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Sustainability Report 2019

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Sustainability Report 2019 Sustainability Report 2019 CONSOLIDATED NON-FINANCIAL DISCLOSURE pursuant to Italian Legislative Decree no. 254/2016 Contents Letter to stakeholders 4 TPER summary data 6 Significant events after the end of the year: COVID-19 emergency 8 Presentation and note about the method 12 TPER 14 Profile and Identity 15 Legal framework 15 Scenarios, strategies and sustainability 18 Stakeholders and materiality analysis 28 Responsible management of the business 34 Services provided 34 Projects 37 Innovation 39 Ticket distribution 47 Sector positioning and benchmarking (road services) 48 Customers 51 Quality of services 51 Accessibility 53 Communication, information, listening 53 Safety 54 Users’ Advisory Committee 55 Customer satisfaction 56 Complaint mechanisms 62 Governance 64 Governance and corporate structure 64 Control model and measures to combat corruption 68 Integrated management system and policies 70 Risk management 73 Regulatory compliance 79 Responsible management of the supply chain 80 Economic sustainability 83 Distributed economic value 83 Analysis of the economic impact on the area 86 Investments 87 TPER Group 2 The extended value of TPER (direct, indirect, induced) 88 Creating Shared Value 95 Internal organisation - Human resources 96 Labour practices 97 Valuing human resources 98 Industrial relations 99 Employment 101 Diversity and equal opportunities 103 Health and safety 106 Training and education 107 Environmental sustainability 110 Public transport and the environment 110 TPER's environmental policy 111 TPER fleet 112 Materials 117 Climate change, energy consumption and emissions 117 Waste management 129 Water resources 130 TPER's commitment to the region 132 Local communities 133 Public shareholders - Local institutions in the areas of operation - Mobility agencies 135 Training and education 136 Company growth 137 Marketing communication 138 Other initiatives 139 GRI Content Index 143 Report by the external auditors 147 TPER Group 3 Letter to stakeholders GRI 102-14 The 2019 Sustainability Report contains the information required by the Consolidated Non- Financial Disclosure pursuant to Italian Legislative Decree no. 254/2016 and confirms the desire to present the Group's approach and performance in a transparent and shared manner. At the time this document was prepared, our country was facing a health emergency caused by the spread of COVID-19, with significant impacts also on the region managed by TPER and therefore on the overall organisation of activities and the service. Therefore, in explaining the 2019 data we are aware of the significant variations that this situation has generated and is generating for the entire mobility sector, with overall effects that are not only economic in nature. Situations that were both unforeseen and highly consequential had to be addressed in managing the business and performing essential services. Due to the serious health emergency, the issue of individual’s well-being has become a primary objective, to be safeguarded in terms of actions for the safety of our personnel, as well as in the context of providing essential transportation services for users. TPER has addressed the issues related to the outbreak and subsequent spread of the COVID-19 virus, implementing safety measures aimed at containing the risk of contagion envisaged in the measures issued by the competent authorities. This emergency has also accelerated certain processes that had already begun during 2019, such as the activation of smart-working systems capable of supporting an optimal work-life balance for employees. The serious pandemic that is still under way will certainly be the focus of the 2020 data in the non-financial statements, but it is important to emphasise that what has been reported over the years for sustainability issues, and therefore above all the results of the 2019 financial statements, constitute a solid basis for the Group’s development path which, despite the necessary verifications and changes deriving from the pandemic, cannot be suspended. The data presented in this document related to 2019 activities highlights a path of performance growth in the various areas to demonstrate the complexity of TPER’s range of actions, and at the same time, a willingness to act in an ethical and responsible manner and to make an important contribution to a future of genuine sustainability, focusing on the effects of our activities on the environment and communities. In fact, our social values are part of our identity, that is, the importance attributed to human relations and relations with the relevant institutions and the community, as well as respect for the rules, also understood as the principles to which TPER has decided to commit. For