SUSTAINA BILITY REPORT 2 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 3 the environment information

Ferrovie dello Stato Italiane Spa COMPANY OFFICERS

Board of Directors

Chairwoman Gioia Maria Ghezzi

CEO Renato Mazzoncini and General Manager

Directors Daniela Carosio Giuliano Frosini Simonetta Giordani Federico Lovadina Vanda Ternau

Board of Statutory Auditors In office until 4 July 2016 Appointed on 4 July 20161

Chairwoman Alessandra dal Verme Carmine di Nuzzo

Standing statutory auditors Roberto Ascoli2 Susanna Masi Claudia Cattani3 Roberto Ascoli4

Alternate statutory auditors Paolo Castaldi5 Paolo Castaldi6 Cinzia Simeone Cinzia Simeone

COURT OF AUDITORS’ MAGISTRATE APPOINTED TO AUDIT FERROVIE DELLO STATO ITALIANE S.p.A.

Angelo Canale

MANAGER IN CHARGE OF FINANCIAL REPORTING

Roberto Mannozzi

INDEPENDENT AUDITORS

KPMG SpA (2014-2022)

1 Following the shareholder’s resolution on the same date. 2 Appointed standing statutory auditor in place of Paolo Castaldi on 11 March 2016, when the latter returned to the position of alternate statutory auditor on the same date. 3 Resigned on 17 May 2016. 4 Appointed standing statutory auditor on 29 July 2016 in place of Paolo Castaldi. 5 Standing statutory auditor from 21 December 2015 to 11 March 2016 replacing Tiziano Onesti and from 17 May 2016 replacing Claudia Cattani. 6 Standing statutory auditor until 28 July 2016 replacing Francesco Notari, who did not accept the position. Reappointed alternate statutory auditor on 29 July 2016.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 4 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 5 the environment information

CONTENTS

Letter to stakeholders 6 Our people 130 Highlights 132 The Group’s sustainability in short 10 Workforce breakdown 134 Human capital 138 Methodology 14 Remuneration and pensions 141 People care 144 The Group’s profile 18 Health and safety 148 Our history 20 Trade unions 150 The business model 24 Disputes with employees 152 The transport segment and the reference market 26 Strategy and objectives 32 Respecting and protecting the environment 154 Our approach 157 Group sustainability 34 Environmental performance 158 Our approach to sustainability 37 Stakeholders 44 Additional information 184 Management systems 47 Methodology 187 Group sustainability 190 Corporate governance 48 Business sustainability 197 The governance system 50 Our role in the community 211 The internal control and risk management system 52 Our people 215 Compliance 54 Content index 221 Business sustainability 56 Results of operations 59 Independent auditors’ report 242 Customers 64 Suppliers 112 Assessment questionnaire 246

Our role in the community 116 Attachments: Company information 247 Highlights 118 Solidarity initiatives 121 Social and cultural activities 127 Media relations 128

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 6 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 7 the environment information

Letter to stakeholders

G4-1 G4-2

2016 marked a turning point for Ferrovie dello icantly to €2.3 billion (+€318 million), with a as another 23 new trains were delivered in the year. The HS line also boasts connections with Stato Italiane Group as the parent presented its gross operating profit margin of 25.7%. The op- year (for a total of 41 at the end of 2016), oper- Siena, Perugia, L’Aquila, Matera and Potenza new 2017-2026 business plan on 28 Septem- erating profit rose from €644 million in 2015 ating alongside the ETR 500 trains, adding new thanks to the new integrated Frecce+bus Frec- ber, announcing highly innovative projects that to €892 million in 2016, up €248 million connections on the main line (94 ciaLink service bringing passengers to the clos- will tangibly improve the lives of Italians (and (+38.5%) while the operating profit margin in- connections between and ), on routes est HS stations. not only those who take the train) over the next creased 10%. The operating profit was impact- to and from and the launch of the Freccia- The regional transport fleet was updated with the ten years. The Group is expanding its strategic ed by amortisation and depreciation, which, in rossa service between Milan and Taranto. roll-out of 23 new Jazz trains, six Swing trains, horizons beyond railway transport to operate in line with forecasts, increased €78 million, with The high-speed/high-capacity (HS/HC) Milan 133 Vivalto carriages and three Flirt trains, en- public transport in general. The data in the 2016 investments up to nearly €6 billion in 2016 -Treviglio - line that connects Milan to tailing an investment of €455 million. Regional Sustainability report demonstrate that it has laid (+8.2% on 2015). These results put the Group Brescia in just 36 minutes was opened in the train passengers reported customer satisfaction of 81.2% in January 2017, with an improvement in all indicators (punctuality, information, cleanli- ness, comfort and safety) compared to the same period one year earlier, with constant customer satisfaction rates in the months that followed. In

the groundwork to become a leading integrated above European railway companies in the December 2016, customer satisfaction was up mobility player, both in and abroad, pro- ranking by profitability, with higher gross op- 3.5% year-on-year. viding a key contribution to the country’s eco- erating profit margin and operating profit mar- The profit for the year of the Group’s transport nomic growth. gin than ’s SNCF (gross operating profit segment came to €164 million. The leading com- In 2016, the Group reported a record-breaking margin of 12.8%; operating profit margin of pany in this business segment is , with profit of €772 million (+66.4%) and a gross op- 6.6%) and ’s Deutsche Bahn (gross the Group companies Mercitalia and Busitalia erating profit of €2.3 billion (+16.1%). operating profit margin of 10.3%; operating operating in the cargo and road transport busi- Group revenue rose by a total of €343 million profit margin of 3.4%). nesses, respectively, and Deutschland to €8.93 billion (+4%) and included proceeds Revenue from transport services rose to €6.38 operating in the German transport segment. on the sale of assets in 2016, e.g., the transfer billion (with total growth in industrial margins - The infrastructure segment also performed ex- of a portion of the non-core commercial space broken down by the various business segments: ceedingly well (profit for the year of €174 management business through the sale of Grandi short and long haul up €29 million on 2015). million). Rete Ferroviaria Italiana (“RFI”) is the Stazioni Retail. Operating costs are in line with 2015 (+0.4%). Group’s top company in this segment, followed The Group’s gross operating profit grew signif- routes expanded in 2016, by for engineering. Revenue from sales

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 8 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 9 the environment information

and services grew in the year (+5% approxi- managers from the main Group companies, formed to give the country a solid industrial company time, proudly transforming the challenges of inter- mately) as RFI saw a spike in demand for track to integrate social and environmental aspects into capable of offering Italians increasingly efficient, national markets into opportunities. volumes from railway companies (operating train economic-financial strategies, promote the values safe and sustainable services while, at the same km +2.7%, with a 12.8% increase in the HS/ and principles of sustainable development and HC network) and a rise in the average unit toll meet stakeholders’ needs and expectations. charge (due to a different mix of track sold). The Group has matured further with respect to The Chairwoman The CEO Economic value distributed, i.e., the economic sustainability: in 2016, it began a new process Gioia Maria Ghezzi Renato Mazzoncini value generated mainly through the purchase of that will transform the current corporate govern- goods and services and the remuneration of per- ance model applied to environmental manage- sonnel, amounted to €6.83 billion (equal to 76% ment systems (EMS) into a business model that of the economic value generated) is a significant balances the economic, social and environmen- driver for the country’s economic development. tal aspects of the Group’s activities. The total number of employees went from 69,002 In partnership with Legambiente, the Group to 70,180, partly due to new hires and corpo- held the 28th annual edition of the Green rate acquisitions, with the acquisition of Ferrovie Train event. The four main themes of 2016 Sud Est bringing in 1,200 new employees. were smart cities, eco-neighbourhoods, new With investments of €5.95 billion, FS Italiane mobility and sustainable lifestyles. The event remains the country’s largest industrial investor. attracted over 35,000 visitors, including stu- It shows a constant growth curve (+8.2%) de- dents and residents. spite the already significant investment volumes In terms of social sustainability, in 2016 addi- of 2015 (€5.5 billion). Investments are in line tional Help Centers were opened in Brescia - with the ambitious objectives of the 2017-2026 inaugurated in 2016 - and in - with the business plan and focus on new business oppor- definitive opening in the year after the trial phase tunities on the market at home and abroad. began in December 2015. Together, the 2016 targets are aimed at increas- There are currently Help Centers located in 17 ing business performance, not only in terms of railway stations, extending from northern to results, but also with respect to train traffic safety . and customer satisfaction, in a macroeconomic The total surface area granted under free loan context focused on confirming positive domestic agreements for social activities in 2016 meas- growth trends. ures 23,821 m², with a total estimated value of The results of the customer satisfaction surveys €35,731,500. show a general consolidation of the percentag- A solidarity campaign named “#aBracciaAp- es registered in 2015, with satisfaction ranging erte” was organised in 2016, with 130 vol- from 89% to 99%. unteers from Ferrovie dello Stato Italiane Group Satisfaction with modal integration rose consid- and the collaboration of Save the Children to erably, with the satisfaction rate with connections support day shelters for migrant minors who ar- to stations with public urban/suburban transit rive in Italy without an adult caregiver and who reaching 89.9% (+1.2 percentage points on are particularly vulnerable and often exposed 2015). At the same, train traffic safety trends to the risk of abuse, violence, child labour or showed an ongoing improvement in the rate of sexual exploitation. accidents (86 accidents in 2016 compared to In 2016, together with leading associations in 98 in 2015 and 109 in 2014) and some of the the field, the Group developed initiatives to sup- best performances since 2006, underscoring the port current social issues like protecting children’s Group’s commitment to ensuring the highest level health, tackling the risk of school drop-outs and of safety for its customers, employees and the promoting and protecting women’s health. entire community. The 2016 Sustainability Report is evidence of In 2016, FS Italiane established a Sustainability how all Ferrovie dello Stato Italiane Group com- Committee, an advisory board made up of senior panies have come together in one, joint effort

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 10 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 11 the environment information

The Group’s sustainability Our customers in short Service quality - Punctuality G4-2 G4-9 Long haul transport 0-15 minutes 93.7% Frecce 0-15 minutes 94.2% Business sustainability Customer satisfaction Railway transport (time on board the train) National and international transport Satisfaction rate 91.9% Regional transport Satisfaction rate 80.0% Road transport (overall satisfaction rate) Results of operations - Suburban transport Satisfaction rate 86.3% - Urban transport Satisfaction rate 85.7% € Profit for the year million 772 - Suburban transport Satisfaction rate 85.6% Gross operating profit/revenue 25.7% - Urban transport Satisfaction rate 84.2% ROS (operating profit/revenue) 10.0% € Investments million 5,950 - Suburban transport Satisfaction rate 89.4% - Urban transport Satisfaction rate 95.0% Cargo transport (overall satisfaction rate) Satisfaction rate 61.4% Comfort during time at stations Satisfaction rate 95.7% Travel safety - Investments in maintenance Routine € million 891 Passenger and cargo traffic Non-routine € million 1,097

Rail traffic - passengers passenger–km billion 43.9 train-km million 291.4 Rail traffic - cargo Our suppliers Tonne-km billion 22.5 train-km million 44.1 Road traffic - passengers passengers-km billion 2.1 Economic value of core supplies € billion 3.5 bus-km million 102.6

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 12 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 13 the environment information

Environmental respect and protection Our people

Environmental performance Workforce

Energy - Total primary energy consumption GJ million 40.4 Total personnel No. 70,180

Emissions - Total greenhouse gas emissions tCO2 million 2.22 % women % 14.6 Companies ISO14001-certified No. 13 % men % 85.4 Training man/days 355,322

Group sustainability

Stakeholders Our role in the community

Re-use of assets

Proposals approved by the Stakeholder Panel (since 2013) No. 85 Implemented proposals No. 42 Rejected proposals No. 9

Proposals under evaluation/implementation No. 34 Total surface area under free loan for use square metres 115,415 Average market value € million 127

Fondazione FS

Museo Nazionale Ferroviario di Pietrarsa No. of visitors 66,000 Organised leisure journeys on heritage trains No. of passengers 60,000

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 14 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 15 the environment information

Methodology

G4-2 G4-3 G4-13 G4-18 G4-19 G4-20 G4-21 G4-22 G4-23 G4-29 G4-32 G4-33

The information in the 2016 Sustainability Report ane and the subsidiaries, as per the consol- is compared with the previous two years1. Any idated financial statements; the information differences with respect to the information pub- about the breakdowns required by the G4 lished in previous Sustainability Reports are due (e.g., turnover, personnel allocation, remu- to the fine-tuning of the reporting methods2. Since neration, training, etc.) generally refers to a 2011, an IT solution (SuPM – Sustainability Per- scope that accounts for approximately 86% of formance Management) has been adopted for the Group’s total workforce4; the data collection process. At present, it com- ⁄⁄ Environmental figures: Ferrovie dello Stato Ital- prises 17 Group operating companies. iane, Ferservizi, RFI, Terminali Italia, Bluferries, The Group companies, whose activities are cov- Italferr5, Trenitalia, Serfer, TX Logistik, Grandi ered in this report, were identified on the basis of Stazioni Rail, , FS Sistemi Urba- the following criteria: ni, Netinera Group, FS Logistica, Busitalia-Si- ⁄⁄ materiality: relevance of the mutual impacts ta Nord, Ataf Gestioni6 and Busitalia Veneto; (economic, social and environmental) between this scope includes the parent, the companies each company and its main stakeholders; under its direct control (excluding those that ⁄⁄ control: the Group’s ability to influence perform financial activities and railway trans- activities. port certification/inspection activities) and the companies that the parent controls indirectly The scope of analysis resulting from the appli- through its subsidiaries and that have more cation of the materiality and control criteria are than 100 employees. defined on the basis of the scope considered, as follows: This report has been prepared in accordance ⁄⁄ Company identity and compliance: Ferrovie with the “G4 Sustainability Reporting Guidance” dello Stato Italiane and the subsidiaries, as guidelines issued by the Global Reporting Initi- per the consolidated financial statements; ative (GRI)7 in 2013, using the comprehensive ⁄⁄ Governance: Ferrovie dello Stato Italiane; reporting option in order to reflect the most re- ⁄⁄ Economic figures: Ferrovie dello Stato Italiane cent developments in sustainability reporting. and the subsidiaries, as per the consolidated The main purpose of the report is to inform stake- financial statements; holders about the progress made in terms of eco- ⁄⁄ Customer and safety figures: Ferrovie dello nomic, environmental and social sustainability Stato Italiane, RFI, Trenitalia, Busitalia-Sita using a triple bottom line format. The department Nord and subsidiaries; heads have provided the data and information taken from other official sources8. The Board of The Group is committed to helping achieve the ⁄⁄ Workforce figures3: Ferrovie dello Stato Itali- published herein except where they have been Directors of Ferrovie dello Stato Italiane S.p.A. Sustainable Development Goals (SDGs) present- examined the 2016 Sustainability Report during ed by the United Nations Organisations on 25 its meeting on 26 June 2017. September 2015. The symbols of the goals we 1 The Sustainability Report is published annually. The 2015 5 In the reporting, the environmental impacts of Italferr’s sites The report covers the economic, social and en- intend to achieve are shown at the beginning of report was published in August 2016. were separated from the environmental impacts of other vironmental activities deemed to be the most sig- each chapter. Group activities: this choice was made on the basis of an 2 nificant for the Group and its stakeholders, as The information provided in the general disclo- 2015 data on energy consumption and the related atmos- analysis of environmental data for sites which showed how 9 pheric emissions have slightly changed with respect to the the trends are immaterial for the purposes of assessing the described in the following paragraph. Further sure section is not subject to the materiality anal- data published in the 2015 report, mainly due to the fine-tun- environmental efficiency of sites. Indeed, the trends reflect details are provided in the Additional information ysis and is reported in full. ing of the Netinera Group companies’ monitoring process for the environmental performance of the sites, which, given their section attached to this report and in the “Con- See the Additional information section for more environmental aspects. nature, do not present continuous or regular volumes. tent index”. Furthermore, the key environmental details. 3 The figures in the chapter on “Our people” refer to the 6 In this report, parent means Ferrovie dello Stato Italiane information for each company included in the reporting scope in the reporting year. (FS S.p.A.). reporting scope is provided in an attachment. 4 The scope includes Ferrovie dello Stato Italiane, RFI, Trenita- 7 Global Reporting Initiative (GRI): an independent institution lia, Ferservizi, Italferr, FS Logistica, FS Jit, FS Sistemi Urbani, that develops and promotes guidelines for the preparation Terminali Italia and CEMAT. Where specific information re- of sustainability reports. The guidelines are followed on a 8 9 fers to a slightly different scope, this is noted in the relevant voluntary basis. For additional details, in certain cases, reference should be Section of the GRI-G4 which includes: The Group’s profile, paragraph. made to the Group’s 2016 Annual Report. Corporate Governance, Strategy and analysis and Stake- holder engagement.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 16 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 17 the environment information

Materiality matrix particularly important for the stakeholders as they The upper right corner shows the most significant The aspects covered by this report are shown could influence their expectations and decisions. aspects covered by this report (key information below. See the Additional information section for In order to comply with the materiality principle This is reflected in the matrix below where the is also provided for the other aspects which more details. of the GRI-G4 guidelines, the most significant horizontal axis shows the importance that the are however deemed important for the Group). issues for the Group and its stakeholders were Group attaches to the aspects analysed in terms identified, i.e., those aspects that could have sig- of business success and the vertical axis indi- nificant economic, social and environmental im- cates the importance placed by stakeholders on pacts on the Group and those that are deemed the selected aspects.

Environmental responsibility Social responsibility Financial responsibility Cross-cutting

4 4

Customer safety Atmospheric emissions Energy efficiency Human rights policies Environmental requirements for the supply chain Human rights requirements for the supply chain Customer safety Waste, wastewater and soil contamination Diversity and equal opportunities

3 Economic value directly generated Atmospheric emissions Noise and vibrations and distributed to stakeholders Occupational health and safety Energy efficiency Compliance with environmental standards Customer satisfaction Sustainability mobility Biodiversity protection Indirect economic and complaints Digital Transformation impact on communities Environmental requirements for the supply chain Cultural and social activities Anti-corruption Employee training policies Relationships with stakeholders Compliance and development Waste, wastewater with social standards Hiring, remuneration, Social requirements and soil contamination turnover and pension Diversity and equal opportunities for the supply chain policies Compliance Environmental costs with service standards and investments Land development and protection Water 2 consumption 3 Economic value directly generated Occupational health and safety Customer data security Equal remuneration Health and safety requirements of men and women for the supply chain and distributed to stakeholders

Relationships with the trade unions Consumption of materials Sustainability mobility Indirect economic impact on communities Customer satisfaction Relationships with stakeholders Mobility management Digital Transformation Anti-corruption policies Unfair competition Employee training and development 1 Hiring, remuneration, turnover and pension policies

Social requirements for the supply chain y for > STAKEHOLDER y for > STAKEHOLDER t t Environmental costs and investments Land development and protection eriali eriali t t Equal remuneration

Ma Ma of men and women Water consumption 0 1 2 3 4 2 3 4 Materiality for BUSINESS > Materiality for BUSINESS >

Ferrovie dello Stato Italiane Group 2016 Sustainability Report The Group’s 01profile

A look back at the past, the present and the future of FS Italiane Group 20 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 21 the environment information

19la05 nostra19 storia27 1936 1953 1976 1989 1992 ESTABLISHMENT THE FIRST THE FIRST THE LEGENDARY BIRTH THE FIRST LEADING DIRECT LINE ITALIAN SETTEBELLO OF RECORD PLAYER Azienda Unitaria delle Ferrovie dello Stato ELECTRIC TRAIN IN THE WORLD Together with the The ETR 300 arrives The first electric tilting train On the Rome- is established on 1 July Mergellina station, the on the Rome-Milan line, is built: the ETR 401, express line, the ETR X 500 OF FINANCE 1905, based on the Rome-Naples express The first Italian electric train and is immediately renamed more commonly known reaches 317 km/h, setting unification of stations line is inaugurated. is built: the ETR 200, the Settebello, after as the Pendolino. Designed Ferrovie dello Stato's first and a consistent style Ferrovie dello Stato It is the first line of its paving the way its seven carriages. by Ferrovie dello Stato official record. of carriages. The railway becomes a company kind, designed for high for high speed transport. Its innovative shape and Fiat Ferroviaria The ETR Y 500 breaks system is designed limited by shares. speed trains. is emblematic to reach speeds the record soon after and built in accordance of the Reconstruction period of up to 250 km/h, when it hits 321 km/h. with one, unified and Italian design. the Pendolino is a milestone national criterion. in the path towards Italy's HS rails.

Our history

NEW BUSINESS HS WORLD THE BRIDGE COMPLETION ON THE A NEW PILLARS SEGMENTS REFERENCE OVER OF THE HS LINE PODIUM ALSO HIGH SPEED OF THE FUTURE THE PO RIVER IN GERMANY RECORD The company is divided The new HS Rome-Naples The -Florence line, Ferrovie dello Stato Italiane Ferrovie dello Stato Group FS Italiane acquires Frecciarossa 1000 into business segments, line is completed almost entirely in tunnels, S.p.A.'s board of directors opens the HS line Arriva Deutschland Group, sets a new which will lead and is the first to adopt and the Novara-Milan line connecting Milan now known as Netinera, high speed record: approves FS Italiane to the creation the innovative ERTMS/ETCS. are opened. The HS line and Bologna. The works the third largest passenger 390.7 km/h. Group's 2017-2026 of Ferrovie dello Stato Group Engineers arrive from around from to Salerno include an extraordinary transport service business plan featuring in the new millennium. the world, including Japan, is completed. These lines suspension bridge over provider in Germany. five strategic pillars the US, Russia and China, add 1,000 km of HS rail the Po River. to make the Group to study the Italian system, to the country, changing Trains running a major international which boasts safe, Italians' way of life on the new line set another integrated mobility player. quiet railway transport and how they get around. record for Italian at 300 km/h. speed: 362 km/h. 1999 2005 2008 2009 2011 2015 2016

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 22 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 23 the environment information

Fondazione FS Italiane ⁄⁄ railway tourism: management and enhance- ment of historic trains and related sites; The Fondazione FS Italiane was established ⁄⁄ National Railway Museum and convention centre in Napoli Pietrarsa: management of the Historic 343 historic trains, of which 288 are still operating and another 65 are in March 2013 to enhance and preserve the trains leased from Trenitalia historical and technical heritage, a symbol of museum and library; the industrial development process which con- ⁄⁄ Archives, audio-visual centre and library: li- tributed to reinforcing and developing Italy. It is brary, archive and audio-visual management. supported by Ferrovie dello Stato Italiane, Rete Journeys on Ferroviaria Italiana (“RFI”) and Trenitalia. Since For additional information, reference should be 230 events on over 520 trains made to the website http://www.fondazionefs.it. historic trains 60,000 passengers (+34% on 2015) December 2015, the Ministry of Cultural Herit- organised 7 lines were reopened for tourism as part of the “Binari senza tempo” age and Activities and Tourism (“MiBACT”) has in 2016 (timeless rails) project, with 264 journeys and more than 33,000 passengers been an institutional member of Fondazione FS. A summary of Fondazione FS’s highlights in fig- It is mainly active in the following fields: ures is given below.

Library 50,000 volumes

12,000 plans and blueprints of the network and the stations 7,000 architectural drawings of stations and railway buildings Archives 7,000 rolls of technical drawings of historic locomotives and rolling stock 10,000 photographs of trains, traction vehicles, carriages and wagons

500,000 black and white and colour film and digital photographs Audio-visual 5,000 video cassettes material 3,000 films

Depots for rolling stock 11 hubs throughout Italy and related 13 related associations associations

36,000 m2 (14,000 m2 of which indoors) 55 historic trains on display 66,000 visitors (+35% on 2015) 4,000 seats (in all museum facilities), including 1,000 indoor seats in the great National hall of steam locomotives for events and conventions, making it the Railway Museum region’s largest convention centre of Pietrarsa 11 major events, including a conference on sustainable tourism organised by MiBACT, the “Pietrarsa Express” on a historic train from Naples to the museum, Open House, the Trenitalia convention, the débutantes’ ball and Hera Wed- ding fashion shows 1 Trecentotreni model (18x2m)

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 24 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 25 the environment information

The parent heads the operating companies in the the Group’s operations. The companies have their The business MODEL various operating segments along the chain and oth- own corporate characteristics and independently er companies that provide services and support for manage operations to achieve business targets. G4-4 G4-7 G4-9 G4-13 G4-17 G4-20 G4-21

Ferrovie dello stato italiane spa The Group’s current organisational structure de- ed to the above, expressly including customer rives from a spin-off process (launched in 2000) services and activities aimed at enhancing the which led to the current multi-company structure value of its assets used in the performance of headed by a parent, FS S.p.A., whose business the activities covered by its by-laws. purpose is to: ⁄⁄ build and manage railway transport infrastruc- As expressly required by the by-laws, activities 100% 100% 100% 51% 100% tures; are mainly, though not exclusively, carried out TRENITALIA* MERCITALIA BUSITALIA NETINERA FERROVIE t ⁄⁄ carry out cargo and passenger transport activ- through subsidiaries and associates. The largest Group LOGISTICS - SITA NORD DEUTSCHLAND DEL SUD EST company operat- Provides integrated Mainly operates in the Provides regional AND SERVIZI ities, mainly by rail, including the promotion, Ferrovie dello Stato Italiane Group is organised ing on the market, logistics with storage and local public transport passenger transport AUTOMOBILISTICI handles domestic implementation and management of initiatives into four operating segments: Transport, Infra- handling services, order sector, including services via roughly Mainly operates passenger and international management and the through its subsidiaries 40 companies active and services in the transport sector; structure, Real Estate Services and Other Servic- transport by rail and road Transpor passenger and cargo design and construction in Germany ⁄⁄ directly or indirectly carry out any other activity es. The companies operating in the segments transport of terminal infrastructures in Puglia that is instrumental, complementary or connect- report to the parent. 100% 100% RFI ITALFERR National railway Operates on the Italian infrastructure operator, and international manages lines, market in the field Real estate stations and plants of engineering for Transport Infrastructure* Other services traditional, high speed services** and metropolitan

I nfras t r u c tu re transport

FS S.p.A. 100% 60% 100% 100% and the companies GRANDI GRANDI CENTOSTAZIONI FS SISTEMI

The companies that The companies that manage activities t e STAZIONI STAZIONI Responsible for URBANI a The companies maintain, use and that manage the main not directly related RAIL IMMOBILIARE redeveloping and Responsible for managing commercial that carry out passenger develop railway railway hubs to railway operation Responsible for Focused on enhancing exploiting the real redeveloping and real estate properties spaces in 103 estate assets no and/or cargo transport infrastructure and and manage (administrative supervising the 14 medium-size stations longer functional for by rail, road waterway connections and develop management, R eal es t main railway stations the Group’s railway or waterway between the peninsula the Group’s real building and facility in Italy operations and main islands estate assets management, leasing, 100% 100% 55,68% factoring, certification of FERSERVIZI FERCREDIT ITALCERTIFER transport systems, etc.) Service company Financial service Offers services for the centralised company that supports in connection management of all the Group and with the certification, activities supporting responds to specific inspection and, Trenitalia the Group’s core financial requirements more in general, third and investees FS SpA business party assessments

RFI Rail Ot her ser v ices Mercitalia Logistics*** Ferservizi Italferr Grandi Stazioni Immobiliare and investees Fercredit Busitalia and investees Centostazioni Italcertifer (*) The cargo business unit was merged into the Mercitalia Hub in January 2017. Netinera Group FS Sistemi Urbani Ferrovie dello Stato Italiano In 2016, there were no significant changes in FS main companies are described in the Group’s and Servizi Automobilistici S.p.A.’s size, structure or ownership structure (the 2016 Annual Report (Ferrovie dello Stato Itali- latter consisting of ownership of FS S.p.A. shares ane Group’s consolidated financial statements at (*) The Infrastructure segment includes Brenner Basis Tunnel (BBT), Tunnel Ferroviario del Brennero (TFB) and Tunnel Euralpin Lyon Turin (TELT), whose core and the amount of subscribed capital). 31 December 2016, Notes to the consolidated business is the construction of tunnels linking Italy- and Italy-France, in addition to Ferrovie del Sud Est and Servizi Automobilistici S.r.l.. Non-recurring transactions involving the Group’s financial statements). (**) FS S.p.A. also contributes to segment results to the extent of real estate management activities. In addition to providing support/consultancy services to Group companies, this company also develops/sells land and buildings. (***) On 13 December 2016, the shareholders of FS Logistica S.p.A., SGT S.p.A. and FS JIT S.p.A. resolved to change their names to Mercitalia Logistics S.p.A., Mercitalia Terminal S.p.A. and Mercitalia Transport & Services S.r.l., respectively as part of the Mercitalia Hub project and effective 1 Ferrovie dello Stato Italiane' shareholders map as of June 2017. Ferrovie del Sud Est and Servizi Automobilistici company from 1 January 2017. become part of the FS Italiane Group at the end of 2016.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 26 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 27 the environment information

The transport segment and the reference market

G4-4 G4-6 G4-8 G4-17

Ferrovie dello Stato Italiane Group carries out 14 largest and busiest network stations and 103 and manages works and services in passenger large and medium/large city stations.2 and cargo railway transport and road transport RFI’s main activities include: for its customers. It is mainly active in Italy, al- though its presence in foreign markets has in- ⁄⁄ maintenance and operation of the infrastructure; creased over the past few years. ⁄⁄ offering the railway companies’ trains access to the network; The new 2017-2026 business plan covers a ⁄⁄ technological and infrastructural upgrades to ten-year period, sufficiently long to consider the network and high speed/high capacity the large infrastructural projects that have been investments; planned and the Group’s development, as it ⁄⁄ development and application of technologies stands to become an increasingly important driv- and systems for infrastructure growth. er for integrated, global mobility.

