2005 (Accredia).

REGULATORY COMPLIANCE

The complex and articulated governance structure that the ENAV Group has developed over the years certainly involves a considerable effort in terms of organisation and respect for each of the provisions introduced. This effort is repaid by the absence of legal actions regarding competition and antitrust, as well as the absence of monetary and non-monetary sanctions received for legislative and regulatory violations regarding economic, social and environmental matters. The Group decided not to equip itself with a specific centralised compliance department. Therefore, the individual organisational units, as first or second reporting departments to the Chief Executive Officer or the General Manager, are directly responsible and they wholly self-organise to ensure legislative compliance that, within the Group, is considered among the most relevant material topics.

CHAPTER 2- ENAV'S PERFORMANCE IN 2017

  • 45 Control Towers
  • 4 Control Centres
  • 4,181 employees
  • 1.86 million flights managed annually
  • peak of 6,575 managed flights in a day in 2017
  • 732,000 km2 of managed air space

2017 FINANCIAL STATEMENT DATA

  • EUR 881.8 million turnover (+1.9% on 2016)
  • EUR 101.5 million profit (+32.9% on 2016)
  • EUR 283.6 EBITDA (+11.27% on 2016)

2017 COMMUNITY HIGHLIGHTS

  • 37,657 hours of technical operational training
  • 30,556 hours of technical operational training to third parties
  • EUR 115.4 million in investments
  • More than 1,800 flight hours of radio navigation (more than 50% on foreign territory)

2017 ENVIRONMENT HIGHLIGHTS

  • 95 million kg less CO2, as a lower impact generated by the Free Route Project
  • 72% of the significant funding obtained, assessed on the basis of the social and environmental impacts
  • "Green" questionnaires for qualifications and classes of product categories

2017 PEOPLE HIGHLIGHTS

  • 100% of employees on permanent contracts
  • 3.7% staff turnover rate
  • 82,567 hours of classroom training and e-learning
  • 159,562 hours of continuous training and operational unit training

CHAPTER 3 - COMMUNITY

The ENAV Group's most significant contribution to the community is inherent in its mission: to guarantee maximum safety and punctuality to the millions of passengers flying in Italian skies, thus contributing to the growth of domestic and international air transport through an increasingly customer-oriented strategy.

Our direct customers are the airlines, but indirectly our customers are all the passengers, the airports, the companies that manage the air transport supply chain and, since one year ago, also the private shareholders who have become part of the stakeholders by virtue of the Company's stock market listing.

ENAV, for example, is Europe's leader in punctuality (0.009 minutes of delay AFTM allocated en route) and this contributes not only to a savings in fuel and consequently emissions for the airlines but also to the reduction of waiting for passenger embarkation.

The community to which ENAV refers is therefore particularly heterogeneous, and the activities developed for the benefit of it, despite having safety as its fulcrum, are delivered through various initiatives that are described below.

SAFETY

ENAV considers the level of operational safety of air navigation services an essential priority. In pursuing its institutional objectives, it reconciles the interdependencies of the different performance areas with the achievement of the given safety goals.

Safety policy

The Safety Policy is the formal statement of how the ENAV Group considers the level of operational safety of air navigation services as a priority.

To this extent, the ENAV Group requires the commitment of all personnel, starting from its management, to transparent and responsible actions in the field of safety.

Just culture policy

The Just Culture Policy undersigned by the Chief Executive Officer, is a further evidence of the priority of safety. It states that human performance combined with unwanted and unpredictable systemic influences may also lead to an undesirable outcome.

Human error is not a cause but a symptom and safe operations are based on effective training, operational expertise, effective procedures, monitoring and undertaking the required actions to improve and correct where necessary.

However, the human element is still and often the last safeguard against organizational, technical or procedural failures or shortcomings.

It is for this reason that the ENAV Group recognizes that individuals are not blamed for "honest mistakes", but are held accountable for wilful violations and gross negligence.

ENAV Group intends to foster a climate of trust where occurrences are reported, the necessary processes are put in place for investigation and for the development of necessary preventative actions. In this context, the Just Culture Policy is a fundamental element and enables the reporting system of Safety events (occurrence reporting), implemented pursuant to international standards and current regulations, by adopting a "No blame" approach. .

Safety management system

The ENAV Group's Safety Management System (SMS), implemented according to Regulation (EU) No. 1035/2011, is designed to ensure that all the services provided reach the highest level of safety performance.

A brief description of the main processes that make up the safety management system below.

Occurrence management

The Occurrence Management is a central part of continual improvement.

It is the process through which safety events basically reported by the company staff or otherwise known, are identified and handled. The goal of an occurrence management is to correct the errors that result from an event and to change the process so that the error is unlikely to happen again, removing or mitigating the side effects and reducing the risks to tolerable levels.

To trigger this process of investigation (gathering of facts, analysis, conclusions and recommendations) the ENAV Group is supported by the eTOKAI application, a tool kit system produced and provided by EUROCONTROL that allows the consideration and evaluation of all the domains of the ATM system (Software, Hardware, Environment, Liveware - SHEL).

Safety assessment

A safety assessment process is a systematic procedure for identifying and managing hazards. It encompasses the identification, evaluation and management of the risks inherent in technical-operative safety deriving from the management of changes to the ATM functional system and training activities.

The ENAV Group, through its safety assessment process, ensures the maximum reduction or mitigation of the impact of undesired events.

Safety promotion

Safety promotion is a major component of the Safety Management System (SMS) and is an important enabler for continuous safety improvement. It sets the tone both for the individual and organisational behaviour and fills in the blank spaces in the organization's policies, procedures and processes.

The ENAV Group supports safety culture communication, dissemination of lessons learned and enables the continuous improvement process through activities that include, for instance: the publication and distribution of the Safety bulletin ("SafeBull"), the dissemination of safety notices and the internal thematic publications of Cleared (House Organ), the dissemination of lessons & best practices through a dedicated web-based platform (Safety Agorà), but also training activities and Safety Moments for the staff.

At the same time, the ENAV Group actively participates to all the initiatives that worldwide aim to promote the Safety Culture, Just Culture and, in general, the systemic safety management.

Safety training

Training courses are provided to the Safety Actors (ANS Investigators, Risk Assessment Facilitators and Safety Surveyors) to guarantee Safety Assurance by personnel with specific skills.

YEAR 2017

83,663 HOURS OF OPERATING UNIT TRAINING

WITH 495 EMPLOYEES INVOLVED

75,899 HOURS OF CONTINUOUS TRAINING

WITH AROUND 1,900 EMPLOYEES INVOLVED

Safety survey & safety improvement

Safety monitoring is one of the essential activities of the Safety Management System. Through the measurement of specific indicators, it permits an updated knowledge of the state of safety and the timely identification of possible measures to ensure that an acceptable level of safety is maintained.

The state of safety within the various organisational structures is further verified by Safety Surveys.

The main activities carried out for safety

With reference to the 2015-2017 Safety Plan, in the last year of the plan all 13 actions were managed: 94% of the actions planned during the three years were fulfilled, the remaining 6% will be instead completed as part of the activities foreseen by the next company Safety Plan (2018- 2022).

All the analyses of the events classified as significant (according to the taxonomy of the EUROCONTROL Risk Assessment Tool) have been carried out, as provided by the European Regulations concerning Occurrence Management.

The exchange of information with the main stakeholders (43 Air Navigation Companies and 7 European ANSP) increased by 34%, in so contributing to the improvement of the levels of safety in the entire aeronautical supply chain while increasing lesson dissemination.

For activities geared toward mitigating the impact of the risks associated with the changes introduced into the ATM functional system, 516 safety assessments (+90% on 2016) took place.

The expertise acquired helped to contribute to: the research and development activities financed by the European Union (SESAR2020 and/or Horizon2020), support the commercial activities developed at a National and international level (Albania, Morocco and Malaysia), through the drafting of 7 safety Studies (+75% compared to 2016).

National and international activities

The ENAV Group attends international activities promoted by: ICAO (ICAO-EUR), European Commission, EASA, ECAC, EUROCAE, EUROCONTROL (European Network Manager), SESAR-JU (Deployment Manager), CANSO and FAB Blue Med.

Participation in meetings and activities leads to value:

  • it increases know-how while sharing experiences with other Stakeholders and participating in project activities in the area of research and development;
  • it protects the Group's vision in so being able to know in advance the regulatory changes and contributing to the adoption of appropriate and balanced regulatory choices.

These experiences allow the ENAV Group to operate in specific consultancy activities being recognised as a valid partner and a qualified supplier in competitive and commercial contexts.

ENAV ACADEMY

In order to keep the quality standards of the service at the highest level, ENAV cannot disregard the investment in training as a priority. As the only company in Italy authorised to select, train and update the various professional profiles operating in civilian Air Traffic Management (air traffic controllers, FIS personnel, meteorologists and flight inspection pilots), over the years ENAV has been able to put operational training more and more at the centre of its strategic choices, reaching the highest levels among the international service providers for quantity and quality of service provided.

The Academy is a national and international centre of excellence for training in Air Traffic Management.. Its mission is to plan and implement learning solutions for the development of technical and managerial skills for Air Traffic Management. The headquarters is located in Forlì in the heart of an aeronautical community which involves the University of Bologna (Aerospace and Mechanical Engineering Degree Programmes), the Aviation High School "Francesco Baracca", a flight school and a school for aviation maintenance technicians.. The Academy offers its participants an environment reserved forlearning, with classrooms which seat between 6 and 30 people, a conference hall for up 200people , simulators and support services while, the following simulators are used at the Academy for training activities:

  • 2 Radar Simulators (24 working positions in 12 suites)1 laboratory for rapid prototyping and scenario validation
  • 8 Tower 3D 270° Simulators1 CRJ Flight Simulator
  • 7 Part Task Trainer working positions

Internal training of technical and operational personnel

The geometrical figure of reference of an air traffic controller is a parallelepiped. It is inside that space that every airplane in navigation must move without ever trespassing with respect to another aircraft: 1,000 feet on the vertical plane (about 330 metres) and 5 miles on the horizontal plane (about 9 km). It is inside that space that air traffic controllers, seated in front of a monitor full of bright dots, demonstrate their ability and their capacity to make sure that the pilots, with whom they are in radio contact, respect the indications.

Being a traffic controller is not a job like any other: it requires great responsibility, the ability to manage stress and a strong team-work ethic. It is a job that is born from a great passion and for which only the best are chosen.

For these reasons, special attention is given to the development of skills through training. including on-the-job training, factors that play a decisive role in achieving objectives and in performing the delicate role that the company is called to play.

The Academy's Mission, in fact is to supervise the training inherent to the air navigation services for the staff of the Company and the Group, or for external customers, guaranteeing the constant compliance of the training and teaching standards with the sectoral, national and international regulations, with particular reference to the regulations on the subject of the Single European Sky. By virtue of this, the plan activities of the certified and non-certified training provided in the Academy must meet some general requirements, with the aim of pursuing the highest levels of quality; for each training activity the following targets are aimed at:

  • to clearly define the general goals and specific objectives that the training aims to achieve;
  • to break down the objectives of skills development in terms of knowledge, ability and behaviour;
  • to define the process conditions and the teaching modalities necessary for the realisation of the training and the system of verification of the objectives.

Each training project must therefore always provide information on the structure and duration of the training, the methods of delivery, the characteristics and needs of the target population, the teaching objectives and the applicable legislative references.

2017 confirmed the ongoing trend in Academy-run training, recording a marked shift from initial training to continuing training. This is a change that is intended to be confirmed, also due to the role of the Academy in training plans resulting from the introduction of Regulation 340/2015. The emphasis of training thus shifts from stability in the delivery of long programmes and with a stable design over time (typical of initial training) to the fragmentation of continuous training, characterised by short durations, low number of participants and the continual necessity to design and redesign to ensure a complete response to the needs.

In the course of the year, the OJTI (OJTI Refresher) Update Programme was launched in accordance with Regulation 340/2015, thus providing for the inclusion of the Human Factor dimension within the two days of activity intended for all the operating instructors present in the installations.

The activities carried out are characterised by the constant commitment to provide high quality training, as well as aligning it with the national and international standards of reference. In 2017 the activity - - initiated in the two-year period 2015-2016 - of revisiting the training plans and the evaluation practices and adapting the management methods of the training to adopt the changes introduced by Regulation 340/2015 was completed.

The activities provided are linked to the following areas, supervised by specific Academy sectors:

  • Ab initio training: it plans and manages the activities of providing the basic training courses foreseen for the operational staff in the ANS field
  • Advanced training: it plans and manages the activities of delivery of advanced training courses anticipated for the operational staff in the ANS field
  • Continuous training: guarantees the professional updating of teachers, instructors and examiners. It provides support to the territorial structures for the alignment of training activities in the area of on the job training (UTP) for the programmes and courses provided by the Academy department. Coordinates the assessment of the competence of the English language in the aeronautical field
  • External projects: it oversees, in coordination with the Business Consulting department, the project activities of training services to third parties, contributing to the analysis of the needs and to the planning of the courses, ensuring their subsequent realisation.
  • Human factor: it oversees the integration and homogenisation of human factor principles related to non-technical skills in training processes (Training Plan and UTP).
  • Didactic methods and system: this is the sector that oversees the definition of methodologies, techniques and tools for the improvement of training activities, in line with the best practices in the field of training. It defines innovative techniques and learning solutions for classroom management and for the conducting of groups in training and education. It engineers and develops, in coordination with other relevant structures, materials and supports for training programmes and "on the job training".

24.699 HOURS OF ACADEMY TRAINING IN 2017

(INCLUDING 272 HOURS OF E-LEARNING)

1.459 PEOPLE INVOLVED

(INCLUDING 334 INVOLVED IN E-LEARNING)

The ab initio courses, related to the latest personnel research for air traffic controllers, were completed in 2014 and marked a turning point in the composition of the training needs of the ENAV operating staff: the training completed and the inclusion of human resources necessary to ensure the turn over, the prevailing requirement has become that relating to continuous updating and - to a marginal degree - to reconversion. The decrease in the number of hours, recorded in 2017, compared to 2016, is equal to 60,360 hours (-71%); this is attributable to the continuation of the trend that sees the decrease of ab initio programmes (characterised by long duration and high number of hours/pupil) and the higher incidence of continuous training (characterised by short duration and low number of hours/pupil).

Third-party training

The scenarios and the operational specifications are adaptable according to the objectives of the courses, reaching the possibility of building airport scenarios and personalised service areas. This also allows the provision of projects tailored to the customer, on the basis of specific logistical and organisational needs. The training provided by the Academy is aimed at professional figures closely related to Air Traffic Management and for people working in various areas of the aeronautical sector, requiring specific training courses in flight navigation (e.g. airline companies, airport management companies, air traffic management services, aeronautical industries and government bodies in the air transport sector).

The general objectives that characterise the management of the training of external subjects are analogous to those adopted for the training of the internal staff, with the addition of special attention to the issue of customer relationship management.

The training plan activity for third parties has the same objectives of excellence that characterise the internal training; for each training activity there are defined:

  • the general goals and specific objectives that the training aims to achieve;
  • the objectives of skills development in terms of knowledge, ability and behaviour;
  • the process conditions and the teaching modalities necessary for the realisation of the training and the system of verification of the objectives.

The training programmes are aimed at ANSP (e.g., Croatia, Libya) for the training of its operating staff, aeronautical technical institutes (Fabio Besta of Ragusa) for the familiarisation of ATC, to specialists in the design of air spaces and that respond to a wide range of needs, such as:

  • ADI TWR APS ACS training: training aimed at the acquisition/reinstatement of certifications in the Tower and Radar environment
  • FISO & MET AFIS course: training aimed at obtaining the FISO licence (Flight information Service Officer) and MET AFIS specialisation (enabling the provision of meteorological services for air navigation)
  • Apron management: training on apron management for personnel of the Management Companies
  • Meteo: training on meteorological observation and/or forecasting techniques
  • ATM Seminars (ITAER students): familiarisation on ATM and meteorological topics for students of technical institutes studying Transport and Logistics (formerly ITAER)

In 2017 the activities carried out in favour of the UAE customer (United Arab Emirates) were particularly noteworthy. A Training Needs Analysis activity was carried out for the customer and a wide array of e-learning training was provided: a total of 96 modules, over 22 hours of e-learning allocated to 583 air traffic controllers.

Activities were also continued in favour of customers who use the simulation environments of the Academy as a way of developing managerial skills: within the tower, radar and flight simulators engaging experiences are conducted which are able to improve the ability to communicate, to manage stress, and to work in groups.

APPROXIMATELY EUR 580,000 EARNINGS FROM TRAINING PROVIDED TO THIRD PARTIES IN 2017

30,556 HOURS OF EXTERNAL TRAINING (INCLUDING 1,984 HOURS OF E-LEARNING TRAINING)

The role of the Academy for the Aerospace Technological Center and for the territory

The ENAV Academy collaborates with territorial institutions, particularly with those engaged in the training system: the Aviation High School "Francesco Baracca, the Faculty of Engineering of the University of Bologna and ISAERS (a consortium company which has he objective of promoting and developing training and research activities in aeronautics and aerospace within the Aerospace Technological Center of Forlì).

The presence of the Academy on Forlì territory has generated a significant impact on local development over the years. Analyses carried out over the period 2007-2012 have estimated a direct economic impact equal to approx. EUR 23 million during the period, to which must be added the spillovers and some intangible effects that are not of secondary importance, such as:

  • the increase in the levels of education arising from the presence of new training opportunities;
  • cooperation with local businesses and support for innovation processes;
  • the contribution to the development of the Aerospace Technological Center, which has generated a positive effect on the attractiveness of the territory;
  • greater visibility of the territory in the media;

Lastly, it should be noted that ENAV Academy's effect on the Forlì territory does not end in the relationship with education. In the context of relations with the institutional stakeholders, the Academy cooperates with businesses such as Unindustria and the Fondazione Cassa dei Risparmi of Forlì.

