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Sustainability Report Acea Group Customers: Electricity and Water Services 2015 SUSTAINABILITY REPORT ACEA GROUP 2015 SUSTAINABILITY REPORT ACEA GROUP INDEX 6 LETTER TO THE STAKEHOLDERS 8 HIGHLIGHTS 12 DISCLOSING SUSTAINABILITY: METHODOLOGICAL NOTE 17 COMPLIANCE WITH GLOBAL COMPACT 20 INDIPENDENT AUDITORS’ OPINION LETTER 22 CORPORATE IDENTITY 24 GROUP PROFILE 24 Acea’s history 25 Activities and functions of the main companies of the Group 27 Capital structure, organisation and basis of consolidation 28 The Acea2.0 programme 29 General economic indicators 31 Outlook and Strategic Plan 32 STRATEGY AND SUSTAINABILITY 32 Acea: values and contribution to sustainability 36 2014-2018 Sustainability Plan and medium-term goals 38 CORPORATE GOVERNANCE AND MANAGEMENT SYSTEMS 38 Corporate Governance within Acea 42 Management systems 46 STAKEHOLDERS AND ALLOCATION OF GENERATED VALUE 46 Stakeholders and their involvement 49 Distribution of value generated by Acea 50 SOCIO-ECONOMIC RELATIONS WITH STAKEHOLDERS 52 CUSTOMERS AND THE COMMUNITY 53 Acea Group customers: electricity and water services 54 Quality perceived 61 Quality delivered 78 Pricing policy 81 Customer care 88 Communication, events and solidarity 94 SUPPLIERS 94 Consolidated external costs 94 Purchasing policies 96 Procurement of goods, services and works 99 Selection and evaluation of suppliers 104 HUMAN RESOURCES 104 Acea’s employees 111 Working hours, salary and pension funds 114 Industrial relations 116 Safeguarding health and safety in the workplace 118 Human resource empowerment and communication 4 ACEA GROUP • 2015 SUSTAINABILITY REPORT 2015 SUSTAINABILITY REPORT 125 Diversity and equal opportunities 126 Community life in Acea 127 SHAREHOLDERS AND INVESTORS 127 Economic flow towards shareholders and investors 127 Agency ratings 128 Financial disclosure 128 Sustainable and responsible finance 130 INSTITUTIONS AND THE COMPANY 130 Relations with Institutions 133 The Company as a stakeholder 137 OPERATIONS ABROAD 140 ENVIRONMENTAL ISSUES 142 SUSTAINABLE DEVELOPMENT AND ENVIRONMENTAL PROTECTION WITHIN ACEA 143 Reduction of carbon dioxide emissions 144 Protection of land 146 Environmental management 147 “Environmental expenditure” 148 ENERGY AREA 149 Energy generation: fossil and renewable energy sources 153 Energy distribution 155 Energy savings 157 ENVIRONMENT AREA - WASTE MANAGEMENT 158 Sustainable approach to integrated waste treatment 158 Waste incineration and energy recovery 159 Compost production for sustainable farming 160 WATER AREA 161 Water quality 164 Sewerage service and treatment system 166 USE OF ENERGY AND WATER 166 Energy consumption 168 Water consumption 169 EMISSIONS AND MOBILITY 169 Air emissions and mobility of the Group 174 WATER COMPANY DATA SHEETS 197 GRI-G4 CONTENT INDEX: GENERAL STANDARDS AND MATERIAL SPECIFIC STANDARDS 209 INDEX OF CHARTS AND TABLES 211 ENVIRONMENTAL ACCOUNTS 2015 SUSTAINABILITY REPORT 5 LETTER TO THE STAKEHOLDERS The Acea Group 2015 Sustainability Report, which is This year at an international level, there were three the 18th annual report of its kind to be published, key elements of sustainability: the UN Sustainable provides stakeholders with an overview of the com- Development Goals, COP21 and the Laudato si’ pany, its activities and the results obtained in terms Encyclical Letter of the Holy Father Francis. These of the sustainable creation of shared value. The Re- documents, regardless of their origin, represent a port was drawn up on the basis of Global Reporting common commitment to sustainable development. Initiative Guidelines (GRI-G4), with the highest level They highlight the responsibilities and above all, the of compliance. The document focuses on the most opportunities those favouring a proactive approach relevant themes for the company and stakeholders, should seize. Acea has chosen this approach. The established in an analysis on “materiality” and by Group has already implemented a process of evolu- setting up multistakeholder focus groups. tionary development called Acea2.0. It’s a business transformation project that focuses on corporate The main purpose of the Sustainability Report is to culture and management models, with the aim of provide as many stakeholders with as much infor- promoting innovation and creating value for stake- mation as possible. Corporate assets, stakeholder holders. Acea in fact, while operating in regulated relations, environmental, social and governance per- sectors where there is a partial monopoly, intends formance are described and quantified. This infor- to pursue goals based on a logic of competitiveness mation goes to supplement the economic-financial and reward. framework of the Statutory financial statements. This year’s sustainability report can be interpreted in The Sustainability Plan, currently