FS Italiane acts as the gateway to the mobility The network in figures* ecosystem, with a view to integration and coope- tition, bringing together all the transport players and modes. This is, moreover, a necessary trans- formation, made possible by the railway system’s Operational railway lines 16,788 km centrality and the Group’s long-standing experi- ence and unique know-how. Types

Double-track lines 7,647 km Domestic market Single-track lines 9,141 km RFI is the national railway infrastructure opera- 1 tor . Specifically, it ensures the construction, man- Power agement and maintenance of the railway infra- structure (lines, plants and stations), including the Electrical lines 12,023 km safe operation of traffic, control-command and signalling. Non-electrical lines 4,765 km RFI operates with an open approach to the do- mestic and foreign markets and upholds the prin- Total track length 24,435 km ciples of free competition, ensuring fair network access conditions. Furthermore, it leases adver- Traditional line 23,085 km tising spaces at stations and in the immediate- ly adjacent areas, along the railway lines and HS line 1,350 km bridges. Grandi Stazioni and Centostazioni han- Railway plant dle commercial real estate management for the Stations with active/potential passenger 2,195 service

1 In accordance with the responsibilities assigned to RFI by Ferrying facilities 3 railway sector regulations, starting from the Concession act (see Ministerial decree no. 138T of 31 October 2000 and 350 million Total production volumes in 2016 Legislative decree no. 112 of 15 July 2015, implementing (train-km) directive 2012/34/EU of the European Parliament and Council of 21 November 2012 in Italy - known as the “re- (*) Data updated to 31 December 2016. cast directive”). (**) Referring to sections equipped with ERTMS (European Rail Traffic Management System) and the related connections to other service 2 In July 2016, commercial space management and media locations. & advertising activities were transferred to Grandi Stazioni Retail through a demerger and Grandi Stazioni Retail was sold to a third party.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 28 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 29 the environment information

Grandi Stazioni Network Centostazioni Network

North-west North-center North-east Venezia Mestre Centre-north Venezia Mestre Milano Centrale Milano Centrale Centre-south Venezia Santa Lucia Venezia Santa Lucia Torino Porta Nuova South Torino Porta Nuova Verona Porta Nuova Verona Porta Nuova Genova Piazza Principe Genova Piazza Principe Bologna Centrale Bologna Centrale Genova Brignole Genova Brignole

Firenze Santa Maria Novella Firenze Santa Maria Novella

Roma Termini Roma Termini Roma Tiburtina Roma Tiburtina Bari Centrale Bari Centrale

Napoli Centrale Napoli Centrale

Palermo Centrale Palermo Centrale

Trenitalia, the main Italian company managing operating in January 2017 and is managed by its subsidiary, Busitalia Rail Service, it provides ly committed to expanding its transport business passenger and cargo railway transport, operates Mercitalia Logistics (formerly FS Logistica), which railway line replacement services throughout It- abroad. The main services offered abroad are through the following divisions: also operates via Mercitalia Rail, the company aly on Trenitalia’s behalf. engineering, passenger transport and cargo ⁄⁄ Long Haul Passenger Division, coffering long established through the demerger of Trenitalia’s logistics. haul railway transport services for passengers, Cargo Division3. The aim is to streamline all the FS Sistemi Urbani is responsible for developing including on sections of corridors forming the Group’s cargo activities and the hub oversees the Group’s assets which are not functional to RFI’s commitment on foreign markets, in partner- European network; the design, production, management, sales and railway operations and for providing integrat- ship with infrastructure managers in other coun- ⁄⁄ Regional Passenger Division, which pro- development of cargo transport services in a ed urban services with a business-oriented ap- tries in activities sponsored by the European vides metropolitan, regional and inter-region- highly deregulated market in which many differ- proach, as well as streamlining and improving Union, mainly consists in the development of a al railway mobility services under the service ent railway transport companies compete. The the functioning and service offered to the pub- European integrated railway area, strengthening contracts that it agreed with the regions and hub’s goals are to boost intermodality, expand lic. Specifically, it studies, promotes, implements its network along the main traffic corridors includ- the autonomous provinces; in high added-value segments and become a and manages projects to develop and enhance ed in TEN-T (Trans European Stations-Transport) ⁄⁄ Cargo Division, which designs, produces, one-stop source for customers. real estate assets and develops projects that networks connecting to Italy’s and Europe’s air, manages, sells and develops railway trans- strengthen services that are important in terms of port and interport hubs. Specifically, in Italy, it port services for cargo (the cargo business Busitalia - Sita Nord is the Group’s local public their economic and social impact. The subsidi- promotes railway investments and works to en- unit was transferred to the Mercitalia Hub in road transport company. In this segment, either ary Metropark provides park-and-ride solutions sure the upgrading, efficiency, extension and January 2016). directly or through its subsidiaries, it offers urban through the management of 75 car parks near interoperability of the four core corridors of the and suburban connections in Veneto (through major railway stations. TEN-T related to Italy4. Moreover, in collaboration Mercitalia Hub is the Group’s new cargo and Busitalia Veneto), Tuscany (including through with the infrastructure managers of neighbouring logistics hub. Set up in 2016, the hub began Ataf Gestioni) and Umbria. Furthermore, through International market 3 The demerged business unit includes the equity investments transport and/or logistics segments, including TX Logistik AG 4 Corridors: Baltic – Adriatic, Scandinavian – Mediterrane- that Trenitalia already held in companies operating in cargo and Trenitalia Logistics France. Ferrovie dello Stato Italiane Group is increasing- an, Rhine – Alps and Mediterranean.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 30 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 31 the environment information

countries, it carries out projects and works for route, which provides transport services in Aus- the cross-border sections of the Mediterranean tria, Denmark, Germany, Norway, the Nether- corridor and the Scandinavian-Mediterranean lands, Sweden, and Italy. Further- corridor5 and participates in the governance and more, Trenitalia recently obtained the safety management and operational activities of the certification in France and Austria necessary to four rail cargo corridors related to Italy6. offer its services directly or in partnership with RFI actively collaborates with other infrastructure other companies. Specifically, in Austria, the aim operators internationally as a member of the both is to increase its presence in the Eastern route to the International Union of Railways (UIC)’s Infra- operate in a crucial hub on the way to Poland, structure Forum and RailNetEurope (RNE). It also Russia and South-Eastern European countries participates in European studies and projects such as Hungary, Romania, Bulgaria and Turkey. funded by framework programmes for research Trenitalia also entered the UK market in the first and development. few months of 2017 when it acquired NXET through its subsidiary Trenitalia UK Limited9. In the field of passenger transport, Trenitalia connects major Italian cities to Austria, France, Until June 2016, Grandi Stazioni10 managed Germany and Switzerland with its internation- contracts to redevelop and manage two railway al Eurocity and Euronight trains. Specifically, in stations in the Czech Republic (Praga Centrale France, it expanded its range of connections and Mariánské Lázně) through Grandi Stazioni with several destinations of the French Riviera Česká Republika s.r.o. (Czech company, 51% through the subsidiary Thello7. owned by Grandi Stazioni).

The Netinera Group operates in rail and road Italferr handles the design, management and transport on the German local public service oversight of works, tenders and project manage- market, and also offers a few transborder servic- ment for large infrastructural investments in sever- es between Germany and the Czech Republic al countries around the world (Europe, Middle and Poland, in addition to cargo services. East, Africa, Turkey, Iran, Asia, India and the In 2016, in the cargo transport and logistics Americas). For additional information about the sector, Trenitalia operated in all major European projects carried out, please visit http://www. countries, mainly through TX Logistik8, a subsid- italferr.it/ifer/Progetti-e-Studi#. iary and key partner in the North-South traffic

5 The Turin-Lyon section between Italy and France, the Brenner 8 In 2017, it was transferred to Mercitalia Logistics as part of Tunnel between Fortezza and Innsbruk and the Trieste-Divaca the Mercitalia Hub project. between Italy and Slovenia. 9 Trenitalia UK Limited was set up in October 2016 and is 6 Similar to TEN-T corridors, cargo corridors are defined, wholly owned by Trenitalia. together with the measures ensuring interoperability and com- mercial development, by European regulation 913/2010. 10 Since July 2016, when the Grandi Stazioni demerger took place, the equity investment in the Czech company was sold 7 In September 2016, Trenitalia acquired full ownership of to third parties, along with Grandi Stazioni Retail. SAS.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 32 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 33 the environment information

Strategy and objectives

G4-1 G4-2

The 2017-2026 business plan lays down the ers make their initial plans and remain with them and most important for industry and production; aged as one network and poised to become the strategic objectives that will accompany FS Itali- until the journey is complete. The journey planner infrastructural and technological improvements beating heart of a system of infrastructures and ane Group in its transformation from a prevalent- is a flexible solution that passengers can update in urban hubs in major cities to increase traffic integrated mobility services. ly railway operator to an integrated mobility op- in real time, modifying their plans as needed. It capacity; in the south, the opening of sites for erator, radically updating logistics activities and is a true, effective and reliable companion that the HS/HC Naples – Bari line and, in , the taking the necessary leap forward by strengthen- knows and advises customers. Palermo – Catania – Messina line. Speeds were ing and integrating all transport infrastructures. The Group will strive to create an extended cus- ramped up on the Adriatic coast and Salerno International development This transformation is based on, inter alia, the tomer experience that becomes a part of peo- – Reggio lines following technological strong drive towards digitalisation, which will be ple’s daily lives and it plans to achieve this goal upgrades and improvements in the railway route. The 2017-2026 business plan places great im- a determinant factor in speeding up the pace of through big data analysis using sophisticated Transport optimisation will also see the expan- portance on international growth. Today, busi- our march into the future. tools associated with the appropriate digital plat- sion of RFI’s domestic network as it integrates ness abroad makes up 13% of total revenue and forms. over 2,500 km of track, out of a total of 3,500 the goal is for it to grow to 23% by 2026, with The new business plan is developed on the basis km contributed by former railway companies. a four-fold increase in the Group’s current interna- € of five strategic pillars. Having RFI act as one single network operator tional turnover, reaching 4.2 billion by 2026 will improve efficiency and safety. and positioning FS Italiane among Europe’s ma- Integrated logistics The integration of infrastructure also includes jor railway players. the ANAS transaction that will put Italy at the Integrated passenger As in passenger transport, road transport is the avant-garde in mobility infrastructure. Specifical- It will pursue this growth in three main areas: mobility prevalent model of transport for integrated logis- ly, ANAS will join the Group, making it possible 1. general contractor activities, with the capacity tics as well (road transport accounts for roughly to pursue an integrated infrastructural investment to build railway works, especially in countries 82% of land-based cargo transport). The Group’s policy, generate significant industrial synergies lagging behind in terms of infrastructure. FS Italiane aims to meet the many different mobili- objective is to contribute to a modal balance 2. market railway services abroad, considering ty needs with a single, tangible, simple response, and manage long-term technological develop- through the following three main actions: ment as an integrated player, in a context in the fact that Trenitalia can export the extreme- offering a one-stop mass transport solution. Its ⁄⁄ a turnaround for the Mercitalia Hub with a ly high quality of travel that it already offers goal is to accompany passengers from their front which road infrastructure is increasingly bene- specific focus on customer centrality, service fiting from the technologies already used in the with the Frecce trains to other countries. Not door to their final destination. In the current mo- quality and utmost efficiency; only will it strengthen the transborder relation- bility market, 80% of people get around in their railway network (e.g., electrified highway). ⁄⁄ reinforcement of intermodality; Stations complete the framework, as they are the ships already in place, but it will focus on the own vehicles, 15% use other public and shared ⁄⁄ expansion in high added value service seg- most attractive European routes, possible in modes of transport (LPT companies in large cities, nerve centres between infrastructures and trans- ments (such as cargo forwarding). port services, destined to become genuine mobil- the wake of the deregulation of the European in particular) and only 5.2% use railway servic- railways slated to begin in 2020 under the es. FS Italiane will play a key role in restoring the ity hubs with car parks, car rentals, car sharing, Investments in cargo transport are planned to up- and electric car recharging stations, as well as Fourth Railway Package; modal balance with mass transport solutions that date rolling stock and for terminals, logistics and 3. PT (Local Public Transport) services abroad, by integrate road and rail, acting as a leading driv- spaces offering a wide range of services that the ICT that supports them. make the stations places where people run their seeking road/rail modal integration opportu- er in this modal shift as its market share expands nities for passenger transport in large metro- from 6% in 2015 to 25% in 2026. To this end, day-to-day errands, like picking up a parcel or paying a utility bill. In this respect, the 2017- politan areas or cities served by the Group’s the Group plans to recondition 450 regional rail- infrastructures. way service trains and purchase 3,000 buses, Integrated infrastructure 2026 business plan provides for the creation of with a significant improvement in quality, a cru- a network of over 600 smart stations to be man- cial factor in driving this change. In this area, the Group has budgeted investments for the traditional network as well as for the HS/ HC network and European TEN-T corridors to Digital & customer centricity continue equipping the country with sound infra- structure for an increasingly modern and system- The Group’s 2017-2026 plan includes a strong ic mobility for passengers and cargo: the Giovi push towards digitalisation. Customers will be third railway crossing, the Brenner base tunnel asked to embrace a new travel philosophy, and and the Turin-Lyon line meet the need to complete they will be given convenient tools for their en- the Italian side of the four TEN-T corridors cross- tire journey, including journey planners, which ing the country and connecting it to the Europe- helpfully combine travel solutions when custom- an regions that are the most densely populated

Ferrovie dello Stato Italiane Group 2016 Sustainability Report The values we embrace Group define our responsibility 02 sustainability towards stakeholders 36 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 37 the environment information

Our approach to sustainability

G4-1 G4-2 G4-56 G4-15 G4-EC2 G4-EC7

The Group’s vision It has made three separate, yet interconnected, commitments to achieve this general vision: one FS Italiane Group has translated its long-term commitment for each aspect of sustainability vision into the new 2017-2026 business plan, (economic, social and environmental). with which it has renewed and intensified its am- bition of creating transport works and services This expression of intent constitutes the shared that create long-lasting value for the community foundation of values and beliefs that guide FS by redefining the business through intermodal Italiane Group’s decisions and operations. transport.

BE A BUSINESS THAT IS PART OF THE ECONOMIC COMMUNITY TO PROVIDE INTEGRATED AND SUSTAINABLE MOBILITY AND LOGISTICS SERVICES, USING TRANSPORT INFRASTRUCTURES SYNERGICALLY AND CREATING VALUE IN ITALY AND ABROAD.

ECONOMIC SOCIAL ENVIRONMENTAL COMMITMENT COMMITMENT COMMITMENT

Be a leader Be at the forefront Be pioneers in the development in the mobility sector of an integrated mobility project and implementation by promoting the quality that, through a virtuous of large-scale integrated and efficiency of transport business model, encourages mobility solutions and infrastructure services fair business practices that help regenerate and active engagement natural capital

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 38 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 39 the environment information

Our commitment Sustainability policies

FS Italiane Group’s code of conduct establishes and governance the rights and responsibilities of corporate officers, managers, employees, freelancers, business part- The Group’s approach to sustainability is reflect- ners, suppliers and all other parties involved in ed in its commitments to all Group stakeholders, transactions with FS Italiane Group. With the which are explicitly stated in company policies code of conduct, FS Italiane Group transparently and the code of conduct. takes on its responsibilities and commitments to in- ternal and external stakeholders. > Forging relationships with institutions, FS Italiane Group is also a member of the UIC, associations and local communities. which promotes the railway sector around the > Creating quality jobs by innovating Contributing to the community’s well-being, world as a solution to the challenges of mobility organizational processes and offering > ensuring residents enjoy safe, efficient services. and sustainable development. The Group signed equal opportunities. Orienting young people and promoting spendable skills the “UIC declaration on Sustainable Mobility and Supporting and promoting growth in technical, > > training in the world of work through a network Transport”, formalising its commitment to respon- cultural and managerial skills. of schools and universities. sible practices in terms of human rights, labour Improving the company's climate by enhancing the know-how > Encouraging generational replacement conditions, the environment and anti-corruption, and our people’ experience, ensuring equity and inclusion > with concrete professional opportunities. in line with the ten principles of the UN Global in professional development and integrating corporate Compact. FS Italiane Group also aims to help welfare services and worklife integration. COMMUNITY achieve the 17 sustainable development goals - in the context of the 2030 Agenda, the United GROUP’S Nations’ strategic framework for common, solid PEOPLE development - and the following, in particular:

SUPPLIERS FERROVIE > Contributing to raising DELLO STATO our suppliers’ environmental ITALIANE and social awareness. ENVIRONMENT GROUP > Ridurre al minimo gli impatti ambientali negativi.

> Razionalizzare l'uso delle risorse naturali. OTHER STAKEHOLDERS > Salvaguardare il territorio. > Promoting open and transparent discussion with all stakeholder. CUSTOMERS

> Building works and providing railway and road transport services, contributing to Italy’s development as part of a large mobility and logistic project, while respecting the environment and the territory.

> Constantly interacting with customers in a service-oriented way.

Since 2010, the parent has formalised its ac- for the Group companies’ environmental man- tive role in promoting, directing and coordinat- agement systems. The level of maturity that this ing consistent management of environmental model has reached has led to further progress, issues by maintaining a governance model and in 2016, a process began that will result

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 40 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 41 the environment information

in the transformation of the current environmen- tal management system governance model into a business model that balances the economic, social and environmental components of Group operations.

The environmental The sustainability Business management system governance model governance model Model

Objective Provide support - including Define a governance model Ensure the integration operational support - to ensure for the integrated management of sustainability in the Group's the coordinated and harmonised- of the three sustainability aspects decision-making processes development of the operating companies' environmental management systems

Characteristics -- Focalizzato sulle tematiche -- Geared towards the -- Integrated in the Group's ambientali environmental, social business, vision and strategies -- Orientato alla conformità and economic aspects normativa -- Based on a decision-making -- Funzionale allo sviluppo -- Integrated in existing processes process centred around degli SGA di società sustainability criteria (e.g., -- Built on a governance system externalities, SROI) based on the delegation of duties

-- In view of the subsequent development of a business model

Time period Today Short to medium term Medium to long term

Organisational pervasiveness

In 2016, FS S.p.A. established a Sustainability to create a methodology that incorporates mul- Committee1, an advisory board made up of sen- ti-dimensional assessments of activities. ior managers from the main Group companies, Furthermore, in 2016, Ferrovie dello Stato Itali- formed to integrate social and environmental as- ane, together with the companies in the “Sustain- pects into economic-financial strategies, promote ability” work Group of the “Network of Chair- the values and principles of sustainable develop- women” , explored a series of particularly crucial ment and meet stakeholders’ needs and expec- issues for promoting sustainability in companies, tations. with the aim of drafting a document that would, by sharing ideas and best practices, analyse In view of integrating strategies with sustaina- how to integrate sustainability in the business, bility aspects, using the corporate shared value spread awareness about sustainability and mon- approach, the Group is kicking off pilot projects itoring and reporting methods.

1 Established with the Group measure of 1 July 2016. AIDDA, Eni, Enel, Ferrovie dello Stato Italiane, Fondazione Marisa Bellisario, Poste Italiane and Terna – and formed two 2 The Network of Chairwomen involved the chairwomen of work groups: “Diversity & Inclusion” and “Sustainability”. 10 organisations and companies - Acea, Ania, Amarelli,

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 42 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 43 Sustainability the environment information

Committee CEO AND GENERAL MANAGER The Committee was established in July 2016. Its members are appointed by the CEO and are the following:

CENTRAL STRATEGIES, PLANNING FS SPA'S FS SPA'S AND SUSTAINABILITY DEPARTMENT CENTRAL MANAGER CENTRAL MANAGER OF BRAND STRATEGY OF STRATEGIES, AND COMMUNICATION PLANNING CEO AND SUSTAINABILITY CEO OF TRENITALIA OF FS ITALIANE, SUSTAINABILITY FS SPA'S ACTING CENTRAL MANAGER AS CHAIRMAN OF HUMAN RESOURCES CEO AND ORGANISATION OF RFI

IT OVERSEES, GUIDES AND CONTROLS THE INTEGRATION OF SUSTAINABILITY ASPECTS IN THE GROUP'S BUSINESS PROCESSES

SUSTAINABILITY CONTINUOUS COMMITTEE IMPROVEMENT LEA DER G E C SH OF SERVICES IN OMM IP W G ITM IE IN E V RN N E A T R E L D N A

T A H N STAKEHOLDERS E A C

L O ENGAGEMENT Y

S N

I THE N

VISION T E

G ENVIRONMENT G

and X G N T

I T

N THE I

R VALUES

R SOCIETY

O

O

P

T

E I

R

N

D O

N

M

MONITORING A

P

OBJECTIVES L

THE ECONOMY A

AND CHECKS N

FS SPA'S N

I N

CENTRAL MANAGER G

G

N

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OF FINANCE, T

N

E SUSTAINABILITY

M E I L M CONTROLLING P AND EQUITY OBJECTIVES AND POLICIES HEAD OF THE SUSTAINABILITY OFFICE WITHIN SUPPORT THE CENTRAL STRATEGIES, PLANNING FS SPA'S CENTRAL MANAGER AND SUSTAINABILITY DEPARTMENT, TO THE OPERATING OF ADMINISTRATION, ACTING AS TECHNICAL SECRETARY COMPANIES FINANCIAL STATEMENTS AND TAX ISSUES

The Committee will be expanded in 2017 to include Busitalia - Sita Nord's CEO and FS S.p.A.'s Chief Risk Officer (CRO) Ferrovie dello Stato Italiane Group 2016 Sustainability Report 44 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 45 the environment information

stakeholderS The stakeholder panel In 2016, ten issues were discussed in relation G4-16 G4-24 G4-25 G4-26 G4-27 G4-SO1 G4-PR7 to five strategic areas. The invited stakeholders submitted 20 proposals for improvement.

Ferrovie dello Stato Italiane Group continuously The Group undertakes to respond to all of their Panel Issue dialogues with its stakeholders, as it firmly be- requests and, where appropriate, tangibly imple- lieves that understanding their expectations and ment them. identifying medium and long-term objectives with Over 100 stakeholders from the different stake- them guarantees the effective creation of value. holder categories participated in the panels held Cargo ⁄⁄ Supporting railway transport With this in mind, FS Italiane Group has sever- from 2013 to 2015, actively discussing various services/ mobility ⁄⁄ Development of integrated solutions for cargo customers al ways of interacting with its stakeholders. For issues. A total of 65 proposals were gathered example, it organises a panel in which stake- and, of these, 42 were implemented, 16 are holders propose improvements for the company. being implemented and seven are not feasible.