THE FLIGHT INSPECTION SERVICE TO INCREASE SAFETY IN FLIGHT

In line with the objective of putting the airlines in the condition of flying in compliance with the highest levels of safety, the Flight Inspection service, through special equipment on board, is able to measure and then calibrate the surveying of radio navigation. ENAV carries out continuous control of national radio aids (Radar, VOR, DME, VDF, ILS etc.) through its own air fleet with the knowledge that the continuous verification of the accuracy of these signals make it possible to fly in total safety

General objectives:

  • to fulfil the obligations of diligence and guarantees imposed by international, European and national regulations to safeguard the goods and interests of primary rank involved in the provision of air navigation services;
  • to protect personnel, infrastructures, and technological systems from acts of illicit interference and actions or events, whether or not deliberate, that may interfere with the availability, integrity and confidentiality of information.

The activity is carried out by 14 pilots and 7 technicians on board (FIO) through a fleet of Piaggio Aero P180 Avanti II aircraft owned by ENAV. The crew is usually composed of 2 pilots and 1 FIO, averaging 1800 flying hours/year. These specially equipped aircraft can perform in-flight checks without the need for ground-based apparatus, obtaining results in real time and always as per international norms.

ENAV flight inspection sector is also involved in research.; the aircraft in the fleet, if necessary, can act as a innovative laboratory, where to carry outtests, to try out and check new ATM projects.

The high level of performance achieved by the radio navigation service is also evidenced by the fact that in 2016/2017, about half of the flight activity produced was sold to external customers, and almost 80% to foreign customers.

MORE THAN 1800 HOURS OF FLIGHT IN 2017 (OF WHICH MORE THAN 50% ON FOREIGN TERRITORY)

THE AVERAGE TIME TO RESPONSE ON SPECIAL MEASURES IS 24 HOURS

SECURITY

In order to ensure the security and regularity of the provision of Air Navigation Services, in compliance with current national and international norm, ENAV assumes the full conviction that the staff protection , infrastructure and the information security it receives, produces, uses and transfers are crucial and essential elements in order to protect the community which, directly and indirectly, makes use of its services.

Security policy

The Security Policy expresses ENAV's commitment to ensuring the security of its facilities and personnel to prevent undue interference in the provision of air navigation services, and the protection of its systems and data from threats to information security that may lead to illicit interference in the provision of air navigation services and to vital and relevant information also of interest of the financial community.

Security management system

ENAV has developed its own Security Management System, certified according to standard UNI EN ISO 27001:2014: it is a system that consists of technical and organisational measures implemented in order to increase, overall, the ability to prevent and mitigate the effects of acts of unlawful interference in the provision of air navigation services and of protecting persons and corporate information assets that have a direct impact on ENAV's institutional activity. The activity is strongly characterised by the management of the entire security life cycle and it finds a defining point in the activities of the Security Operation Centre, which constitutes the operating engine of the processes of prevention, detection, containment, response and assistance to recovery, under the assumption of security-injurious events. ENAV participates in the National Cyber Security Strategy and the protection framework of national security and defence interests, in its dimension of critical infrastructure and provider of essential services.

A brief description of the main processes that make up the security management system below.

Risk Management

The process is aimed at identifying the risks associated with possible dangerous situations regarding ENAV Security and specifically for the security of ENAV's installations and personnel and the information that ENAV receives, produces or uses and to plan and implement the security countermeasures necessary to reduce these risks to levels deemed acceptable for ENAV. Risk management is expressly extended to staff missions.

Classification of information

The purpose of the information classification process is to support the correct application, in the entire business context, of the rules and the principles of confidentiality of information by the definition of the classification level in terms of confidentiality, and the definition of persons authorised to process information, inside of the organisation and outside.

Physical security management

The physical security management process aims to avoid unauthorised access, damage and interference to ENAV's staff, technological infrastructures and real estate by means of protective measures commensurate with the nature of the own structures , the type of services they have performed, the resident staff and, more generally, the risk analysis carried out on the specific installation.

Logical access management and Backup and restore of data

The management processes of logical accesses, relevant both to the operational and managerial scope, have the objective of preventing unauthorised access to ENAV's computer resources.

The data backup and restore activities are carried out both for operational and managerial data in order to guarantee their availability and integrity and are planned with a view toward guaranteeing the continuity of the institutional and related services for the pursuit of the mission.

Security event monitoring and ICT security Audits

The activities of monitoring the level of security of ICT infrastructures related to the ENAV's operational network and the management network, carried out in continuity by the Security Operation Centre in connection with all ENAV's line functions, aim to identify any abnormal behaviour and, in case of attack/threat detection, to activate the security incident management process.

The ICT security audits, on the other hand, aim to verify that the ICT assets comply with the mandatory rules, the "ICT Security Policy", the SecMS Rules and the security standards considered applicable.

The process, inspired by continuous improvement logic, aims at the constant monitoring of threats and the early detection and contextual resolution of vulnerabilities, with a constant connection to Threat intelligence processes and the acquisition of information from Bodies responsible for the national security and defence.

Reporting and managing security incidents

The main objectives of the incident reporting and handling process are the timely identification of security incidents, the provision of what is necessary to prevent security-related incidents from causing greater effects in terms of extent and/or intensity of damage, the elimination of the causes at the incident origin, and the restoration of initial conditions to return, as soon as possible, to normal operation. This activity is crucial to the protection of the Group's vital interests and to the protection of core values in its constitutional architecture. This responsibility is the task of the Security Operation Center, in its dual structure of reference centre for physical and personal security and information security.

The main activities carried out for security

The security activity is based on a risk analysis process, built on the ISO 31000 standard and the analysis activity, every year, covers the three domains of physical, personnel and information security with a process inspired by continuous improvement. Risk management is developed through the principles of "security by design" and "security through lifecycle" and addressed through procedures, which are continuously updated, that consider the issuance of technicaloperational requirements, metrics and indicators aimed at strengthening the culture and awareness of security (both with training programmes and exercises carried out for all personnel, at differentiated levels).

The substantial evolution of ENAV's Security Operation Center continued, with a strong characterisation towards open source tools, some of which were developed internally. Consistent actions have been established to ensure the security of staff who are on mission and to initiate overall adjustments for full compliance with the European regulation on the security of personal data (GDPR). Cooperation with the national infrastructure and cybernetics security institutions continues, following the signing of an agreement with the Department of Public Safety at the Ministry of the Interior for the protection of the physical security of ENAV's infrastructure and personnel, which is added to the conventions on the security of information and data with the same National Authority of Public Safety and with the national Cybernetic Authority (DIS), for the complete and effective fulfilment of the duty of diligence enshrined in the Security Policy. In implementing the principles of the Security Policy, ENAV continued its campaign to promote the culture of security with different modalities to achieve the expected levels of value-sharing. A further development of ENAV's operational continuity plans, complying with the ISO 22301 Standard, also involved the component of the Group's systems management and maintenance processes.

INVESTMENTS

Investments are made to ensure that assets supporting air traffic management services in the national territory are consistent with the objectives of technical, economic and performance requirements, and that they comply with quality and performance standards established at national and international levels. The prevailing burden of investments is represented by all the interventions concerning the operational technological infrastructures, as they directly affect the core business activities in terms of safety, efficiency and economy of air traffic management services. There is a three-year plan (with projections for the two years immediately following) of investments that is updated on an annual basis. The ENAV Group's investment policies are aimed at ensuring:

  • the provision and continuity of service in accordance with the Operational Safety objectives that are the central element of ENAV's Mission and Vision;
  • the evolution of the national ATM system, currently in operation towards the new common European platform, in line with the objectives of the SESAR programme;
  • the increase of the capacity of the ATM service, expected in the medium/long term, by adapting the ATM technology infrastructure with reduced "gate-to-gate" costs, and increasing flight safety and reducing environmental impacts;
  • the optimisation of proprietary assets;

On the basis of the development strategies, having as their primary objective the support of air traffic management services in the national territory, in 2017 the ENAV Group invested EUR 105 million in infrastructure (while the total investments amount to EUR 115.4 million) through implementation and maintenance projects of operational technological infrastructures, evolution of the ATM technology platform with new operational concepts, infrastructures, equipment and management information systems.

The general objective can be divided into the following projects:

  • Upgrade and implementation of logistic and measurement tools calibration
  • Upgrade of systems of airport weather conditions to the latest ICAO/WMO standards
  • Implementation of CPDL Communications (Controller Pilot Data Link Communications) through the development of the Data Link
  • Upgrades linked to the transit of military airports into ENAV
  • Development of the new ATM platform (4Flight) and the new Flight Data Processing (Coflight)
  • Construction of a new building at the Area Control Centre of Rome Ciampino
  • Implementation of a windshear system at Palermo, for the detection of turbulence during the landing phase

- Completing the works for the new Academy of Forlì

With regard to the Coflight programme, the innovative platform for air traffic management, it is worth making a brief analysis. Focusing on the technological development of flight data processing systems, which is the heart of any air traffic management system, Coflight aims to improve flight cost efficiency, optimise the use of air space, and reduce the environmental impact of aviation. This new technology, designed to meet the objectives of the "Single European Sky" and the SESAR (Single European Sky ATM Research) programme, is composed of various components and involves the implementation of a new flight route prediction system (Flight Data Processor – FDP), known as Coflight, developed in collaboration with the French service provider DSNA and through a leading industrial partnership involving two of the main companies in the sector at a world level: Leonardo and Thales. Coflight is a significant development both at operational and technological levels, ensuring more advanced handling and management of civil and military flights, providing highly sophisticated 4D flight data processing (calculated taking into account aircraft take-off weight, airline directives, the pilot's intentions, real time use of traffic flow restriction data, and weather data both on the ground and in-flight). Recently, on the occasion of the Paris trade fair dedicated to the aeronautical world, Le Burget, ENAV, DSNA, Leonardo and Thales strengthened their collaboration in Coflight. The alliance is aimed at promoting the platform at the European level through a long-term assistance and maintenance contract. The agreement, lasting six years, will cover all the activities of corrective and evolutionary maintenance of the system, such as studies, design, software development and associated services. This is a further significant step towards a technical and commercial collaboration to jointly promote an innovative approach to managing Coflight's evolution and to sharing costs with other providers of air navigation services.

The described projects arise, as always, from the central element that characterises the ENAV's mission and vision, namely that of "ensuring the provision and continuity of service in compliance with Operational Safety objectives". That is why ENAV is, first and foremost, a company in the service of the community, because no "return on investment" takes priority over the return in terms of security.

The project called Centro Servizi Roma, is part of the business plan for the enhancement of proprietary assets. Its general objective is that of equipping the office structures and the structures dedicated to corporate security so that the building has the infrastructures, installations and technology that are adapted to current technological standards.

The specific targets aimed at the general objectives of the project involve: the construction of an infrastructure which meets the current requirements and regulatory constraints in terms of construction technology, electrical systems and air treatment installations. The ultimate aim, already partially achieved, is to create an infrastructure that is equipped with adequate spaces and systems to host the company structures for flight procedure planning, aeronautical data publishing, and corporate Security.

The Service Centre was completed with the sole exception of the conference rooms and is currently being used by the central functions' staff that were transferred there during 2017.

CO-OPERATION WITH ORGANISATIONS, INSTITUTIONS AND INDUSTRY ASSOCIATIONS

ENAV's attention to the civil aviation community is not only substantiated through the air traffic control services it offers but also through an active collaboration and participation with national and international bodies and institutions.

At the national level, ENAV coordinates its activity with the Ministries of reference (Ministry of Economy and Finance and Ministry of Infrastructure and Transport) and with ENAC (National Civil Aviation Authority), the Authority that is responsible for the technical regulation, certification, control and supervision of civil aviation in Italy. It also collaborates on an on-going basis with other industry institutions such as the ANSV (National Agency for Flight Safety), AMI (Italian Air Force) and other organisations and players in the aviation sector (e.g. airport management companies and airlines).

In Europe, ENAV is party to a number of cooperation agreements, and is actively involved in partnerships and multilateral programmes; it also plays a key role in the Single European Sky initiatives promoted by the European Commission, EASA, EUROCONTROL and other European bodies and organisations. At the international level, both globally and regionally, it is also engaged in a number of important activities within the International Civil Aviation Organisation (ICAO) and CANSO (Civil Air Navigation Services Organisation). To better understand the key role of these industry associations, it is worth specifying that:

  • ICAO is an autonomous agency of the United Nations which aims to define the principles and techniques of international air navigation, routes and airports and to promote the design and development of international air transport, in order to make it safer and more efficient.
  • CANSO is the association of air navigation service providers (ANSPs) and represents their interests. The ANSP members of CANSO manage over 85% of world air traffic and through its working groups, its members share information and develop new policies, with the aim of improving air navigation services. ENAV is a member of CANSO and participates in its governance and technical activities.
  • EASA is the European Aviation Safety Agency, a control body that defines the highest common safety levels for the civil aviation sector of the European Union.
  • EUROCONTROL is an intergovernmental organisation, the main purpose of which is to support the development and maintenance of an efficient air traffic control system at the European level. To achieve this, it provides support to the national civil aviation authorities, the ANSPs and civilian and military airspace users, the industrial sector, professional organisations and the relevant European institutions. It also holds the important role of Network Manager assigned to it by the European Commission in 2011.

ENAV is full member of EUROCAE, an organisation which is responsible for the standardisation activities of highly advanced technological systems and participates in its governance through the annual General Shareholders' Meeting. ENAV is very active in the thematic working groups that are of particular interest to the Company, such as those related to new technologies, including remote towers, drones, and airport and satellite surveillance.

Given the objectives established by the European Commission with the creation of the Single European Sky, and the consequent requirement to define a common view on the modernisation of the air traffic management system, ENAV has assumed a strategic role as a Full Member of the SESAR Joint Undertaking (SJU) and the SESAR Deployment Alliance (it is worth recalling that the SJU requires a section dedicated to Ethics to be inserted in the PMP of projects).

The SESAR Joint Undertaking (SJU) is the public-private partnership established in 2008 for the deployment of the SESAR European Research and Development Programme (Single European Sky ATM Research) with an activity time horizon of 2024. The entire aviation community is represented in the SJU partnership, confirming the significant modernisation process that is underway: EUROCONTROL and the European Commission as founding members and 19 Full Members (including ENAV) representing the entire European ATM industry, for a total of more than 110 companies and 3,000 experts involved in SESAR projects. ENAV has been a SJU member since August 2009 and has played a leading role in all of SJU's design and governance activities, contributing with its own resources to driving the change and modernisation processes of the European ATM system.

For ENAV, the membership in the SESAR Joint Undertaking not only represents a confirmation of its authority in the ATM field at a European level but also represents a valuable opportunity for direct participation in guiding the direction of strategic choices related to the design, development and management of new generation ATM systems, thus safeguarding the significant investments already made, and to guarantee a cutting-edge service to its international and national user community.

The SESAR Deployment Manager was established by the European Commission with the task of synchronising and harmonising, at a European level, the implementation of ATM systems and procedures.

ENAV plays a major role within the A6 Alliance formed by the leading European Air Navigation Service Providers (ANSP). Its aim is to guide the modernisation of the European ATM Network in line with SESAR's objectives, for the benefit of airspace users. The A6 Alliance partners, united by a Memorandum of Cooperation, are full members of SJU and they are assigned the primary role of

representing the interests of the ATM industry and in implementing the SESAR defined technologies and concepts.

Today, the A6 is actively following SESAR's evolution, which has passed from the first phase to the next phase of development contained in SESAR 2020, concentrating its activities on the operational deployment of technologies that were defined in SESAR 1. The A6 Alliance is part of the governing bodies of the SESAR Deployment Alliance (SDA), the Legal Entity established under Belgian law for the management of the activities of the Deployment Manager that has become operational on 1 January 2018. Moreover, the A6 has expanded its partnership with the addition of the Swiss provider Skyguide through a consortium with DSNA, for activities in the SESAR 2020 framework. ENAV participates in the A6 activities in governing groups and in technical working groups, contributing with its experts to the process of modernising the European ATM infrastructure.

ENAV also coordinates the FAB BLUE MED project, aimed at creating a functional Airspace block in the centre/south-east of the Mediterranean, with the primary involvement of EU States (Cyprus, Greece and Malta as well as Italy) as well as non-EU countries, such as Albania, Tunisia and Egypt, promoting the involvement of other countries in the area such as Israel and FYROM.

ENAV is therefore an effective member of some of the most important international organisations and initiatives. This allows it to play an active role in their governance, also through participation in meetings and shareholders' meetings. ENAV holds the chairmanships on many important decisionmaking bodies and working groups (especially in the context of A6, ICAO, Eurocontrol and CANSO) which, on matters of direct interest for air traffic control, allows it to pursue those company values which, as mentioned, tend first and foremost to protect the interests of the civil aviation community.