being updated, terms of the ongoing change, which has an impact specifies the company’s commitments and rep- on relations with all stakeholders. Acea is investing resents an incentive for continuous improvement. in personal involvement and initiatives for transver- The analysis of the results obtained and the review sal engagement as an alternative to the traditional phase in fact, highlight areas in which we can im- hierarchy. The Workforce management project, in prove, and the good practices to valorise. which everyone in the company is involved, aims to increase the efficiency of operations throughout the 6 ACEA GROUP • 2015 SUSTAINABILITY REPORT territory. Customer service orientation is another cor- funding. The second initiative pursues social, environ- nerstone of the programme, with the evolution of the mental and economic goals for the benefit of the entire Customer Relationship Management (CRM) system community. The new high-tech long-spouted fountains, and the challenging goals of performance in terms of nick-named “nasoni” (big noses) providing citizens with quality of services provided. In the supply chain, Acea refrigerated (natural or fizzy) water, are installed in busy is establishing long-term and strategic relations with places where people tend to gather. Throughout the year, its business partners, guaranteeing the collaboration 12 Water Houses in Rome and another 12 in the province of well-organized and reliable operators. Thanks to of Rome supplied 2.8 million litres of drinking water, the this input, last year the first Single Procurement Con- equivalent of 71 tons of plastic bottles less to be disposed tracts were drawn up for the maintenance of water- of and approximately 100 tons less of CO2 discharged works and electricity networks. into the atmosphere. The plan continues. The benefits of technological innovation and sus- In short, there have been several changes in the scenario tainable business management, continuing in the of reference in which the company operates that could direction we started in recent years, have also been have an impact on Acea’s lines of development. These acknowledged at an international level. Acea was include the provisions of the Italian Stability Law on the awarded the RSE prize for the “Technology, research consolidation of companies providing local public ser- and innovation category”, at the fourth edition of vices, the approval of the Green Economy annex and the the Top Utility Award. The Carbon Disclosure Project publication of the new 2015-2019 Strategic Framework gave the company a score of 99 B (out of a maxi- for regulated water, electricity and gas sectors. There are mum possible score of 100 A), appraising Acea’s CO2 aspects that refer to sustainable development in each emission reduction policy. of these elements, and it is important for companies operating in these sectors to contribute to the same. Furthermore, Acea welcomes the opportunities repre- sented by the development of Smart Cities, where the On the same theme, EU Directive 95/2014, currently interconnection of service networks can lead to product being implemented, will soon make the reporting of and process innovation. For 2015, the Italian Authority for extra-financial information in corporate documents Electricity, Gas and Water (AEEGSI) granted an extension obligatory. The Corporate Governance Code of Listed to the smart grid pilot project experimentation and the Companies, updated in July 2015, as part of the rules RoMA (Resilience enhancement of Metropolitan Area) of good corporate governance, introduced sustain- project, jointly financed by the MIUR as part of the actions ability risk assessment by the Board of Directors. to support Smart Cities and Communities, in consider- ation of the results obtained. Last but not least, Acea as a Founding Promotor, ad- Acea has implemented numerous territorial initiatives hered voluntarily to the Global Compact Network Ita- including “Acea per Roma” (Acea for Rome) and the “Wa- ly, the body established to contribute to the develop- ter Houses” public drinking water dispenser installation ment of the UN Global Compact initiative in Italy. This plan, as part of a corporate citizenship and stakeholder is proof of our commitment to the universal princi- engagement strategy. In the first “Acea per Roma” initia- ples of human rights, work, the environment and the tive, Acea asked citizens to propose urban renewal and fight against corruption, letting the company identify inclusion project ideas of their own. The response was the elements that correspond to an advanced level impressive: around 800 proposals were received, with of Communication on Progress in its operations, as numerous citizens from the suburban districts of Rome required by the “Global Pact”. participating, with a
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