⁄⁄ Customer experience LPT ⁄⁄ Anti-fare evasion and avoidance

Map of Ferrovie dello Stato Italiane Group’s stakeholders

Service ⁄⁄ Assistance for people with reduced mobility and the disabled Shareholder Lenders quality ⁄⁄ Potential intermodal partnerships

Suppliers Customers

Occupational ⁄⁄ Safety and suppliers health Companies/Partners ⁄⁄ Performance of occupational safety management systems Competitors and safety

Institutions Scientific community Customer ⁄⁄ Ensure an effective response tailored to customers The media service training ⁄⁄ Design innovative training methods to support and improvement the business strategies

Employees Trade organisations

Charitable After the critical aspects that arose during the et controls (e.g., electronic tickets, awareness organisations 2016 panel were analysed and the Group pre- processes, etc.). In line with the business plan pared responses to meet the stakeholders’ needs, revolving around intermodality, the systems used Civil society groups/ FS Italiane Group committed to implementing to access information about the different modes associations Local bodies/ certain projects and initiatives. The Group will of transport available at the Group companies’ Public offer cargo mobility customers transport tracking hubs will be improved, including by both physi- administration systems and assistance services via call centres cal communication and the launch of an app that or emails to check the status of flows and han- meets the needs of different types of travellers dle any irregularities. In the local public transport (commuters, tourists, the young and old, etc). In Workers’ segment, the Group will continue its campaign terms of service quality, the focus has been on Public bodies representatives against fare evasion and avoidance, which people with reduced mobility and disabilities. It it has designed with a view to facilitating tick- has entailed mapping users’ requirements in col-

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 46 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 47 the environment information

laboration with institutional operators and creat- As part of the UIC, Ferrovie dello Stato Italiane ing a mobile app to bridge the current gap in participates in the Conference of the Parties systems Management information for people with reduced mobility and (COP) on Climate Change negotiations in Co- disabilities. The commitment to all customer cate- penhagen, Cancun, Durban, Brazil, Qatar, G4-15 G4-56 G4-PR1 gories will also be covered in the employee train- and Marrakech. In 2016, with the UIC, FS Itali- ing process which will not only focus on customer ane Group took part in major events, such as the centricity, but will be organised considering the UN Framework Convention on Climate Change, need to monitor its effectiveness through a results the High-Level Advisory Group on Sustainable FS Italiane Group and the main Group compa- business, extending its improvement strategies as measurement system. Transport and the UN Global Sustainable Trans- nies remain committed to implementing and cer- part of a broader vision of environmental sustain- port Conference. tifying their environmental management systems ability. In this context, the parent, which oversees On 28 October 2016, during the UN Glob- or integrated management systems, covering all environmental aspects based on the environmen- al Sustainable Transport Conference and with processes and all operating sites, with the goal tal management system governance model in a Other forms of dialogue the contribution of Ferrovie dello Stato Italiane, of continuing to improve the Group’s environmen- coordinated, consistent manner, has undertaken among others, the United Nations Secretary-Gen- tal services. a process to incorporate the main sustainability There are other forms of dialogue between the eral’s High-level Advisory Group on Sustainable principles within the business, in order to gener- Group and stakeholders, including institutional- Transport issued a ten-point plan entitled “Mobi- In 2016, the Group companies launched a tran- ate value for both the Group and the community. ised feedback collection (e.g., customer satisfac- lizing Sustainable Transport for Development”, sition process to adopt the new UNI EN ISO tion surveys), relationships with the consumer and providing recommendations to all governments 14001:2015 standard. Unlike its previous For more information about the scope of operating environmental associations and the trade unions. for the reduction of their carbon footprint and the version, the new standard encourages the en- Group companies’ management systems, see the Each year, the Group promotes a number of initi- development more balanced and sustainable trenchment of the management system into the table in the Additional information section. atives to inform, advise, discuss and partner with transport. the various stakeholders. In 2016, as part of the CER Environmental Strat- In 2016, Ferrovie dello Stato Italiane Group took egy Group, FS Italiane Group participated in part in activities with the following associations: the panels on sustainability and the environment, Confindustria and its local branches, Agens/ such as: Federtrasporto, Federturismo, Anie, Assonime ⁄⁄ The European strategy for low emission mobility and Accredia. ⁄⁄ Railway noise In addition, it met with the Conference of Regions ⁄⁄ Sustainable vegetation management (glypho- and Autonomous Provinces, the Unified Govern- sate) ment and Regions Conference, the relevant Min- ⁄⁄ Effort sharing regulation istries and, in particular, the Ministry of Infrastruc- ⁄⁄ EU Emissions Trading System (ETS) revision ture and Transport with respect to inspections. ⁄⁄ Eurovignette In Europe, Ferrovie dello Stato Italiane Group has: Ferrovie dello Stato Italiane Group is registered ⁄⁄ taken part in activities relating to its business with UPA, an association that represents the inter- with EU institutions (Parliament, the EU Com- ests of the most important industrial, commercial mission and Council); and service companies investing in advertising. ⁄⁄ collaborated with the CER (Community of As a member of UPA, the Group also automat- European Railway and Infrastructure Compa- ically subscribes to the Institute of Advertising nies) association; Self-Discipline. There were no non-conformities in ⁄⁄ participated in work groups organised by the advertising in 2015. 1 UIC (International Union of Railways) ; No form of financial assistance and no benefits ⁄⁄ participated in work groups organised by the are granted to the aforementioned associations European Railway Agency; other than the membership fees. The Group does ⁄⁄ defended its positions with Confindustria (the not pay any direct or indirect contributions to po- Italian association of industrialists) in ; litical parties, movements, committees or organi- ⁄⁄ collaborated with the ENVI (Environment, Pub- sations or trade unions. lic Health and Food Safety) Committee and the Parliament’s TRAN (Transport and Tourism) Committee.

1 Since 1 December 2016, Ferrovie dello Stato Italiane’s CEO is UIC’s chairman.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Corporate 03 governance

A system of rules that drives the Group in the right direction 50 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 51 the environment information

Board of Directors The governance system Appointed by the shareholder on 27 November 2015, it consists of seven directors and has exclusive powers for the Group’s economic and strategic issues and the appointment of the main subsidiaries’ boards of directors and statutory auditors G4-7 G4-34 G4-35 G4-37 G4-38 G4-40 G4-41 G4-44 G4-45 G4-56 G4-LA12 • Daniela Carosio Director The corporate governance1 structure of FS S.p.A. • Gioia Maria Ghezzi • Federico Lovadina and its main subsidiaries is organised according Chairwoman • Giuliano Frosini Director to the traditional system: the shareholder appoints Shareholders’ meeting Director • Renato Mazzoncini • Wanda Ternau a Board of Directors (the parent’s BoD is respon- Is attended by the Sole Shareholder, sible for management and is currently comprised the Ministry of the Economy and Finance CEO and General Manager • Simonetta Giordani Director of seven directors) and a board of statutory audi- Director tors (the parent’s board of statutory auditors is re- sponsible for controls and is currently comprised Supervisory Body pursuant to Leg. of three standing statutory auditors and two al- Independent auditors ternate statutory auditors). The shareholder also Board of Statutory Auditors Decree no. 231 • KPMG SpA appoints the independent auditors, responsible Systematically monitors that the corporate governance principles • Carlo Piergallini for performing the legally-required audit. Pursu- endorsed pursuant to the Italian Civil Code are applied, compliance Chairman ant to article 12 of Law no. 259/1958, the with the law, the by-laws and the principles of correct administration • Gianfranco Cariola*** Court of Auditors’ Magistrate appointed to audit • Gustavo Oliviero**** FS S.p.A. attends the meetings of the Board of Directors and the board of statutory auditors, inte- Court of Auditors’ Manager in charge Magistrate grating the corporate governance system. of financial reporting • Carmine di Nuzzo* In accordance with the by-laws, the Board of • Angelo Canale • Roberto Mannozzi Directors: (i) appoints a CEO; (ii) may assign Chairman

proxies to the Chairman, with the shareholder’s ** approval, with respect to issues that may be del- • Roberto Ascoli Standing statutory auditor egated by law; (iii) sets up committees, where Audit, Risk Control and Corporate Remuneration and Appointment Committee ****** Governance Committee Responsible for advising and presenting proposals Board committees necessary, to provide consultation and make Paolo Castaldi • Susanna Masi* Supports the BoD’s internal control and risk man- to the BoD with respect to, inter alia, the CEO’s and proposals; (iv) appoints the Manager in charge agement assessments, corporate governance and the Chairwoman’s remuneration and any “co-op- Other committees******* of financial reporting; (v) appoints the general Cinzia Simeone, Standing statutory auditor social responsibility, by presenting proposals and tions” and periodically checks that the Directors of FS S.p.A. are eligible for office manager. Alternate statutory acting as advisor auditors* The following chart represents FS S.p.A.’s corpo- Ethics Committee Anti-trust Committee Group IT System and Information rate governance structure. Responsible for advising and setting guidelines with- Supports FS S.p.A.’s CEO to promote widespread Security Committee Additional information is given in the Group’s in the framework of the principles and rules of FS knowledge about regulations ensuring fair competi- Steers FS Italiane Group’s IT security strategies, pre- Italiane Group’s Code of Ethics; facilitates the inte- tion and monitors that they are complied with sents proposals to the Group companies for critical 2016 Annual Report (Directors’ report, Report on gration of ethical criteria into decision-making pro- business processes, assesses and approves propos- corporate governance and ownership structure). cesses, verifies that actions and conduct are consist- als for the regulation of IT system and information ent with the code of conduct and reviews company security assessments and certification procedures in the light of the Code of Ethics

Sustainability Committee International Initiatives Committee Credit Committee Ensures the integration of social and environmental Ensures strategic oversight of international develop- Monitors the performance of Group receivables, Central Divisions***** aspects into the Group’s economic/financial strat- ment initiatives of interest to the Group reporting any critical issues and driving the nec- egies and the promotion of sustainable develop- essary corrective action; assesses consolidated ment principles and values, in accordance with exposure by debtor and any potential offsetting ⁄⁄ Institutional and Regulatory Affairs stakeholders’ requirements and expectations against payables ⁄⁄ Administration, Financial Statements Investment Committee Equal Opportunities Committee SoD (Segregation of Duties) Committee and Tax Provides guidelines on investments and divestments, Promotes initiatives and positive actions to offer Acts as an advisor and provides guidance on the ⁄⁄ Audit directing FS Italiane Group’s planning process, ex- women workers more favourable work organi- segregation of duties; defines, approves and over- ⁄⁄ Brand Strategy and Communication pressing fairness opinions on the investment and di- sational and distribution conditions, in order to sees the Group’s SoD matric; analyses and moni- vestment plan and monitors the performance of the achieve, inter alia, a better life/work balance tors the implementation of measures to manage/ ⁄⁄ Finance, Controlling and Equity investment plan, recommending any corrective action resolve SoD risks that transversally affect several ⁄⁄ Innovation and Information Systems to be taken staff processes of the Group companies 1 KPMG S.p.A. was engaged to perform the legally-required International Markets audit for both the parent and the subsidiaries beginning from ⁄⁄ (*) Appointed by the shareholder on 4 July 2016 to replace the Sustainability Committee whose term of office expired with the shareholder’s meeting called to approve the 2015 financial statements (Chairwom- 2014. Based on the applicable special provisions provided ⁄⁄ Company Security an of the Sustainability Committee: Alessandra dal Verme; Standing statutory auditors: Roberto Ascoli and Paolo Castaldi; Alternate statutory auditor: Cinzia Simeone). During the same shareholder's meeting, the shareholder also appointed Francesco Notari as standing statutory auditor, who on 13 July 2016, announced that he could not accept the position and, accordingly, the alternate statutory auditor Paolo for by Legislative decree no. 39/10 (article 16 and subse- ⁄⁄ Human Resources and Organisation Castaldi took the position until the shareholder's meeting called to appoint the new standing statutory auditor (29 July 2016) quent articles), after FS S.p.A. became an “entity of public (**) Appointed by the shareholder on 29 July 2016 interest” by issuing the listed bond in 2013, the engagement ⁄⁄ Strategies, Planning and Sustainability (***) Appointed on 5 September 2016 to replace Stefano Crociata ⁄⁄ General Counsel, Corporate Business (****) Appointed on 20 July 2016 to replace Claudia Cattani (in office from 11 March 2016 to 17 May 2016) lasts for nine years (2014-2022). (*****) FS S.p.A.’s organisational structure was updated in March 2017 and Compliance (******) Set up to advise or make proposals to the BoD ⁄⁄ Risk Management/CRO (*******) These are the committees that provide guidance and support to FS S.p.A.’s BoD

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 52 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 53 the environment information

the Group model was strengthened with the specific expertise in this respect, an internal The internal control creation of the risk management structure, re- audit manager and a legal expert from out- porting directly to the CEO of FS S.p.A; side the Group or, alternatively, a member of and risk management ⁄⁄ supervisory bodies and the organisational, the board of statutory auditors; management and control models pursuant to ⁄⁄ the Manager in charge of financial reporting system Legislative decree no. 231/2001. Group of FS S.p.A., first appointed in 2007 upon measure no. 209/P of 9 June 2016, which the specific request of the shareholder, the replaced the previous measures issued since Ministry of the Economy and Finance, in or- G4-34 G4-38 G4-41 G4-42 G4-45 G4-46 G4-SO3 G4-SO4 G4-SO5 2002, requires that FS Italiane Group compa- der to increasingly align the parent’s corpo- nies adopt organisational, management and rate governance system with those adopted control models that adequately prevent the ille- by companies listed on financial markets, The internal control and risk management system taking a systematic, professional approach gal conduct covered by Legislative decree no. and now legally required following the issue is a series of rules, procedures and organisation- that generates value added as it is aimed at 231/2001 and set up supervisory bodies re- of the bond (July 2013) which changed FS al structures that, through an adequate process assessing and improving control, risk manage- sponsible for monitoring that the models func- S.p.A.’s status to an issuer of listed financial for the identification, measurement, management ment and corporate governance processes; tion and are complied with and for proposing instruments and therefore an entity of public and monitoring of main risks, ensures sound and ⁄⁄ The Group’s risk management model was first updates to the models. The supervisory bodies interest (pursuant to article 16 of Legislative proper business management in line with the es- formalised with Group measure no. 169/AD are normally set up as boards2 with a chair- decree no. 39/2010) and caused it to fall tablished objectives. of 21 January 2014 and defines the steps, man from outside the company with extensive, completely within the scope of application of article 154-bis of the Consolidated Finance Act. Considering FS Italiane Group’s organ- isational and operational complexity and to strengthen and improve the efficiency of the application of this legislation, since the begin- ning, FS S.p.A.’s BoD has encouraged the ap- pointment of managers in charge of financial reporting within its main subsidiaries as well; ⁄⁄ the planning and management control system supports the Group’s long-term planning pro- cess, the operational implementation of strat- egies (budgeting process), the calculation of actual results and the analysis of such results.

In 2016, around 220 man/days were dedicat- ed to training/raising the awareness of the an- ti-corruption policies and procedures implement- ed at Group level. The Group companies’ internal audit functions methods and roles in the assessment and completed a total of 104 internal audits in In particular, the system consists of the following management of company risks. The risk man- 2016, 89 of which led to an assessment of the active parts: agement process entails: mapping processes internal control system. Of these, 14 covered oc- ⁄⁄ the internal audit departments reporting to the and their objectives, identifying and assessing cupational safety and environmental protection. Chairperson of their company’s BoD. The par- risks and their controls, proposing any im- Eight of the activities performed were carried out ent’s central internal audit department handles provement action to contain risks. The Group upon the request of the supervisory bodies pursu- internal auditing for companies that do not has adopted the control risk self assessment ant to Legislative decree no. 231/2001. yet have their own independent internal au- (CRSA) method for risk management, which dit department on the basis of specific service is characterised by the active participation of Additional information on the internal control and agreements. If an Internal Audit Committee the respective Process Owners. The relevant risk management system is given in the Group’s has been set up, the internal audit department manager and Risk Officer1 support the Pro- 2016 Annual Report (Directors’ report, Report on reports to it, as provided for by the relevant cess Owner’s activities. With organisational corporate governance and ownership structure). company’s internal regulations. Throughout measure no. 116/AD of 22 January 2015, the Group, internal auditing is independent and objective for assurance and advisory pur- poses in order to improve the organisation’s 1 With Group measure no. 178/AD of 6 October 2014, the model provided for the creation of the position of Risk efficiency and effectiveness. It contributes to Officer with each main Group company directly reporting 2 Group measure no. 209/P of 9 June 2016 provides that member from outside the Group with extensive and specific the pursuit of the organisation’s objectives by to the CEO. “small” Group companies whose organisations are less expertise in this respect. complex and/or smaller may set up a body with only one

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 54 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 55 the environment information

compliance

G4-EN29 G4-PR9 G4-SO5 G4-SO7 G4-SO8

Investigations and legal proceedings

Legal proceedings relating to unfair competition, antitrust violations and monopoly practices in- clude the following: ⁄⁄ Antitrust Authority proceedings A/495 (LPT tender in ) for Busitalia - Sita Nord’s and Busitalia Veneto’s alleged abuse of dominant position; ⁄⁄ Antitrust Authority proceedings PS/10578 for allegations that Trenitalia’s sales systems vio- late Consumers’ Rights Code regulations pro- tecting against unfair business practices.

No significant administrative or legal fines were imposed for violation of regulations or laws and no legal actions were commenced for corruption nor were violations of local residents’ rights com- mitted.

For additional information on investigations and legal proceedings, refer to the Group’s 2016 Annual Report (Directors’ report, Litigation and disputes).

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Business The outcome of the link between 04 sustainability economic value creation and corporate responsibility 58 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 59 the environment information

Results of operations

Highlights G4-2

WHAT WE HAVE ACCOMPLISHED> q772 milion Approximately profit for the year q7 billion €365 million gain economic value distributed on the sale of Grandi Stazioni Retail to stakeholders equal to approximately 76% of the economic value generated

Approximately q q46 billion 6 billion investments in research investments in mobility and development trend in line with 2015 (+8%) for traffic safety

WHAT WE AIM TO DO >

Further improve Investing to support core integrated business profit margins mobility confirming prior through organic growth year volumes and additional acquisitions

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 60 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 61 the environment information

Economic highlights The gross operating profit is extremely positive Revenue of €8,928 million increased by €343 (+0.4%) on 2015. Both personnel expenses (€2,293 million), up €318 million (+16.1%) on million on 2015 due to the growth in revenue (+€17 million; +0.4%) and other costs (+€8 mil- G4-EC1 2015, due to the effect of growth in revenue from sales and services (+€27 million) and other lion; +0.3%) rose. (+€343 million), which was more than propor- income (+€316 million). The table below is based on a reclassification of 2016 ended with a profit for the year of €772 tionate to the growth in costs (+€25 million). The rise in revenue from sales and services was the income statement in the consolidated finan- million, compared to €464 million in 2015, Operating profit amounts to€ 892 million, up by substantially due to greater revenue from trans- cial statements. showing growth of more than 66%. Results were €248 million or 38.5% on the €644 million of port services (+€2 million; +0.03%) and greater In particular: positively influenced by the €365 million gain the previous year. The increase is mainly due to revenue from infrastructure services (+€26 mil- ⁄⁄ economic value generated is an indicator of on the sale to third parties of part of the business that described above in respect of revenue and lion; +2.07%). Other income increased mainly measurable wealth generated by the Group related to the management of non-core commer- operating costs, as well as greater amortisation/ due to the aforementioned gains (€365 million in the year. The analysis of value added pro- cial spaces, via the sale of Grandi Stazioni Retail depreciation and impairment losses (+€78 mil- in 2016, compared to €18 million in 2015), vides an objective evaluation of the Group’s S.p.A.. This transaction was part of the enhance- lion and +€15 million, respectively), offset by whereas there were decreases in revenue from economic/social impact by measuring the ment of assets that will make the Group a lead- smaller provisions (-€23 million). leases, recharges of condominium expenses and wealth it has created for all stakeholders. ing integrated mobility player over the course of the sale of advertising spaces (-€28 million, fol- ⁄⁄ economic value distributed is a qualitative/ the 2017-2026 business plan. lowing the sale of the retail business unit) and quantitative indicator of the Group’s social im- revenue from sales of land and buildings held for pact and the distribution of value to the vari- trading during the year (-€11 million). ous stakeholder categories. Operating costs increased by €25 million

GENERATION AND DISTRIBUTION OF ECONOMIC VALUE FERROVIE DELLO STATO ITALIANE GROUP CONSOLIDATED FINANCIAL STATEMENTS FIGURES

2016 2015 2014 2016 2015 2014 Economic value generated directly 9,004 8,709 8,524 Revenue 8,928 8,585 8,390 Revenue from sales and services 7,908 7,881 7,734 Operating costs 6,635 6,610 6,276 Other sundry income 1,096 828 790 Gross operating profit 2,293 1,975 2,114 Economic value distributed 6,837 6,879 6,628 Operating profit 892 644 659 Operating costs for materials and services 2,623 2,614 2,296 Profit for the year 772 464 303 Personnel expense 3,951 3,934 3,918 In millions of Euros Payments to financial backers 170 231 245 Payments to public bodies 93 100 169 Economic value withheld 2,167 1,830 1,896

In millions of Euros

Finally, the value not distributed by the Group (approximately €2.2 billion) consisted substan- tially of self-financed investments and accruals to reserves, to be reinvested and thereby ensure the continuity and sustainability of non-current business and, therefore, indirectly benefit the FS Group’s stakeholders (such as employees and the community through, for example, improvements in service quality, including the universal service).

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 62 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 63 the environment information

Investments RFI invested as follows: di Stazioni and Centostazioni to redevelop, ⁄⁄ 63% to maintain the efficiency of infrastructure relaunch and enhance the main train stations, G4-EC4 G4-EC7 and projects throughout Italy; redesigned as large urban service centres, ap- ⁄⁄ 37% for the construction of works for large proximately 19% related to the subsidiary Netin- Against the backdrop of an economic recovery infrastructure development projects (strength- era Deutschland for the purchase of road and in which investments are scarce and the market ening of corridors, metropolitan areas and railway passenger transport vehicles and indus- cannot guarantee the replacement of capital that regional basins). trial plants in Germany, about 8% went to the becomes obsolete from one year to the next, FS €363 million (roughly 9% of total spending) was development of the Busitalia Group companies Italiane Group has managed to continue the ac- invested in avant-garde technologies. operating in road and, final- tions scheduled in its Investment Plan, remaining In 2016, Trenitalia invested €1,557 million, ly, roughly 9% related to Bluferries, TX Logistik, the largest supporter of development in the trans- 63% of which to purchase rolling stock, ap- Mercitalia Logistics (formerly FS Logistica), SGT, port, infrastructure and logistics sector. proximately 5% to recondition material that was Terminali Italia, Terminal Alptransit, Cemat and The Group’s investments are aimed at expanding already operating, 24% for maintenance to en- Serfer, which operate in the cargo service sector. the country’s infrastructure and keeping it efficient, hance the rolling stock fleet and the residual 8% The remaining expenditure was mainly allocated with a view to integrating it with other transport for technological upgrades to vehicles and IT sys- to the enhancement/redevelopment of real es- systems and providing increasingly high quality tems and to maintain and develop maintenance tate properties and installing IT tools to support mobility services. plants. business processes. Other Group companies invested a total of Group spending for research and development in roughly €288 million in Italy and abroad, ap- 2016 came to €46 million, nearly entirely incurred proximately 28% related to TELT, which is re- by RFI. Approximately 78% of R&D spending went FS Italiane investments sponsible for building and managing the future to traffic safety technologies, while 22% was for (in millions of Euros) cargo and passenger railway line between Turin studies and tests on new parts and systems. and Lyon, while roughly 23% related to Gran-

5,950 5,497 Significant financial assistance received from the public administration 4,261 3,891 3,895 2016

Grants for operations Government Programme Contract 975.6 Other government grants 4.6 EU funds 0.6 From local public bodies 6.6

2012 2013 2014 2015 2016 Grants for investments Governments grants 3,199.2 From local public bodies 18.8 FS Italiane Group’s technical investments1 came Specifically, RFI invested €4,173 million in infra- EU funds 5.6 to €6,0182 million in 2016, up 6% on the structure (€4,007 million for the traditional/HC amount recognised in 2015 following new network and €166 million for the Turin-Milan-Na- works involving the infrastructure network and the ples HS/HC network), while Trenitalia invested Total 4,211.0 €1,557 million in railway transport services and projects for the acquisition/reconditioning of rail In millions of Euros and road vehicles. other Group companies invested €288 million.

1 All the works, supplies and services performed or acquired or business units and investments (in companies or joint ven- to support the Group’s business processes, which increase tures) and any other financial investments. the companies’ assets, even if they are leased or are ob- tained via SPVs. They exclude the acquisition of companies 2 Including the investments of special purpose entities (TELT and BBT).

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 64 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 65 the environment information

Customers

Highlights G4-2

WHAT WE HAVE ACCOMPLISHED>

The new The new The Mercitalia Freccialink 92 new energy- Hub service routes begins operating, are launched: efficient buses is established connecting Siena, Perugia, Bolzen-Trento-Verona-Naples, joined the fleet to relaunch the Group’s L’Aquila, Potenza and Matera Rome-Modena- cargo business. to the HS network and Rome-Bergamo

Approximately Assistance provided in Roll-out of a new security 2.5 billion 70 systems 275 stations Frecciarossa are installed at railway stations for people with disabilities earmarked trains on the in the new business plan throughout Italy and reduced mobility Po ValleY LINE for the “Easy stations” connecting Turin, and “Smart stations” projects Milan and Venice

WHAT WE AIM TO DO >

The Trenitalia The Integration of Busitalia’s and Trenitalia’s Completion of “Easy stations” projects at Smart Card Frecciargento LPT road/rail 50 stations is expanded services improvement in the accessibility, Rome- Passenger information, to Veneto, Emilia Romagna, functionality and appearance via Florence route integration of fares Tuscany, Umbria and of areas, raising the train and creation is launched boarding platforms, upgrading public of an intermodal information systems and equipment road/rail hub in Perugia

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 66 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 67 the environment information

Transport: mobility services clear objectives in order to raise the standard subsidiary had carried out on the foreign market operated by Trenitalia’s Long Haul Passenger of service quality and performance, which en- until then. Total production is also down (-5.5%) Division, such as daytime and night Intercity ser- G4-8 tailed substantial investments in rolling stock and to roughly 44 million train-km, mainly due to the vices, along with regional services operated by technologies. decline in distances travelled abroad (-8.2%). Trenitalia’s Regional Passenger Division in Italy The strong performance of local public transport and Netinera Group in Germany. Passenger and cargo transport also included FS Italiane Group’s results in the Main types of services offered As part of the scheduled road services, Ataf Ges- general transport of passengers by bus (domestic tioni, Busitalia - Sita Nord and Busitalia Veneto Again in 2016, the FS Italiane Group strove and international): in 2016, the Group satisfied FS Italiane Group’s commercial offer may be bro- operate on local networks in Tuscany, Umbria to satisfy its customers by concentrating its pro- 2.3% more demand, with a 1.1% increase in ken down into two main types of services: market and Veneto with urban and suburban services. duction capacity, meeting mobility needs with supply measured in bus-km. services and universal services. increasingly efficient and high quality services. On the other hand, long haul railway traffic vol- umes are down (-2.7% to 20.2 billion passen- Passenger transport In particular, efforts were directed at integrating >>Market services transport systems (train and bus) to support, on ger-km), following the sharp drop in the univer- one hand, local public transport and, on the sal service contribution (-6.9%) which is defined >>Medium and long haul railway These are services offered without commercial other, significantly integrate long haul services. by the customer, MIT. Despite the slight contrac- transport restrictions and without any government grants. A prime example of these efforts is Trenitalia tion in market services (-1.5%) compared to the Railway transport market services include most of S.p.A.’s integrated “Freccialink bus + Frecce” previous year - which was mainly because of Frecciarossa the medium and long haul connections offered service connecting major cities like Siena, Pe- the significant, non-recurring boost in traffic vol- The Frecciarossa are trains that mainly travel on by Trenitalia’s Long Haul Passenger Transport Di- rugia, L’Aquila, Potenza and Matera to the HS umes for - Trenitalia S.p.A.’s Frec- the high speed network serving those areas of vision, such as those on Frecciarossa, Frecciar- network, which has satisfied 24 thousand pas- ciarossa high speed service continues to enjoy Italy with the densest traffic and populations. In gento, Frecciabianca, Eurocity and Euronight sengers since its launch. success, also due to the fact that the Frecciaro- addition, certain Frecciarossa connections ex- trains. Road transport market services consist of In all, the FS Italiane Group has met demand ssa brand replaced the less prestigious brands tend the advantages of Italian high speed trains bus rentals with drivers in Italy and abroad and for passenger mobility in Italy and international- during the year. beyond the Turin-Salerno HS infrastructure reach- services authorised by the relevant authorities for ly with an approximate 1.2% increase in traffic ing, for example, Brescia, Verona, Padua, Ven- specific tourist/commercial lines1 operated by volumes measured as passenger-km and a 2.6% ice, , Ancona, Pescara, Foggia, Bari and Total production is up (market services plus uni- Busitalia – Sita Nord. increase in production measured in train-km and versal services), with around 84.6 million train- Taranto. bus-km. km produced (+5%). The Frecciarossa trains operate on the following In the railway sector, regional transport service FS Italiane Group’s cargo transport business was >>Universal services lines: grew with traffic volumes of 23.7 billion pas- affected by the weak economic context, generat- sengers-km, approximately 20% of which were ing domestic and international traffic volumes of These are public transport services offered at the ⁄⁄ Turin-Milan-Reggio Emilia HS-Bologna- generated by the Group companies abroad, 22.5 billion tonnes-km, down 3.8% on the previ- request of the government or regions under ser- Florence-Rome-Naples-Salerno, confirming the success of actions taken - improve- ous year. The decrease is lower for the domestic vice contracts, whereby the transport companies with the route extended to/from Brescia ment in punctuality, increase in the frequency of business because of the positive contribution of receive considerations in exchange for meeting and to/from Potenza/Taranto; journeys, integration of services at stations - for traditional traffic (+2%), while the international agreed requirements in terms of the frequency of ⁄⁄ Venice-Padua-Bologna-Florence-Rome- this service. The Group intensified its focus on cargo transport business was affected by the runs, fares, service levels and stops. Specifical- Naples-Salerno; the service contracts with the regions, setting discontinuation of a service in 2016, which a ly, the passenger transport services include those ⁄⁄ Trieste/-Venice-Padua-- Verona-Brescia-Milan-Turin; ⁄⁄ Milan-Reggio Emilia HS-Bologna-Rimini- Ancona/Pescara-Foggia-Bari.