this reason, TPER confirmed its participation in the United Nations Global Compact in 2019 and obtained the renewal of the legality rating from the Anti-Trust Authority. Our commitment takes into account the environmental value, i.e. the commitment to reducing emissions, the sustainable use of energy, and the definition of a new transport culture in support of a more balanced development of communities. For this reason, new investments were promoted and launched in 2019 to develop more sustainable transport, in line with the Sustainable Urban Mobility Plans (PUMS) for the Bologna and Ferrara areas. TPER Group 4 In 2019, TPER confirmed the selection of 9 SDGs out of the 17 identified by the United Nations, to which it intends to contribute with its service and business activities. These issues, together with the material goals, were also considered in the planning phase, establishing specific assessment objectives based on sustainability issues. Sustainable development is a highly topical issue worldwide, in a context of change that affects many fronts, but principally from an environmental point of view: considering the overall impact of transport in the use of fossil fuels and the reduction of CO2 production and other emissions, the collective and shared mobility guaranteed by TPER represents an ecological and convenient alternative to mobility needs. We are, therefore, committed to defining and measuring TPER's environmental impact, without forgetting the industrial aspects. It is essential to maintain effectiveness, efficiency and economy in management, to act with innovative and structured tools, keep in mind future scenarios in terms of innovation and competitiveness and stay in the market with all the additional and challenging capabilities that a public company can and must bring. In relation to the significant push for investments made by the Group in recent years, as also evidenced by the increase in depreciation and amortisation in the statutory financial statements in recent years, and with the aim of ensuring that priority investments in terms of sustainability are carried out, the process defined with the mobility agencies of Bologna and Ferrara was successfully completed in 2019 to extend the service contract in full compliance with the rules and with significant investment commitments focused on sustainability and innovation. The 2019 Sustainability Report clearly shows the results achieved, not only at economic level, but also with regard to the projects developed, focus on the environment and the activities undertaken to improve services for the benefit of users and territories in which TPER operates. The drafting of this document is not just a formal act associated with regulatory requirements, rather, it is a synthesis of TPER's commitment to integrate information on industrial and economic performance with the themes of social and environmental sustainability, with a view to responsible business management and reporting to all stakeholders regarding the tangible commitment undertaken over the years in the full and shared conviction that sustainability is a truly integral part of the company’s growth path. Chairperson of TPER Giuseppina Gualtieri TPER Group 5 TPER summary data GRI 102-7 Operational indicators 2019 The vehicles TPER Buses Number 1,173 TPER partner buses in TPB - TPF Number 220 TPER Trains Number 17 Trains assigned for service Number 69 management Traffic, network and infrastructures Road distance covered Millions of km (TPER Group) 43.4 Distance travelled on the railway Millions of km 5.3 network Seats managed Number 52,495 Passengers - Customers Passengers - road Millions 151.8 Passengers - train (FER-RFI network) Millions 13.6 Passenger increase - total % compared to 2018 1.9% Passenger increase - total % compared to 2017 22% Permits Number 45466 Other services Registered for the "Corrente" car- Number 16,020 sharing service (1) Data provided by the Bologna city council - of which 1402 for those with reduced mobility (2) +3.40% Bologna, +2.65% Ferrara, +27.2% railway (3) Only two months of 2018 (4) Economic–financial indicators 2019 TPER Group 6 Group turnover Millions of 311 euros Consolidated Net Profit Millions of 7 euros Group Value Added Millions of 171 euros Extended value Millions of 215 euros Investments Millions of 480 euros Social indicators 2019 Staff Employees Number 2868, of which 66 SST (not included in the analysis scope) Number of hours of training Number 82,000 The customer and the service Average customer satisfaction rating (Bologna Number 7.39 urban bus) Average customer satisfaction rating (Imola urban Number 7.02 bus) Average customer satisfaction rating (Ferrara Indicator 7 urban bus) Average customer satisfaction index (trains) Indicator 5.3 Environmental indicators (Refers to the whole Group, including
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