Organisation Activity
ESSP The provision of the EGNOS satellite navigation service was executed
and maintained
AIREON The set-up for the satellite surveillance infrastructure has been initiated
and is under way, with the operational launch of the service on the
horizon.
SESAR JU The
activities
envisaged
in
the
SESAR
framework
have
been
deployed. In particular, in 2017 the activities of the so-called SESAR1
were completed. This is the first series of coordinated R&D activities at

For the period covered by this analysis, the year 2017, the following initiatives were carried out by ENAV in the aforementioned organisations:

demonstrated the feasibility of innovative operational concepts within
the main domains of air traffic control: at airport level, during the
approach phase and during overflight. In addition, project activities are
under way in the SESAR2020 activity framework. These will prove the
practicality of innovative strategic technologies and concepts for ENAV,
and will introduce important improvements (economic, safety, and
environmental) for the benefit of the civil aviation community.
SESAR DM The
project
activities
envisaged
in
the
European
deployment
programme have been initiated and are under way. In particular, ENAV
is carrying out 20 implementation projects that have recently been put
into
operation,
bringing
significant
benefits
to
the
civil
aviation
community, in terms of punctuality, improvement of airline performance,
as well as important improvements for passengers, in terms of cost
reduction, environmental sustainability and safety.
A6 The A6 Alliance has coordinated the activities of the main European
ANSPs on the key topics involving the European traffic management
system.
BLUE MED FAB During 2017, several initiatives were put in place aimed at the
development of an implementation programme for making the FAB
airspace safer and more efficient. Italy (represented by ENAC) and
ENAV held in 2017 the chairmanship of the main decision-making
bodies of the FAB, respectively the Governing Board and the ANSP

CUSTOMER RELATIONSHIP QUALITY

The ENAV community consists of direct customers (airlines) and indirect customers (such as, for example, passengers). More specifically, for its direct customers, ENAV has developed, with an increasing commitment and attention, an efficient system of customer relationship management, supported by internal procedures, aimed at involving directly the customers in the measurement of their level of satisfaction regarding the provision of ATS (Air Traffic Services). Every year ENAV conducts a Customer Survey through an online platform on which the various users can express their level of approval, on a scale from 1 (highly dissatisfied) to 5 (highly satisfied); ENAV's minimum objective is the achievement of a customer satisfaction level equal to or greater than 3.

In 2017, the satisfaction of the services provided to the airlines (CNA) scored 4 on a scale of 5 (3.8 in 2016).

The survey completion was 66.6% (22% in 2016) considering the 15 Top Customers, and 54% in the total calculation of the questionnaires sent to CNA.

CRM activities are obviously not limited to the customer satisfaction survey but are divided in a series of initiatives aimed at stakeholder involvement and an active participation in the evolution of the various processes (often associated with new operational implementations). As a rule, in carrying out its relational activities, ENAV promotes one to one meetings, plenary sessions, open day demonstrations and thematic workshops related to the activities of the Air Navigation Services Directorate (DSNA). ENAV's customer-oriented approach is thus based on integrated modes of action that are able to satisfy the expectations of airspace users, and to ensure the availability of those processes that are required to deliver increasingly effective and efficient services, while at the same time promoting constant improvement.

In line with these principles, in 2017ENAV signed cooperation agreements with important airlines (Norwegian Airlines and Vueling Airlines) and others are being finalised.

The following diagram summarises the early engagement process of the customer in defining and sharing the requirements associated with the provision of air navigation services.

SUPPLIER MANAGEMENT

The Group places significant attention to the selection and management of suppliers also as a consequence of its precise strategic choices on sustainability. If in fact the selection of suppliers is today increasingly influenced by Green Procurement (which will be widely described in the section Green Procurement in the Environment chapter) also the following phase, the management of suppliers, places a great deal of attention to topics related to sustainability.

On this front, the ENAV Group is highly demanding of its suppliers: not only does it focus on the effectiveness and efficiency of their performance, but also on the identification of the main risks of non-compliance with regulations relating to social aspects by suppliers and subcontractors.

The communication with suppliers and their involvement in these topics is also reflected in detailed agreements, through the inclusion of clauses countersigned by the supplier wherein they state that they acknowledge, accept and will comply with ENAV's Code of Ethics and with Legislative Decree No. 231/2001, which is intended to fight all irregular work. In case of non-observance, the contract can be terminated by law.

Following the selection phase, the Group's organisational structures responsible for the supply procedures, must verify the declarations made during the tendering stage before they can award an order to the winning tenderer. This is done in addition to acquiring all documents required to prove the non-existence of the reasons for exclusion pursuant to Article 80 of Legislative Decree No. 50/2016. Subsequently, during the issuing of the Attestation of Regular Performance (ARP)/Technical Economic Approval and payment of the invoices issued, the documents are collected for the acquisition of the DURC (statement of correct fulfilment of welfare contribution obligations). Similar checks are carried out for subcontracting authorisation for the company indicated by the contractor. In particular, as a guarantee from the subcontractor, the funds are traced to the bank accounts in order to guarantee the contractors' debts with regard to them. There are also additional actions undertaken for the payments to subcontractors, such as the intervention of direct payments in favour of sub-suppliers in cases of contractor bankruptcy, as provided in the relevant regulations. Thanks to the experience acquired and given the risks identified, a number of functionalities have been developed on ENAV's information systems. This includes the Contracts Register, in order to trace information, compliance with the ERP system and to what is reported in the accounting documents and the supplier's assessment in relation to each ARP/Technical Economic Approval (for all contracts issued, irrespective of the amount). The results of the evaluations involve the possible suspension of the supplier and/or the withdrawal/termination of the contracts in effect. In particular, it is advisable to indicate the obligation to compile the noncompliance form, which indicates the violation of essential obligations (including breach of work safety regulations ex 81/08) and which traces the reporting of events of injury: from the failure to comply with essential safety obligations to the failure to comply with the regulations on occupational safety.

As regards the assignment procedures carried out by ENAV and Techno Sky (net of what will be discussed later regarding Green Procurement), these are carried out in compliance with the provisions of Legislative Decree No. 50 of April 18th 2016, the so-called Code of Public Contracts. Therefore, failure to comply with these mandatory regulations can lead to significant sanctions ranging from administrative penalties to criminal charges. It is worth remembering that ENAV is subject to the oversight of the Court of Audit, as well as to additional, and not less stringent, controls by different entities (to which Techno Sky is also subject) such as the Supervisory Body, the Board of Auditors, the Control, Risks and Related Parties Committee, the Internal Audit, the quality certification authority, etc. The corporate and reputational requirements are therefore established in tender/tender notice/market investigation stages. In general, Article 80 (of the cited Legislative Decree No. 50 of April 18th 2016, the so-called Public Contracts Code) provides that the failure to comply with this Article's requirements leads to the exclusion from the tendering process. Likewise, the technical operational requirements of potential bidders are identified and both aspects must be proven before the conclusion of the contract, through a testing on the effectiveness verification phase. Recently ENAV has also acquired a specialised and exclusive service of access to the anti-money laundering lists, listed in Legislative Decree No. 231 of November 21st 2007, aimed at the identification and prevention of offences linked to Law No. 231/2001 and subsequent amendments and modifications.

The supplier evaluation process implemented by Techno Sky differs depending on the good/service category of reference of the evaluated supplier. In particular, the supplier is assessed as follows:

  • For standardised goods and repair services it is based on the automated processing of data entered on the SAP company information system in terms of respect of delivery times and quality of supply (purchase of products with minor environmental impact- CE certification);
  • For services, jobs or professional services it is based on the recognition of user satisfaction expressed through the compilation of the evaluation form on the SAP system.

Regarding the process of monitoring the compliance of the activities performed by suppliers with specific business needs, Techno Sky uses the SAP management system which monitors the technical and economic approvals which are strictly correlated to the supplier assessments.

The Supplier assessment takes place through a periodic analysis of the operational capacity and the reliability of the supplier which considers the following elements:

  • The assessment of individual performance;
  • The monitoring of any detected "non-conformities".

The results of the evaluations involve the possible suspension of the supplier and/or the withdrawal/termination of the contracts in effect. The Purchasing Department will ultimately modify the current contractual forms with the provision of specific clauses relating to the carrying out of audits, during the contractual execution, aimed at the verification of the suppliers' possession of environmental requirements and respect for human rights.

ENAV Asia Pacific has initiated a process of supplementing its procurement procedures for protecting the company against the risks that are considered to be of greater impact, such as respect for human rights, anti-money laundering, compliance with the Group's Code of Ethics and the signing of confidentiality agreements.

On the payment of suppliers, the objective that the ENAV Group has established consists in meeting the contractually defined deadlines, subject to the verification of the regularity of all legally required documentation and in application of Legislative Decree No. 231 of October 9th 2002, which implements in Italy the Directive 2000/35/EC on the fight against late payments in commercial transactions. The Group companies pay special attention to the observance of payment terms, aware of the difficulties that delays can generate, from the financial point of view, towards their suppliers. In order to meet the needs of the suppliers, the company has concluded a factoring agreement with a financial institution which allows suppliers to submit issued invoices with recourse; in addition, payment advances may be made if properly justified.

AVERAGE PERIOD FOR SUPPLIER PAYMENT

ENAV: 34.01 DAYS

TECHNO SKY: 30 DAYS

ENAV ASIA PACIFIC: 5 DAYS

ANTI-CORRUPTION PRINCIPLES

In order to equip itself with suitable anti-corruption principles, ENAV has:

  • Appointed a special Supervisory Body in accordance with Legislative Decree No. 231/01;
  • Established an organisational sector called Whistleblowing & Fraud Audit under the Internal Audit Department;

Following the best practices and indications of the main position papers (including the Confindustria Guidelines for the construction of the models of organisation, management and control according to Legislative Decree No. 231/2001) and the ISO 37001 reference standards, ENAV has established its activities according to the CoSO Framework (Committee of Sponsoring Organizations) as a Risk Management model provided by the Lines of Address of the Internal Control and Risk Management System approved by this Board of Directors, in line with what is recommended by the Self-Governance Code of the Listed Companies of Borsa Italiana. The activities for the definition of an effective anti-corruption model affecting both the activities of the Supervisory Body and the Whistleblowing & Fraud Audit sector can be summarised more specifically:

  • Risk Assessment;
  • Regulation;
  • Training and communication;
  • Monitoring and management of reports.

Regarding Risk Assessment, a periodic activity of risk assessment is guaranteed by the internal structures, also depending on the analysis of the internal and external context. The periodic updating of risk assessments is also carried out by identifying the necessary actions to strengthen the internal control and risk management system, with particular reference to the procedural corpus and organisational principles. In particular, the following activities were carried out or completed during 2017:

  • Business Process Risk Assessment, coordinated by the Internal Audit Department, which has, among others, the purpose of also identifying the risks of fraud and corruption for the main mapped business processes.;;
  • Risk Assessment and Gap Analysis 231 for the identification of the control principles concerning those activities defined as sensitive for the purposes of the commission of the offences envisaged by Legislative Decree No. 231/01 and assessment of the supplementary requirements of Model 231 following the intervening legislative evolutions (the latest in chronological order and significant by relevance is the new whistleblowing legislation for the protection of the whistleblower, Law No. 179/2017);

  • Risk assessment on corruption risks established in line with the requirements of the ISO 37.001 Standard and aimed at understanding what activities should fall under the anticorruption policy.

Regarding regulation, on March 16th 2017, the ENAV Board of Directors updated the Group's Code of Ethics and the Organisation Model in accordance with the aforementioned Legislative Decree No. 231/2001, Management and Control. Subsequently the Techno Sky Board of Directors also updated its Model 231 and adopted the Group's Code of Ethics. Management has also worked to strengthen the anti-corruption principles through the reinforcement of certain controls that have been referred to as the so-called "4-eyes principle" and the improvement of the processes, with particular reference to payments and purchases.

During the year, ENAV then defined a work plan for the setting up of an Anti-Corruption Compliance Programme, at Group level, which provides for 2018, indicatively:

  • the issuing of a Regulation on Whistleblowing;
  • the definition of an Anti-Corruption Policy;
  • the formalisation of an Anti-Corruption Model.

In addition to these aspects, the work plans defined by the responsible structures during the year of 2017, provide for 2018 specific policies in relation to the main processes to fight the corruption, such as brokerage contracts to be valid both for Parent company and for any subsidiary affected by this risk (e.g., ENAV Asia Pacific).

Even the classroom training in the area of anti-corruption has found ample space and has been focused on topics such as: the regulatory evolution, the principles on which the need to oppose corruption is based, what emerged from the report by Transparency International, several case studies and the representation of corrupt modalities through the analysis of court judgements wich address cases of national and international character.

During 2016, training was provided in the classroom on topics relating to anti-corruption and Model 231 aspects, in addition to the Code of Ethics, for a total of 941 hours. This training, aimed at middle managers and executives of ENAV and Techno Sky, was completed during 2017, the year in which online training was also finalised on the same topics that will be extended to the remaining target population during 2018. There were 67 training hours in 2017. The reduction between 2016 and 2017 is due to the fact that the 2017 training hours are a "spill-over" of the training initiated during 2016. In 2018, the Internal Audit Department will launch on-line training courses for all employees (also in the light of the new whistleblowing regulations) and new classroom training sessions for all executives. As far as the members of the Board of Directors are concerned, the document relating to 231 topics, which also encompasses the corruption risk used during the induction seminar session, has been circulated to everyone.

Under the profile of monitoring and managing reports, various other activities have been carried out. In particular, the verification plans of the Supervisory Bodies (of ENAV and Techno Sky) which use the Internal Audit Department for the conduct of their verification activities, and the same multiannual plan of the Internal Audit see the corruption risk examined under different profiles in the scope of the processes audited. The Group has also defined two further monitoring tools: a communication channel for the reporting of whistleblowing and a channel for the reception of information flows of the Supervisory Body. In particular, nitial actions were taken at the end of 2017 that will see, in the first part of 2018, the implementation of a system that complies with the requirements of the new legislation Law No. 179/2017. The reports received through these channels have all been analysed and for those considered to be more detailed, specific audit activities have been initiated which complete the activities envisaged in the plan. The control system (SCIGR), however, has presented several areas for improvement and, following the audit activities, the specific corrective actions aimed at acquiring the best practices in the field of fraud prevention and fraud detection have been established. There were no cases of infringement of the procedures regarding the application of controls for the prevention of fraud and corrupt acts.

Finally, the anti-corruption model, integrated with the principles guaranteed by the Supervisory Body and the Internal Audit Department, foresees specific periodic information flows regarding the Board of Directors, the Control, Risks and Related Parties Committeeand the Board of Auditors. These flows, defined on a periodic basis, include the work plans of the Supervisory Body and the Internal Audit Department, as well as a summary of the results of the activities carried out, and a detailing of the reports received and the remedial actions undertaken. In addition to these flows, ENAV has defined specific coordination modalities among the internal players, such as for example the Risk Manager, the Financial Reporting Manager responsible for the drafting of the company's accounting documents, the head of the Security Department and Internal Audit to ensure, in accordance with their roles, timely information about how to manage the risks and their recovery plans.

IN 2017 100% OF THE ENAV GROUP PROCESSES WERE EVALUATED ON THE RISKS ASSOCIATED WITH CORRUPTION

EXTERNAL COMMUNICATION

The press office of the Group ensures external communication through relations with national, local and international media and the correct dissemination of corporate messages to the target audience, in order to protect the reputation of the different ENAV Group activities.

The Press Office , in addition to the company's social profiles on Twitter, Instagram and LinkedIn that globally have around 8,000 followers, also manages the company's financial communications, assuring and overseeing all the communication processes provided by the Consolidated Finance Act and the best practices in terms of communication and transparency adopted by listed companies. In addition to the proactive activity carried out in relation to the media, the press office manages the crisis communication with the aim of monitoring and containing any negative impact, also identifying preventive actions.

The work of external communication consists of three fundamental pillars:

  • a regulatory and service part that requires a communication to the stakeholders and the public of the information envisaged by legislation and the indications of the various authorities (e.g., Consob);
  • a proactive part aimed at enhancing the work and professionalism of the Group's employees and the Company's core business on all the information channels (national and local channels);
  • crisis management activities.

12 NATIONAL RADIO/TV REPORTS

53 NATIONAL/INTERNATIONAL ARTICLES OF THE PRESS AND THE WEB

INVESTOR RELATIONS

ENAV has consistently placed great deal of attention on its relations with shareholders, the financial analysts and the financial community in general, establishing shortly before its listing on the Mercato Telematico Azionario operated and managed by Borsa Italiana on July 26th 2016, the Investor Relations department in order to manage, in a continuous and effective way, these relations.

The opportunities for dialogue are many: conference calls, meetings, financial conferences and roadshows. In these events, the management team (typically the Chief Executive Officer and the Chief Financial Officer, together with the Head of Investor Relations) present to the financial community the main results of the period (quarterly, half-yearly, yearly), business trends and strategy guidelines and is available to answer the questions received from the individual participants.

A dedicated mailing list is also available to the financial community through which the company periodically communicates its relevant financial news, as well as a dedicated e-mail address, through which it answers questions asked by investors or financial analysts in the event of new business activities or particular market trends. All the economic and financial information related to the Group, as well as the main share performance indicators and the analysts' opinions, are published in a dedicated Investor Relations section of the site www.enav.it.

In the period January – December 2017, ENAV had over 250 interactions with institutional investors, mostly during roadshows organised both at the ENAV premises (headquarters, ACC and control towers), and at the locations of individual investors in Italy, in Europe, in Asia/Australia and in the United States. The remaining contacts were held through the company's participation in financial conferences and through conference calls with investors. In addition to investor relations, ENAV maintains frequent contacts with financial analysts covering the security (so-called "sellside") and, during 2017, two further research brokers , specialising in infrastructure companies, initiated coverage on ENAV, for a total of 11 analysts.

For 2018, ENAV aims to further expand opportunities for interaction and meeting with the financial community using various occasions such as roadshows, participation in financial conferences and conference calls, in line with the best market practices. During 2018, the company aims to broaden its investor base by focusing on investors based in geographical areas not reached during the IPO and on investors with a medium-long term investment perspective or focused on the infrastructure sector.