Frecciargento The Frecciargento are trains with flexible struc- tures, enabling them to travel at faster speeds than traditional rolling stock. Accordingly, they are used on both traditional and high speed lines. In 2016, Frecciargento trains operated the fol- lowing routes:

⁄⁄ Trieste/Udine-Venice-Padua-Bologna- Florence-Rome/Fiumicino airport;

1 The connection between Florence and The Mall outlet and the “Volainbus” shuttle between Florence and the A. Vespucci airport.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 68 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 69 the environment information

⁄⁄ Bolzen/Brescia-Verona-Bologna-Florence- connect the main Italian cities with major cities in Group offers regional transport services in Ger- al services and a few interregional connections Rome/Naples; Austria, Germany, Switzerland and France. Day- many, which are managed commercially using (e.g., Cascia-Roma and the summer connections ⁄⁄ Mantua-Modena-Rome; time services connect Milan with Zurich, Basel, similar mechanisms, i.e., service contracts with to seaside destinations). ⁄⁄ Rome-Caserta-Benevento-Foggia--Bari Bern, Lucerne and Geneva, as well as Venice the public transport authorities (PTAs). Netinera Ataf Gestioni provides public mass transport servic- --Lecce; with Lucerne and Geneva. The Euronight trains mainly operates in Northern and Southern Ger- es for passengers in the Florence metropolitan city.4 ⁄⁄ Rome-Naples-Salerno-Paola-Lamezia Terme connect Rome and Milan with Munich, as well many2. Since December 2014, Vlexx, a compa- -Villa San Giovanni-Reggio Calabria. as Rome, Milan and Venice with Vienna. In ad- ny that is wholly owned by Die Länderbahn AG, dition, through the French subsidiary, Thello, the in turn wholly owned by the holding company Cargo transport Frecciabianca Eurocity trains carry passengers to Nice, Mar- Netinera Deutschland, operates in the Mainz The Frecciabianca are trains that travel on tradi- seilles and other cities along the French Riviera area. Netinera Group also operates in Lower In 2016, FS Italiane Group designed, produced, tional network lines and mainly connect medium from Milan, Genoa and other stations in , Saxony through the subsidiary OHE AG, which managed, sold and developed cargo transport and large cities with the main stations on the high while night services departing from Venice and offers a wide variety of regional railway transport services in Italy and abroad (through its subsidi- speed network. Milan carry passengers to Dijon and Paris. Be- services under the Metronom and Erixx brands. ary TX Logistik5 and Netinera Group). In 2016, Frecciabianca trains operated the fol- ginning in 2017, Trenitalia will also offer service The offer revolves around the two following areas: lowing routes: in the UK, as it has acquired - via its subsidiary ⁄⁄ intermodal traffic, with railway connections to ⁄⁄ the line that connects Venice, Udine and Tri- Trenitalia UK - Nxet, a railway company operat- >>Road passenger transport and from the main domestic and international este to Turin and Milan; ing between London and Essex. ports and interports; ⁄⁄ the line linking Turin, Milan and Venice to An- Busitalia - Sita Nord offers, directly or via its ⁄⁄ traditional traffic, for cargo travelling between cona, Pescara, Bari, Lecce and Taranto; subsidiaries, urban and suburban LPT services in a grid of Italian hubs and systems and the Eu- ⁄⁄ the Northern Tyrrhenian line connecting Turin, >>Regional railway transport Veneto, Tuscany and Umbria and market services ropean network. Milan and Genoa with Pisa and Rome; (bus rentals with drivers for domestic and interna- The Group covers the main cargo traffic sec- ⁄⁄ the line between Rome and Reggio Calabria; Trenitalia’s regional railway transport offer is de- tional tourist and authorised bus lines). tors through the following commercial structures, ⁄⁄ the line between Rome and Ravenna. fined in the service contracts that it has agreed In particular, in Tuscany, it offers LPT services which underwent a significant reorganisation in with the government, the regions and the au- in the Florence, Arezzo, Siena, Alto Mugello, the year, resulting in the following areas of re- Intercity tonomous provinces, which plan and schedule Mugello, Val di Sieve, Casentino and Valdarno sponsibility: 3 Daytime Intercity trains travel on the traditional service quantities and quality and provide for a areas ; in Veneto, through its subsidiary Busita- ⁄⁄ Industry, which was made responsible for lines and connect large and medium cities, help- penalty and reward mechanism. lia Veneto, it provides urban and suburban LPT managing the portfolio of steel, automotive ing create an efficient interchange system with Regional Passenger Division trains, which travel services in the provinces of Padua and Rovigo; and chemical customers; local transport trains and with high speed trains. throughout a network covering the entire country, in Umbria, it offers transport services to the entire ⁄⁄ Intermodal, which manages the intermodal Intercity train services connect Milan with Na- meet travellers’ needs for metropolitan, regional region, with certain lines stretching outside the market customer portfolio; ples, Trieste with Rome and Rome with Salerno. and inter-regional railway mobility services, with region to connect with major points of access to ⁄⁄ General Cargo, which was made responsible In addition, they connect: Milan with Pescara, trains running at all hours of the day - including the region (such as , Sansepolcro, Teronto- for managing the portfolio of customers oper- Taranto, , La Spezia, Livorno, Lecce more frequent trains during peak hours - and la and Chiusi). It completes the offer in Umbria ating on the raw materials and consumable (periodically), Reggio Calabria (periodically), stops at small stations along the route as well. with LPT services (road, rail and waterway), the goods market. and Ventimiglia; Rome with Ancona, Bari, This Division, together with the regions respon- management of alternative mobility systems, rent- Florence, Palermo, Siracusa, Perugia, Reggio sible for regional public railway transport, is im- Calabria, Taranto and Ventimiglia; Naples with plementing a transport offer that is increasingly Sestri; Turin with Genoa and Salerno; Bologna tailored to meet new mobility requirements, with with Bari and Lecce; and Reggio Calabria with wide-spread, frequent service in cities and fast Taranto. connections between major regional hubs, ensur- ing that the two different service levels intersect at Night trains the “gateway stations”. Night-time Intercity trains are dedicated to long The fleet was modernised thanks to Trenitalia’s hauls between Northern Italy, and significant investments in rolling stock, some of the South. They are mainly tailored to travellers which were in the light of the long-term service who prefer to spend the night travelling and contracts. wake up in their destination the morning after Investments will continue in forthcoming years as they depart. These trains connect Milan with well: Trenitalia has called for bids in a major pro- Taranto, Lecce, Siracusa and Palermo; Turin with ject to acquire new high and medium capacity Lecce, Reggio Calabria and Salerno; and Rome trains for regional transport, which are slated for roll-out in 2018 on. This will lead to the renew- with Bolzen (periodically), Lecce (periodically), 2 al of 75% of the entire regional transport rolling The most significant Netinera brands are: Metronom and age LPT services in the provinces of Florence, Arezzo and Siracusa, Palermo and Trieste. Erixx, which operate in Northern Germany, Länderbahn to- Siena. stock fleet. In 2016, the average age of trains in gether with Alex, Vogtlandbahn and Vlexx, which operate in 4 Ataf Gestioni acts as agent for ATAF&Li-nea S.c.a.r.L.. 5 International services the fleet was reduced to 19.7 years, compared Southern Germany, and ODEG, which operates in Eastern A European leader in railway cargo transport, operating to 20.4 years in 2015. Germany. mainly along Europe’s North/South axis with integrated The international Eurocity and Euronight trains 3 The company is active in six different S.c.a.r.l. companies logistics services in Austria, Denmark, Germany, Norway, In addition, through Netinera Group, FS Italiane (Italian consortium companies limited by quotas) which man- the , Sweden and Switzerland.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 70 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 71 the environment information

Quality indicators for all medium Infrastructure sector: Service quality and long haul trains* mobility services G4-15 G4-PR1 G4-PR4 G4-PR5 G4-PR8 G4-PR9 Quality Target Target 2016 2016 Indicators Notes G4-8 factors 2015 2016 Actual difference (%)

RFI’s market as national railway infrastructure The delay is measured Trenitalia Trains arriving within 15’ operator pursuant to Legislative decree no. Punctuality 93.0% 93.0% 93.7% 0.7% at the train’s final desti- of the scheduled time 112/2015 consists of railway companies and nation station** applicant entities. The latter include, in addition Passenger transport to the railway companies, regions and autono- All trains are consid- mous provinces, “the relevant authorities under Trenitalia devotes significant attention to offering Regular trains, ered, excluding those Service net of trains that were that were affected the European Parliament and Council’s regula- passengers quality travel experiences, by moni- 99.0 % 99.0 % 99.7% 0.7% regularity limited, cancelled by external events, tion (EC) no. 1370/2007 and loading opera- toring three main aspects in particular: or arrived over 120’ late disruptions to the line tors, forwarding agents and combined transport ⁄⁄ the quality levels that are promised and provid- or strikes operators with a public service or commercial in- ed (as per the medium and long haul Service terest in acquiring infrastructure capacity in order Charter and the regional Service Charters6); Customer satisfaction Effectiveness of on board Cleanliness 80.0% 80.0% 88.9% 8.9% with cleanliness during to provide railway transport services (article 3.cc ⁄⁄ perceived quality; cleaning travel*** of Legislative decree no. 112/2015). ⁄⁄ customer complaints. In the case of the former, the services are agreed Percentage out of total on the basis of the timetables and services gov- Trenitalia is committed to ensuring customers en- Functioning automatic 95.0% 95.0% 98.0% 3.0% automatic ticketing ticketing machines erned under contracts for infrastructure use for joy certain service standards which it expresses machines no longer than the validity period of the service in measurable objectives that it seeks to improve Proportion of pur- Ticketing Sales service accessibili- chases made using schedule, while in the case of the latter, the ser- upon where possible. It has formalised these ob- services ty: purchases using inno- innovative systems out vices are based on the infrastructure capacity jectives and publishes them annually in the Ser- vative channels (excluding 35.0% 35.0% 40.7% 5.7% of total turnover from ticketing offices at stations expressed in general terms or in total, gener- vice Charter. Trenitalia’s medium and travel agencies) ic volumes, to be governed under a long-term and long haul services

framework agreement. >>Promised and provided quality: (*) Performance data refer to available data at 3 February 2017. The “Information hotlines” indicators has not been monitored since 2015. At the end of 2016, 32 railway companies pro- Customer Care (**) Percentage recorded by RFI’s computer system, excluding delays caused by exceptional events, strikes or other railway companies (standard B - Ministerial decree vided transport services on the basis of signed no. 146T/2000). “Contracts for infrastructure use” while 21 oper- (***) An independent research institute surveys Trenitalia’s customer satisfaction: customers are considered as satisfied if they report a positive score of ≥ 6 on a scale In 2016, Trenitalia achieved each and every of one to nine. ated under framework agreements/protocols of one of the 12 medium and long haul passenger understanding. transport service targets it had set. Toll revenue rose from €1,006 million in 2015 € Analysing its results with respect to the estab- to 1,058 million in 2016, up 5.16%. The in- lished targets, train cleanliness was especially Quality indicators for the Frecce trains crease in toll revenue was due to the growth in high, with Frecce trains exceeding the target by volumes + 2.68% (with growth of +12 % on the 4.6% and all medium and long haul trains in Quality Target Target 2016 2016 HS/HC network). Indicators Notes general outperforming it by 8.9%. The punctu- factors 2015 2016 Actual difference (%) See the Additional information section for more ality of trains operating under service contracts details. with the government and ticketing services also The delay is measured Trains arriving within 15’ performed extremely well. Punctuality 94.0% 94.0% 94.2% 0.2% at the train’s final desti- of the scheduled time Indeed, two of the targets established in the ser- nation station* vice contract regarding the punctuality of Frecce trains and train cleanliness, which had not been All trains are consid- achieved in 2015, were reached in 2016. Regular trains, net of ered, excluding those Service trains that were limited, that were affected Customer satisfaction rates for all other aspects 99.4% 99.4% 99.9% 0.5% regularity cancelled or arrived over by external events, are substantially in line with targets. 120’ late disruptions to the line or strikes

Customer satisfaction Effectiveness of on board Cleanliness 88.00% 88.00% 92.6% 4.6% with cleanliness during cleaning travel**

6 Trenitalia publishes the Service Charter to express its prin- (*) Percentage recorded by RFI’s computer system, excluding delays caused by exceptional events, strikes or other railway companies (standard B - Ministerial decree ciples and commitments to improving the services it offers. no. 146T/2000). The regional Service Charters are available on the website (**) An independent research institute surveys Trenitalia’s customer satisfaction: customers are considered as satisfied if they report a positive score of ≥ 6 on a scale of trenitalia.com. one to nine.

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Quality targets for trains operating >>Perceived quality interviewees board their trains; under service contracts with the government Customer Satisfaction ⁄⁄ telephone interviews using operators and CATI (Computer Assisted Telephone Inter- Quality Target Target 2016 2016 Indicators Notes view), through call-backs to interviewees two/ factors 2015 2016 Actual difference (%) Customers’ perceived quality throughout the var- ious stages of a journey is measured through pe- three days after initial contact. Number of trains riodic customer satisfaction surveys. The score for each variable considered in the with delays of less than For medium and long haul transport, these peri- survey is on a scale of one to nine, where nine Punctuality within 30’ 91.0 % 91.0 % 95.6% 4.6% 30 minutes/number corresponds with the highest satisfaction and one of trains operated x odic surveys refer to journeys in Italy by passen- 100 (Standard B) gers aged 14 and up. Surveys are conducted with the lowest. Punctuality once every two months for a total of six surveys In the customer satisfaction survey, passengers Number of trains per year and entail 5,000 interviews with a who report a satisfaction rate equal to or greater with delays of less than 6 are considered satisfied. Punctuality within 60’ 96.0% 96.0% 98.4% 2.4% than 60 minutes/num- sample of passengers selected using a proba- ber of trains operated bility-based procedure in connection with three x 100 (Standard B) different aspects: traffic, station and brand8. Medium and long haul transport 100% (number of For regional transport, the periodic surveys cov- cancelled trains + er the same target (travellers aged 14 and up), In general, the results of the 2016 customer sat- Regular trains, number of limited isfaction survey show fairly contained changes Service net of trains that were trains + number of but the travel range is shorter (local/regional). 98.2% 98.2% 99.2% 1.0 % regularity limited, cancelled trains arrived over 120 Again in this case, the sample is created using with respect to 2015 data. or arrived over 120’ late minutes late)/ number a probability-based procedure but in connection There was a small drop in the percentage of of scheduled trains x passengers satisfied with their time on board 100 (Standard B) with the region, station and time of day. Surveys are conducted every two months for a total of six trains, which fell from 92.7% in 2015 to surveys per year and entail 7,666 interviews. 91.9% in 2016. Cleanliness (QME)* = Effectiveness Cleanliness 88.0% 88.0% 88.1% 0.1% 100% - % Non-com- Such a high number of interviews makes it pos- However, even the most significant changes of on board cleaning pliance sible to survey passengers travelling on the 35 were limited to a few percentage points. Satis- main regional railway lines throughout all of Italy. faction with punctuality, for example, which saw the largest decrease, went from 82.7% in 2015 (*) Average quality provided. The survey method used for both types of jour- neys (medium/long haul and local/regional) to 80.9% in 2016, while cleanliness, which saw consists of two stages: the highest increase, went from 88% in 2015 to ⁄⁄ face-to-face interviews at the station before the 88.9% in 2016.

8 Total interviews per year: 30,000.

Service quality includes an efficient and accessi- service desks that provide information and assis- ble sales network that allows customers to choose tance to customers, as well as last-minute ticket National and international transport: customer satisfaction from among different purchase options. In 2016, changing services. Trenitalia’s traditional sales network comprised Specific attention has also been devoted to the approximately 320 ticketing offices, over 1,900 quality of services for people with reduced mobil- Customer satisfaction – Time on board the train 2016 2015 2014 2016 vs 2015% self-service machines, 6,500 Italian travel agen- ity. To this end, the most effective solutions have cies and 1,750 international travel agencies, been identified to ensure people with reduced mo- Comfort 91.5% 92.2% 90.8% = -0.7 roughly 70,000 points of sale belonging to ex- bility can access stations and trains. These include Cleanliness 88.9% 88.0% 86.1% = 0.9 ternal distribution networks like Lottomatica’s LIS Trenitalia’s PostoBlu service for passengers with Punctuality 80.9% 82.7% 83.5% < -1.8 PAGA, Punto Servizi and Sisal Pay, and 16,700 disabilities and reduced mobility which entails

On board information 90.7% 91.7% 90.3% < -1.0 companies participating in the Corporate Travel seat assignment and booking when they request programme7. assistance at RFI’s Sale Blu or call centres, allow- Personnel 96.0% 96.0% 95.6% = 0.0 In addition to traditional ticketing, Trenitalia offers ing passengers to pay for and pick up their tickets Overall score 91.9% 92.7% 92.1% = -0.8 innovative channels like the website trenitalia. later using the available sales channels. Addition- com, the Trenitalia app and the website for hand- al details on services for people with reduced mo- held devices mobile.trenitalia.com, both of which bility are given in the section on RFI’s services. have been optimised for smartphones and tablets. Customers may pay for their tickets by credit card or PayPal. 7 The “Corporate Travel B2B” and “Corporate Travel Triango- In addition, the main stations also have customer lare” are railway ticket purchase programmes for companies.

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Regional transport >>Medium and long haul transport

The improvement trend in regional transport ser- vice customer satisfaction indicators, which be- Complaints and inefficiencies - National and international transport gan in previous years, continued in 2016. Overall, customer satisfaction with “time on 2016 vs 2016 2015 2014 board the train” improved by 3.6%, with 76.4% 2015

of passengers satisfied with this indicator in < Total complaints* 33,445 41,587 33,463 - 19.6%

2015 and 80% in 2016. < The aspects that improved the most were “com- Total inefficiencies* 29,928 44,129 34,058 - 32.2% fort”, up 3.6%, “punctuality”, up 3.3% and (*) Complaints are a form of written communication (e.g., letter, fax or e-mail) whereby customers report critical issues that they have noted and can explain the specific “cleanliness”, up 3.0%. inefficiencies. A complaint can correspond to more than one inefficiency.

In 2016, 33,445 complaints were managed Regional transport: Customer satisfaction in relation to medium and long haul transport services, showing a decrease of 19.6% on the previous year. Customer satisfaction – Time on board the train 2016 2015 2014 2016 vs 2015%

Comfort 79.3% 75.7% 73.8% < 3.6 Cleanliness 65.6% 62.6% 58.8% < 3.0 Analysis of complaints - % inefficiencies - < Punctuality 70.0% 66.7% 63.5% 3.3 National and international transport On board information 77.2% 74.4% 71.7% < 2.8 Personnel 91.2% 89.4% 85.1% < 1.8 2016 2015 2014 2016 vs 2015 % <

Overall score 80.0% 76.4% 74.0% 3.6 < Punctuality 20.6% 18.9% 21.7% 1.7 Regularity* 5.0% 3.8% 5.0% < 1.2

Commercial legislation 7.9% 9.0% 12.5% < - 1.1

The generally positive trend in customer satisfac- For the systematic and efficient management of < Comfort and cleanliness 9.4% 7.8% 7.9% 1.6 tion indicators among regional transport service complaints, Trenitalia relies on an organisation users was particularly evident at local level in spread throughout Italy consisting of: Post-sales legislation 5.9% 9.0% 6.8% < - 3.1

the autonomous province of Bolzen and the Fri- ⁄⁄ local offices that manage complaints paper- Trenitalia website 17.9% 20.5% 16.5% < - 2.6 uli Venezia Giulia and Umbria regions, where work and replies to customers; Sales using traditional channels 2.7% 3.2% 4.3% = - 0.5

9 < about nine out of ten passengers rated their “time ⁄⁄ a network of focal points capable of identify- Timetable and fares 17.2% 15.4% 10.2% 1.8 on board the train” positively. ing the issues that customers report and taking Information 4.0% 4.9% 5.5% = - 0.9 An analysis of these trends shows that the main the appropriate response measures. improvements on 2015 were seen in Emilia Ro- Call centres 2.1% 2.0% 1.6% = 0.1 magna (where satisfaction with time on board Complaints are managed using an IT platform Safety of people and things 1.1% 0.7% 1.0% = 0.4

Other (on-board/ground assistance, additional services, < the train is up 5.3%), the autonomous province that has been integrated in the Customer Re- 6.1% 4.6% 7.0% 1.5 of Bolzen (up 4.9%) and the regions of Pied- lationship Management system (Framework for services for the disabled, etc.) mont and (up approximately 4.5%). the management of relationships between cus- (*) Percentage of service regularity inefficiencies. Complaints about service regularity include reports from customers relating to cancelled trains, strikes and the type or On the other hand, the regions where the same tomers and the company), which makes it pos- number of carriages differing from the scheduled type or number. indicator declined on 2015 were Trento (down sible to handle the complaints in synergy with 0.9%), Valle d’Aosta (down 0.6%) and other customer contact channels (e.g., ticketing (down 0.4%). offices and assistance centres for customers in The main reasons for complaints are punctuality, commercial legislation. In 99.9% of cases, custom- the station, the website, the call centre, snail schedules, fares and the website, with the latter ers received a reply in less than 30 days. mail and e-mail). Currently, the most frequently showing a downwards trend on the previous year. Again in 2016, fair settlement10 remained the most Complaints management used is the website, through which most reports Additional decreases on 2015 were seen in rela- appropriate tool for rapidly and effectively resolving arrive. tion to aspects such as post-sales legislation and disputes with customers (663 cases were handled). The careful management of complaints is a valid See the Additional information section for more tool for interaction with customers because it details. enables the Group to monitor and analyse in-

efficiencies reported by customers and improve 10 9 Fair settlement is a procedure whereby a representative of and evaluate whether a satisfactory offer can be made to the performance. The focal points are in-house structures located throughout Italy responsible for managing complaints. one of the consumer groups that have signed a protocol and customer in order to settle the complaint amicably. a Trenitalia representative discuss a customer’s challenges

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 76 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 77 the environment information

>>Regional transport A comparison of the distribution of the various >>Analysis of the customer satisfaction types of complaints shows how the downwards trend In 2016, 22,722 complaints were received in trend in the number of complaints that began in relation to regional transport services, showing previous years continued in 2016. In 2016, 61.4% of the companies interviewed an increase of 15.5% on 2015. On the other hand, complaints about commercial said they were satisfied with the overall level of legislation increased, especially with respect to service offered by Trenitalia, with a 9.5% de- Complaints and inefficiencies – Regional transport the rise in the number of passengers travelling crease on 2015. without valid tickets who were made to pay their The most critical scores related to operational fare on board. aspects of the service (with a satisfaction rate 2016 2015 2014 2016 vs 2015 The response time in 98.2% of the cases was of 62.1%), while higher scores were recorded less than 30 days. < for commercial aspects and customer assistance Total complaints 22,722 19,670 22,711 15.5%

< (with a satisfaction rate of 80.5%), administrative Total inefficiencies 23,971 21,149 24,611 13.3% Cargo transport management (with 83.1% of customers satisfied) and the completeness and timeliness of the in- formation provided (with 71.5% of customers Analysis of complaints - % inefficiencies - Regional transport Cargo transport by rail requires a significant de- satisfied). gree of customisation to meet each customer’s 2016 specific needs. The importance of the service 2016 2015 2014 vs 2015 % components considered and the expected ser- >>Analysis of customers’ suggestions vice level vary depending on the product/indus- Punctuality 16.5% 18.2% 21.9% < - 1.7 try, the type of transport and the customer. Further- In 2016, the customers who were interviewed Regularity 10.4% 12.1% 18.4% < - 1.7

< more, customer satisfaction levels are influenced suggested that the areas needing the most im- Commercial legislation 18.5% 13.7% 12.8% 4.8 by specific market and economic conditions and provement were communications and the infor- Comfort and cleanliness 8.4% 10.4% 8.6% < - 2.0 comparisons with all forms of competition, includ- mation provided, as well customer assistance,

Post-sales legislation 4.0% 4.7% 3.5% < - 0.7 ing modal alternatives (rail and waterway) and although the customer satisfaction rates in these Trenitalia website 3.3% 3.5% 2.6% = - 0.2 the many other railway companies that are now areas were fairly positive. long-standing operators in Italy. Sales using traditional channels 12.8% 12.6% 10.3% = 0.2 Timetable and fares 6.9% 6.1% 4.0% = 0.8 Management of complaints >>Perceived quality: Information 5.4% 4.9% 5.3% = 0.5 and indemnity claims Customer Satisfaction Call centres 0.2% 0.3% 0.2% = - 0.1 The reorganisation of the complaints manage- = Safety of people and things 1.3% 1.4% 1.3% - 0.1 The customer satisfaction survey is based on a ment process began to more precisely channel Other (on-board/ground assistance, additional services, 12.3% 12.3% 11.1% = 0.0 sample of approximately 114 corporate compa- and track all complaints received and improve services for the disabled, etc.) nies that make up most of its turnover. customer listening capabilities. (*) Percentage of service regularity inefficiencies. Complaints about service regularity include reports from customers relating to cancelled trains, strikes and the type or The survey was conducted by telephone via CATI Given the characteristics of the cargo transport number of carriages differing from the scheduled type or number. (Computer Assisted Telephone Interviews) based business and the many different players involved on a structured questionnaire. (the corporate customer, intermediaries and for- The purpose of the survey is to obtain a score, eign railway companies), the process for man- on a scale of one to ten, of the main characteris- aging indemnities to compensate damage to tics of the service, such as operational aspects, cargo during transport is more complex than that sales structure availability, information provided for passenger claims, as cargo indemnity claims and administrative management. Suggestions take longer to manage. In particular, in 2016, for potential areas of service improvement are 171 claims were received and 42 have been also gathered. paid to date.

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>>Analysis of the trend in complaints taken in this respect and others are currently be- rete ferroviaria italiana >>Customer satisfaction: ing defined. survey techniques The analysis of complaints received in 2016 “Flexibility” (i.e., the ability to meet one-off spikes Quality promised and delivered: in demand) and “carriage availability” remain shows a trend in line with previous years. In- the service quality targets RFI’s customer satisfaction surveys investigate the deed, the number of complaints relating to “in- crucial aspects in 2016, accounting for 26% of the 2016 Service Charter quality of all station services and, in recent years, formation” rose, essentially due to customers and 25% of total complaints, respectively. additional customer satisfaction surveys have

whose expectations were not met with respect to Compared to the previous year, the complaints been added for specific service scopes such as, Each year, RFI publishes its Service Charter, re- the online “Track & Trace” cargo tracking system. concerning all other aspects reflect a normal, for example, assistance at stations for people porting prior year results and the targets it intends Certain improvement actions have already been physiological fluctuation. with disabilities and reduced mobility. to pursue in terms of the legally mandated quality The detailed results are used to improve the ser- levels for public transport services11. The Service vices offered and reported to management. Via Charter is addressed to travellers at stations - the independent market research companies select- Complaints – Cargo transport customers of the railway companies that offer ed through a European call for bids, RFI’s Market their transport services on the national railway Observatory12 has conducted customer satisfac- 2016 vs network - and to all residents in general who are 2016 2015 2014 tion surveys for ten years on a sample of the 755 2015 in some way affected by the infrastructure op- busiest stations in the network, covering nearly

< erator’s services and activities. For each public Total complaints 120 75 100 60% 95% of travellers. The analyses are carried out service area, the Service Charter presents a sum- Percentage of complaints with response times every month and monitor the trends of over 90 91% 91% 95% = 0% mary of the quality indicators that are the most in- under 30 days perceived quality indicators and the same num- dicative of all those measured each year through ber of delivered quality indicators via two types customer satisfaction surveys and in-house moni- of surveys: toring by specific company personnel and third monitoring of the perceived quality through parties. ⁄⁄ face-to-face interviews13; RFI achieved all the targets in the Service Charter monitoring of the quality offered using mystery for the various indicators in 2016, as detailed in ⁄⁄ customers14. the tables below. In particular, the results of the The specific surveys on the service quality of as- customer satisfaction surveys showed a general sistance to people with disabilities and reduced consolidation of the prior year levels of perceived mobility, which consisted of two separate half quality targets, which are linked to the percentage yearly campaigns, was conducted via 2,000 of customers who are satisfied with the services telephone interviews of 2,000 passengers who offered at stations, with rates ranging from 89% to used the services. 99%. These scores were due to investments and/ For additional information on the survey method- or improvement actions in accordance with the ology refer to Additional information. operating and infrastructure plan, confirming the improvement trend of recent years.

11 Quality factors are contained in the regulation and applied swers enabling customers to score their satisfaction with vari- based on the company’s characteristics: Prime ministerial de- ous aspects of the station and services, as well as open-end- cree of 30 December 1998 “Reference framework for the ed questions to gather personal feedback from interviewees preparation of the Service Charter (Mobility charter)”. regarding their dissatisfaction.

12 The most recent winners of the tender was RTI GN Research/ 14 Mystery customer inspections is a technique used by re- Scenari S.r.l. searchers who anonymously follow specific, previously estab- lished procedures based on a set of standard indicators to 13 Conducted using questionnaires with multiple-choice an- visit the station and evaluate its pros and cons.

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Train operation, network safety Connection and exchange and efficiency with other modes of transport

The quality factor relating to safety15 is an es- Customer satisfaction with modal integration sential parameter in assessing the quality of train improved significantly, with the percentage of operation by railway companies. customers reporting their satisfaction with con- nections between stations and urban/suburban public means of transport up to 89.9% (+1.2% on 2015).

Quality factor Indicator Parameter* 2016 Target 2016 Result

Do not exceed the NRV Number of FWSI** assigned to Italy in Level of railway Safety due to significant accidents/ respect to the “company Achieved Quality 2016 vs 2015 operation safety Indicator Parameter* 2016 Target 2016 Result trains x km as a whole” railway risk factor (% difference) category Perceived quality of the (*) Internal monitoring. station’s connection to public Percentage 85% 89.9% 1.2 (**) FWSI (Fatalities and Weighted Serious Injuries) is ERA (European Railway Agency) terminology. urban/suburban means of of satisfied people transport

Environmental Sustainability MODAL Perception of ease Percentage INTEGRATION and convenience of arrival 90% 94.7% 0.0 of services and operations of satisfied people at the station

Percentage The assessment of RFI’s commitment to the Authorised parking areas of stations 85% 94.1% 3.8 environment consists of monitoring the im- near the station with this service plementation of its environmental policy based on clear, specific actions/objectives (*) Customer satisfaction survey. to increasingly improve the protection of the environment, as a strategic corporate lever involving of the entire organisation and exter- nal stakeholders.

Quality factor Indicator Parameter* 2016 Target 2016 Result

Actions to implement “RFI’s environmental policy”: con- solidation of the environmental management system with the Commitment Implementation Achieved extension of ISO 14001:2004 certification to all RFI production units. FOCUS ON THE ENVIRONMENT Actions to implement “RFI’s environmental policy”: completion of the European call for bids for the supply of over 100,000 LEDs to improve Commitment Implementation Achieved energy efficiency at stations (platforms, underpasses, light towers and passenger buildings) and offices.

(*) Internal monitoring.

15 Safety is analysed in accordance with Legislative decree - National Reference Value) set for each member country no. 162/2007 and is measured based on the European by EC decisions upon proposal of the European Railway common safety targets (CST), using national maximum ac- Agency (ERA). ceptable values for the various railway risk categories (NRV

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Conditions, usability tion levels of platinum and gold stations - respec- Public information and comfort at stations tively 99.1% and 98.1%. Similarly, in all three classes of stations covered by the customer sat- Customer satisfaction with information to the The perceived quality of the conditions, usabili- isfaction surveys, the satisfaction rate with light- public about train operation in both normal and ty and comfort at stations is substantially steady ing in overpasses, underpasses and walkways critical conditions is up. The satisfaction rate re- overall, with a customer satisfaction rate of 95.7% rose. In particular, platinum stations increased to flecting passengers’ perception of information throughout the entire network, but which, when 98% (+1.1% on 2015), gold stations went up provided in critical train operating conditions the stations are analysed by class, shows a slight to 95.8% (+1.7% on 2015) and silver stations rose to 91.8% (+1.6% on 2015), increasingly drop for platinum stations (-1.4% on 2015). The - confirming the effectiveness of the investments narrowing the gap with information under normal opposite is true for cleanliness, with satisfaction pursued in the scope of the 500 stations project operating conditions (currently at 98.3%). levels substantially the same as in 2015 for the rose to 93.5% (+2.9% on 2015). Perceived se- entire network (98.2%), due to the optimisation curity, i.e., customers’ perception of stations as of operations, while silver stations saw their cus- safe places, also showed excellent results, with tomer satisfaction rate with cleanliness rise from 89% of passengers satisfied. 96.1% in 2015 to 97.5% nearing the satisfac- Quality 2016 2016 2016 vs 2015 Indicator Parameter* factor Target* Result (% difference)

Perception of information percentage under normal operating 90% 98.3% 0.8 INFORMATION of satisfied people ON TRAIN conditions Quality Station 2016 2016 2016 vs 2015 OPERATION Indicator Parameter* factor class Target* Result (% difference) PROVIDED AT STATIONS Perception of information percentage under critical operating 80% 91.8% 1.6 Platinum 90.0% 9 7.9 % -1.4 of satisfied people Perception of overall Percentage conditions comfort during time of satisfied Gold 90.0% 96.5% -0.1 TRAVEL at stations people (*) Customer satisfaction survey. COMFORT Silver 85% 93.4% 0.0 IN STATION Perception of lighting Platinum 90.0% 98.0% 1.1 AREAS Percentage in underpasses, of satisfied Gold 90.0% 95.8% 1.7 overpasses and raised people Services for passengers with disability ities that temporarily or permanently affect their walkways Silver 80% 93.5% 2.9 and reduced mobility mobility. Platinum 90.0% 99.1% -0.1 The Sale Blu centres established in 14 main sta- Perception of Percentage tions and open seven days a week from 6:45 CLEANLINESS cleanliness of areas of satisfied Gold 90.0% 98.1% 0.8 Passengers with disabilities and reduced mobility in the station people continued to report exceptionally high customer in the morning to 9:30 at night are the points Silver 85.0% 9 7. 5 % 1.4 satisfaction levels, with 99% satisfied with the of reference for these services at stations in the circuit of those offering assistance to people with Platinum 90.0% 99.7% 0.1 Sale Blu assistance services, reporting an aver- ADDITIONAL Perception of Percentage age score of 8.6 (on a scale of one to nine), reduced mobility. Each Sala Blu provides passen- GROUND commercial services of satisfied Gold 90,0% 99,0 % 0.1 gers with information on the assistance offered SERVICES as a whole people significantly higher than their ratings of other cus- Silver 90,0% 98,6% 0.3 tomer satisfaction indicators. by RFI at all stations in the circuit and books the services for them - which are available 24 hours (*) Customer satisfaction survey. Focus on passengers with reduced a day and operated by the company that won the contract for this service (European call for mobility bids), consisting of: ⁄⁄ meeting passengers at the station at an In late 2010, RFI began providing assistance agreed location or, for arriving passengers, at Quality 2016 2016 2016 vs 2015 services with an initial circuit of roughly 250 sta- their seat on the train; Indicator Parameter* factor Target* Result (% difference) tions. By the end of 2016, 275 stations through- ⁄⁄ accompanying them on board the departing out Italy offered these services. The stations are train or from the arriving train at the station or, No. of thefts Do not exceed selected on the basis of accessibility, the type of for those who are continuing on, on board an- Level of security of people reported the average value Achieved and things at stations by passengers of the three years trains that stop there (whether they are equipped other train, with wheelchairs for use at the sta- SECURITY in the year* considered for wheelchairs) and whether there is actual de- tion to/from the train available upon request; AT THE STATION mand from station users for this type of assistance ⁄⁄ boarding and deboarding the train using a lift percentage Perception of overall of satisfied 80% 89.0 % 0.2 services. for passengers in wheelchairs; security at the station people** RFI provides free assistance with boarding and ⁄⁄ any porterage service, upon request (one deboarding trains to all railway company pas- piece of luggage). (*) Polfer monitoring. (**) Customer satisfaction survey. sengers with physical, sensory or motor disabil- In 2016, approximately 306,000 services were

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 84 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 85 the environment information

provided (+4.5% on 2015), confirming the board trains, now also in use at the stations in >>Classification of stations >>Complaints management growth trend of previous years. Belluno, , , Isernia, Sas- In addition, in the year, assistance services to sari, Scalea and Villafranca di Verona; RFI uses different methods to commercially man- RFI considers customer complaints to be an in- people with reduced mobility were expanded ⁄⁄ lifts on ferries crossing the Messina Strait; age its passenger buildings based on standard valuable tool in understanding customers’ per- with the implementation of certain improvement ⁄⁄ introduction of a new call centre using VoIP criteria to more efficiently meet customer require- ception of the services it provides on the entire actions included in the targets of the 2016 Ser- technology, which has considerably improved ments. To this end, it has classified its stations in network and at stations, as well as an important vice Charter, such as: the efficiency of the telephone channel16, rais- four classes (platinum, gold, silver and bronze) tool in guiding company actions to improve qual- ⁄⁄ extension of assistance to people with reduced ing the percentage of customers who receive according to various factors, such as the number ity and prevent or resolve any critical issues18. mobility circuit to the Campobasso, Isernia responses on their first try to 90%; of passengers and users, the level of services of- and Scalea stations, as well as to passen- ⁄⁄ development of the information service called fered by the railway companies, commercial po- In 2016, as it is easier to contact RFI directly gers of the integrated HS train+road service “Infoaccessibilità stazioni” (on RFI’s website in tential and the size of the public areas. Stations online, reports/complaints increased by 32% to/from Siena and Perugia (Firenze SMN), the “Station accessibility” section) providing with active passenger services at 31 December (36% of inefficiencies). This increase is due to: L’Aquila (Roma Tiburtina), Potenza and Mat- information on accessibility services and fa- 2016 are broken down as follows: factors relating to the organisation of the com- era (Salerno), Cortina D’Ampezzo (Venezia cilities at the main stations in the network17. plaints process (more precise agreements signed Mestre); Courmayeur (Torino Porta Susa), and Stage two, which began in 2016, brought with the railway companies for the forwarding Madonna di Campiglio (Verona and Trento); the number of stations covered from just over of complaints for which the infrastructure opera- Number ⁄⁄ increase in the number of stations in the circuit 100 to 648. Class of stations tor is responsible and the start of the systematic with lifts for wheelchair-bound passengers to management of complaints on environmental im- Platinum* 19 pacts, which were previously handled at local Gold 102 level), the construction/roll-out of new lines, us- Silver 859 ers’ growing awareness of their rights as pas- Bronze 1,078 sengers, consumers and residents. The analysis of the different types of inefficiencies cited in the Quality 2016 2016 2016 vs 2015 Indicator Parameter* (*) Bari Centrale, Bologna Centrale and Bologna HS, Florence Santa Maria Novel- complaints and the distribution of the various factor Target* Result (% difference) la, Genoa Piazza Principe and Genoa underground, Milan Centrale, Milan Porta categories of complaints, shows that they are Garibaldi and commuter rail, Naples Centrale and Porta Garibaldi, Padua, Palermo Overall level of satisfaction substantially the same as in previous years, and percentage Centrale, Pisa Centrale, Rome Termini, Rome Tiburtina, Turin Porta Nuova, Venice with the assistance service of satisfied 90% 99.0% 0.5 Santa Lucia and Verona Porta Nuova. that the greatest increases in terms of absolute provided by the Sale Blu people* numbers are due to areas and services in the network ASSISTANCE See the Additional information section for more station with respect to comfort, architectural bar- AT STATIONS Actions to improve the details. riers, public information and security. The latter FOR assistance service: increase in No. of stations** At least 5 Achieved _ aspect was reported in particular with respect to PASSENGERS the number of stations included WITH REDUCED in the Sale Blu network the gaps at the Firenze S.M.No., Milano Cen- MOBILITY trale and Roma Termini stations. Actions to improve the assistance service: increase in the number of stations No. of stations** At least 5 Achieved _ included in the Sale Blu network Complaints and inefficiencies equipped with lifts

Actions to improve accessibility: work to improve 2016 2015 2014 2016 vs 2015 No. of works** At least 60 Achieved _ accessibility (platforms that are 55cm high, lifts) Total complaints received 4,383 3,325 3,244 < 31.8%

ACCESSIBILITY < OF AREAS Actions to improve Total inefficiencies 4,913 3,611 3,597 36.1% IN THE STATION accessibility: extension of the online information service (*) Each individual complaint can correspond to more than one inefficiency. Commitment** At least 600 Met _ on accessibility features at the individual stations (InfoAccessibilità)

(*) Customer satisfaction survey. (**) Internal monitoring.

16 Toll free number 800906060 from a domestic landline, lets, handicapped parking spaces, sound and/or visual public with another number 023232 for landlines and mobile information systems, accessible ticket counters and information 18 The complaints management process is supported by the 1371/2007 obliges the railway companies to establish a phones at the ordinary rates; on which platforms have raised platforms to board/deboard IT system called “ITINERE-RFI”, in accordance with a com- complaints management mechanism – RFI has an online sys- trains, which platforms can be reached from the station entrance pany procedure that defines the roles, responsibilities and tem called “RFI-Risponde”, which customers can access from 17 The information relates to whether there are assistance ser- without barriers (on the same floor, with a lift, with a ramp) and/ methods for interaction with other Group companies or other the www.rfi.it website. vices and their characteristics, whether there are accessible toi- or following tactile walkways. railway companies. Since 2012 - although Regulation (EC)

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 86 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 87 the environment information

Analysis of complaints – % distribution out of total inefficiencies Suburban transport in Umbria

Use of the service 2016 vs 2015 Use Use 2016 2015 2014 Socio-demographic group Age <= 25 at least three days % of passes of single ticket per week Comfort at the station 20.6% 20% 20% = 0.6 Suburban transport 64.0% 70.2% 69.5%* 24.4% Cleanliness at the station 6.6% 8% 8% < -1.4 in Umbria Architectural barriers and services for the disabled 8.9% 9% 6% = -0.1 (*) 39.5% of which with an annual student’s pass. Public information 31.7% 32% 33% < -0.3 Security at the station 12.6% 13% 14% = -0.4 In Tuscany, the interviewed customers were mainly Other 19.6% 18% 18% < 1.6 women (62.9%) and use the transport service for school (43.1%, 28.8% of which to go to school and 14.3% to go to university) or for work (40.2%). Busitalia - Sita Nord conducted on the areas in which Busitalia - Sita Nord operates: in Umbria (end of May – begin- Suburban transport in Tuscany ning of June 2016) – urban, suburban, railway, >>Quality delivered: Customer Care waterway and alternative mobility - and Tusca- Use of the service Use Use Socio-demographic group Age <= 25 at least three days ny (November 2016). The surveyed population of passes of single ticket In the annual Service Charter, the company re- consisted of all customers and the sampling was per week iterates the fundamental principles on which its stratified by customer pool and line, with ran- Suburban transport in Tuscany 32.4% 74.4% 64.3%* 24.5% services are based (equal rights, service conti- dom extraction. Information was gathered us-

nuity, engagement, efficiency and effectiveness) ing a structured, anonymous questionnaire that (*) 28.9% of which with a monthly pass. along with the rights of its transport service users. was mainly distributed on board the buses and In Tuscany, the Service Charters are published which passengers could fill out for themselves with the name and general information of the or, as in the case of urban transport in Umbria, The various aspects of the services offered, to be 4 companies belonging to the limited liability con- information was gathered through face-to-face rated on a scale of one to ten , show the following sortium companies (S.c.a.r.l.) based in Tuscany, interviews at stops. satisfaction rates. They were grouped into macro-fac- including Autolinee Chianti Valdarno S.c.a.r.l. In addition to socio-behavioural data, the sur- tors and calculated net of omitted responses and and Autolinee Mugello Valdisieve S.c.a.r.l., vey gathered data on customers’ perception of considering a score of 6/10 or higher as satisfied: which Busitalia – Sita Nord heads. The two con- the efficiency of the service provided, using a series of indicators to be scored from one to ten. sortium companies’ Service Charters are pub- Suburban transport lished on the websites www.acvbus.it and www. amvbus.it, as well as on the company website www.fsbusitalia.it. Tuscany Umbria Suburban transport In Umbria, delivered service quality is monitored Satisfaction % No answer Satisfaction % No answer using a series of indicators that are presented Tuscany /don’t know Umbria /don’t know in the Service Charter for the transport services >>Socio-demographic group (urban road, suburban road, railway, alternative of customers interviewed Security 88.6% 1.7% 90.5% 2.1% 1 mobility and waterway). on suburban transport Regularity and organisation 62.4% 2.7% 76.1% 4.3% See the Additional information section for more Modal integration 73.1% 9.4% 77.7% 10.2% details. The information on the service was gathered Cleanliness of vehicles and structures 62.9% 2.2% 65.8% 1.6% from a sample of 1,500 customers in Umbria Comfort 72.1% 3.6% 75.2% 1.9% 3 and 844 customers in Tuscany . Focus on the environment 76.2% 7.9% 80.8% 9.1% >>Perceived quality: In Umbria, the interviewed users were mainly Conduct of personnel 83.9% 3.1% 87.8% 0.9% Customer satisfaction women (57.5%) and use the suburban trans- port service mainly to go to school or university Commercial service 78.5% 1.3% 86.9% 2.1% In 2016, customer satisfaction surveys2 were (57.7%) or to go to work (21.6%). Passenger information 70.4% 2.3% 88.3% 2.4% Overall satisfaction 85.6% 1.1% 89.4% 1.2%

1 Alternative mobility refers to a variety of services like lifts, 3 The information was mainly gathered via the website escalators and cable railways. (39.3% in Umbria and 22.2% in Tuscany) and at stops (28.7% in Umbria and 39.1% in Tuscany). 4 The questionnaire asked: “Please rate the following service 2 The surveys were conducted by Mediatica S.p.A., based aspects from 1 (completely dissatisfied) to 10 (completely sat- in Milan. isfied)”.

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Urban transport Complaints management

With respect to urban transport services in Um- In 2016, 370 complaints and/or reports6 were bria, 2,700 customers were interviewed on the received relating to Busitalia in Tuscany, 3.9% services offered in Perugia, Terni, Foligno, Spo- more than in the previous year. 52.7% of the leto, Orvieto, and Todi. Interviewees were complaints were sent to the company by e-mail. mainly women (57.1%) under 25 years of age (35.1%) or between 26 and 45 (27.5%). 23.6% of those interviewed use the urban trans- Classification of complaints received port mainly to go to work, 28.3% to go to school in Tuscany7 or university and 28.6% in their free time or to go shopping. 55.4% use public transport at least three days a Classification of complaints received week. 44.8% use single tickets, while 36.5% use passes, with a preference for annual students’ % distribution out % distribution out passes (15.4%). 2016 vs 2015 of total aspects of total aspects % The satisfaction rate for the urban transport ser- reported in 2016 reported in 2015 vice in Umbria was 95% in 2016. The service aspects proposed by interviewers Service regularity 32.6% 29.2% 3.4 were scored on a scale of one to ten5, and re- Punctuality 28.8% 18.7% 10.1 ceived the following satisfaction rates, grouped Company/customer relationship 10.1% 14.5% -4.4 into macro-factors. Travel comfort 9.9% 15.6% -5.7 Passenger information 8.9% 6.8% 2.1 Service gaps 4.4% 5.5% -1.1 Urban transport Tickets 2.6% 4.0% -1.4 Security 1.2% 3.7% -2.5 Umbria Cleanliness 1.0% 0.0% 1.0 Other 0.6% 2.0% -1.4 Satisfaction % No answer/ Umbria don’t know

Security 94.5% 1.9% The analysis of the individual aspects report- to inform customers about the many temporary Regularity and organisation 85.8% 10.4% ed shows an increase in complaints regarding changes to roadways, like detours and closed Modal integration 84.1% 23.6% punctuality which, together with the increase roads. The positive trend entailing a decrease in Cleanliness 80.3% 0.6% in complaints about regularity, is mainly due to the number of complaints about the company/ Comfort 84.2% 1.5% the many construction sites throughout Florence customer relationship and comfort continued in in connection with the construction of the new 2016. Focus on the environment 89.2% 20.1% trolley bus lines on ring roads and key roads to Conduct of personnel 93.5% 2.0% access the city. Accordingly, complaints about In Umbria, 471 complaints were received in Commercial service 91.9% 3.0% information also increased as a result of the need 20168, down 6.9% on 2015. Passenger information 94.7% 1.5% Overall satisfaction 95.0% 1.3%

In Umbria, another survey was conducted on alternative mobility (satisfaction rate of 96.2%), railway transport (satisfaction rate of 76.6%) and waterway transport (satisfaction rate of 97.4%). 6 The total number of complaints does not include anonymous 8 Data refer to road, rail, waterway and alternative mobility reports, which are impossible to manage by responding to services. the customer.

7 The 2015 and 2016 data include reported inefficiencies 5 The questionnaire asked: “Please rate the following service directly relating to Busitalia–Sita Nord that were received in aspects from 1 (completely dissatisfied) to 10 (completely the year. The percentages are in proportion to total reported satisfied)”. aspects.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 90 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 91 the environment information

Classification of complaints received ataf gestioni customers and the quality that they perceive and in Umbria to ensure compliance with the target standards set for the following year. Quality delivered: Customer Care

Classification of complaints received The Service Charter indicators refer to ATAF&LIN- >>2016 Service Charter – ATAF&- EA, the consortium company that manages LPT LI-NEA S.c.a.r.l. in the Florence metropolitan area and comprises % distribution % distribution 2016 vs 2015 1 out of total out of total (%) Ataf Gestioni S.r.l. and LI-NEA S.p.A. The following tables show the main indicators complaints in 2016 complaints in 2015 ATAF&LI-NEA uses the following factors and re- published in the Service Charter, along with the lated indicators to track the quality it offers to results achieved2. Service regularity 18.26% 18.97% -0.71 Punctuality 24.63% 19.17% 5.46 Safety Passenger information 0.42% 0.79% -0.37 Company/customer relationship 15.29% 18.77% -3.48

Travel comfort 7.22% 4.94% 2.28 Indicator Unit of measure 2016 Result 2016 Target 2015 Result Tickets 2.55% 0.79% 1.76 Service gaps 9.34% 16.21% -6.87 1 claim for every Security 2.76% 1.38% 1.38 Accident rate No. of claims / km of service provided 19,305.47 km decrease 0.58* Cleanliness 5.73% 5.73% 0.00 travelled Focus on the environment 0.85% 1.38% -0.53 Other 12.95% 11.86% 1.09 No. of vehicles 15+ years old / total vehicles 12.0% decrease 7.4%

No. of vehicles between 37.0 % decrease 45.3% 10 and 15 years old / Total vehicles Most of the complaints received relate to punctu- September 2016, with a reduction in the max- Vehicle age No. of vehicles between ality and service regularity. imum train speed to 70 km/h and mandatory 15.0% decrease 16.3% Complaints about punctuality are mainly due to stops at railroad crossings without barriers. 5 and 10 years old / Total vehicles two factors that arose in the year: In particular, there was a decrease in the number No. of vehicles between 36.0% increase 31.0% ⁄⁄ non-routine maintenance on the Perugia - A1 of complaints received in connection with service 0 and 5 years old / Total vehicles motorway connector, which had serious reper- gaps due to rescheduling/service reductions at cussions on ordinary roadways and, conse- the request of the customer body. (*) The 2015 data were calculated using a different unit of measure than in 2016 (no. of claims / km of service x 10,000).. quently on the LPT service; There was an improvement in the number of com- ⁄⁄ introduction of railway infrastructure mitigation plaints received in relation to the relationship be- measures imposed by ANSF beginning in tween the company and customers. Service regularity and punctuality

Indicator Unit of measure 2016 Result 2016 Target 2015 Result

actual km / scheduled km 95.9% Maintenance 95.9% Reliability Shunting vehicles available from 7:00 - 9:00 31 Maintenance 29

No. of trains that arrived between 5 and 15 minutes late 11.6% Decrease 13.0% / Total trains

No. of trains that arrived between 15 and 30 minutes Punctuality 2.9% Maintenance 3.3% late / Total trains

No. of trains more than 30 minutes late / Total trains 1.0% Maintenance 1.2%

1 Ataf Gestioni S.r.l. owns 77.88% of the consortium com- 2 The Service Charter is updated each year and the complete pany ATAF&LI-NEA and LI-NEA S.p.A. owns the remaining text is published on the website www.ataf.net. 22.12%.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 92 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 93 the environment information

Commercial and front office service level The various aspects of the services offered, to be rated on a scale of one to ten5 show the fol- lowing satisfaction rates. They were grouped Indicator Unit of measure 2016 Result 2016 Target 2015 Result into macro-factors6 and calculated net of omitted responses and considering a score of 6/10 or higher as satisfied. The overall rate of satisfaction Points of sale No. of POS / towns served 139 Maintenance 132 was 84.2%7.