BRAND DEVELOPMENT

Since last year, launched number of actions have been initiatedat renewing the corporate image and increasing the image of the Group brand with the general public, both national and international.

On the occasion of the privatisation on the stock exchange, in 2016 an organic advertising campaign was developed, articulated and strongly integrated, that was aimed at promoting the new corporate image and in particular the IPO. This operation, besides having favoured the acquisition of shares by the retail market, has in fact considerably raised awareness of the ENAV Group and its activities with the general public: the brand awareness in fact went from 37% to 68%. This result allowed the Company to maintain a high level of brand awareness in 2017 as well.

Regarding web communication activities, the new Group Web portal's sections was periodically updated, also through the insertion of new multimedia and interactive informational products. The new website, through the use of latest generation platform, is usable either from desktop as well as from all mobile devices (smartphones, tablet, etc.). The website achieved excellent results in terms of visits, reaching 20,200,427 pages visited by 697,186 visitors during the year.

Regarding the ENAV YouTube channel, it has continued with the insertion of new content, bringing the product count to more than 300 videos with 1000 subscribers and over 232,000 views.

During the year, the Brand Development Department has also continued the total renewal of the Group's corporate identity that has also seen the restyling of all the logos of the companies that compose it.

CORPORATE WEBSITE:

20,200,427 PAGES VISITED BY 697,186 VISITORS THROUGHOUT THE YEAR.

WELFARE INITIATIVES IN FAVOUR OF THE COMMUNITY

With regard to social initiatives aimed at community support, so-called "ONLUS", two projects are reported called: "Send them to school" and "Welcome to Onlus".

"Send them to school" is a project which ENAV joined at the initiative of the Equal Opportunities Committee, aimed at promoting women's education through the long-distance support of forty Tibetan nomadic girls. With this project ENAV wanted to support the education of the girls who in the Tibetan community would be destined to work at home and in the fields without being able to access to degree programmes.

The awareness that educating a nomadic child means raising the quality of life of her future children and her family, and therefore of the whole of the nomadic community in Tibet, as well as safeguarding a civilisation that threatens to disappear daily, was the defining element of ENAV's decision. The support provided allows these girls to temporarily leave their families to stay in structures far from home where they can live and study, thus securing primary education through the coverage of accommodation and subsistence costs, , basic health care and the necessary teaching material. The project will end in 2018, when all the girls have reached the goal of obtaining their diploma.

The project "Welcome to Onlus", however, allows ENAV to host in its own offices some non-profit organisations with the aim of giving them the opportunity to raise funds and awareness of the projects of each organisation.

In December 2017, volunteers from Doctors without Borders were welcomed into the company for the first time.

CHAPTER 4 - ENVIRONMENT

The Group is committed to specifically safeguarding the various aspects that will be dealt with in this chapter, such as consumption, waste management and biodiversity, while waiting to develop a specific environmental policy that is currently under study. One aspect in which the company manages to create sustainable value in respect of the community, and which is now an integral part of the business objectives of the Group, concerns the reduction of greenhouse gas emissions. If safety remains the indispensable prerequisite, the real challenge is to be able to combine it with an approach that can guarantee the airlines not only to fly safely, but to also be able to do it with efficient routes, which reduce journey times and permit lower consumption. One kg less fuel also means 3 kg less CO2 released into the environment. For this reason, for the past 10 years ENAV has been carrying out the Flight Efficiency Plan (FEP), a plan that allows airlines to benefit from increasingly efficient routes, with positive effects on costs, consumption and, not least, harmful emissions. In the last 5 years ENAV has saved over EUR 100 million in fuel for its customers.

FLIGHT EFFICIENCY PLAN AND FREE ROUTE: EFFICIENCY AND ENVIRONMENTAL PROTECTION

The Flight Efficiency Plan (FEP), the name of which derives from the application of the concept of flight efficiency, intended as the creation of an airspace structure geared towards satisfying the needs of airlines to plan increasingly shorter routes, with a vertical profile of continuous ascent and descent that guarantees the reduction of consumption, is a plan that summarises the multi-annual interventions carried out by the Group, aimed at optimising the structure of the airway network, precisely to allow the reduction of flight time, fuel consumption and carbon dioxide emissions on the part of aircraft. The Group therefore works towards the realisation of solutions that, in addition to ensuring the maintenance of safety levels (operational safety), are oriented towards flight efficiency with the aim of helping to reduce management costs, minimise the environmental impact and introduce a leading edge navigation system into the Italian air space.

The plan contains both planned interventions in terms of airspace planning (implementation of new routes or improvement of existing ones, as well as the removal, when feasible, of constraints on the availability and usability of airspace for all flight status) and interventions at the level of automation of airport collaboration for the efficiency of aircraft handling (reduction of the time of taxiing and waiting for take-off) achieved through the progressive implementation in the major airports of the A-CDM (Airport Collaborative Decision Making), in addition to training and educating operational personnel.

In the context of the FEP objectives that refer to route rectification and the implementation of an airspace structure that ensures the fulfilment of flight efficiency objectives, in December 2016 (with an advance of about 6 years on the term defined by the European regulation of the Single European Sky) ENAV implemented the Free Route Italy (FRAIT). The project has made it possible, for all aircraft flying over an altitude of 11,000 metres, to cross Italian skies with a direct route without referring any longer to a precise route network, which has consequently been eliminated.

The Free Route was a very revolutionary project for national and European air transport since it allowed airlines to plan the shortest possible trajectory, flying directly from an entry point to an exit point in Italian airspace, saving fuel, harmful emissions and consequently costs, while of course maintaining at least unchanged, as is the prerogative of the ENAV Group on each development project, the levels of safety.

From the analyses carried out, the consolidated data at the end of 2017 shows that the savings are about 30 million Kg of fuel, with an environmental benefit of 95 million kg CO2 emissions reduction

.

THE "FREE ROUTE" PROJECT GENERATED A LOWER CO2 IMPACT OF 95 MILLION KG

In order to benefit from the advantages introduced by the Free Route, Airlines have changed their flight schedules, increasing their distances within the Italian airspace. The reduction of travel times, associated with a structure of airspace oriented to flight efficiency, has in fact attracted many customers to plan in Italy, recording both significant increases in frequencies on the City Pairs (city of departure and destination) that were already of interest in the Italian skies, as well as over flights for City Pairs that were never planned before the Free Route, Istanbul Caracas, Monastir Brussels, Barcelona Shanghai and Istanbul Havana to name a few.

The ENAV Group was the first, among the 5 major European service providers, to implement the Free Route and with it completed the plan of reorganisation of the Italian airspace, started in 2014, which guarantees to achieve the maximum flight efficiency, thus generating benefits for both airlines and the environment.

SIGNIFICANT SOCIAL AND ENVIRONMENTAL FUNDING

"Significant funding" must be understood to mean all funding capable of bringing competitive advantages to ENAV and at the same time to the European Union by helping to create a more sustainable European Community.

This sustainability is being pursued at European level through the assessment, by the various institutions that provide funding, also of the effects on the social and environmental sphere related to project proposals periodically presented by the various candidates.

ENAV is particularly attentive to these aspects which are assessed already from the preparation stage of each proposed financing. At this stage, all the preordained activities are in fact put in place to assess the possible effects that the project, in the event of the award of the proposal, could have under both an environmental and a social profile. These activities consist of examining and implementing the European and national reference legislation as well as in ensuring the literal application of existing company procedures.

IN 2017, 72% OF THE FUNDING OBTAINED BY ENAV WAS ALSO ASSESSED ON THE BASIS OF SOCIAL AND ENVIRONMENTAL IMPACTS

GREEN PROCUREMENT

Also on the purchasing and management side of suppliers, the ENAV Group wanted to begin initiatives and practices aimed at having a positive impact on the environment.

Green Procurement, in line with the Europa 2020 strategic framework of sustainability policies, aims to pursue the objective of operating responsibly towards the environment, the guiding principle of the activities of all the Group companies.

The actions put in place within Green Procurement further aim to be in line with the strategic framework of the sustainability policies at an international level, with the Europe 2020 strategy dictates, and with the policies for efficiency in the use of resources. These policies affirm that, by modifying the consumption patterns of private and public buyers, this will lead to the achievement of more efficient use of resources and often even net direct economies, thus working to strengthen the global demand for services and products that are more efficient at a resource level.

Also in accordance with the fundamental principles of the Green Policy of Europa 2020, the companies of the ENAV Group undertake to purchase goods and services that during their life cycle:

  • Promote the use of renewable energy sources;
  • Reduce greenhouse gas emissions;
  • Reduce the consumption of natural resources;
  • Reduce the production of waste;
  • Contribute to the spread of responsible production and consumption models.

The selection procedures for suppliers and the execution of contracts are today, therefore, even more marked by the need to reduce the environmental impacts of goods, services and works, as well as the impacts that Green Purchasing Policy may have on internal stakeholders and those along the supply chains. A transparent accounting must thus be done regarding the commitments made, the actions carried out and the goals achieved in the management of purchases and supply chains, which play a central role in the adoption of the social responsibility policies of organisations.

With the implementation of the Green Purchasing Policy, the virtuous actions already disseminated within the Group are also valued and systematised, and the whole of the common values of environmental and social sustainability are shared, around which converge the commitment and sensibility of individuals, as well as the organisation as a whole.

Green Purchases, and in particular those of energy-efficient goods and services, will, over time, be strengthened and must constitute a common standard for all sites, through the involvement of purchasing managers and the technical sectors involved. In order to ensure that environmental criteria become an integral part of the technical specifications of goods, services and works and of the criteria for evaluating tenders, staff involved in the different stages of purchasing procedures, including those of identification of requirements, design and definition of technical characteristics, should be constantly sensitised and endowed with the knowledge and skills necessary to make choices that optimise environmental and social performance and the costs during the product life cycle.

The ENAV Group has also initiated a full-visibility action of its Green Purchasing Policy to enable its suppliers of reference to adapt to the requirements of a more sustainable demand and to any new interlocutors to respond proactively, proposing innovative solutions that meet the renewed needs.

Green Procurement, representing a substantial change, is, as is obvious, developing in a gradual and continuous way through a series of key actions:

  • the selection of priority goods and services for the definition of environmental criteria to be included in the purchasing procedures;
  • the definition of procedures for the dissemination of green purchases at all facilities;
  • the definition of a communication programme aimed at current and potential suppliers;
  • the structuring of partnerships with strategic suppliers aiming at the creation of shared value;
  • the implementation of an internal awareness and training plan.

In order to achieve the objectives set by the Green Procurement internal practices, during 2017 ENAV has put in place some activities including: "green" questionnaires for qualifications and classes of product categories; Inclusion for Suppliers registered in the Works Qualification System (specific additional certifications in the airport area: ISO 14001 – F-GAS 303/08-30408 – "Business Partner" (to work on the "Var Lenel Facility Commander Winx" systems, as required by the ENAV Security Department).

Aware of the impact that the introduction of the new internal practices would also produce on a whole series of business processes, ENAV has preceded the launch of the new internal practicesby a risk-opportunity analysis related to the introduction of the environmental criteria, relating to ENAV's purchase of goods and services and works.

This analysis, carried out for all those product categories with a high potential of interest in the introduction of environmental criteria, had a twofold objective: to inform the organisation about the risks and opportunities that may arise from the introduction green purchases for each commodity category (in order to adopt appropriate intervention strategies) and to identify the categories for which there are at the same time high opportunities and reduced risks in order to select the intervention priorities. In addition to maintaining, for the goods and services, the differentiation between auxiliary purchases (no core), and characteristic purchases (core), the analysis methodology was enriched and supplemented by elements that emerged from the comparison with ENAV's Purchasing Department and the administration of questionnaires to the various players involved in the purchasing processes.

Also Techno Sky, in the selection process of suppliers, is very attentive to the profiles of sustainability, paying particular attention to factors such as:

  • The purchase of products and services that have a lower impact on the environment based on the method of realisation (e.g., stationery, PPE, furnishings);
  • CE certified products;
  • The dematerialisation of documents and use of technology (ature in tenders and signing of contracts, tender procedures in electronic mode).

In line with the Parent company's internal practices, Techno Sky has launched a Green Public Procurement project in order to integrate environmental and social aspects into supplier selection/reliance activities, and an e-procurement project, in order to dematerialise the management of all stages of supplier selection/reliance.

The use of atures in Group assignment procedures and the dematerialisation of documents significantly contributed to the reduction of direct and indirect costs (e.g., paper, printing, toner), while generating an increase in organisational efficiency (sustainability, security, authenticity).

CONSUMPTION

For some years now, the ENAV Group has launched a series of activities aimed at monitoring their consumption more precisely in order to reduce the impact of greenhouse gas emissions and the costs associated with them.

As recalled in the Code of Ethics, the Group, in full compliance with the current environmental legislation, pays particular attention to the promotion of activities and processes that are as compatible with the environment as possible, through the use of criteria and advanced technologies in the areas of environmental protection and the sustainable use of resources. The Group, therefore, undertakes to consider, in the field of operational management and business initiatives, essential environmental needs and to minimise the negative impact that its business activities have on the environment.

CONSUMPTION OF THE ENAV GROUP IN 2017

FUEL FOR OFFICES AND FACILITIES: 33,257.65 GIGA JOULE (DECREASED BY 14% COMPARED TO 2016)

ELECTRICITY FOR OFFICES AND STRUCTURES: 251,347.82 GIGA JOULE (DECREASED BY 1% COMPARED TO 2016)

AIR FLEET FUEL: 26,035 GIGA JOULE (DECREASED BY 6% COMPARED TO 2016)

CAR FLEET FUEL: 6,805 GIGA JOULE (4% INCREASE COMPARED TO 2016)

(The consumption of diesel has decreased compared to 2016 by 15% while the consumption of petrol and CNG has increased by virtue of the purchase of new hybrid cars)

ENAV GROUP EMISSIONS IN 2017

RESULTING FROM FUEL FOR OFFICES AND STRUCTURES: 1,787 T CO2eq (DECREASED BY 13% COMPARED TO 2016)

RESULTING FROM ELECTRICITY FOR OFFICES AND STRUCTURES: 26,063 T CO2eq (DECREASED BY 1% COMPARED TO 2016)

RESULTING FROM AIR FLEET FUEL: 1,791 T CO2eq (DECREASED BY 6% COMPARED TO 2016)

RESULTING FROM CAR FLEET FUEL: 445 T CO2eq (1% INCREASE COMPARED TO 2016)

Regarding this consumption and the resultant impact on the environment, in ENAV, the figure in charge of identifying actions, interventions, procedures and anything else necessary to promote the rational use of energy, is the energy manager.

It must be remembered that all the sites of the ENAV Group, the Towers (TWR) and the Control Centres (ACC), the radar sites, the TBT radio centres, the runway lighting systems (Luminous Visual Aids) and the radio assistances are powered by electricity and by electro-generating groups with automatic intervention (GEIA) that supply electricity only in cases of black out of the primary energy source and are fuelled by diesel. Given this, the ENAV Group, has already for several years taken care to ensure that all GEIA are included in the list of assets with little significant pollution (listed in Annex I to DPR 25/07/91).

Following the energy Audit pursuant to Article 8 of Legislative Decree No. 102/2014, certain interventions to improve energy efficiency have been identified, and several initiatives have been launched:

    1. the replacement of all fluorescent lights with LED lights with related domotic control and regulation (ACC Rome and Padua, Rome headquarters);
    1. the construction of a high-efficiency trigeneration plant for the production of electricity, hot and cold water for the air-conditioning of the equipment halls and offices of the ACC in Rome;
    1. the construction of new photovoltaic systems for self-consumption at the airports (CA) of Bologna, Palermo, Crotone, Pescara, Brindisi, Lampedusa and at the radar site of Monte Stella;
    1. the construction of new automatic power-factor correction systems (Rome headquarters and other Airport centres). The power-factor correction of the installations has gained importance because the electricity distributor has imposed contractual clauses through the CIP tariff measures (No. 12/1984 and No. 26/1989) which, in fact, oblige the user to correct its installation's power-factor for a better and more economical use of energy;
    1. the construction of new air conditioning systems with heat pumps and Free Cooling;
    1. installations for measuring and monitoring systems for energy efficiency;

Moreover, in anticipation of the possible future use of electric cars also for the company fleet, chargers have been installed in the offices of Ciampino, Bari, Naples, Brindisi and at the headquarters.

The most significant investment is that made for the use of photovoltaics: the photovoltaic Control Towers of the ENAV Group (the first in Europe) and all the other initiatives, are in fact the result of a programme in continuous growth determined a substantial reduction of energy costs, also benefiting from state incentives.

The photovoltaic installations of the ENAV Group

The photovoltaic tower of Bari Airport

All the operating systems of the Bari TWR are powered, during the day, by a photovoltaic installation positioned on a large roofed car park. The 100KWp installation satisfies about 1% of the daily needs of the structure and receives an incentive on the production of energy of 0.202 euro/kwh with an estimated production of about 100,000 kwh/yr. The primary energy saving is 26 TEP/yr with a reduction of 76 tCO2/yr.

ENAV Headquarters in Rome

The building that houses the headquarters has a photovoltaic installation with a power of 80 KWp, installed on the roof. The system consists of 336 modules of 240 w each in polycrystalline silicon with an estimated production of over 88,000 KWh/yr and a primary energy saving of about 0.3%. The primary energy saving is 20 TEP/yr with a reduction of 60 tCO2/yr.

The photovoltaic tower of Ancona-Falconara Airport

The tower of Ancona-Falconara produces clean and incentivised energy. The installation was built in 2008 on a shelter with a power of 43 KWp. It was the first airport photovoltaic installation, and it receives an incentive of the 2nd Energy account issued by the Energy Service Manager (GSE) of 0.36 Euro per KWh produced, to which is added a further economic benefit of about 0.20 Euro kWh thanks to the savings in consumption of electricity produced and not taken from the network. The primary energy saving is 11 TEP/yr with a reduction of 32 tCO2/yr.