On-board ticket No. of lines with on-board ticket sales / Total lines 100% Maintenance 100% sales SATISFACTION RATE (%) Response time (or complaints Maximum response time 30 days 30 days 30 days and requests) 2016 No answer/ Result don’t know

Passenger information 87.2% 1.3% Focus on the environment Professionalism and courtesy of personnel 81.6% 2.7% Level of commercial service 80.9% 0.8%

Indicator Unit of measure 2016 Result 2016 Target 2015 Result Additional services on board and on the ground 79.8% 1.8% Security 77.0% 1.8% No. of Euro 6 diesel vehicles/ Vehicles 40% Maintenance 49%* Modal integration 72.1% 46.2% Total diesel vehicles with a low Focus on the environment 71.4% 20.8% environmental impact No. of electric vehicles/Total vehicles 3.4% Maintenance 2.5% Service regularity and organisation 67.9% 6.8% Cleanliness of vehicles and structures 67.0% 1.6% (*) The 2015 data also considered EURO 5 and EEV vehicles. Travel comfort on board and along the route* 64.3% 2.6% (*) This also includes the accessibility of vehicles (how easy it is to board and deboard, visual/sound alerts).

Perceived quality: >>Florence urban transport customer Customer satisfaction satisfaction results

In 2016, customer satisfaction surveys were con- In November 2016, 1,900 ATAF customers3 ducted analysing a wide range of lines and con- who regularly take the bus, especially for work sisting of face-to-face interviews at four service (38.4%) and school (35.7%, 25.3% of whom hubs, in order to cover the entire varied scope of for university and 10.4% to go to school) were ATAF. In addition to socio-behavioural data, the interviewed.4 survey gathered data on customers’ perception of the efficiency of the service provided, using a series of indicators to be scored from one to ten.

Socio-demographic groups of the interviewed customers

SOCIO-DEMOGRAPHIC Use of service more Use Use of monthly Use of hourly Age <= 35 GROUP than 5 days per week of annual pass pass ticket*

Florence urban transport 47.4% 49.8% 21.2% 36.6% 19.2%

(*) 90-minute ticket – on-board ticket – text message ticketing.

5 The questionnaire asked: “Please rate the following service as- personnel” were changed from previous years. pects from 1 (completely dissatisfied) to 10 (completely satisfied)”. 3 Survey by Mediatica S.p.A. – Milan. 4 The service information is mainly gathered at stops (46.9%), 7 The questionnaire asked: “What is your overall opinion of via the ATAF 2.0 app (24.7%) and through the website 6 In 2016, the composition of sub-items in the macro-factors the consortium’s service, from 1 (completely dissatisfied) to (21.7%). “Passenger information” and “Professionalism and courtesy of 10 (completely satisfied)?”.

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Complaints management busitalia veneto

The management of complaints and reports Quality delivered: Customer Care from customers is a crucial tool for monitoring the trends underlying inefficiencies and identi- In the annual Service Charter, the company re- fying solutions to improve services through the iterates the fundamental principles on which its participation of the structures involved. In 2016, services are based (equal rights, service conti- 4,347 complaints/reports were received8. nuity, engagement, efficiency and effectiveness) along with the rights of its transport service users.

Classification of complaints received* 2016 Service Charter Services

% distribution % distribution Suburban transport in the 2016 vs 2015 of total aspects of total aspects Suburban transport in the province of Rovigo (%) Veneto* reported in 2016 reported in 2015 Urban transport in Padua Urban transport in Rovigo Service regularity 37.9% 42.8% -4.9 (*) 2015 data refer to the services previously operated by Busitalia - Sita Nord and APS Holding and to the services operated by Busitalia Veneto. Punctuality 7.4% 7.6% -0.2 Passenger information 7.5% 7.6% -0.1 Company/customer relationship 17.3% 17.9% -0.6 >>2016 Service Charter – Busitalia Travel comfort 5.7% 5.2% 0.5 Veneto Tickets 15.4% 8.7% 6.7 Service gaps 2.5% 3.7% -1.2 Punctuality improved on 2015 in all service cat- Security 2.0% 2.1% -0.1 egories except for trolleys. Cleanliness 0.2% 0.4% -0.2 The environment 0.6% 0.3% 0.3 PUNCTUALITY Other 3.7% 3.7% 0.0

(*) The proposed classification consists of a grouping of different aspects relating to the macro-categories used for Busitalia-Sita Nord. The percentages are in proportion to total reported aspects. 2016 2016 2015 2016 vs 2015 Actual Target Actual %

Padua suburban transport There was a dramatic decrease in the number a percentage of the total, especially due to the % on-time journeys 95.7% 94.8% 94.7% +1.0 of complaints: -21.5%. The analysis of individu- malfunctioning of one of the most widely used % trains with delays of >15’ to <=30’ 3.8% 4.5% 4.5% -0.7 al macro-factors shows a large decrease in the passes because of its practicality and low price % trains with delays of >30’ 0.5% 0.7% 0.8% -0.3 number of complaints relating to service regulari- (Carta Agile). However, even ticket complaints Padua urban transport - road ty (despite the many work sites in Florence) and, were down compared to the number of com- % on-time journeys 97.0% 94.0% 94.0% +3.0 to a lesser extent, a decrease in nearly all other plaints received in the previous year. % trains with delays of >5’ to <=15’ 2.2% 5.1% 5.1% -2.9 factors. Complaints about tickets increased as % trains with delays of >15’ 0.8% 0.9% 0.9% -0.1 Padua urban transport - trolley % on-time journeys 87.8% 90.6% 90.6% -2.8 % trains with delays of >4’ to <=8’ 9.5% 7.6% 7.6% +1.9 % journeys with delays of >8’ 2.8% 1.8% 1.8% +1.0 Rovigo suburban transport % on-time journeys 97.7% 96.9% 96.9% +0.8 % trains with delays of >5’ to <=15’ 1.6% 2.4% 2.4% -0.8 % trains with delays of >15’ 0.6% 0.7% 0.7% -0.1 Rovigo urban transport % on-time journeys 99.8% 99.8% 99.8% 0.0 % trains with delays of >5’ to <=10’ 0.1% 0.1% 0.2% -0.1 8 Reports from both identified and anonymous senders % journeys with delays of >10’ 0.1% 0.1% 0.1% 0.0

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 96 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 97 the environment information

With respect to service regularity both on the sub- vious year for the road and the trolley segments, The rate of accidents for which Busitalia Veneto urban lines in Padua and the urban and suburban respectively. was at fault, consisting of accidents suffered dur- lines in Rovigo, once again in 2016, 100% of ef- The variations in sales network results were slight ing line operation, worsened for urban transport fective runs were according to schedule (with the in 2016: while Padua urban transport sales grew, and improved for suburban transport. exception of strikes and force majeure) and the Padua and Rovigo suburban transport sales de- number of shunting means was in line with service creased. Rovigo urban transport resales remained ACCIDENT RATE recovery requirements. The urban service regularity unchanged. The areas served did not change and, in Padua is equal to 99.0% for both the road and accordingly, the indicators for town and cities, res- trolley segments, down 0.1% and 0.5% on the pre- idents and the network are substantially the same. 2016 2016 2015 2016 vs 2015 Actual Target Actual %

Padua suburban transport accidents suffered/million km 2.5 4.9 4.9 - 2.4 Padua urban transport - road EXTENSION OF THE SALES NETWORK accidents suffered/million km 19.4 17.2 17.2 +2.2 Padua urban transport - trolley accidents suffered/million km 27.2 13.9 13.9 + 13.3 2016 2016 2015 2016 vs 2015 Actual Target Actual % Rovigo suburban transport accidents suffered/million km 2.6 2.0 4.0 -1.4 Padua suburban transport Rovigo urban transport no. of resales 643 648 648 -5 accidents suffered/million km 7.4 5.4 5.5 + 1.9 no. of resales/network km 0.6 0.6 0.6 0.0 no. of resales/cities served 4.4 4.4 4.4 0.0 no. of resales/millions of residents 343 344 344 -1 % of trains with on-board ticket sales with surcharge 100% 100% 100% 0 The results of the company’s focus on the envi- ronment improved on the previous year with the Padua urban transport arrival of 28 new Euro 6 vehicles. no. of resales 501 487 487 +14 All targets were achieved and the Padua urban no. of resales/network km 2.8 2.8 2.8 0.0 transport targets were exceeded by 3%. no. of resales/1,000 residents 1.4 1.4 1.4 0.0 % of runs with on-board ticket sales with surcharge (excluding 100% 100% 100% 0 trolleys) FOCUS ON THE ENVIRONMENT Rovigo suburban transport no. of resales 128 132 132 -4 no. of resales/millions of residents 175 180 180 -5 2016 2016 2015 2016 vs 2015 no. of resales/cities served 2.2 2.2 2.2 0.0 Actual Target Actual % no. of resales/network km 0.2 0.2 0.2 0.0 Padua suburban transport % of trains with on-board ticket sales with surcharge 100% 100% 100% 0 Euro2 and higher 99% 99% 97% + 2 Rovigo urban transport Padua urban transport no. of resales 79 79 79 0 Euro2 and higher 96% 93% 90% + 6 no. of resales/1,000 residents 1.5 1.5 1.5 0.0 Rovigo suburban transport no. of resales/network km 0.9 0.9 0.9 0.0 Euro2 and higher 97% 96% 92% + 5 % of trains with on-board ticket sales with surcharge 100% 100% 100% 0 Rovigo urban transport Euro2 and higher 97% 97% 83% + 14

Perceived quality: Customer satisfaction a structured, anonymous questionnaire that was mainly distributed on board the buses and which In December 2016, customer satisfaction surveys passengers could fill out for themselves or, as in were conducted1 on the user pools where Busi- the case of urban transport on trolleys (Padua) talia Veneto operates. The surveyed population and road (Padua and Rovigo), information was consisted of all customers and the sampling was gathered through face-to-face interviews at stops. stratified by customer pool and line, with ran- In addition to socio-behavioural data, the survey dom extraction. Information was gathered using gathered data on customers’ perception of the efficiency and effectiveness of the service pro- vided, using a series of indicators to be scored 1 The surveys were conducted by Mediatica S.p.A., based in Milan. from one to ten.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 98 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 99 the environment information

Suburban transport Urban transport

750 customers were interviewed with respect to 1,050 customers were interviewed about ur- suburban transport in Padua and Rovigo. They ban transport in Padua3 and Rovigo. They were were mainly female (57.6%) and under the age mainly female (53.1%) and between 19 and 25 of 18 (27.2%) or between 19 and 25 (20.0%). years old (26.8%), between 26 and 35 years 39.3% of interviewees use the suburban trans- old (19.0%) or between 36 and 45 years old port service mainly to go to school (27.7%) or (19.0%). 35.2% of interviewees use the urban university (11.6%), while 32.5% use it to go to transport service mainly to go to work and 35% work. 74.7% use the service at least three days to go to school (15.0%) and university (20%). a week, mainly with a monthly pass (37.9%) or 63.5% use the public transport service at least single tickets (33.9% of interviewees). three days a week, mainly with a single ticket Information on the service is mainly gathered at (40.2%, including the text message ticket) or stops (54.1%) and on the website (45.6%). monthly pass, which 27.5% of interviewees re- ported using. Information on the service is mainly gathered at >>Customer satisfaction with suburban stops (39.2%) and via the website (32.2%). transport

The various aspects of the services offered, to be rated on a scale of one to ten2, show the >>Customer satisfaction with urban following satisfaction rates. They were grouped transport into macro-factors and calculated net of omitted responses and considering a score of 6/10 or The various aspects of the services offered, to higher as satisfied. be rated on a scale of one to ten4, show the following satisfaction rates. They were grouped into macro-factors and calculated net of omitted Suburban transport responses and considering a score of 6/10 or higher as satisfied.

Satisfaction % No answer % Urban transport Passenger information 94.9% 2.5% Security 94.5% 0.8% Satisfaction % No answer % Professionalism and courtesy of personnel 94.3% 11.7% Level of commercial service 93.3% 0.5% Passenger information 93.4% 1.9% Focus on the environment 90.6% 15.2% Level of commercial service 92.9% 1.0% Travel comfort on board and along the route 88.0% 2.2% Professionalism and courtesy of personnel 92.0% 2.4% Service regularity and organisation 83.6% 6.5% Security 85.7% 1.8% Cleanliness of vehicles and structures 77.9% 0.5% Focus on the environment 85.1% 12.9% Modal integration 74.4% 14.5% Cleanliness of vehicles and structures 80.6% 0.3% Travel comfort on board and along the route 79.7% 0.9% The satisfaction rate for suburban transport in Service regularity and organisation 76.7% 4.2% Veneto was 86.3% in 2016. Modal integration 73.0% 11.0%

The urban transport service in Veneto showed a total satisfaction rate of 85.7% in 2016.

2 The questionnaire asked: “Please rate the following service as- 3 Both trolley and bus passengers were considered in Padua 4 The questionnaire asked: “Please rate the following service as- pects from 1 (completely dissatisfied) to 10 (completely satisfied)”. urban transport. pects from 1 (completely dissatisfied) to 10 (completely satisfied)”.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 100 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 101 the environment information

Complaints management Travel safety G4-15 G4-PR1 G4-PR2 989 complaints and/or reports were received in 2016, 85% of which via e-mail and 15% of Train traffic safety which using online forms. 46% of the reports re-

ferred to suburban lines, 39% to urban lines and The Group companies are constantly committed to the remaining 15% could not be attributed to any ensuring the utmost level of safety for customers, the specific service. community and employees, focusing on a culture of Classification of complaints received risk prevention and involving all players. RFI and Trenitalia each manage railway traffic safe- ty in connection with train operation to the extent % distribution % distribution 2016 vs 2015 that it is concerned. out of total aspects out of total aspects % reported in 2016 reported in 2015

Service regularity 27.8% 39.8% -12.0 Traffic safety: RFI

Punctuality 21.4% 19.0% 2.4 The main technologies used to guarantee train Company/customer relationship 16.2% 9.4% 6.8 traffic safety are described below. Travel comfort 12.8% 16.6% -3.8 Passenger information 6.9% 6.3% 0.6 INNOVATIVE TRAIN SPEED PROTECTION TECHNOLOGIES Tickets 6.4% 3.8% 2.6 Service gaps* 3.5% 1.2% 2.3

Security 2.5% 0.9% 1.6 CCS, CCS-HS, CCS-M and CTC, remote operation controls 12,625 km Other 1.2% 1.6% -0.4 TSCS (train speed control systems) 12,083 km Cleanliness 0.8% 0.9% -0.1 DSS (driving support systems) 4,014 km Access to the service 0.3% 0.2% 0.1 ERTMS (interoperability on the HS/HC network) 704 km Vehicles 0.2% 0.2% 0.0 GSM-R telecommunications (which can be used for emergency calls) 11,384 km (*) Relating to reports of requests for changes or to expand the current service.

The most critical aspects within the various catego- ries were the following: CCS - Command and control systems ing governance procedures. The system makes it CCS - Command and control systems, as they have possible to send and receive commands between evolved on the high speed lines (CCS-HS), are in- manned control rooms and unmanned peripheral novative integrated remote management systems units. The lines that are equipped with peripheral for train operation, line and station device diag- command units controlled using multi-station com- Aspect 2016 result nostics, fault prevention, maintenance, information mand and control devices feature the most sophisti- to the public, video surveillance and for simplify- cated multi-station CCS (CCS-M). Delays 15.2% Missed journeys 14.4% Conduct/courtesy 10.8% Missed stops 9.9% Overcrowding 7.0%

The absolute number of complaints fell 11% on 2015, with the following trends: the types of com- plaints that significantly decreased were those relat- ing to comfort (overcrowding), while those that in- creased the most related to the company/customer relationship (conduct/courtesy of personnel).

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 102 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 103 the environment information

CTC systems - centralised traffic control with all the information they need for optimal con- levels are consolidated in one single certificate UIC level, those set forth in UIC Fiche A9 are systems duction by activating the emergency brakes if the made out to the company. The main scopes of also adopted1. Accordingly, ERA data, unlike CTC systems, the predecessor to remote com- train’s speed exceeds the allowed maximum. current RFI certification are summarised under the UIC data, include accidents that occurred mand systems, makes it possible to remotely con- “Management systems” in the section on Addi- on tracks where operation has been temporarily trol and supervise a large number of unmanned Level 2 High Density (HD) ERTMS tional information. suspended for maintenance work. Furthermore, stations and stops from a central command unit. This is the level 2 ERTMS used in high traffic den- Railway accidents on the national railway in- under international benchmarking criteria, the It is mainly used on regional and inter-regional sity situations making it possible to reduce the frastructure managed by RFI are monitored by “railroad crossing” category includes both col- lines. distance between trains. This system, which over- inputting and analysing data in the danger da- lisions with obstacles on the crossing (vehicles, laps the pre-existing distancing system, is based tabase, recorded in accordance with current etc.) and trains hitting pedestrians crossing the TSCS - train speed control systems on short sections (level 2+ ERTMS) to improve international criteria. tracks inappropriately even when the crossing Train speed control systems are sophisticated the performance of the existing railway infrastruc- is closed. systems, in line with the new European standard ture, increasing its capacity and availability, in In particular, in the accident rate benchmarking for interoperability between railway networks accordance with the technical specifications of at ERA (European Railway Agency) level, in or- In 2016, there were 86 significant accidents, (ERTMS - European Rail Traffic Management Sys- European interoperability. der to calculate accidents, the parameters estab- confirming the downwards trend (98 in 2015 tem), which protects train speed at all times with lished by the Ministerial decree of 26 June 2015 and 109 in 2014), with some of the best per- respect to the parameters set by signals (maxi- Experimenting with the use of satellite systems - “Implementation of the European Commission’s formances since 2006 (e.g., train collisions mum speed permitted on the line and speed per- for locating and distancing in conjunction Directive 2014/88/EU of 9 July 2014, amend- and derailments). mitted for the type of train), activating the emer- with ERTMS ing Directive 2004/49/EC” are used, while at gency brakes when the limits are exceeded. The potential of satellite systems is also being evaluated for its use in the railway sector for sig- DSS - driving support system nalling, telecommunications, diagnostics, critical They are systems that control the consistency of systems and related safety. As part of SATLOC, a RAILWAY ACCIDENT STATISTICS* the drivers’ recognition of signals along the line project promoted by UIC, and the “3inSAT” pro- and the actual status transmitted on board. The ject co-financed by the European Space Agency 2016 2015 2014 control system for fixed light signals is based on (ESA) and carried out in the railway sector (indus- micro-wave transponder transmission. The DSS is try, Manager company infrastructure and railway Absolute Per billion Absolute Per billion Absolute Per billion value train-km value train-km value train-km used on low traffic density lines that use diesel for companies), the feasibility of using satellites for traction. The system protects the train speed by railway operation was evaluated with a business Train collision with railway vehicle 0 0 1 3 1 3 Train collision with an obstacle blocking sending information between land and on-board case analysis of its application on low traffic den- 1 3 4 14 8 26 the tracks devices, activating the emergency brakes when sity lines and regional lines. In collaboration with Train derailment 1 3 3 9 4 12 the train speed exceeds limits. a few companies in the transport sector, RFI has Railroad crossing accident, including acci- 9 26 19 57 16 48 developed an ERTMS system with satellite loca- dents involving pedestrians at crossings Level 1 ERTMS with infill radio tion and an integrated TLC network based on IP Injury to people involving rolling stock in Level 1 ERTMS with infill radio is the first com- (ERSAT). The purpose is to consolidate the use motion, excluding suicides and attempted 70 200 67 197 74 224 mercial application of the level 1 ERTMS/ETCS of two standard European systems: satellite and suicides (European Rail Traffic Management System/ ERTMS. In 2016, the initial results of “ERSAT over Fire on board rolling stock 0 0 2 6 0 0 European Train Control System) in Italy and the SATellite” pilot testing in Sardinia were released. Other types of accidents 5 14 2 6 6 18 first in Europe with infill-radio based on GSM-R. The system, was implemented in the Domodosso- GSM-R (*) Railway accident statistics as of May 2017 la-Novara line (Corridor 1) and Swiss bordering GSM-R, a system developed for the integration/ regions, also in order to achieve interoperability interoperability of European railway traffic, per- between Italy and Switzerland. It requires the mits both traditional voice and data communica- integration of hardware and software on the tions and the exchange of information between ground in the existing TSCS system. the most advanced technological systems for sig- nalling and traffic control. Level 2 ERTMS/ETCS Since 2003, RFI has used the integrated safe- Due to the interoperability of European networks, ty management system (ISMS), a control model the level 2 ERTMS/ETCS enables foreign trains in which safety is handled in the scope of train to operate on Italian lines based on information traffic and railway operation, labour and the en- defined by a common language and managed vironment. The control is carried out at both a using interoperability components on the ground central and a local level. The central ISMS level and on board. This innovative technology over- plays a guiding and control role. The local level 1 The two criteria adopted are consistent with respect to the “Significant damage to material, tracks, other installations, or definition of a “significant accident”. the environment”, damage is considered as significant when comes the limits to international operations aris- receives directions from the central level and fol- “Significant accident” means any accident involving at least exceeding €150,000. ing from the different systems used in the various lows them by effectively and efficiently following one rail vehicle in motion, resulting in at least one killed or “Extended traffic disruption”, an interruption of traffic on a countries. ERTMS/ETCS also provides drivers the guidance. The certificates of the various local seriously injured person, or in significant damage to stock, section of line for more than six hours. track, other installations or environment, or extensive disrup- tions to traffic. Accidents in workshops, warehouses and de- pots are excluded.

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Analysing the causes of these accidents, out of In its internal analyses, RFI categorises accidents a total of 86 events, roughly 94% were due to as “Typical”, i.e., those strictly connected with reasons outside the scope of the railway system, railway traffic, and “Atypical”, i.e., those due i.e., to the inappropriate conduct of people or to inappropriate conduct by people. “Typical” to external events that were, in any case, excep- accidents give a fairer picture of railway system tional (such as particularly intense atmospheric safety, as they cover events such as collisions, events), while the remaining 6% were due to in- derailments, fires and collisions between rolling ternal reasons, i.e., accidents attributable to the stock in motion and road vehicles at railroad railway companies or operator. crossings. In 2016, in accordance with the criteria es- Deaths increased in 2016 (+28.3%) due to tablished by the UIC, 10 “Typical” accidents the deaths of other categories of people (other were recorded, compared to the 17 recorded deaths), which include trains running over people in 2015, therefore with a decrease of roughly on the line, in the service areas and at railroad 41%. “Atypical” accidents, which substantially crossings, regardless of liability. On the other refer to when trains run over people or when hand, the number of people injured (excluding travellers fall from trains in motion, numbered 75 accidents classified as attempted suicides) im- in 2016, compared to 81 in 2015. The cal- proved on 2015, with a significant decrease in culation of “Atypical” accidents includes when all categories. people using train services are hit at railroad crossings.

ACCIDENTS CONSEQUENCES OF RAILWAY ACCIDENTS INVOLVING PEOPLE ON THE RFI NETWORK

Trend 2016 2015 2014 2016 2015 2014 2016 vs 2015

Death of employees* 0 0 3 = Typical accidents 10 17 25

Death of passengers** 0 2 1 <

< Atypical 75 81 83 Other deaths 59 44 49

- railroad crossing users 5 8 7 < - other people on the pavement 0 0 0 = - other people not on the pavement 0 0 0 = In 2016, the number of accidents and non-com- - people crossing the tracks inappropriately 54 36 42 < pliance with no entry signals were down on the Total deaths*** 59 46 53 < previous year.

Injured employees 0 1 3 <

Injured passengers 3 7 1 < TREND IN NO ENTRY SIGNALS

Other injuries 21 29 37 <

- railroad crossing users 4 7 9 < 2016 2015 2014 - other people on the pavement 0 0 0 = - other people not on the pavement 0 0 0 = Trains continuing through no entry signals 14 19 20

- people crossing the tracks inappropriately 17 22 28 <

Total injuries**** 24 37 41 <

(*) Employees: the people who work for the railway and are in service at the time of the accident. They include the train crew and personnel managing rolling stock and infrastructures (including contractors’ and independent contractors’ personnel). (**) Passengers: any person, other than the on-board crew, travelling on the train. Injury statistics include those involving passengers attempting to board/deboard moving trains. (***) Death: any person who dies immediately following or within 30 days of an accident, excluding suicides, death from natural causes or homicide. (****) Injuries (serious): any person injured in an accident and hospitalised for more than 24 hours, excluding suicide attempts.

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Based on the consideration that not all accidents as to strengthen organisational and technical the event of an emergency or if there are ob- consists of: are equal in that some are due to internal railway oversight of maintenance processes. stacles on the railway tracks; ⁄⁄ accident indicators to monitor accidents; system weaknesses while others are the result of The main supervisory and monitoring activities in ⁄⁄ checks of pre-signal signs and light/sound ⁄⁄ performance indicators to monitor the danger- third party liability or “natural” occurrences that 2016 are listed below: signals at railroad crossings, with the concur- ous events; are difficult to manage, in 2016, the UIC de- ⁄⁄ checks that signals are visible in different light, rent check of the time needed to lift/lower the ⁄⁄ process indicators to monitor support processes; fined a new indicator for accidents called the environmental, time and season conditions; crossing gates; ⁄⁄ risk level indicators, which provide an indi- global safety index, which considers: ⁄⁄ periodic technical tests on central devices and ⁄⁄ installation of rumble strips and speed bumps cator for each dangerous event that Trenita- ⁄⁄ whether there are any victims; automatic stopping systems; to make it easier to identify and see railroad lia identifies. The indicator is calculated as ⁄⁄ the type of people who were injured (trans- ⁄⁄ checks on diverters; crossings in urban centres; the combination of the probability that the gressors or passengers); ⁄⁄ inspections of the railway line carried out on ⁄⁄ activities and projects to make roadside signs event will occur and the seriousness of its ⁄⁄ whether only rolling stock was involved (de- foot, by carriage and in cabins; more visible to prevent inappropriate actions consequences. railing or collision of railway vehicles or roll- ⁄⁄ inspections of the works; by drivers, in some cases in collaboration with There is a cause/effect relationship between ing stock and people, rolling stock and road ⁄⁄ checks of welded tracks; the relevant government administrations; these levels, i.e., when the primary causes oc- vehicles at railroad crossings); ⁄⁄ surveys of the main characteristics of track de- ⁄⁄ equipping of railroad crossings with electronic cur, they can generate dangerous events and, ⁄⁄ whether the railway system is intrinsically at vices. pedals and private railway crossings with au- accordingly, potential accidents. fault. tomatic “opening on demand” systems; RFI is well positioned according to this new indi- Costs incurred in 2016 for routine and non-rou- ⁄⁄ testing with gates that pedestrians cannot get cator1, and places near the British Rail Network, tine maintenance are reported below: around and the transformation of railroad Rolling stock maintenance recognised throughout Europe as the top network crossings with half-gates into crossings with operator. full gates; The maintenance of railway vehicles is one of the ⁄⁄ introduction of new integrative automatic pro- key processes in ensuring that operational safety Cost tection devices to detect obstacles on crossings; is maintained and improved and to meet estab- Maintenance € Maintenance of the railway ( millions) ⁄⁄ implementation of the infill system to cover the lished quality standards. In particular, Trenitalia ensures the planning, infrastructure Routine 891 space between the railroad crossing and pro- tection signal. performance, control and improvement of main- Non-routine 1,097 tenance processes through an organisation that The correct design, planning and performance In millions of Euros provides for: of maintenance ensure that the infrastructure re- ⁄⁄ a structure that supervises and coordinates all mains in line with the established safety stand- Traffic safety: Trenitalia stages of maintenance to ensure safe condi- ards. Targets are achieved by the oversight of tions for railway system vehicles; routine and non-routine maintenance, through ⁄⁄ a central maintenance engineering structure The heart of Trenitalia’s operational safety over- timely planning and performance of work and that establishes the criteria and general provi- sight is the operational safety management sys- ongoing monitoring, in order to verify that main- Railroad crossings sions for the maintenance of vehicles; tem revolving around a typical “PDCA” (Plan, tenance on all components that are relevant for ⁄⁄ operating structures that manage taking the 2 Do, Check, Act) cycle, which is the basis for safety purposes is correct and effective . Super- Work continued to close railroad crossings as vehicles out of service, sending them to repair management systems. vision and monitoring are particularly important. part of the specific plan for this purpose (36 workshops and subsequently returning them to In general, various activities are carried out to Supervision highlights the “conditions” of systems public railroad crossings and 130 private rail- operations; keep operational risk under control. These ac- to maintain and improve the reliability and avail- road crossings were closed) and in order to ⁄⁄ maintenance systems covering two organisa- tivities range from risk analysis to assessing the ability of railway infrastructure, ensuring that the strengthen/modernise infrastructures through lo- tional levels: the first level consists of the divi- acceptability of risk and taking prevention and/ established safety standards are met, while mon- cal projects carried out in accordance with the sions’ ongoing maintenance systems, in turn mitigation measures. Where necessary, specific itoring, which is performed through inspections local bodies. broken down into light and corrective main- projects are defined to decrease risk and are and tests of the technical, organisational and op- Overall, at the end of 2016, the number of pub- tenance scheduled as a part of the vehicle reported within the safety plan each year. The erational aspects of systems, is aimed at check- lic and private railroad crossings was decreased shifts, while the second level consists of cycli- projects may relate to one or more of the three ing that the maintenance carried out is correct to 4,620. cal maintenance workshops where work with key parts of the systems: machines (technology), and effective, that the infrastructure is in sound Meanwhile, efforts continued to increase a significant impact on the asset value of the people (human factor and organisation) and pro- condition and that work sites are operational the safety levels of existing railroad crossings rolling stock is carried out beyond the scope cedures (how processes are performed). and well organised. through a variety of different types of measures, of the vehicle shifts. Trenitalia uses a specific system of indicators to In order to continuously improve service quality, as follows: track operational safety processes, enabling it to network availability and safety standards, begin- ⁄⁄ installation of information panels providing Specific attention is devoted to improving main- constantly monitor their performance. If the indi- ning on 1 March 2016, RFI revised its organisa- identification data for railroad crossings and tenance processes, with the formalisation and cators show that processes are deteriorating over tional model for the local production units in or- emergency telephone numbers in order to call implementation of a safety plan providing for time, it performs a specific analysis of the causes der to optimise decision-making, communication personnel responsible for supervising traffic in a series of projects each year to ensure opera- to take the consequent corrective action. and information flows within these units, as well tional safety. Trenitalia’s system of operational safety indicators

1 The data used to calculate this index relate to 2010-2015. 2 Diverters, signals, works, railroad crossings, etc..

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Safety services In 2016, there were 1,720 passenger thefts at the station, down 29% on 2015, with a decrease For FS Italiane Group, safety is a fundamental val- of approximately 25% in the number of reported ue. For this reason, it is committed to promoting thefts on board trains. The “Be vigilant! Make a safety and protecting personnel, passengers, its difference” campaign was relaunched in collab- assets and its know-how. oration with the railway police on board trains As part of the second convention with the Ministry and at stations to spread awareness among pas- of the Interior signed in July 2012, the collabora- sengers of the risk of thefts and pick-pocketing. tion with the railway police, the branch officially responsible for preventing and repressing crimes in the scope of railway transport, continued. The aim signs at stations of the convention is to confirm the synergies among the parties with the common goal of improving real and perceived safety in the railway environment and ensuring the protection of passengers and the Group’s assets.

SAFETY FIGURES Thefts at stations

2016 2015 2014

Assaults on railway personnel 436 429 361

Thefts at the station 1,724 2,421 2,566

Thefts on board trains 2,794 3,706 4,188 Thefts on board trains

Copper thefts during operation 557 1,078 1,643

Copper thefts at depots 11 52 63

Scams

Another aim of the convention is to reduce the to 477,787 kg stolen in 2015). The damage theft of copper along the main routes on the na- caused by these thefts and attempted thefts af- tional network. The Group has taken measures fected a total of 3,725 trains, causing a total mainly to monitor the railway lines and the de- delay of 78,049 minutes. pots most at risk and involve the local police by These repeated criminal activities have created reporting work sites, risky situations at plants and the need to increase the presence of technical attempted thefts. staff along the most affected lines and, where The Group’s prevention and contrast measures possible, to replace copper with aluminium, al- and the choice of law enforcement agencies to uminium-steel and alternative materials, less pre- focus on the second level of criminal organisa- cious metals, hence in which criminals are less tions, i.e., the receivers of stolen goods, have interested, in the areas most at risk. Sometimes, led to a decrease of over 48% in copper thefts copper was isolated with concrete structures or along the line and a decrease of around 79% in was placed deep underground and passive de- copper thefts at depots compared to 2015, halv- fence measures were adopted (including fencing ing the weight of precious metals lost annually and armours as well as the implementation of to theft (214,921 kg stolen in 2016 compared alarm and video-surveillance systems).

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Conversely, costs to remove graffiti from rolling training and, subsequently, through on-site men- establishing a security centre and the design erative, generating substantial improvements in stock (approximately €6 per square metre, net of toring and coordination of the activities of the of a zero day laboratory to search for new IT fraud detection and data analytics. the halting of materials and other indirect costs) National Anti-evasion Pool. threats that are not publicly known. Furthermore, 247 counterfeit tickets were identified in 2016, rose 9% and mainly related to regional trains. In order to update the Group’s assets to safety the Group has begun collaborating with the post- 134 of which were for international tickets. Fines With respect to the arrangements between the standards, 23 new integrated security systems al police and the CNAIPIC (the national anti-IT were charged and official reports made in the Group and the Civil Protection Service, the con- were installed at high-traffic stations throughout crime centre for the protection of critical infra- most serious cases. ventions with the , March, Valle D’Aos- Italy. Furthermore, the Roma Termini video-surveil- structures), to provide training in 2017 for the The Company Security team continued to chair ta and Tuscany regional authorities and the Flor- lance system was upgraded with another 200 Group’s top management. the international Colpolfer Fraud and ticket for- ence city authorities were renewed in the light new HD cameras at the access gates to the rail- gery working group in 2016 for international of the provisions of the framework agreement way platforms and all areas with the heaviest The Anti-Fraud Department constantly monitor collaboration on ticket forgery. In chairing the signed in 2008 and renewed in 2013 with the passenger traffic. transactions to mitigate acts of fraud perpetrat- working group, the Company Security team is National Civil Protection Department pursuant to To protect sensitive assets along the high speed ed through the ticket purchases using stolen or driving a review of priorities, improving supervi- article 6 of Law no. 225/1992. lines, security systems have been installed at six cloned credit cards. In 2016, these activities led sion - at Italian and European level - anti-forgery The collaboration covered important events (in- technological sites on the Rome-Naples HS line to a total fraud rate of 0.05% of turnover, far controls in payment systems. Contact is ongoing cluding the Giubileo della Misericordia, the and work began to upgrade the Bologna hub’s below the critical threshold of 1%. In 2017, the with the judicial authorities to support forgery in- Pope’s visit to Assisi, the national meeting of HS line to safety standards. new fraud management platform will be fully op- vestigations. the Alpino branch of the Italian army and the During the year, a plan was kicked off for the Comics event) and training activities. Fur- technological update of the centralised manage- thermore, 31 drills were carried out to test and ment of 143 security systems in Italy with the improve communications flows and the response completion of the work on 25 railway assets. model in the event of criticalities or emergencies. As work continued to extend the new railway In agreement with the regions that have signed hub model, after the temporary barriers were the conventions, training included “Specific rail- built at the Milano Centrale and Roma Termini way risks” at the various local centres, with seven stations, during the year, the Company Security sessions for approximately 650 volunteers in the department collaborated on the development of , Marche, and Abru- the executive project to install gates at the Firen- zzo regions. ze Santa Maria Novella station and participated In 2016, FS Italiane Group also contributed in preliminary meetings to formalise a project for to the emergency in Central Italy following the authorisation from the Superintendence for Cultur- earthquake by providing: al Heritage and the Fire Brigade Chief. ⁄⁄ special discounts for residents of the areas af- fected by the earthquake and for Civil Protec- Strategic assets for real estate companies consist tion Service volunteers; of the fleet and plant used to park rolling stock. ⁄⁄ sleeping cars made available for the people In 2016, projects were furthered to upgrade of the towns of Fabriano and Foligno; these assets to safety standards, entailing of the ⁄⁄ support in structural checks that areas affected installation and/or implementation of video-sur- by the earthquake were safe, using special- veillance devices and alarm systems. In addition, ised RFI personnel with specific expertise. guidelines for the “Security Project” were issued to upgrade the long haul and regional transport Through its Protection against Violence Commit- ticketing counters to safety standards. tees, FS Italiane Group continued to provide le- IT crimes constitute an extremely complex issue gal assistance for employees who have been vic- which FS Italiane Group has for years sought to tims of violence while working. Again in 2016, mitigate with the awareness that although cyber there was a significant increase in the number risks can be managed, they can never be com- of cases, also as a consequence of the access pletely eliminated. gates installed at the Roma Termini, Milano Cen- The Cyber Security department has adopted IT trale and Firenze Santa Maria Novella stations. risk analysis techniques capable of continuous, Another training step was designed to follow real-time monitoring of threats, vulnerabilities and up on the anti-aggression training for front line the controls in place to quantify and qualify the personnel, in the form of counselling, and a pi- risk exposure of IT systems supporting critical FS lot training day was held on self-defence with Italiane Group processes, through the identifica- around 45 staff from the Company Security team. tion of specific risk scenarios. In addition, many anti-fare evasion activities In 2017, specifically to strengthen the preven- were carried out, especially on regional trains tion, identification, analysis and mitigation of with the collaboration of Company Security in threats to IT infrastructures, the Group will begin

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Suppliers Procurement policies G4-56 Over 3.5 FS Italiane Group makes its purchases in accord- billion ance with EU Directives, as implemented by the 18% Highlights Contracting Code, and its own “Regulation for G4-2 Negotiations with Group companies”, issued on 27 March 2012. Suppliers are vetted on the basis of assessments relating to quality, price and other corporate 82% pre-requisites (the supplier’s location and nation- ality are not part of the vetting criteria). WHAT WE HAVE ACCOMPLISHED> The standard contractual clauses include require- ments that the contractor must comply with: ABROAD ⁄⁄ labour and social security laws, with the appli- ITALY Over cation of national labour agreements; Environmental ⁄⁄ occupational safety and hygiene obligations; €4.6 million ⁄⁄ the standards in the “Group Code of Conduct”. the economic value of criteria policy Since 2013, the Group companies are asked to In 2016, around 78% of turnover generated by that reward environmental included in contracts include a clause on compliance with the Group’s Group purchases was managed by Trenitalia sustainability since 2013 environmental policy in new contracts, in accord- and RFI through 65 core suppliers (there were no environmental criteria accounted in accordance with the guidelines ance with the guidelines for the implementation significant structural changes in the supply chain, for approximately 21% of selection for the implementation of the environmental management systems. nor any new outsourcing, compared to 2015). criteria in the Group’s “non-core” tenders of environmental management systems Ferservizi handles non-core purchases, i.e., those The Group’s core purchases are broken down More than Self-assessment not directly related to the Group companies’ core below by type: business. On the other hand, the individual com- € panies directly manage core purchases, except 3.5 billion questionnaire in rare, cases in which Ferservizi is asked to provided to strategic make the purchase. of core purchases 23% over 82% of which attributable to suppliers suppliers with their registered office in Italy to assess the sustainability of the Group’s supply chain Suppliers’ profile 56% and assessment 21% Assets G4-12 G4-13 G4-56 G4-EC9 G4-EN32 works G4-EN33 G4-LA14 G4-LA15 G4-SO10 Services

In 2016, the Group companies managed core WHAT WE AIM TO DO > purchases of more than €3.5 billion, over 82% of which from a pool of direct suppliers1 with registered offices in Italy. This directly or indirectly As it is aware that supplier engagement is a key generated income and jobs for the communities factor in improving its economic, environmental Develop new in which the Group operates. and social performance, the Group has struc- tured a supply chain assessment process in order Involve to better identify and manage the impacts of the IT tools our suppliers supply chain. to ensure an effective assessment improvement of the supply chain of sustainability performance

1 Non-group companies that supply products/provide servic- es for the Group companies’ core business, with which direct relationships are carried out.

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Stage 1 ⁄⁄ Self-assessment

Stage 2 ⁄⁄ Risk-assessment

Stage 3 ⁄⁄ Audit

The process that the Group began in the previ- ous year to analyse and subsequently improve its supply chain sustainability performance con- tinued in 2016 with the distribution of self-assess- ment questionnaires to the Group companies’ Sustainable purchases strategic suppliers2 and by beginning the first audits3. G4-56

The questionnaire, which comprised more than The Group constantly pursues the inclusion of en- 40 questions grouped into four sections (human vironmental and social issues in the procurement rights, environment, society and occupational of goods, services and works, which is also a health and safety), provided the basis for an ini- tool for reducing environmental impacts and im- tial assessment of the sustainability of the Group’s proving work conditions along the supply chain. supply chain. The main criteria used in 2016 for supplier vet- The real or potential impacts associated with the ting activities are given below: Group’s supply chain mainly refer to the environ- ⁄⁄ being ISO 14001, ISO 9001 and OHSAS mental issues related to electricity, fuel and the 18001 certified for the main service and work cycle of raw materials and water. In 2016, there contracts (e.g., work construction, railway su- were no significant adverse events in this respect. perstructure, rolling stock cleaning, etc.); ⁄⁄ using eco-friendly materials and product certi- In order to improve the supply chain assess- fications (e.g., FSC® and Ecolabel); ment process, in the second half of 2016, RFI ⁄⁄ reducing energy consumption (e.g., reduction launched a pilot project to assess suppliers using in the energy consumption of electronic equip- EcoVadis, a collaborative platform for monitoring ment below the reference threshold: Energy the sustainability performance of companies in Star 5.0 certification). 150 sectors and 110 countries. See the Additional information section for more details about the criteria used by the various Group companies.

2 Strategic suppliers were identified considering their percent- age out of total purchases for 2016.

3 Ferservizi conducted three audits at the corporate offices of its cleaning service/multi-service providers and plant opera- tion/maintenance service providers.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Our role in the community A big industrial company 05 should be a touchstone for the community 118 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 119 the environment information

Our role in the community

Highlights G4-2

WHAT WE HAVE ACCOMPLISHED> WHAT WE AIM TO DO >

Opening of the new Organisation of the Opening of new Feasibility analysis for the opening of new Help Center Winter emergency Help Center Help Center iN Brescia plan at the , Pisa, at Genova Piazza Principe, Livorno, Prato Terni, Foligno, Cesena in stations and Pistoia stations and Rovereto with major Italian non-profit associations

Completion of the European Strengthening of the Rome SROI analysis of FS Italiane European charter Train Help Center Group’s for solidarity: extension to new partners in Stations (Germany, Greece, Serbia promoted with the French, and Croatia) and proposal Bulgarian and Luxembourg Social for a new European project, railways Activities Switch in Stations

Christmas Opening of the Fund raising Redevelopment Center Campaign and opening of the former Potenza Superiore Multi-function with Save the Children cargo hub for young for the Civicozero shelters as a Green Station for unaccompanied and old former migrant minors inmates at Napoli Gianturco

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Solidarity initiatives

G4-24 G4-EC1 G4-EC7 G4-EC9 G4-SO1

Involvement in solidarity initiatives has always oration of social conditions, which can be es- been fundamental for FS Italiane Group, which is pecially seen at railway stations. Promoted and tangibly committed to carrying out projects and managed in collaboration with local bodies and initiatives to help disadvantaged people. non-profit associations, the Help Centers are the In collaboration with non-profit associations and Group’s answer to the growing phenomenon of local bodies, FS Italiane Group has embraced a social crisis and the considerable rise in migra- policy to support and plan social initiatives in rail- tion to Europe and Italy in particular, as it is an way areas. Indeed, beginning with the stations, access point. a new welfare system is being created. Rather The Help Centers are “low threshold” information than the welfare state of the past 70 years, but a points - i.e. without any filtering of users - created collaborative welfare system based on the circu- to welcome and shelter those who are most in lar solidarity of the public, private and non-prof- need and help begin their rehabilitation with the it sectors. Help Centers, day and night shelters city’s social services and institutions. The Group and the countless projects in the areas at stations plays a key role in this project, providing space granted for free use are all part of this new wel- inside or near to the station on free loan to as- fare experiment. Moreover, this transformation of sociations and authorities engaged in combat- the model for social welfare goes hand-in-hand ing social marginalisation and covering urgent with the new interpretation of corporate social needs so they can create Help Centers. responsibility (CSR), increasingly focused on the The existing network has recently grown with creation of shared value (CSV): creating value the opening of Help Centers in 2016 in Brescia for the business that is also value for all stakehold- and Trieste, the latter being definitively opened ers, the community and the local areas. following the experimental stage that began in FS Italiane Group is completing a pilot SROI (So- December 2015. cial Return on Investment) analysis project to esti- The Help Center network currently spans 17 rail- mate the direct and indirect social and economic way stations from Northern to Southern Italy. impacts of the Help Center project and shelters The initial results of the Group’s intense efforts in Rome and Milan. The analysis covers the three to find new spaces in Southern Italy, given the years from 2014 to 2016 and involves all Help greater influx of migrants, have been the Help Centers operating at 31 December 20161 and Centers established in Reggio Calabria in 2015 the shelters in Milan (Progetto Arca) and Rome and the expansion of those in Catania. This mi- (Caritas). The objective of the analysis is to meas- gration trend, which first affected the regions in ure the welfare value generated for the communi- Southern Italy, as now spread to other cities as ty through FS Italiane Group’s social commitment. well, like Ventimiglia, Bolzen, Como and espe- cially Milan2, the crossroads to other European countries. Help Centers and shelters In this context of emergency, Ferrovie dello Stato Italiane has taken action by granting spaces to As the economic crisis continues and migration the Milan municipal authorities where the Fon- surges, all of Italy is experiencing the deteri- dazione Progetto Arca has carried out an impor-

1 The Help Centers in the scope of analysis are currently those 2 Since 2013, an estimated 110,000 refugees escaping in: Bari, Bologna, Catania, Florence, Genoa, Messina, Mi- war and poverty, mainly from Syria and Eritrea, have passed lan, Naples, Pescara, Reggio Calabria, Rome, Turin and through the Milano Centrale station. Trieste.

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tant project to provide shelter and orientation to Centers, like the one in Rome, have been im- The various international projects pursued in In addition to the Help Centers, through major migrants3. proved and checks are underway to expand the each country are the subject of ongoing discus- Italian non-profit associations, many shelters have Additional Help Centers will be opening soon in Help Centers in Bari and Messina. The opening sion continuously within the context of the Gare been set up in idle railways areas, particularly in Tuscany in the wake of a three-year agreement of new centres at the Genova Piazza Principe, Européenne et Solidarité, a European charter for Rome and Milan: protocol signed by FS Italiane Group and the Terni, Foligno, Cesena and Rovereto stations is the development of social initiatives in stations ⁄⁄ the “Don Luigi Di Liegro” shelter at Rome Termi- Tuscan regional authorities, signed in 2013, for under consideration. signed in Rome in 2008 through the joint efforts ni managed by Rome Caritas; the re-use of idle assets for social solidarity: the The 2016 data on the Help Centers confirm the of railway companies on the basis of their expe- ⁄⁄ the “Rifugio Caritas” centre in Milan managed next Help Centers will be located in Viareggio4, important role that they play. In 2016, a total of rience with social distress. The network was set by Caritas Ambrosiana; Pistoia, Pisa, Prato and Livorno. With the Tuscan over 22,500 people received help and roughly up in Rome in 2008 when five railway compa- ⁄⁄ the “Binario 95” day shelter in Via Marsala, regional authorities, the Group is working on a 470,000 social projects were carried out, in- nies from five countries signed the charter: Italy Rome managed by the Europe Consulting so- new agreement for 2017-2020. Other Help cluding orientation and low threshold projects. (FS Italiane), France (SNCF), Luxembourg (CFL), cial cooperative”; (SNCB) and Poland (PKP). The charter ⁄⁄ the “Pedro Arrupe” shelter for those seeking has since been signed by another seven Euro- asylum and political refugees, managed by NETWORK OF HELP CENTERS AT STATIONS pean railway companies from Romania (CFR), the “Centro Astalli” association”5. Slovenia (Zeleznice), Norway (NSB), Bulgaria ⁄⁄ The new migrant hub is being set up in a for- (NRIC), Denmark (DSB), Czech Republic (CD) mer Ferrotel across the street from the Tiburtina Existing Potential and Sweden (Jernhusen). station, which was granted on free loan to the (*) Following the introduction of access gates to the train platforms at the By exchanging best practices between the rail- Rome municipal authorities. Rome* Pistoia Roma Termini station in 2016, the Help Center is being relocated to Via di Porta San Lorenzo (in the San Lorenzo neighbourhood near the station) way companies that have signed the European Chivasso Prato where the Group has made more spacious facilities available. They are charter for the development of social initiatives The total surface area6 granted under free loan currently being renovated. Milan Pisa in stations, additional Help Centers or similar agreements for social activities in 2016 meas- Genoa Livorno (**) The Group granted additional areas to Caritas Diocesana. The expan- structures have been established in Europe: in ures 23,821 m², with a total estimated value of sion of the canteen means more meals can now be provided (currently 400 € 7 Messina Genoa (P. Principe) meals a day, with up to 150 people being Strasbourg, France and at the Gare du Nord e 35,731,500 . de l’Est in Brussels, with centres at major Bulgar- The Group collaborates closely with ONDS, the Bologna Viareggio (***) The new Reggio Calabria Help Center was opened in March on ian stations slated to open soon. In addition, the Italian observatory for poverty and solidarity at Bari Foligno “International Anti-Racism Day”. It provides shelter, assistance and orien- tation for people suffering serious social marginalisation, without a home Luxembourg Help Center was opened in March, stations, so the Help Centers can work in syner- Pescara Terni and financial, health or relationship difficulties. Named “Casa di Lena”, twinned with the Trieste Help Center. The two gy. ONDS, which is managed by the social co- the centre is in a property granted by FS Italiane Group for free use with Foggia Rovereto the collaboration of the municipal authorities, and is managed by Caritas Help Centers will work together, sharing employ- operative Europe Consulting Onlus, coordinates Diocesana in partnership with Acisjf, Agesci (Rc1 and Rc9), Communità di Naples Cesena ee training and information on homelessness and all the centres, handles training for Help Center Sant’Egidio, Maestri di Speranza and Masci Rc5. Catania** migration issues. workers and performs detailed analyses of so- Finally, in June, the European Train in Station cial distress8. The real-time situation of the online Turin project was concluded in Paris. It involved the Help Centers is published on the website www. Firenze Santa Maria collaboration of Italian, French, Luxembourg and onds.it, along with useful information for social Novella Bulgarian railways on a railway worker training workers. Melfi project concerning migration issues and assis- Reggio Calabria *** tance to the homeless, potential Help Center Trieste beneficiaries. Brescia

5 The centre has operated in the former Rome shunting site the Shoah Memorial (7,000 m² at the Milan Centrale station, Ferrotel since 2002, with the support of the United Nations with a market value of €10,500,000), granted to the Shoah High Commissioner for Refugees, the UN refugee agency foundation for a symbolic fee. A total of 4,500 refugees from and is part of the National Asylum Project promoted by the Syria and Eritrea were granted shelter there during the year. Ministry of the Interior, the National association of Italian Mu- nicipal Authorities (ANCI) and the Rome Municipal Authority. 7 The total value of €35,731,500 was calculated consid- 3 In all, 2,450 square meters of space have benn grant- integrated by many different institutions, companies and Its activities include professional training, education for mi- ering the average sales value based on the market rate of ed to the Fondazione Progetto Arca for free use as part local associations. nors and courses to help guests enter the €1,500/m². Ferservizi provided the latter figure (unchanged of its “HUB” project in Via Sammartini, numbers 106 to work force and society. Training was given to 40 people, with respect to the previous year) by referring to average 4 124 (excluding 100 to 116 where the Caritas shelter has Once opened, the Help Center will be managed as an including 20 unaccompanied foreign minors. The centre host- market values for properties in large cities that have partially been managed by Caritas Ambrosiana for many years), information, orientation and social re-integration point. An ed 55 minors and held 50 education projects. 15 people deteriorated and are in areas with low commercial value. in which a medical clinic, bathrooms and showers, a can- accommodation center hosting women, including those entered the workforce. teen, areas set up with wi-fi and computers so the refugees with underage children in distress, will be placed on the 8 To collect and analyse data, ONDS uses the IT platform can contact their families, and play area for children have first floor. Viareggio has been the first town in Tuscany re- 6 The surface area data include the Help Center network Anthology specifically created with the contribution of all net- been set up. The refugees have been sheltered and giv- gion to have signed a granted for free contract in order to (2,703 m²) and the shelters (14,118 m²). In addition, areas work players and which won the Sodalitas Social Innovation en personal hygiene kits. The HUB activities at the Milan open a Help Center, after having signed a memorandum have been granted for social and cultural purposes, such as Award. Centrale station have been carried, out, supported and of understanding with Regione Toscana.