Brindisi ACC

The ACC photovoltaic installation contributes to powering all operating systems for air traffic control with clean energy. It has a peak power of 63.36 kWp with an estimated output of about 88,700 KWh/yr. The photovoltaic modules have been installed on the roof and on a roofed car park; also in this case ENAV receives an incentive from GSE on electrical production. The primary energy saving is 16 TEP/yr with a reduction of 48 tCO2/yr.

Bitonto NDB

This installation was constructed near the radio beacon at the Bari Airport, in Bitonto, with a capacity of 100KWp. It was built to power the NDB site and the electricity produced in excess of the requirements, is placed in the electricity grid through the "Exchange on the spot" contract. The primary energy saving is 26 TEP/yr with a reduction of 76 tCO2/yr.

Finally, in 2017, the photovoltaic installation was completed (currently being tested) for the Naples C.A., 77KWp for self-consumption and the photovoltaic installation cabin AVL AC 5, 5kwp was built pursuant to Legislative Decree No. 28 of March 3rd , for new buildings.

CO2 EMISSIONS AVOIDED, THANKS TO THE PRODUCTION OF ENERGY FROM RENEWABLE SOURCES, EQUAL TO 124 T CO2

Given that a photograph related to all fuel consumption is reported at the bottom of this document by means of a list of the GRI Standard indicators, in this area the policies and initiatives concerning the impact of the ENAV Group's air fleet deserve special attention. In recent years, in fact, an important fleet renewal operation and an adjustment of operating procedures were completed with an investment of approximately EUR 35 million.

The entire fleet, consisting of four Cessna C550 aircraft, has in fact been replaced by four Piaggio P180 aircraft. This has led, in the years in which the aircraft transition was made, between 2009 and 2013, to a reduction in fuel consumption per hour of flight time of about 15%, while the average duration for each single radio navigation verification has gradually decreased by about 50%.

In 2017, the fuel consumption of the radio navigation air fleet, for jet fuel engines, was 705,000 litres, with a consequent emission of KgCO2 equal to 1.79 million.

WASTE MANAGEMENT

As recalled by the Group's Code of Ethics, ENAV promotes waste management policies that reconcile the economic development and value creation needs of its business activities, with the requirements of respect and preservation of the environment.

In the context of its institutional activities, both ENAV and Techno Sky have procedures which, in line with the reference legislation, regulate waste management such as, for example, used oil and filters from generators, batteries, toner and electronic components, etc.

The general objectives pursued by the Group to protect the natural environment and to manage the relative risks are: the standardisation of the process of management of hazardous and nonhazardous special waste, the documentary and technical assessment of environmental management and, for ENAV only, the supervision of the proper fulfilment by the in-house maintainer, of the statutory obligations and internal waste management procedures, in accordance with the SGQ-P-CET.1.8 procedure "management of inspections and related findings" and the management of the movements of radiogenic materials.

The ENAV's 2017 activities for the achievement of the above objectives were:

  • an analysis of the process of management of hazardous and non-hazardous special waste, with subsequent standardisation through the issuance of the QMS-P-ENV.1.1 "waste management" procedure;
  • a documented and technical assessment of ENAV's environmental management, the planning of which involves 21 company sites, aimed at evaluating the adequacy of the processes currently in place with respect to environmental standards, highlighting any opportunity for improvement;
  • provision of a training course to the ENAV staff of the various offices and territorial structures (about 70 participants) on waste management, with particular reference to the relevant legislation, the company procedure of reference and the use of the Sistri system.
  • ENAV's C.E.T. department (Technical Exercise Coordination) has subjected the subsidiary Techno Sky to 16 audits, involving an equal number of sites, in order to ascertain the correct performance of the maintenance services provided in the in-house contract of reference, including the management of waste produced within the same maintenance activities;
  • the management of radiogenic components through a central dedicated warehouse with a special register to trace the sources of what is held therein and all their related movements, which are systematically carried out by authorised carriers.

With regard to Techno Sky, the most significant activities during 2017 concerned:

  • The creation within the organisational unit "Legal Affairs, Occupational Safety and the Environment" of a specific sector (Environmental topics) in compliance with the integration of the responsibilities envisaged by Legislative Decree No. 152/2006 (OdS No. 07/2016);
  • The definition of the process for the management of special waste in view of the issuance of the specific procedure contextually aligned to the re-called QMS-P-ENV.1.1 "waste management" procedure issued by the Parent company;
  • Identification of personnel to whom to confer specific proxies (with the attribution of related responsibilities) for the fulfilment of the obligations arising from Legislative Decree No. 152/2006, Legislative Decree No. 4/2008 and subsequent modifications and additions, in concrete terms with specific reference to the activities performed by Techno Sky:
  • o protection of soil and resources (Part III of Legislative Decree No. 152/2006);
  • o waste management (Part IV of Legislative Decree No. 152/2006 Title I, II, III);
  • o site reclamation (Part IV of Legislative Decree No. 152/2006);
  • o compliance with the rules on air protection and management of atmospheric emissions;
  • o containment of acoustic emissions (Law No. 447/1995);
  • assessment of the training needs of management staff on environmental topics;
  • provision of two training courses to the management staff in view of the subsequent appointment as "delegate of functions for the protection of the environment in the workplace";

ENAV GROUP 2017

ABOUT 70 TONS OF HAZARDOUS WASTE RECYCLED

(INCLUDING 63 TONS PRODUCED BY TECHNO SKY).

ABOUT 3 TONNES OF HAZARDOUS WASTE SENT FOR DISPOSAL

(INCLUDING 1 TON PRODUCED BY TECHNO SKY)

BIODIVERSITY PROTECTION

The ENAV Group, as recalled in the Code of Ethics, considers the protection of the environment and the sustainable development of the territory in which it operates, to be of primary importance in consideration of the rights of the community and of future generations. ENAV, in the knowledge that some of the activities that it performs (radio assistance, air-ground communications, surveillance) require a certain number of structures that generate electromagnetic fields of different entities, maintains a detailed mapping of the aforementioned structures and sites that border on protected areas.

The general objective pursued, both in the installation and in the consequent technical operation, consists of the adoption of all the technical-functional devices that permit the maintenance the Electric and Electromagnetic Field values, resulting in the emission of electromagnetic radiation below the threshold values of the current legislation on the subject.

Given this objective, ENAV has defined a process whereby, whenever an apparatus is to be installed, an environmental impact study is carried out, evaluating, together with the ARPA (Regional agency for environmental protection), the possibility of installation without this generating harmful consequences for the stability of the ecosystem. By virtue of this, all ATM installations and systems emitting electromagnetic radiation conform to both the legislation applicable in the ATM area (ICAO, EASA, ENAC, etc.) and to the specific health protection regulations. The installations are equipped with buffer zones that are prohibited to personnel when the systems are functioning (as in the case for example of the NDB, the Glide Slope indicator or the Locator) or the systems are calibrated to emit with directions and angles such as not to interfere with the presence of the personnel and in any case generating electric and electromagnetic fields below the threshold values.

Structures and Sites Geographic Area Type of activity
ROME FIUMICINO (NDB 16R) - MACCARESE (S.P.
MARIA - NDB)
BORGO MACCARESE NDB
ROME FIUMICINO (OM 16R) - MACCARESE (S.P.
MARIA - OM)
BORGO MACCARESE OM
MACCARESE (CASTEL DI GUIDO) OASI DI MACCARESE RADAR SITE/TBT
ROME FIUMICINO (MM 16R) - MACCARESE
(OLIVETELLO - MACCHIA GRANDE)
OASI DI MACCHIAGRANDE DI
FOCENE
MM
Monte STELLA CILENTO NATIONAL PARK RADAR SITE/TBT
Monte CIRCEO (Monte CIRCELLO) CIRCEO NATIONAL PARK SITE TBT
VIESTE (PESCHICI) GARGANO NATIONAL PARK SITE
TBT/VOR/DME/NDB
Monte CAVO VETTA CASTELLI ROMANI REGIONAL
PARK
SITE TBT
TEANO (Monte S. CROCE) ROCCAMONFINA REGIONAL
PARK - FOCE DEL GARIGLIANO
SITE
TBT/VOR/DME/NDB
USTICA ISOLA DI USTICA NATURE
RESERVE
RADAR SITE/TBT
ROME FIUMICINO (OM 34R) - OSTIA ANTICA TENUTA PROCOIO OM
  • NDB: Non-Directional Beacon (Radio assistance)

  • OM: Outer Marker (Radio assistance)

  • TBT: Ground Air Ground (Communications)
  • VOR: VHF Omni Directional Range (Radio assistance)
  • DME: Distance Measuring Equipment (Radio assistance)
  • RADAR: (Surveillance)

CHAPTER 5 - PEOPLE

For a company that has as its primary objective the flight safety and the preservation of passengers' life, there is only one path to follow in order to achieve its purpose: to enhance the professionalism and the skills of its people, both for the operational staff and the management. In line with this view, as recalled in the Group's Code of Ethics, each manager is required to oversee the professional growth of his/her employees. The success and reliability of the ENAV Group, in fact, comes not only from structured and constant training programmes, but also from the ability to create a collaborative and motivational working environment, able to enhance the potential of each individual and to leverage the diverse professional profiles.

ENAV GROUP 4,181 EMPLOYEES 3,364 ENAV + 815 TECHNO SKY + 2 ENAV ASIA PACIFIC

100% PERMANENT EMPLOYEES

3.7% STAFF TURNOVER RATE

MANAGERIAL AND SPECIALIST TRAINING

With regard to the managerial and specialist training, given the assumption that every effort arises from the need to have a constant update of skills in relation to the role played in the company and the new challenges required by the market, the objectives pursued during the year by the ENAV Group have focused mainly on: leadership topics for the Management of the Air Navigation Services Directorate (installation heads and deputies), the diffusion of the model for the integrated management of SME model projects, the increase/maintenance of the knowledge of the English language, the improvement of communication and integration dynamics for the Administration, Finance and Control Department, the regulatory update on the procurement codes, and the enhancement of communication and assertiveness techniques for the Logistics and Support Services Department. In order to achieve these objectives, managerial training courses have been carried out together with individual coaching approaches (for executives and managers of the Air Navigation Services Directorate responsible for organisational units/installations), preparation courses for the PMP (Project Management Professional) certification exam for Project Managers of the Technical Area and of other business structures that work for projects, "one to one" courses in English for executives, multimedia courses for employees and middle managers and interdepartmental thematic workshops. In addition, experiential training was provided for Group middle managers and executives in the area of Administration, Finance and Control and an educational course run in classroom was offered, designed for employees and middle managers of all the corporate departments involved in contractual supply and execution activities. Finally, a few days of classroom training on the subject of assertiveness were held.

The entire training process is regulated under ENAV's Quality Management System. In accordance to this procedure, ENAV verifies the achievement of the objectives by using evaluation questionnaires - usually within 5 days from the end of the training activity - provided to all the participants in the classroom and catalogue courses. Moreover, only for some preselected courses, it distributes efficacy questionnaires to the participants' managers about 6 months after the training activity.

For what concerns Techno Sky, the managerial and specialist education also includes training related to Occupational Safety and technical training for certain types of activities - F-GAS licences, boiler courses, professional masters.

ENAV:

846 EMPLOYEES INVOLVED IN MANAGERIAL AND SPECIALIST TRAINING

11,8181 HOURS OF MANAGERIAL AND SPECIALIST TRAINING OF INCLUDING 1,661 HOURS OF E-LEARNING

TECHNO SKY

850 EMPLOYEES INVOLVED IN MANAGERIAL AND SPECIALIST TRAINING

10,811 HOURS OF MANAGERIAL AND SPECIALIST TRAINING OF INCLUDING 270 HOURS OF E-LEARNING

The process of transformation followed by ENAV, and, in particular, the dynamics of its industry and the decision of the Group to be listed on the stock exchange in 2016, have made it necessary, besides the training activities that the company constantly provides, to start a process of change aimed at the introduction of compliant management and leadership models.

The ability of the management is, in fact, one of the most important non-economic indicators for institutional investors. Today, the management team must have the right mix of experience and expertise, express a high level of cohesion and integration, and be very effective in the short-term but with a long-term orientation. All these qualities must coexist because the management team is called to lead a corporate transformation that aims to combine the traditional values of the company, fundamental for the results achieved, with the need to adapt quickly to new contexts.

At the same time, these transformations affect all the levels of the organisation. It is therefore necessary to develop a widespread awareness, within the people working in the company, of the need to implement changes in the perspective of generating value for the customer, the shareholder and the people themselves.

In this phase of the life of the company, it is therefore necessary to have people even more motivated and competent, who know how to work with autonomy and initiative and who are able to collaborate in integrated teams. Involvement, trust in people, shared responsibility of the results, recognition of the results achieved, the perception of a stimulating job, and trust in the

1 The 2017 figure includes 67 hours of anti-corruption training for ENAV and Techno Sky.

management are essential prerequisites for an environment that is favourable to personal commitment and is characterised by the sense of belonging to the company.

In line with these ideas, during 2017, the Leading Transformation & People Engagement project continued with the aim of initiating a phase of listening/comparison that would lead to the identification of those values and guiding principles capable of orienting the action of management and people, and, at the same time, highlighting barriers and obstacles to change.

It is all about the identification of a concrete leadership model that can orient people and make the new development model more systematic, objective and shared, based on a competence system that is consistent with the strategic framework and the challenging actions that the company is supposed to realise.

The project follows a path that is based on the involvement and empowerment of people, with the aim of recognising, mobilising and channelling positive energies. Its driver is the development of the training initiatives and the involvement in the improvement activities within the Business Plan framework.

The project, therefore, aims to achieve some macro objectives, including the redefinition/confirmation of the values and guiding principles and the definition of a management model (ENAV spirit and ENAV leadership model) that promotes a high involvement of people. It is also necessary, during a period of such a big transformation for the company, to drive the change (to align itself and to align the people to the new vision, to develop integration, to not hide problems, to question, to change mind-set, to generate discontinuity where necessary, to increase comparison, to simplify) and to give value to the people within a development model, in order to select/bring out the talents and create prospects for growth for all the investors (evaluation/ recognition of people's commitment). Not least, it is necessary to re-establish the priorities and the areas of focus in the context of a successful listed company and in the perspective of value generation.

During 2017, individual competency assessment sessions for the Top Management and for all the intermediate executives, and 6 sessions of focus group for 76 middle managers and professionals of the Group have been organized in order to select, starting from the bottom, the values and the culture of the company, the leadership models practised and the evaluation and development criteria in force. These events were followed by specific training sessions for all of the Group executives for the adoption of the new leadership model.

The Leading Transformation & People Engagement project is therefore an initiative that is positioned as a part of change management and aims to lay the foundations for developing new skills and new leaders capable of managing new challenges.

EQUAL OPPORTUNITIES

Among the general principles listed in the Group's Code of Ethics, there is the valorisation of equality, according to which the Group's companies must operate by guaranteeing equal opportunities avoiding any discrimination based on political, trade union, and religious opinion, or on the basis of race, nationality, age, sex, sexual orientation, state of health and in general any intimate characteristic of the human person.

Based on these considerations, it is evident how both the internal practices focusing on equal opportunities and those on anti-discrimination practices are important among the values of the ENAV Group. Both these areas, in fact, are seen as important factors of internal cohesion, capable of contributing to the creation of a motivating working environment. A heterogeneous workforce is experienced as a resource, capable of generating progress and improving performance.

In line with its commitment, ENAV has established an Equal Opportunities Committee which, in collaboration with the Human Resources Department, engages in activities that are aimed at promoting the culture and the practices of equality in the corporate context, and, at the same time, to bring attention and help to possible situations of discrimination that require specific interventions.

To accomplish this purpose, the Committee constantly updates itself, also through comparison with other Committees, looking at new legislations and at the initiatives and interventions related to the subject, with the aim of involving the company and employees in a process of acquisition of the culture of equality.

Although there is no specific policy on the subject, the initiatives put in place by the ENAV Group to promote the culture of equal opportunities in the Company, many. In past years, for example, the Group has joined the Charter for Equal Opportunities and equality at work, with the aim to give its concrete contribution to the fight against all forms of discrimination at work, while, at the same time, engaging in enhancing the diversity within the organisation through the definition of company practices aimed at overcoming gender stereotypes and preventing all forms of discrimination. These strategies were based on the knowledge that the realisation of an environment that ensures equal opportunities to all, by recognising the potential and skills of each person, contributes to increasing the competitiveness and success of the company.

The event that every year enjoys particular success among the staff is the one called "Children in the office with mum and dad"; it is a national event that is usually held on the last Friday of May that, also through the involvement of different ENAV offices located on the national territory, allows the children of employees to "live" for one day in the working environment of their parents, allowing them to acquire tranquillity and awareness regarding the absence of their parents from home.

This day also has a training purpose; every year in fact, a topic among the activities of the company is chosen and small lessons and practical games related to the subject are organized, promoting the involvement of the children in expressing their commitment and imagination.

The activity of Support and Counselling for the Reports Received, imposes that the Committee plays an interfacing role with the Human Resources Department, in relation to those particular reports, received from co-workers, which highlight personal problems. Collaboration and listening are aimed at finding the best solution for the company and the reporting person.

Also regarding welfare, many internal practices and initiatives are implemented and involve, in most cases, accommodations granted to employees that are beyond those established by law. A successful case launched in 2017, addressed the project "Solidarity Holidays". Implementing the provisions of Article 24 of Legislative Decree No. 151/2015, concerning the free disposal of their rest days and holidays to other workers for the assistance of minor children who need constant care for health reasons, ENAV and the trade unions signed a specific Agreement on 19/06/2017 which has broadly expanded the borders of the rule: it has been established that these joint initiatives can also be initiated in favour of employees who, in their own family environment, need to assist parents, spouses, partners living as man and wife and adult children..

This project has allowed the company to acquire an important tool to intervene on the reconciliation of private life and work of its employees, contributing to the improvement of corporate wellbeing. Following the signing of the agreement, the Human Resources Management department has received 3 valid requests for solidarity leave, as a result of which information has been given to the employees concerned on the timing and modalities for submitting the transfer offer.

The workers' community responded to the requests of the needy colleagues in an extremely generous way: as many as 104 employees offered to give up their RFS (Reclaiming of Suppressed Holidays) and holidays, for a total of 248 days.

On the topic of the protection of maternity/paternity leave, ENAV has promoted other initiatives, proving its attention towards this problem by expanding, through contractual agreements, the advantages and guarantees provided by the current legislation in this field.

With regard to welfare, still, ENAV has contracted with the insurance companies of reference (entirely at the cost of the company) a health policy to protect its employees, extending, starting from 2018, the possibility of being insured also to its staff in retirement -even though the payment of the premium, in this case, is the responsibility of the insured-, under the same conditions.

Similarly, ENAV intervenes in support of the so-called supplementary pension plan with a share equal to 2/3 of that envisaged for the membership of employees to the Prevaer Fund, with the possibility to extend, at the expense of the employees, the membership of their dependent children to the Fund.

In the field of training and education, it is necessary to highlight how ENAV supports, each year, with a contribution equal to 80% of the cost, the disbursement of scholarships that are awarded, through specific selections carried out by the Intercultura Society, to the children of employees.

The "Open" project operates in the same field. It is an initiative that began during last year and that offers technical and professional support to the children of the employees who are close to the graduation from high school, in order to help them to identify university faculties and/or professional paths of interest, having regard to the school knowledge acquired over the years.

THE PROTECTION OF HUMAN RIGHTS

Although the Group, because of its activities and the geographical location, is not exposed to particularly significant risks inherent to the issue of human rights violations, there are areas within the Group in which, for reasons related to their critical infrastructure nature and for being sensitive objectives, the staff receives a specific protective attention aimed at maintaining very high standards of safety. Without these precautions, their rights would not be protected in compliance with the obligations of the employer codified in Article 2087of the Italian Civil Code, expressive of constitutional concepts regarding the protection of the dignity and integrity of the worker and in the exercise of the activity of the company - even more so if public - aimed at the social utility. This applies both to the protection of the life and the safety of the staff and of the third parties who even occasionally find themselves in the ENAV infrastructures - in consideration of the so-called "criminal risk" to be considered in the analytical assessments of Legislative Decree No. 81/2008 in which the employer must prevent, eliminate or mitigate any risk that may interfere with the constitutional values of human life and safety -, but also as a logical extension of the concept of "workplace", to protect the staff of the Group working for particular tasks, in potentially dangerous countries, in particular due to the effects of political instability, the actions of terrorist groups or also for critical health and sanitation conditions.

The other particularly sensitive area concerns the treatment of individual information and the safeguard of the rights of confidentiality, according to the framework of privacy protection established at national and European levels, whose founding principles are fully accepted and explained in the highest Group policies. In this context, the Group places attention on the legislative compliance of the prohibition of indirect control of workers, as enshrined in Law No. 300/1970 ("Worker's Charter"), in particular with regard to the remote control of workers using surveillance and the use of security guards. For the first, introducing a wider and more transparent dialogue with the labour unions and the use of the instruments in a fair transparent form; and for the second introducing expressly the relative prohibition as an integral part of the special specifications that regulate the procurement of the supervisory services. Moreover, the systems of computer protection, which can provide for forms of verification and control, are consistent with the principles of Article 4 of Law No. 300/1970, as amended by Article 23 of Legislative Decree No. 151/2015, with regard to which ample and transparent information is given to the personnel and to the trade union representatives.

An important note is the coordination action carried out with the institutions. In fact, because of the delicacy of the role played by the staff of the ENAV Group, there is a need to reinforce the protection of the worker from any external factor that could be considered as a risk inherent in the work performance or the workplace. With this regard, the systems of prevention and protection from criminal risk are supplemented by special agreements with the Ministry of the Interior -

Department of Public Safety and broken down into special procedures aimed at the protection of life, safety and safeguard of the dignity of the worker, also in relation to acts of conflict that may be generated within the workplace.

With regard to specific safety risks for the personnel on mission abroad, there is a special procedure that ensures the preventive assessment of the risk for this type of activity, supplemented by the connection with the Crisis Unit established at the Ministry of Foreign Affairs and International Cooperation.

Moreover, ENAV's attention to the issue of human rights is evident, not only considering the constant monitoring of the Human Resources department, but also looking at the application of what is established in the Code of Ethics that expressly stipulates that "relations between employees are based on the values of civil society and on respecting the rights and freedoms of the individual and the fundamental principles that affirm equal dignity without discrimination on the grounds of nationality, language, gender, race, religious belief, political or union affiliation, physical or mental conditions".

In relation to Techno Sky, the protection of human rights is applied through some general principles (guaranteeing freedom of association, the equal opportunities, prohibiting, both in internal and external relations, behaviours that have discriminatory content, protecting the right to life, both of its employees as well as of third parties, putting at the centre of their attention the protection of health and safety in the workplace, etc.) which are monitored carefully through constant and constructive interactions with the staff.

DURING 2017, THE RISKS ASSOCIATED WITH HUMAN RIGHTS WERE EVALUATED IN 100% OF THE ENAV GROUP PROCESSES

INTERNAL COMMUNICATION

In the last few years the Group has developed a "sustainable" internal communication, through projects and actions that were aimed not only to inform but also and above all to involve people in the organisational and strategic dynamics of the company through:

  • The involvement of all employees in the analysis of communication processes in order to create the conditions for the sharing of knowledge, culture and values;
  • The use of internal communication as a lever to promote people's participation;
  • A vision of the company as different from a closed system but rather open to its countless interactions and repercussions with the environment that surrounds it;
  • Online and off-line press, publishing, social media 2.0;
  • The stimulation of a perception of the internal communication tools as a fundamental instrument to talk about ourselves and to create an identity and a shared culture.

The Internal Communication aims to acquire progressively a more central role and to build a system capable of ensuring the widespread and timely provision of information to each segment of the Group's population.

The main tools of Internal Communication are:

  • The New Group Intranet "Follow Me";
  • The monthly magazine "House Organ";
  • Newsletters;
  • Video messages by Top Management;
  • Video tutorials;
  • Editorial products;
  • Photographic contests;
  • Communication questionnaires for the evaluation and approval from the employees.

The Group intranet information portal "Followme"

By the end of 2017, the ENAV and Techno Sky portals retired, giving up their place to a new infrastructure that represents the evolution and the technological foundation enabling Group communication as well as a new digital company space, where all key processes are managed through innovative modalities. The new Followme portal, whose name was voted by the Group employees, in addition to having a new graphic design, offers a more dynamic and modular interface where all the work tools are easily reachable . Some digital services are already active, while starting from June 2018, it will be possible to reach the website from a personal device from anywhere and at any time. Moreover, it will be possible to express opinion on what is published or to contribute to in depth forums in the logic of a company community.

Followme constitutes a part of the Digital Workplace intended as a place where it is possible to operate in "smartworking" mode, that is, always being connected with the team and the working environment.

THE NEW INTRANET PLATFORM IS A DIGITAL ECOSYSTEM WHERE ALL APPLICATIONS AND PROCESSES ARE MANAGED IN INTERACTIVE MODE.

INDUSTRIAL RELATIONS

Efficiency and development of people, solidarity and innovation are the main topics at the basis of the corporate dialogue developed during 2017 . This dialogue has been inspired by the principles of utmost fairness, impartiality and independence as recalled by the Group's Code of Ethics.

With regard to the search for the best synthesis between efficiency and development of people, it is worth noting the agreement of April 14th , which, moving on the basis of the important innovations introduced by the Jobs Act, is aimed at guaranteeing the employability of the ENAV people by combining actions of organisational optimisation and professional requalification preceded by suitable training courses. A first application of this agreement has already involved about 30 resources that are now carrying out a new activity.

The same spirit is also reflected in the agreement of November 23th regarding the impact on personnel arising from the shift to the ACC of Rome Ciampino of the management of the Olbia air space approach. Also in this case the agreement has allowed the combination of organisational efficiency with professional enhancement, in particular thanks to the training activity. The adaptationof the staff of the Olbia airport, which will be calibrated on the new levels of service (and, therefore, without the tasks required by the airspace approach), has been discussed with the worker's union. Particularly, this dialogue foresaw opening of a professional growth path that will involve about 30% of the Olbia controllers, who, after an accurate training period, can achieve the specialisation of Air Control Centre controller and perform their duties at the Milan Control Centre.

Solidarity has been the "spring" which has led the players of industrial relations to conclude the agreement on the transfer of leave, the so-called "Solidarity Leave " project which is mentioned in more detail in the section on equal opportunities.

In terms of dialogue in support of innovation, it is worth noting also the agreement aimed at ensuring the excellence of the service through the provision of measures that have proved to be suitable to support the growth of traffic resulting from the full entry of the Free Route.

In terms of strikes, in 2017 ENAV recorded 3 national strikes for a total of 12 hours, with a decrease of 50% compared to 2016 and with an average adhesion rate of 22%.

FROM 2016 TO 2017 FOR ENAV: - 50% LESS STRIKE HOURS

The mentioned strikes were proclaimed in order to claim a greater representativeness by minor acronyms: the events at the basis of these claims regard some activities of corporate reorganisation and the possibility of the sale to Cassa Depositi e Prestiti of a share of the stock package today held by MEF.

The total number of employees adhering to worker's unions was 2,306, representing a percentage of 67% on the total number of employees. The collection of data regarding the number of members of a given worker's union is done on 1 January of each year. The membership or withdrawal of an employee to the worker's union, formulated in writing, is collected monthly, processed and transmitted to the competent office that provides for the admission to the role. The data is then stored in special cabinets to guarantee the confidentiality of the information contained.

Finally, it is specified that the collective bargaining agreement applies to 100% of ENAV employees.

Regarding labour grievances, it should be noted that during 2017 there was a small number (11) of new disputes brought against the Company concerning certain aspects of the employment relationship (demotion- illegal redundancy - greater duties - salary differences - hiring). Of the total of cases concluded in 2017, 64% were resolved by judgements that were favourable to ENAV (69% in 2016) while for 13% of them (15% in 2016) it was possible to reach out-of-court settlements.

The Group company Techno Sky, to which the metalworker CCNL applies in coordination with the Parent company, manages directly the relations with the representatives of metalworkers worker's union.

The general objectives pursued by Techno Sky are the maintenance of a good climate in the company through dialogue and meetings with the worker's unions and the improvement of the management and productivity of the workforce. The actions implemented in order to achieve these objectives consist in the development of collaborative and continuous relationships that are substantiated in specific meetings for the illustration of organisational changes, and in the negotiation of agreements that are supplementary to the CCNL regarding matters delegated to the corporate level, such as, for example: work schedules, geographic mobility of staff, results bonus.

Annual informative meetings are also convened to discuss the business plan, the present and future activities of the company, the economic situation, and the foreseeable trend of employment.

In 2017, in Techno Sky the number of employees registered with the union was 382 people (48% of the workforce) a decrease of 3% compared to the previous year (51% in 2016).

Moreover, during 2017 there was a substantial reduction in the number of national strikes: a single strike compared to 7 in 2016. That strike, which lasted 24 hours, was proclaimed by the USB worker's union (not recognised by the company) and claimed the application of the air transport CCNL in place of that of metalworking. Only 1.22% of the staff joined the strike.

FROM 2016 TO 2017 FOR TECHNO SKY: -65% LESS STRIKE HOURS

The number of labour grievances with the employees was reduced (20 instead in the 21 of 2016). 15 of them were advanced by the technical staff who claimed the retroactive application on their behalf of the ENAV CCL and which, until now, has seen a trend totally favourable to the company's position.

Finally, the number of employees covered by collective bargaining agreements of different levels is 799 persons, equal to 100% of non-executive employees. This last category, (16people) are regulated exclusively by the CCNL of managers of companies producing goods and services.

For ENAV and Techno Sky significant organisational changes are communicated with a reasonable notice.

REMUNERATION PRACTICES

The remuneration internal practices of the Parent company ENAV differ depending on whether they involve "non-middle manager staff" or "middle manager and executive" personnel.

Regarding "non-middle manager personnel", the performance evaluation process is started annually, in order to report on the performance of all staff operating in the H36 time system and who have worked during the year for more than 6 months.

Starting in November, the Resource Organisation and Development function define the list of resources that need to be evaluated. The resources concerned and their evaluators are identified on the basis of the following requirements:

  1. H36 time system;

  2. presence in Department/Sector/Installation for more than 6 months.

Subsequently, through the dedicated IT application, the process of evaluation of technical skills and performance is initiated by the responsible manager, with a validation by a higher level manager. At the end of the evaluation process and consistent with the reported results, the Human Resources Management department initiates the merit recognition internal practices, in line with the economic resources specifically provided for in the budget of the applicable year. Evaluations are made on a standard model for all the resources involved in the process.

As regards to the "middle manager and executive" personnel, the variable component is anchored to an incentive by objective system (MBO - Management By Objective) articulated according to a top-down logic: the identification of the objectives is based on from the strategic guidelines provided by the Business Plan and then a deployment of these activities/pillars is carried out according to the different levels of responsibility, according to a "cascade" approach from the top level to the lower hierarchical levels. The objectives are linked to economic dimensions and to specific areas linked to the individual organisational positions, depending on the different levels of responsibility. With regard to the "line" functions, there are objectives focused on operational performances (punctuality and reduction of delays), the implementation of projects related to service quality, also through the introduction of projects and innovative technologies in the field of air traffic control which permit the mitigation of environmental impacts arising from air traffic.

In the subsidiary Techno Sky, the evaluation of non-middle manager company personnel is carried out by the individual manager, in accordance to the performance and results obtained, with subsequent validation by a higher level manager. At the outcome, the Human Resources Department initiates the merit recognition internal practices, having regard to the economic compatibility specifically foreseen for in the budget of the applicable year. The process ends with the approval of the list of provisions by the Company's CEO.

As regards the Middle Manager personnel, the variable remuneration is broken down through the company internal practice, implemented, similar to the Parent group, through the MBO process involving Executives and Middle Managers responsible by Area, Installation and Organisational Unit. The objectives are defined by the relative Manager according to a top-down logic and the recognition of the variable bonus is connected, currently, to the achievement of the individual goals.

Concerning the Executives, the assigned objectives are defined in line with the Group's internal practice and are therefore shared with those of ENAV's Executives. The provision of the variable incentive is conditional on the achievement of objectives of efficiency and effectiveness by the Group (so-called "Gateway objective"), equal to that provided for the Executives of the Parent company.

HEALTH AND SAFETY OF WORKERS

ENAV and Techno Sky, as established in their Code of Ethics, give great importance to the physical and moral integrity of their employees and partners with regard to working conditions that respect individual dignity and to safe and healthy working environments. The Companies are careful, therefore, to spread and consolidate a culture of health and safety of workers in the workplace, developing risk-awareness and promoting responsible behaviour to all the staff.

Employers, in compliance with health and safety at work rules and with the support of the Prevention and Protection Service, carry out the assessment of all the risks of the territorial structures, editing, for each of them, the Risk Assessment Document (DVR), including the risk associated with working abroad; moreover, this evaluation is complemented by periodic environmental surveys related to micro-climate, lighting, noise, indoor air quality, electromagnetic fields and natural sources of ionising radiation (radiogenic matrices, radon gas and cosmic radiation).

In order to reduce the residual risk for their workers and with the aim of a continuous improvement, ENAV and Techno Sky, in line with the objectives established at the beginning of the year, issued their respective health and safety policies at work, the manual of the system of occupational health and safety management (ver. 1.0) and its related procedures.

For what concerns the training, the programmes implemented in the OSH field are divided into courses provided through e-learning and courses run in classroom.

The contents of the courses provided in the classroom were:

  • Initial first aid and update;
  • Initial fire-fighting and update;
  • Initial supervisors and update;
  • Initial workers' representatives for safety (RLS) and update.

In particular, the population of the Parent company ENAV involved in the training activity is made up of all the personnel designated as emergency management personnel for the first and second course, by all those who have been designated as supervisors and by all those elected as workers' representatives for the third and fourth course respectively.

The courses provided by e-learning on the platform focused on:

  • General workers' training;
  • Workers' specific risks training;
  • Workers' refresher.

The first two courses were provided to newly-hired non-executive staff, while the third course was provided to the remaining non-executive staff.

ENAV 2017*

3,770 EMPLOYEES INVOLVED IN OSH TRAINING 22,281 HOURS OF OSH TRAINING (INCLUDING 17,616 HOURS OF E-LEARNING TRAINING) AROUND EUR 60,000 COST OF THE OSH TRAINING

*It is not possible to make a comparison with the year 2016 because the data is not fully reliable; in 2017, also because of the issuance of the "SGSSL-P. 6.1 Management of the Training for Health and Safety at Work" procedure, work was done to manage the reporting of the OSH training provided or to report for each type of worker the courses attended (e.g., First Aid, Fire Fighting, Workers' Representative for Safety, etc.) distinguishing it as initial or upgrade or in low, medium or high risk.

For what concerns Techno Sky, the efficiency of safety requirements in maintenance activities is pursued by defining the processes related to safety at work (risk identification, training, equipment and special tools management, health surveillance, etc.).

The activities carried out by Techno Sky are put into effect by the evaluation of all the risks related to the work activities and the consequent preparation and issuance of the Risk Assessment Document (DVR), as well as by the monitoring of the installations and work equipment.

Likewise, the health surveillance service is guaranteed for the personnel, operational and not, with the frequency established by the specific Health Protocol, and specialised health personnel do inspections of the work environments of the Company's personnel.

Moreover, the Company, in relation to the multiple activities and works it performs as a contractor, edits, in relation to the specificities of the contract, the Operational Safety Plan (POS) and the Interference and Risk Assessment Document (DUVRI).

ENAV and Techno Sky, in coordination with each other, are also actively involved in preparatory actions to the issuance of their respective OHSAS 18001 certifications.

Special attention is finally given to training in order to develop a culture of prevention of accidents in the workplace and to constantly inform all staff about safety policies.

ANNEX 1

NON-FINANCIAL INDICATORS

The following tables show the main non-financial data relating to Chapter 1:

THE ENAV GROUP

Table 1: Group size [GRI 102-7]

Organisation size u.m. 2017 2016
Net revenues 881,824 865,271
Total capitalisation 2,003,454 2,006,315
Payables €000 883,489 886,489
Equity 1,119,965 1,119,826

Table 2: Total number of individuals within the governing bodies of the companies divided by age group and gender. [GRI 405-1]

Members of the
governancebodies
2017 2016
Men Women Total Men Women Total
(head count) % % % % % %
less than 30 years
old
0 - 0 - 0 - 0 - 0 - 0
between 30 and 50 5 41.7 0 0 5 41.7 4 40 0 0 4 40
over 50 3 25 4 33.3 7 58.3 3 30 3 30 6 60
Total 8 66.7 4 33.3 12 100 7 70 3 30 10 100

Table 3: Total number of individuals within the supervisory bodies of the companies divided by age group and gender. [GRI 405-1]

Members of the 2017 2016
supervisory
bodies (head
Men Women Total Men Women Total
count) % % % % % %
less than 30
years old
0 - 0 - - - 0 - 0 - -
between 30 and
50
3 50 2 33.3 5 83.3 3 50 2 33.3 5 83.3
over 50 1 16.7 0 0 1 16.7 1 16.7 0 0 1 16.7
Total 4 66.7 2 33.3 6 100 4 66.7 2 33.3 6 100

Table 4: Sanctions received for the violation of laws and regulations regarding the environment and personnel management [GRI 307-1 and 419-1]

In 2016 and 2017 there are no significant monetary or non-monetary sanctions received for the violation of environmental laws and regulations.

In 2016 and 2017 there are no significant monetary or non-monetary sanctions received for the violation of personnel management laws and regulations.

The following tables show the main non-financial data relating to Chapter 3:

COMMUNITY

Flight hours u.m. 2017 2016
National Territory 881.68 982.1
Abroad 945.62 913.2
Saudi Arabia 703.25 615.55
Kenya 73.66 95.55
Eritrea 0 12.2
Uganda 38.66 18.25
BLU GNSS 16.66 4.4
Seneca Hours 0 16.3
Portugal 0 0
Albania 21.16 28.5
Lithuania 23.58 21
Abu Dhabi 37.58 101.45
Beyond 2.41 0
Onda (Morocco) 20.25 0
Phoenic (Romania) 8.41 0
Total 1,827.30 1,895.30

Table 5: Number of flight hours carried out by the air fleet divided between national territory and foreign contracts.

Table 6: Average response time on extraordinary interventions thanks to the radio navigation service.

Average response time on extraordinary
interventions
u.m. 2017 2016
Average response time Hours 24 24

Table 7: Number of hours of outside training in the classroom divided by recipient category.

Training hours by category u.m. 2017 2016
Private Customer 12,565 3,484
Customer Company Hours 16,008 2,782
Total 28,572 6,266

Table 8: Number of third parties involved in classroom external training activities divided by category of recipient.

Number of third parties involved by category u.m. 2017 2016
Private Customer 88 25
Customer Company No. 178 103
Total 266 128

Table 9: Number of hours of external e-learning training divided by recipient category.

Training hours by recipient category u.m. 2017
Company 1,264
University Hours 720
Total 1,984

Note: 2016 e-learning external training data is not available.

Table 10: Number of third parties involved in e-learning external training activities divided by category of recipient of the training

Number of third parties involved by recipient category u.m. 2017
Company 434
University No. 40
Total 474

Note: : 2016 e-learning external training data is not available.

Table 11. Results of the training events carried out in 2017 in favour of local development.

Activities carried out Days Guests
ITAER Event on Francesco Baracca 1 200
Teaching visit ITI Marconi 1 39
Teaching visit Lindbergh Flying School 1 27
Teaching visits ITAER Forlì 3 90
Total 6 356

Table 12. Results of training activities for local development carried out in 2017.

Activities carried out Days of attendance Guests
Apprenticeship Training 2,149 416
Teaching visits 1,515 1,515
Intercultura (Initiative for the benefit of the children
of employees)
3,030 21
Total 6,694 1,952

Table 13: Internal cost to carry out the training activities for local development carried out in 2017.

Training costs u.m. 2017 2016
Cost for apprenticeship training €000 266 249
Cost for teaching visits 44 35
Intercultura 165 166
Total 475 450

Table 14: Investments in infrastructure.

Investment u.m. 2017 2016
Infrastructure 105,000 101,000
a) implementation and maintenance of
operational technology infrastructures
51,000 54,000
b)
Evolution of the ATM technology platform with
new operational concepts
€000 34,000 32,000
c)
Infrastructures and installations
14,000 7,000
d)
Management Information Systems
6,000 8,000

Note: Value of CAPEX 2017 equal to EUR 115.4 million

Table 15: Relationship with the customer: Average system availability. (Scope: Techno Sky)

Average system availability u.m. 2017 2016
Average system availability percentage % 99.981 99.976

Table 16: : Relationship with the customer: Percentage of failures recovery at the first intervention. (Scope: Techno Sky)

Recovery of the failures at the first
intervention.
u.m. 2017 2016
Percentage recovery of the failures at the
first intervention
% 90.57 89.83

Table 17. Relationship with the customer: Hours for repair and restoration. (Scope: Techno Sky)

Repair and restoration u.m. 2017 2016
Average times for repair and restoration Minutes 33.59 45.461

Table 18: Processing days for metrological confirmation activities. (Scope: Techno Sky)

Processing for metrological
confirmation activities
u.m. 2017 2016
Average processing time for metrological
confirmation activity of the weather sensors
Days 11.43 13.02

Table 19: Stakeholders' degree of involvement. [GRI 102-43]

Stakeholders' degree of involvement. u.m. 2017 2016
Stakeholder engagement initiatives 11 (one to one) + 1 plenary
and 2 workshops
6 (one to one) + 1 Plenary + 1
Open Day
Number of stakeholders involved More than 20 More than 20
Other Cooperation Agreements

Table 20: Percentage of new suppliers evaluated according to social aspects. [GRI 414-1]

Percentage of new suppliers u.m. 2017 2016
Percentage of new suppliers evaluated according to
social aspects (ENAV)
100 100
Percentage of new suppliers evaluated according to
social aspects (Techno SKY)
% 100 100
Percentage of new suppliers evaluated according to
social aspects (ENAV Asia Pacific)
0 0

Table 21: Average period of payment of the suppliers. [GRI 102-43]

Number of days per payment of suppliers (ENAV) u.m. 2017 2016
Average period of payment of the suppliers 34.01 29.75
Average advance (delay) in relation to contractual
conditions
Days - -
Number of days per payment of suppliers (Techno
Sky)
u.m. 2017 2016
Average period of payment of the suppliers 30 60
Average advance (delay) in relation to contractual
conditions
Days 10 19
Number of days per payment of suppliers (ENAV
Asia Pacific)
u.m. 2017 2016
Average period of payment of the suppliers 5 5
Average advance (delay) in relation to contractual
conditions
Days - -

The following tables show the main non-financial data relating to Chapter 4:

ENVIRONMENT

Table 22: Consumption of electricity, fuel for the operation of offices and structures (e.g. control towers) and of the car and aircraft fleet (divided into renewable/non-renewable). [GRI 302-1]

Consumption u.m. 2017 2016
Electricity 251,347.82 254,504.07
from non-renewable sources 250,162.12 253,658.69
from renewable sources 1,185.69 845.38
Fuel for offices and facilities 33,257.65 38,734.89
Diesel 5,041.55 4,764.63
Natural gas 28,216.10 33,970.26
6,549.72
4,802.72
1,747.00
38.33
153.07
27,594.29
27,594.29
327,382.97
Car Fleet fuel GJ 6,805.17
Diesel 4,051.52
Petrol 2,154.50
CNG 496.54
LPG 102.60
Air Fleet fuel 26,035.00
Jet fuel 26,035.00
Total 317,445.64

Table 23Emissions resulting from consumption of electricity (Source: TERNA for Italy; DEFRA for Malaysia), fuel for the operation of offices and structures (e.g. control towers) and the fleet of cars and aircraft (Source: DEFRA). [GRI 305-1 and 305-2]

Emissions u.m. 2017 2016
Electricity 26,063 26,425.45
Fuel for offices and facilities 1,787.06 2,053.83
Diesel 343.62 324.84
Natural gas 1,443.44 1,728.99
Car Fleet fuel 445.25 438.81
276.14
327.43
137.60
111.37
25.40
1.96
6.11
9.12
1,791.06
1,897.34
1,791.06
1,897.34
Diesel
Petrol t CO₂eq
CNG
LPG
Air Fleet fuel
Jet fuel
Total 30,086.25 30,815.43

Table 24: Avoided emissions due to electricity supplied by current photovoltaic systems. [GRI 305-5]

CO₂e Emissions avoided u.m. 2017 2016
CO₂eq emissions avoided t CO₂eq 123.51 88.06

Table 25: : Number of work trips of personnel and kilometres travelled by type of transport used

Number of trips u.m. 2017 2016
Train 1,218 1,400
Aircraft No. 4,968 5,140
Kilometres travelled u.m. 2017 2016
Train 779,831 903,414
Aircraft 7,868,763 7,506,623
Short haul flight (<3,700 km) Km 5,223,728 5,152,995
Long haul flight (>3,700 km) 2,645,035 2,353,628

Table 26: Emissions generated by type of transport used (Source: DEFRA). [GRI 305-3]

Emissions u.m. 2017 2016
Train 10 11
Aircraft 1,363 1,319
Short haul flight (<3700 km) t CO eq 841 868
Long haul flight (>3700 km) 522 451

Table 27: Reductions in the routes and their impacts deriving from the FEP Italia (Flight Efficiency Plan) project, highlighting, moreover, the result achieved since the beginning of the FEP project.

Main results achieved u.m. 2017 2016 Total 2015-2017
Reduction of routes km -288,792 -492,200 -3,382,000
Reduction of fuel used kg -952,500 -1,917,000 -11,060,000
Reduction of emissions of CO2 kg CO2 -3,000,500 -6,038,500 -34,839,000

Table 28: Total weight of hazardous and non-hazardous waste, broken down by type of disposal. [GRI 306-2]

Total weight of hazardous waste u.m. 2017 2016
Landfill Disposal (Code D15 - Preliminary deposit
before one of the disposal operations)
3.347 ND
Recovery (Code R13 - Preliminary deposit before
one of the recovery operations)
t 69.958 ND
Total 73.305 65.419
Total weight of non-hazardous waste u.m. 2017 2016
Landfill Disposal (Code D15 - Preliminary deposit
before one of the disposal operations)
33.911 ND
Recovery (Code R13 - Preliminary deposit before
one of the recovery operations)
t 128.919 ND
Total 162.830 87.639
2016
0
Other non-hazardous wastes expressed in litres u.m. 2017
Sent to disposal Litres 7,000
Total 7,000 0

Note: In 2016, the separation of waste produced by ENAV and sent for disposal or recovery is not available.

Table 29: Significant social or environmental funding. [GRI 412-3]

Significant social and environmental funding u.m. 2017 2016
Significant social and environmental funding 18 22
Total number of significant fundings 25 31
Percentage of significant social and environmental
funding
% 72 71

Table 30: Percentage of new suppliers evaluated according to environmental performance. [GRI 308-1]

Percentage of new suppliers u.m. 2017 2016
Percentage of new suppliers evaluated according to
environmental performance (ENAV)
0 0
Percentage of new suppliers evaluated according to
environmental performance (Techno SKY)
% 0 0
Percentage of new suppliers evaluated according to
environmental performance (ENAV Asia Pacific)
0 0

The following tables show the main non-financial data relating to Chapter 5:

PEOPLE

Table 31: Total number of employees divided by Group companies. [GRI 102-8]

Total number of employees in the Group u.m. 2017 2016
ENAV 3,364 3,395
Techno SKY 815 793
ENAV Asia Pacific 2 2
SICTA Consortium 44
ENAV North Atlantic - -
Total 4,181 4,234

Table 32: Employees divided by age, gender and category group. [GRI 405-1]

2017 2016
Employees (head
count)
Men Women Total Men Women Total
% % % % % %
Executives 58 1.7 4 0.5 62 1.5 59 1.7 5 0.6 64 1.5
less than 30 years old - - - - - - - 0 - - - -
between 30 and 50 19 0.6 3 0.4 22 0.5 19 0.6 3 0.4 22 0.5
over 50 39 1.2 1 0.1 40 1 40 1.2 2 0.2 42 1
Middle Managers 359 10.8 55 6.5 414 9.9 370 10.9 55 6.4 425 10
less than 30 years old - - - - - - - 0 - - - -
between 30 and 50 147 4.4 28 3.3 175 4.2 149 4.4 28 3.3 177 4.2
over 50 212 6.4 27 3.2 239 5.7 221 6.5 27 3.2 248 5.9
White collars 2,868 86 787 93 3,655 87.4 2,901 85.8 794 93 3,695 87.3
less than 30 years old 205 6.1 40 4.7 245 5.9 218 6.4 40 4.7 258 6.1
between 30 and 50 1,805 54.1 476 56.3 2,281 54.6 1,828 54.1 479 56.1 2,307 54.5
over 50 858 25.7 271 32 1,129 27 855 25.3 275 32.2 1,130 26.7
Blue collars 50 1.5 - - 50 1.2 50 1.5 - - 50 1.2
less than 30 years old 1 0 - - 1 0 1 0 - - 1 0
between 30 and 50 30 0.9 - - 30 0.7 34 1 - - 34 0.8
over 50 19 0.6 - - 19 0.5 15 0.4 - - 15 0.4
Total 3,335 100 846 100 4,181 100 3,380 100 854 100 4,234 100

Table 33: Total number of employees divided by contract type, geographical area (in which they are engaged) and gender. [GRI 102-8]

2017 2016
Employees (head count) u.m. Men Women Total Men Women Total
Fixed-term contract - - - 19 3 22
Italy - - - 19 2 21
America - - - - - -
Asia - - - - 1 1
Other - Europe - - - - - -
Permanent contract 3,335 846 4,181 3,361 851 4,212
Italy 3,335 843 4,178 3,358 848 4,206
America - - - - - -
Asia - 2 2 3 2 5
Other - Europe - 1 1 - 1 1
Total 3,335 846 4,181 3,380 854 4,234

Note: : in Asia, the 2016 figure includes deployed personnel.

Table 34: Total number of employees divided by type of employment and gender. [GRI 102-8]

Employees (head count) 2017 2016
u.m. Men Women Total Men Women Total
Full-time employees 3,327 801 4,128 3,358 835 4,193
Part-time employees 8 45 53 22 19 41
Total 3,335 846 4,181 3,380 854 4,234

Table 35: Number of new hires, by age group, gender and geographic area. [GRI 401-1]

2017 2016
Number of new hires u.m. Men Women Total Men Women Total
Italy 117 29 146 148 27 175
less than 30 years old 84 19 103 134 24 158
between 30 and 50 31 8 39 12 2 14
over 50 2 2 4 2 1 3
America - - - - - -
less than 30 years old - - - - - -
between 30 and 50 - - - - - -
over 50 - - - - - -
Asia - - - - 2 2
less than 30 years old - - - - - -
between 30 and 50 - - - - 1 1
over 50 - - - - 1 1
Other - Europe 1 - 1 - - -
less than 30 years old - - - - - -
between 30 and 50 1 - 1 - - -
over 50 - - - - - -
Total 118 29 147 148 29 177
less than 30 years old 84 19 103 134 24 158
between 30 and 50 32 8 40 12 3 15
over 50 2 2 4 2 2 4

Table 36: Number of employees who left the Group, by age, gender and geographic area.

2017 2016
Employees who left the Group u.m. Men Women Total Men Women Total
Italy 127 28 155 148 29 177
less than 30 years old 86 18 104 106 18 124
between 30 and 50 7 1 8 4 3 7
over 50 34 9 43 38 8 46
America - - - - - -
less than 30 years old - - - - - -
between 30 and 50 - - - - - -
over 50 - - - - - -
Asia - - - - - -
less than 30 years old - - - - - -
between 30 and 50 - - - - - -
over 50 - - - - - -
Other - Europe 1 - 1 1 - 1
less than 30 years old - - - - - -
between 30 and 50 1 0 1 1 - 1
over 50 - - - - - -
Total 128 28 156 149 29 178
less than 30 years old 86 18 104 106 18 124
between 30 and 50 8 1 9 5 3 8
over 50 34 9 43 38 8 46

Table 37: Turnover rate. [GRI 401-1]

Turnover rate 2017 2016
u.m. Men Women Total Men Women Total
Italy 3.8 3.3 3.7 4.4 3.4 4.2
America - - - - - -
Asia % - - - - - -
Other - Europe - - 100 - - 100
Total 3.8 3.3 3.7 4.4 3.4 4.2

Table 38: Rate of new hires. [GRI 401-1]

Rate of new hires u.m. 2017 2016
Men Women Total Men Women Total
Italy 3.5 3.4 3.5 4.4 3.2 4.1
America - - - - - -
Asia % - - - - 66.67 33.33
Other - Europe - - 100 - - -
Total 3.5 3.4 3.5 4.4 3.2 4.1

Table 39: Number of hours of technical-operational training in classroom and e-learning divided by gender and category.

u.m. 2017 2016
Training hours by gender and level Men Women Total Men Women Total
Executives 53 - 53 - - -
Middle Managers 1,874 105 1,979 1,032 158 1,190
White collars Hours 32,450 2,814 35,264 89,087 10,939 100,025
Blue collars 362 - 362 309 - 309
Total 34,738 2,919 37,657 90,427 11,097 101,524

NOTE: For 2016 the data of ENAV e-learning training is not available.

Table 40: Number of employees involved in technical-operational training in the classroom and e-learning divided by gender and category.

Number of employees involved by 2017 2016
gender and level u.m. Men Women Total Men Women Total
Executives 11 - 11 - - -
Middle Managers 190 11 201 138 21 159
White collars No. 1,441 166 1,607 2,265 298 2,563
Blue collars 9 - 9 7 - 7
Total 1,651 177 1,828 2,410 319 2,729

NOTE: For 2016 the data of ENAV e-learning training is not available.

Table 41: Number of hours of management and specialist training in the classroom and e-learning divided by gender and category, including anti-corruption training.

u.m. 2017 2016
Training hours by gender and level Men Women Total Men Women Total
Executives 1,576 155 1,731 514 40 554
Middle Managers 2,907 598 3,505 3,734 468 4,202
White collars Hours 4,049 2,533 6,582 8,772 3,826 12,598
Blue collars - - - - - -
Total 8,532 3,286 11,818 13,020 4,334 17,354

Note: The 2017 figure includes 67 hours of anti-corruption training provided by ENAV and Techno Sky.

Table 42: Number of employees involved in management and specialist training in the classroom and e-learning divided by gender and category, including anti-corruption training.

Number of employees involved by 2017 2016
gender and level u.m. Men Women Total Men Women Total
Executives 59 6 65 79 6 85
Middle Managers 115 35 150 512 73 585
White collars No. 423 208 631 2,166 654 2,820
Blue collars - - - - - -
Total 597 249 846 2,757 733 3,490

Note. The 2017 figure includes anti-corruption training provided by ENAV and Techno Sky.

Table 43: Number of hours of health and safety in the workplace training in the classroom and e-learning divided by gender and category. (Scope: ENAV)

u.m. 2017
Training hours by gender and level Men Women Total
Executives 26 - 26
Middle Managers 2,224 254 2,478
White collars Hours 15,224 4,553 19,777
Blue collars - - -
Total 17,474 4,807 22,281

Note: The 2016 data is not complete and the source of the data is not objective. For 2017, the QSG-HSE Function, even with the issuance of the "SGSSL-P. 6.1 Management of the Training for Health and Safety at Work" procedure, was able to handle the reporting of the OSH training supplied or to report for each type of worker the course they attended (e.g., First aid, Fire Fighting, Workers' Representative for Safety, etc.) distinguishing it as initial or upgrade or in low, medium or high risk.

Table 44: Number of employees involved in the health and safety in the workplace training activity in the classroom and e-learning divided by gender and category. (Scope: ENAV).

Number of employees involved by gender u.m. 2017
and level Men Women Total
Executives 3 - 3
Middle Managers 376 44 420
White collars 2,569 778 3,347
Blue collars - - -
Total 2,948 822 3,770

See the note in the preceding table

Table 45: Cost for health and safety training (Scope: ENAV).

Training costs u.m. 2017
Cost for internal trainers -
Cost for external trainers 48,923
Other costs (logistics) 11,191
Total 60,114

Table 46: Number of hours of cross-training in the classroom and e-learning. (Scope: Techno Sky)

Training hours by gender 2017 2016
and level u.m. Men Women Total Men Women Total
Executives 816 40 856 85 - 85
Middle Managers 504 140 644 233 64 297
White collars Hours 7,855 1190 9,045 6,003 671 6,674
Blue collars 266 - 266 50 - 50
Total 9,441 1,370 10,811 6,371 735 7,106

NOTE: The data also includes OHS training

Table 47: Number of employees involved in of cross-training in the classroom and e-learning. (Scope: Techno Sky)

Number of employees 2017 2016
involved by gender and
level
u.m. Men Women Total Men Women Total
Executives 14 1 15 4 - 4
Middle Managers 40 9 49 16 3 19
White collars No. 725 27 752 366 26 392
Blue collars 34 - 34 4 - 4
Total 813 37 850 390 29 419

NOTE: The data also includes OHS training

Table 48: Average hours of training. [GRI 404-1]

Average hours of training 2017 2016
(classroom and e
learning)
u.m. Men Women Total Men Women Total
Total number of training
hours provided to
employees
Hours 70,185 12,382 82,567 109,818 16,166 125,984
Total number of employees No. 3,335 846 4,181 3,380 854 4,234
Average employee
training hours
Hours/No. 21 15 20 32 19 30
Total number of training
hours provided to
Executives
Hours 2,471 195 2,666 599 40 639
Total number of Executives No. 58 4 62 59 5 64
Average training hours
provided to Executives
Hours/No. 43 49 43 10 8 10
Total number of training
hours provided to Middle
Managers
Hours 7,509 1,097 8,606 4,999 690 5,689
Total number of Middle
Managers
No. 359 55 414 370 55 425
Average training hours
provided to Middle
Managers
Hours/No. 21 20 21 14 13 13
Total number of training
hours provided to White
collars
Hours 59,578 11,090 70,668 103,862 15,436 119,297
Total number of White
collars
No. 2,868 787 3,655 2,901 794 3,695
Average training hours
provided to White collars
Hours/No. 21 14 19 36 19 32
Total number of training
hours provided to Blue
collars
Hours 628 - 628 359 - 359
Total number of Blue collars No. 50 - 50 50 - 50
Average training hours
provided to Blue collars
Hours/No. 13 - 13 7 - 7

Note: with reference to 2016 data for Health and Safety training at work the information is not complete and the source of the data is not objective. For 2017, the QSG-HSE Function, even with the issuance of the "SGSSL-P. 6.1 Management of the Training for Health and Safety at Work" procedure, was able to carry out the reporting of the OSH training supplied or to report for each type of worker the course they attended (e.g., First aid, Fire Fighting, Workers' Representative for Safety, etc.) distinguishing it as initial or upgrade or in low, medium or high risk.

Table 49: Number of continuous training hours divided by gender.

Continuous training 2017 2016
hours divided by gender
and category
u.m. Men Women Total Men Women Total
Employees Hours 68,309 7,590 75,899 64,929 7,215 72,144

Table 50: Number of employees involved in continuous training divided by gender.

Number of employees 2017 2016
involved by gender and
category
u.m. Men Women Total Men Women Total
Employees No. 1,710 190 1,900 1,720 191 1,911

Table 51: Number of hours of continuous training operating units divided by gender.

Hours of continuous
training operating units
2017 2016
divided by gender and
category
u.m. Men Women Total Men Women Total
Employees Hours 75,296 8,367 83,663 110,060 12,229 122,289

Table 52: Number of employees involved in continuous training operations units divided by gender.

Number of employees
involved by gender and
u.m.
2017 2016
category Men Women Total Men Women Total
Employees No. 445 50 495 570 63 633

Table 53: Number of discrimination incidents and actions taken. [GRI 406-1]

Discrimination episodes u.m. 2017 2016
Number of reported discrimination incidents - -
Number of episodes examined by the company - -
Number of action plans (remediation plan)
defined
- -
Number of action plans (remediation plan) that
have been implemented
- -
Number of episodes no longer subject to
actions
- -

Table 54: Percentage of supply contracts including clauses for respecting human rights. [GRI 412-3]

Percentage of supply contracts where
provisions for human rights or human rights
assessments have been included
u.m. 2017 2016
ENAV % 100 100
Techno Sky % 100 100
ENAV Asia Pacific % 0 0

Table 55: Number of grievances with employees.

Number of grievances pending with employees u.m. 2017 2016
Number of grievances with employees 93 103

Table 56: Number of new grievances with employees.

Number of new grievances with employees u.m. 2017 2016
Number of grievances with employees 11 12

Table 57: Percentage of employees covered by collective bargaining agreements. [GRI 102-41]

Percentage of employees covered by collective
bargaining agreements
u.m. 2017 2016
Percentage of employees covered by collective
bargaining agreements
% 100 100

Note: The Executive staff is excluded from the calculation

Table 58: Percentage of employees registered with a union.

Percentage of employees registered with a
union
u.m. 2017 2016
Percentage of employees registered with a union % 65 64

Note: The Executive staff is excluded from the calculation

Table 59: Number of strikes.

Number of strikes u.m. 2017 2016
Number of strikes 4 11

Table 60: Number of strike hours.

Number of strike hours u.m. 2017 2016
Number of strike hours N° Hours 36 92

Table 61: Type of injuries, injury rate (Number of injuries/worked hours*1,000,000), Rate of occupational diseases (Number of occupation diseases/worked hours*200,000), rate of lost hours due to injuries (lost hours due to injuries/worked hours*1,000) and work-related fatalities, for all employees [GRI 403-2]

2017 2016
Employees u.m. Men Women Total Men Women Total
Injuries 14 5 19 14 2 16
Italy 14 5 19 14 2 16
America - - 0 0 0 0
Occupational disease
cases
- - - - - -
Italy - - - - - -
America - - - - - -
Number of hours for
absenteeism from
accidents
Hours 2,207 461 2,668 2,601 365 2,966
Rate of lost hours due to
injuries
0.4 0.4 0.4 0.5 0.3 0.5
Occupational disease rate - 0 0 0 0 0 0
Injury Rate 2.8 4.4 3.1 2.9 1.8 2.7

Note: For non-employees, no injuries or deaths were recorded in 2017. In 2016, always with regard to non-employee personnel, 1 death was recorded.

Table 62: Absenteeism rate by type and region (absentee hours/hours scheduled to be worked). [GRI 403-2]

Absenteeism rate by type 2017 2016
and region u.m. Men Women Total Men Women Total
Italy 0.033 0.055 0.038 0.024 0.043 0.028
Disease 0.032 0.055 0.037 0.022 0.042 0.026
Injury - 0.001 0.001 0.001 0.001 0.001 0.001
Stress 0 0 0 0 0 0

ANNEX 2

TABLE: GRI STANDARDS USED IN THIS DOCUMENT

GRI STANDARDS Disclosure Reference page
General Disclosure
102-1 Name of the organization 11
102-2 Activities, brands, products, and
services
12 - 16
102-7 Scale of the organization 11 – 14; 32
102-8 Information on employees and
other workers
11; 32; 108 – 109
102-13 Membership of associations 50 – 53
102-15 Key impacts, risks, and
opportunities
17 – 19
102-16 Values, principles, standards, and
norms of behaviour
11; 22-23; 58-60; 81
102-18 Governance structure 20
GRI 102: General
Disclosures 2016
102-24 Nominating and selecting the
highest governance body
20 – 23
102-41 Collective bargaining agreements 92 – 94; 116
102-43 Approach to stakeholder
engagement
7; 36 – 37; 54 – 57; 102 –
103
102-46 Defining report content and topic
boundaries
7 – 10
102-47 List of material topics 7 – 10
102-50 Reporting period 2017
102-51 Date of the most recent report Not applicable as this is
the first Non-Financial
Consolidated Statement
102-52 Reporting cycle Yearly
102-56 External assurance 124
GRI STANDARDS Disclosure Reference page
Anti-corruption
GRI 103: Management 103-1 Explanation of the material topic
and its Boundary
7 – 10
Approach 2016 103-2 The management approach and its
components
19; 58 – 60
205-1 Operations assessed for risks
related to corruption
60
GRI 205: Anti-corruption
2016
205-3 Confirmed incidents of corruption
and actions taken
From the analyses and the
investigations
conducted,
no
cases
of
acts
of
corruption
(active
or
passive) were discovered.
60
GRI STANDARDS Disclosure Reference page
Energy
GRI 103: Management 103-1 Explanation of the material topic
and its Boundary
7– 10
Approach 2016 103-2 The management approach and its
components
18; 65; 72 – 76
GRI 302: Energy 2016 302-1 Energy consumption within the
organization
72; 104
GRI STANDARDS Disclosure Reference page
Biodiversity
GRI 103: Management 103-1 Explanation of the material topic
and its Boundary
7 – 10
Approach 2016 103-2 The management approach and its
components
18; 65; 79
GRI: 304 Biodiversity 2016 304-1 Operational sites owned, leased,
managed in, or adjacent to, protected
areas and areas of high biodiversity value
outside protected areas
79 – 80
GRI STANDARDS Disclosure Reference page
Emissions
GRI 103: Management
Approach 2016
GRI: 305 Emissions 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
18; 65; 72 – 76
305-1 Direct (Scope 1) GHG emissions 73; 105
305-2 Energy indirect (Scope 2) GHG
emissions
73; 105
305-3 Other indirect (Scope 3) GHG
emissions
73; 105
305-5 Reduction of GHG emissions 74 – 76 ; 105 – 106
GRI STANDARDS Disclosure Reference page
Effluents and Waste
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
18; 65; 77 – 78
GRI: 306 Effluents and
Waste 2016
306-2 Waste by type and disposal method 78; 106
GRI STANDARDS Disclosure Reference page
Environmental Compliance
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
18; 31; 65
GRI: 307 Environmental
Compliance 2016
307-1 Non-compliance with environmental
laws and regulations
31; 99
GRI STANDARDS Disclosure Reference page
Supplier Environmental Assessment
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7– 10
103-2 The management approach and its
components
18; 65; 69 - 71
GRI 308: Supplier
Environmental
Assessment 2016
308-1 New suppliers that were screened
using environmental criteria
107
GRI STANDARDS Disclosure Reference page
Employment
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17 – 18; 81; 85 – 87; 90 –
91
GRI 401 Employment
2016
401-1 New employee hires and employee
turnover
32; 81; 100 – 111
GRI STANDARDS Disclosure Reference page
Labour/Management Relations
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17 – 18; 92 – 94
GRI 402: 402-1 Minimum notice periods regarding 94
Labour/Management
Relations 2016
operational changes
GRI STANDARDS Disclosure Reference page
Occupational Health and Safety
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17 – 18; 97 – 98
403-2 Types of injury and rates of injury,
occupational diseases, lost days, and
absenteeism, and number of work-related
fatalities
Such disclosure is relevant
only for employees and
not for other categories of
workers.
117
GRI 403: Occupational
Health and Safety 2016
403-3 Workers with high incidence or high
risk of diseases related to their occupation
The Group personnel is
exposed to the health and
safety
risks
in
the
workplace
that
are
reported
in
the
section
"Main non-financial risks".
There are, however, no
work
activities
which
expose the worker to risks
for specific diseases, or
which
have
a
high
incidence
from
the
risk
exposure point of view.
GRI STANDARDS Disclosure Reference page
Training and Education
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17 – 18; 38 – 40; 59; 78;
82 – 84; 97 – 98
GRI 404: Training and
Education 2016
404-1 Average hours of training per year
per employee
114
404-2 Programs for upgrading employee
skills and transition assistance programs
38 – 40; 59; 82– 84; 97 –
98
GRI STANDARDS Disclosure Reference page
Diversity and Equal Opportunity
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7– 10
103-2 The management approach and its
components
17 – 18; 22 – 23; 85 – 87
GRI: 405 Diversity and
Equal Opportunity 2016
405-1 Diversity of governance bodies and
employees
99;108
GRI STANDARDS Disclosure Reference page
Non-discrimination
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17; 19; 85; 89
GRI 406: Non
discrimination 2016
406-1 Incidents of discrimination and
corrective actions taken
115
GRI STANDARDS Disclosure Reference page
Human Rights Assessment
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
19; 88 – 89
GRI 412: Human Rights
Assessment 2016
412-1 Operations that have been subject
to human rights reviews or impact
assessments
89
412-3 Significant investment agreements
and contracts that include human rights
clauses or that underwent human rights
screening
106 – 115
GRI STANDARDS Disclosure Reference page
Local Communities
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
18; 61; 64; 79
GRI 413: Local
Communities 2016
413-2 Operations with significant actual
and potential negative impacts on local
communities
79 – 80
GRI STANDARDS Disclosure Reference page
Supplier Social Assessment
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
19; 55 – 57
GRI 414: Supplier Social
Assessment 2016
414-1 New suppliers that were screened
using social criteria
103
GRI STANDARDS Disclosure Reference page
Customer health and safety
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17; 34 – 37; 44 – 46
GRI 416-1: Customer
health and safety 2016
416-1 Assessment of the health and
safety impacts of product and service
categories
The whole of the activities
carried out by ENAV and
Techno Sky
GRI STANDARDS Disclosure Reference page
Socioeconomic Compliance
GRI 103: Management
Approach 2016
103-1 Explanation of the material topic
and its Boundary
7 – 10
103-2 The management approach and its
components
17 – 19; 31
GRI 419: Socioeconomic
Compliance 2016
419-1 Non-compliance with laws and
regulations in the social and economic
area
31; 99

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