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The Help Center network’s main services on trains, which were distributed at the Group’s Furthermore, the Group’s commitment to the uni- Help Centers) and 88,047 meals were served. versity programme continued, with the aim of 936 people from the non-profit associations encouraging theses and investigations on the 2016 vs 2016 2015 2014 2013 2015 worked on these initiatives. Group’s social initiatives, which can be used as In 2016, the main partnerships for awareness proposals to supplement/improve projects un- Total days open 4,565 3,798 3,570 3,744 20% campaigns were with: derway or launch new ones. Total hours open 31,721 26,251 29,369 23,660 21% ⁄⁄ WeWorld Onlus, to fight violence against Social orientation projects 62,671 84,085 139,978 82,534 -25% women with the “#potreiessereio” project; Socio-labour repercussions Low threshold projects 406,715 364,987 330,844 133,196 11% ⁄⁄ Censis, for solidarity through the “Non passar- of the Help Centers TOTAL SOCIAL PROJECTS* 469,386 449,072 470,822 215,730 5% ci sopra” photography exhibition at the Tibur- tina station; Total people served 22,687 21,292 31,702 25,110 7% ⁄⁄ Associazione Telefono Amico, to prevent sui- In 2016, FS Italiane Group invested over €187 Total new people served 9,056 9,135 17,184 12,040 -1% cides, with the “Riemergere si può” campaign. thousand in social responsibility initiatives and projects related to activities for socially disadvan- Average impact** The Group participated in the fourth edition of taged people. Social projects/day 195 285 445 284 -32% the CSR salon, reporting to the academic world on its social commitment through various solidar- Low threshold projects/day 1,251 1,404 1,108 442 -11% ity initiatives and projects. Users/day 67 68 96 79 -1% New users/day 33 30 52 39 9%

(*) The 2015 ONDS Report describes a total of 520,000 projects, but this number also included the 71,500 low threshold projects carried out by the Arca project’s migrant hub at the Milano Centrale station. In 2016, these projects numbered 167,000, and were excluded from the total to present more consistent data. ECONOMIC VALUE OF SOCIAL ACTIVITIES (**) The “average impact” is calculated as the sum of the averages of relevant amounts obtained from individual Help Centers.

Activities Detail of activities Amount (€) See the Additional information section for more service ticketing machines, at ticket counters and details. in the FRECCIAClubs. Even Group employees Agreement with the National Observatory for the Disadvantaged and Solidarity at Stations; global activities, fund raising activities; contributed to fund raising within the company. Continued ONDS activities 129,804 management of new databases on the reuse of idle railway assets The proceeds went to the day shelters to support, for social purposes and on the country’s socio-economic situation. Fund raising campaign assist and protect minors run by Save the Chil- dren’s CivicoZero team. Daily reporting agency on social distress and commitment to reliev- During the Christmas holiday season, in part- Social editor 1,446 January saw the conclusion of the Christmas cam- ing it in Italy and around the world. nership with Save the Children, a solidarity paign launched in December 2015 to improve 9 campaign named “#aBracciaAperte” was or- Participation in initiatives, seminars and events on CSR issues and Ostello Caritas Don Luigi Di Liegro, a shelter in Communication projects on the Group’s ganised to support the day shelters for migrant reporting on what FS Italiane Group has done in terms of social 37,000 via Marsala, Rome (approximately €347,000 corporate social responsibility (“CSR”) activities. minors who arrive in Italy without an adult car- was raised). egiver and who are particularly vulnerable and often exposed to the risk of abuse, violence, Social projects The Ostello Rome Termini fund raising campaign. 9,500 child labour or sexual exploitation. In 2016, National projects and social according to Save the Children estimates, of awareness campaigns the roughly 177,190 migrants who arrive on Total 17 7, 75 0 the Italian coastline, 27,660 are minors and at During the year, the Group implemented a “Cold least 25,225 are unaccompanied, more than plan” to strengthen activities carried out in the twice the number who arrived in 2015. Funds winter months10 by its Help Centers and leading are raised through various channels and, in par- Italian non-profit associations11. ticular, Frecce passengers were offered Sperlari 28,912 disadvantaged people were contacted torroncino chocolates in exchange for a dona- and 3,535 were hosted in the shelters. 14,404 tion. Other fund raisers were organised at sta- blankets were distributed (Trenitalia provided an- tions where customers can donate using the self other 2,795 blankets that are no longer used

9 Litocartotecnica Ival, Sirena Group and Sperlari collaborat- 11 Specifically, the following non-profit associations: Associ- ed with this initiative. azione Centro Astalli, Caritas Ambrosiana, Caritas Roma, Community di Sant’Egidio and Fondazione Progetto Arca. 10 In particular, the Reggio Calabria, Messina, Catania, Bari, Naples and Rome Help Centers were involved in this project.

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These projects have had positive repercussions used, consisting of railway stations, booths and on employment, both in terms of the creation of tracks12. To date, in collaboration with local Social and cultural activities new jobs for social workers at the shelters and bodies and non-profit associations, 432 stations the integration of disadvantaged people into the have been dedicated to activities that enhance workforce and society. the value of the area or activate services for the As for the creation of new social worker jobs, in public. Areas of roughly 91,59413 m² have been 2016, for every hour in which they are open, 46 set aside for a total amount of €91,594,00014. regularly employed social workers are in service At the Ecomondo fair was presented the “Atlas at the Help Centers, working with the support of of idle Italian railway lines” to foster projects to Ferrovie dello Stato Italiane Ferrovie dello Stato Italiane thousands of volunteers. redevelop idle railways, transforming them into Group supporting culture Group’s commitment recreational paths. These assets are estimated to comprise about 1,500 km of former railway to crucial social issues Reuse of idle real estate assets The Group constantly sponsors national events lines, including definitively discontinued lines pur- like concerts, exhibitions, performances, conven- and railway lines suant to Ministerial decrees, and lines discontin- tions and initiatives to safeguard artistic, cultural In 2016, Ferrovie dello Stato Italiane Group de- ued due to route variations. and scientific heritage. veloped, together with leading institutions and IFS Italiane Group owns not only assets that are See the Additional information section for more Again in 2016, the Group renewed a major associations in the sector, initiatives to support functional for its core business, but also extensive details. partnership with leading foundations and muse- current social issues like protecting children’s real estate holdings, some of which are no longer ums in the country to create new travel opportuni- health, tackling the risk of school drop-outs and ties by encouraging the use of trains as the ideal promoting and protecting women’s health and way to reach cultural capitals, learn about Italian eco-sustainability. heritage and see the most important exhibitions. The main projects developed in the year were: The main events in which FS Italiane Group par- ⁄⁄ Frecciarosa: “Prevention Travels at High ticipated in 2016 were: Speeds” – an initiative on board Frecciarossa trains to prevent and treat breast disease and 12 The number refers to stations with at least one free loan 14 Ferservizi estimated the average value per square metre ⁄⁄ the Venice Biennale (Art and Film Festival); agreement in place. as €1,000/m², as these are non-prime properties located ⁄⁄ exhibitions at Palazzo Strozzi (Florence), Scu- education about healthy lifestyles; in areas without significant commercial value in small and derie del Quirinale, Palazzo delle Esposizioni ⁄⁄ Children’s train - an initiative under Cortile dei 13 The number refers to buildings granted on a free loan ba- medium-size cities. Gentili , a branch of the Pope’s Cultural Coun- sis. The Group also granted yards outside the stations and/ and Museo delle Culture (Milan). or land of 3,542,105 m². Furthermore, the Group partnered with Musei Ci- cil - a journey on a Frecciargento train to the vici di Venezia, Brescia Musei and Ferrara Arte. Vatican for children from schools in Calabria, The Group is also a member of: a region that takes in migrants every day; ⁄⁄ Associazione Civita, a landmark in the nation- ⁄⁄ Green train - an initiative in partnership with al debate for the protection and enhancement Legambiente now in its 28th edition cover- of cultural and environmental heritage; ing four main issues in 2016: smart cities, ⁄⁄ Accademia Nazionale di Santa Cecilia, on eco-neighbourhoods, new mobility and life- whose behalf it promotes concerts and events. styles with over 35,000 visitors, including stu- dents and citizens.

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media relations

In 2016, Ferrovie dello Stato Italiane Group La Freccia.TV ⁄⁄ La Freccia Collection, a special edition about sa.it continued in 2016, while FSNews.it, the managed relationships with national, local and Unesco Italia sites Group’s online newspaper, remained a reliable international media (press agencies and nation- In 2016, the LaFreccia.TV editorial department (distributed on Frecce trains and in the FrecciaClubs). service site for travellers and added two new al, local and foreign newspapers, the free press, broadcast 91 video news segments, 25 FS news channels for information on mobility and corpo- magazines and general and trade publications, reports, 18 specials and video tutorials, complet- In Regione publications include: rate communications on Telegram (@Infotreno radio, television and photography agencies), in ed six advertisements for programming on board ⁄⁄ #Note, the twice-monthly pocket edition on and @FSNews). addition to online newspapers, websites and Frecce trains and made four direct programmes regional transport, published weekly since 6 The Group can also be found on: blogs, via the Press Office and other communica- for streaming. October 2016 (distributed at the Roma Termi- tion channels outside the Group, which include: The photography department produced 252 ni and Milano Centrale stations and, since 6 ⁄⁄ the online newspaper fsnews.it; shoots for events, conferences, documentation October 2016 at the Bologna Centrale, Firen- ⁄⁄ the Group’s website fsitaliane.it; and promotional material. The audio-visual de- ze Santa Maria Novella, Torino Porta Susa ⁄⁄ the radio FSNews Radio; partment created 76 corporate and promotion- and Venezia Mestre stations as well). ⁄⁄ the web television station La Freccia.TV; al videos and documentaries uploaded to new ⁄⁄ La Freccia and FrecciaViaggi magazines; media platforms and broadcast on screens at ⁄⁄ social networks. stations. Web & New Media In 2016, the company website FSItaliane.it was Media relations and publishing La Freccia and In Regione editions expanded with sections on strategic works and activities CSR, interalia.2 La Freccia and In Regione published hardcopy The “Opentreno – sui binari della rete” blog was and online magazines. All publications are In 2016, FS Italiane’s Press Office prepared over started to informally discuss issues like the envi- available to read on ISSUU and the Media and 3,000 media communication documents, includ- ronment, innovation, travel, history and social events section of fsitaliane.it and are printed on ing press releases, notes to the press, articles responsibility.3 FSC® certified paper. and news for the Group’s website. To keep the public informed about works on La Freccia publications include: The Group communicates at local level through the Naples-Bari and Palermo-Catania-Messina ⁄⁄ La Freccia, FS Italiane Group’s general-interest its network of local correspondents who, in railway lines, the two websites on the initiatives monthly publication; 2016, produced more than 1,700 documents, (www.napolibari.it and www.palermocatania- ⁄⁄ Frecciaviaggi, the quarterly travel magazine; like press releases, notes to the press and replies. messina.it) are updated. They provide informa- ⁄⁄ La Freccia Fashion, a special edition devot- Furthermore, the office responsible for relation- tion on projects, the progress of works and offi- ed to the Pitti Immagine Uomo fashion shows, ships with the media and publishing activities cial ordinances. printed in an extra-large format; (RMAR) handled relationships with consumer as- The revamping process carried out on the Group ⁄⁄ La Freccia Gourmet, a magazine dedicated sociations and people with reduced mobility in companies’ websites, to improve the effectiveness 1 to large food and wine events published every the year . of visual and architectural communications, was two months; consolidated, while the FS Italiane “Work with us” ⁄⁄ La Freccia Arte, an art magazine created for section’s innovation process continued, bringing FSNews Radio the exhibitions ArteFiera in Bologna, Artissima together the company and labour market. in Turin and Quadriennale in Rome; The continuous updating of the websites www. In 2016, the FSNews Radio editorial department ⁄⁄ La Freccia Design, , a special magazine for fondazionefsitaliane.it and www.museodipietrar- broadcast 2,880 hours of live content, providing the Milan Salone del Mobile and Milan Tri- over 4,976 updates on train circulation. ennale; ⁄⁄ La Freccia Beauty, , a special publication 2 This included content about events like the second edition of the MED (Mediterranean Dialogues) Forum, the 20th edi- printed in an extra-large format for the Cosm- tion of Ecomondo, FS Competition, the CSR and Innovation 1 FS S.p.A.’s CEO held two meetings and Trenitalia’s top oprof in Bologna; Salon, the presentation of the 2017-2026 business plan, In- management held one meeting with the Consumers’ Associ- ⁄⁄ La Freccia Bio, a special publication printed notrans, the World Congress on Railway Research, the 2016 ations, while both FS S.p.A.’s CEO and top managers and edition of Trenoverde and ILCAD 2016. engineers of Trenitalia and RFI held a series of meetings with in an extra-large format about organic food the associations representing people with reduced mobility. devoted to the Salone Internazionale del Bio- 3 An in-house blogging team develops the blog content with During the year, the RMAR department also had one-on-one logico e del Naturale in Bologna; bloggers representing the various Group areas and with the discussions with representatives of these associations and collaboration of “Cittadini di Twitter”, the first online newspa- participated in various panels promoted by the same asso- ⁄⁄ La Freccia Wellness, , a special edition for the per that explores and develops social networks in people’s ciations and the Consumers’ Forum, of which FS Italiane is Riminiwellness event; public and private lives every day and in every field. The blog a member. is accompanied by a Facebook page and Twitter profile.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Our 06 people

An overview to better know who works for the Group 132 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 133 the environment information

Our people

We are Ferrovie dello Stato Italiane Group, Ital- our business can create through the integration of ian leader and a major European player in the ideas and the engagement of each of us, in Italy transport of passengers and cargo. We have al- and abroad. We enthusiastically operate every WHAT WE AIM TO DO > ways worked alongside the country, meeting our day in accordance with ethical principles to customers’ mobility needs with speed and quali- achieve the objectives of our new business plan. ty. We believe in the continuous innovation that Increase in the number of people Continue involved in the performance reducing Highlights accidents G4-2 management and the frequency rate process and investing in the well-being of people WHAT WE HAVE ACCOMPLISHED> and development of the MBO programme Promote Value FS Italiane Group 2,296 job rotation the contribution placed first new employees hired in the Best over 20% women within of the different Employer the Group generations of Choice working within the business

Man/days Drop in accidents of training and the frequency rate Increase Promote the number of women welfare initiatives working in technical areas for employees and their families Over 355,000 2016 results were well beyond targets Approximately 90% in technical/professional training

The The renewal of the Communication and Moving National social Forward labour collaboration project to share the values and strategies agreement of the new business plan with all employees and the Group’s employment contract were signed

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 134 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 135 the environment information

Workforce breakdown The following graphs show a detailed break- down of the year’s figures1.

G4-10 G4-EC6 G4-LA1 G4-LA10 G4-LA12 1 The data refer to the following companies: FS S.p.A., RFI, Trenitalia, Ferservizi, Italferr, FS Logistica, FS Jit, FS Sistemi Urbani, Terminali Italia and Cemat. The total number of em- ployees in this scope of analysis is 60,191, approximately Number of employees 86% of the Group’s total workforce. of Ferrovie dello Stato Italiane Group Turnover by gender 2016 2015 2014

Managers 727 714 721

Junior managers 11,0 05 10,945 10,867 7% White collars 32,117 31,296 31,163 6% Blue collars 26,331 26,047 26,364 6.26% Total number of employees at 31 December 70,180 69,002 69,115 5% 5.30% % of women 14.6% 14.5% 14.0% 5.00% 4.86% 4% % of men 85.4% 85.5% 86.0% 4.30% 4.13% Average number of the year 69,056 69,276 69,487 3%

The increase in the number of employees com- 2% pared to the end of 2015 is mainly due to changes in the consolidation scope (Ferrovie del 1% Sud Est). 0.70% 0.96% 0.72% In 2016, there was an increase in the percent- 0% age of women in the total workforce. In particu- 2016 2015 2014 lar, the percentage of women in management positions increased, rising to 16.1%. In addition, MEN WOMEN TOTAL there were 2,296 new hires, confirming the 2015 trend.

Trend in incoming and outgoing employees

3,500 3,000 3,150 2,992 2,500 2,498 2,546 2,000 2,296 1,500 1,000 1,372 500 - 2016 2015 2014

INCOMING OUTCOMING

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 136 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 137 the environment information

The turnover rate was 5.00%, compared to The average number of years with the company tition). Furthermore, 68 expert positions and 15 6.26% in 2015. The decrease was due to the in 2016 is 24 years, while the average age is managerial positions were filled. smaller number of employees who left the com- 49 years old. In the selection of operational personnel, while pany during the year. See the Additional information section for charts upholding the Group’s principles and guidelines, detailing the workforce and employee turnover. each company followed its own specific proce- Breakdown of personnel by age bracket dures, considering the candidate’s residence in the region where the job was based as a priority Recruitment requisite. Communication channels for job opportunities In 2016, training on the new IT system for in- within the various companies were expanded, 55% house job postings involved over 120 members including with participation in virtual job fairs on

50.88% of HR personnel who work in these processes

48.61% Twitter. The development of the career website 50% 46.11% both locally and centrally, highlighting the impor- was also boosted dramatically, and each month 45% tance of promoting the enhancement of people it receives an average of 150,000 visitors. The within the Group and encouraging intraGroup 40% online mobile responsive application was also job mobility through professional diversification implemented, with an average of 1,000 visits 35% and job rotation processes. This area saw a con- received per day. To encourage young people siderable increase in Group employees’ interest 30% receive job orientation and access to opportuni- in new job opportunities, with a 40% spike in ap- ties, online video interviews with spokespeople 25% plications to participate in in-house recruitment. 19.45% 19.76% 19.96% and brand ambassadors are created and posted 18.31% 18.62% 18.74% Recruitment on the market outside the Group, 20% online, along with web pages providing useful which encompasses international candidates to tips on how to apply for jobs. The LinkedIn page 15% meet the Group’s development needs on foreign was also developed further with sections and 9.96% 10% 7.17% markets, has focused on recent graduates, not updates on People, Recruitment, Company and 5.99% 5.64% 5.66% 4.72% only in engineering, but in business and law Events/news, reaching nearly 100,000 follow- 5% as well, and on specialised experts needed for 0.18% 0.21% 0.03% ers at Group level. 0% the core business. In particular, over 440,000 FS Italiane Group won first place for the third Up to 20 From 21 From 31 From 41 From 51 Over 60 curriculum vitae in the Group’s database were year in a row as “Best Employer of Choice years to 30 years to 40 years to 50 years to 60 years evaluated, with the identification of around 179 2016”, a statistics-based survey carried out by recent graduates who are interesting candidates Cesop Communication2 of a sample of 2,500 2016 2015 2014 for the various Group positions to be filled. Of recent university graduates in Italy, considering these, 105 were found through intense, ongoing 101 Italian and international companies. Breakdown of personnel collaboration with universities and various em- by seniority ployer branding activities (e.g., the FS compe-

45%

40% 38.28% 34.87%

35% 32.04% 30.40% 30% 26.04% 25.46% 24.51% 23.63% 25% 23.44% 20% 13.77% 13.93% 15% 13.63% 10% 5% 0% From 0 From 11 From 21 Over 30 years to 10 years to 20 years to 30 years 2 Employer branding consultancy firm. 2016 2015 2014

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 138 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 139 the environment information

⁄⁄ focussing on the behavioural approach to porting the performance of people who reach Human capital occupational safety and updating technical the highest positions and most important re- regulations; sponsibilities; G4-LA9 G4-LA10 G4-LA11 ⁄⁄ developing an orientation centred around the ⁄⁄ sustaining a culture of diversity management, customer, market and competition; including by focusing sharply on life/work ⁄⁄ encouraging the spread of a business culture balance issues; focused on internationalisation; ⁄⁄ accompanying recent graduates through in- Development tering a Group culture focused on the customer, ⁄⁄ following through with the innovation and duction programmes. safety, constantly pursuing efficiency and operat- change processes, as well as the processes to continuously improve efficiency; See the Additional information section for more In 2016, development activities focused on the ing quality and enhancing merit. ⁄ consolidating managerial expertise by sup- details. following aspects: Furthermore, around 15,000 days of training ⁄ ⁄⁄ assessing participants of Group interest (man- were provided to non-Group personnel belong- agers, key junior managers and university ing to supplier companies in order to ensure graduates: 468 people) and company inter- compliance with consistent standards of exper- est (junior managers and white collars: 529 tise and safety. The total cost of training days for employees alone people) for a total of 997 participants, along € with the management of feedback and devel- came to 7 million, which was mostly covered by Man-days of training opment plans following the assessments; funding received for training. by area – 2016 ⁄⁄ training for the corporate trainers to maintain The Group’s training activities are broken down and develop their skills (27 people) and for into the following areas: new trainers (12 people); Corporate: ⁄⁄ piloting a new methodology for the identifica- ⁄⁄ training/information initiatives tion, development and management of talent, dedicated to presenting the Group and its with a specific focus on developmental agility strategic pathways; Behavioural/managerial and leadership potential. ⁄⁄ courses and semi- nars aimed at acquiring and/or developing 0.8% 89.8% As part of FS Italiane Group’s annual perfor- typically managerial, behavioural and inter- 1.2% mance assessment by the department heads us- personal skills; 8.2% Technical/professional: ing the SIV platform for key groups of employees ⁄⁄ training aimed at ac- Technical/Professional (managers, junior managers and university grad- quiring and updating both practical and theo- MANAGERIAL uates), 6,476 men and 1,838 women were as- retical technical/professional skills; ISTITUZIONAL Shared/cross training: sessed, making up about 12% of the average ⁄⁄ training initiatives Cross-sectional annual number of resources, up approximately dedicated to acquiring and updating skills 12% on the number of employees who received shared by people of the same level and pro- assessments in 2015. fessional group (languages, IT, etc.). The annual performance of resources who are not included in the SIV assessment process is The parent and operating companies generally reviewed by their managers informally (e.g., intervene on all of the above training types. Man-days of training with feedback on strengths and areas for im- Specifically, the parent is, above all, directly by position – 2016 provement). responsible for corporate and managerial training for target groups, while the operating companies mainly look after technical/ professional and cross training for professional Training groups and specific business roles. 0.6%

The purpose of training is to develop manage- The following main training targets were 44.2% rial skills and maintain and update professional achieved: 13.6% technical expertise, supporting resources in the ⁄⁄ supporting workers’ professional growth, mak- achievement of business targets and individual ing the most of each individual’s abilities and potential; professional growth. White collars More than 355,000 man/days of training were ⁄⁄ reinforcing expert knowledge in connection Blue collars 41.6% 1 provided in 2016 at Group level , aimed at fos- with the different technical trades; Junior managers Managers 1 The data refer to the following companies: Ferrovie dello Stato Italiane, RFI, Trenitalia, Ferservizi, Italferr and FS Sistemi Urbani.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 140 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 141 the environment information

Partnerships with universities ⁄⁄ work experience and support in the prepara- tion of university theses to foster an exchange of Remuneration and other institutions company and university know-how through the 1 development of training projects and innova- and pensions In 2016, the Group promoted significant em- tive aspects, respectively (over 50 in the year); ployer branding initiatives also aimed at: ⁄⁄ specialist seminars and workshops within uni- G4-11 G4-52 G4-EC3 G4-EC5 G4-LA2 G4-LA7 G4-LA10 G4-LA13 ⁄⁄ developing excellent training to ensure innova- versity courses, aimed at introducing young tion and development in the production system; people into world of employment and develop- ⁄⁄ aligning school and university training to meet ing technical skills in the railway sector and per- The most common type of contract is open-end- tual minimums plus the fixed remuneration items business requirements; sonnel processes (seven in all, with over 250 ed, which is used for 99.9% of the Group’s provided for by the national labour agreement ⁄⁄ guiding and introducing young people to the students involved); personnel2. As in previous years, all employees (including seniority rises) and additional amounts employment experience; ⁄⁄ business games and contests for ideas on new are covered by national labour agreements. related to the various positions held. ⁄⁄ consolidating the Group’s highly attractive im- systems and technologies of interest to the The national labour agreement applied to the There are no differences in remuneration based age with young people. Group, with the aim of attracting, rewarding Group’s non-management employees is that for on gender. Any average differences between and training students (approximately 3,000 the Mobility/Railway sector, integrated by the men and women, as reported in the table be- Specifically, the main activities developed in- online participants and 60 on-site participants); Group’s company agreement of 20 July 2012, low, are due exclusively to the fact that they hold clude: ⁄⁄ round tables with engineering students to pres- renewed on 16 December 2016. The param- different positions in the companies, the ways in ⁄⁄ over 10 master courses in collaboration (at ent the “engineering profession” within the eter group for apprenticeship contracts during which they provide service and their responsi- various levels) with major Italian universities, Group companies (50 students were involved); the first 24months is higher than the professional bilities. For example, there are fewer women in academic institutions and business schools to ⁄⁄ projects to support research and innovation level one step lower than the final level and, for transport operation jobs and, accordingly, aver- develop above-par training that better meets by promoting research stipends and PhDs with the subsequent 12 months, at the starting remu- age remuneration is affected by this factor (less business needs, entailing support in the recruit- apprenticeships in partnership with universi- neration of the final level. All employees, includ- compensation for shifts, working on holidays, ment and organisation process, teachers and ties, concerning issues of particular interest to ing newly hired employees, receive the contrac- working at night, etc.). presentations in the classroom by FS managers, the Group companies (over 50 candidates for project work and work experience at Group three research stipends and one PhD); companies and scholarships; ⁄⁄ organising 15 targeted events all over Italy, in- ⁄⁄ international university courses to encourage cluding recruiting days, career days and job Remuneration of non-management personnel: Ratio of women’s annual internationalisation and the development meetings, as well as open days and events remuneration to men’s annual remuneration (%) of Group know-how: meetings with over for counselling, orientation and recruitment 100 young Italians and foreigners attending of about 7,000 young people. During these post-graduate university programmes in engi- events, the Group and the job opportunities in 2016 2015 2014 neering and business; the various companies are presented. Gross annual remuneration* 102.3 101.9 101.5 Junior managers Total annual remuneration** 96.3 96.2 96.1

Gross annual remuneration 98.0 9 7. 8 98.3 White collars* Total annual remuneration 83.7 82.8 83.5

Gross annual remuneration 100.9 100.7 100.6 Blue collars Total annual remuneration 94.4 94.2 94.1

(*) White collars include office workers, but mainly consist of people filling positions typical of railway operations (station heads, maintenance managers, drivers and train supervisors).

1 The scope of analysis includes the following companies: FS 2 1.5% of open-ended contracts are part-time. S.p.A., RFI, Trenitalia, Ferservizi, Italferr, FS Logistica, FS Jit, FS Sistemi Urbani, Terminali Italia and Cemat.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 142 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 143 the environment information

Employees’ pensions are financed through spe- ance coverage to members of their family. In such developed by a leading international Group in Total remuneration to managers is also integrated cific mandatory contributions shared by employ- case the supplement is paid by the employee. the rewards sector which, in addition to having with a series of benefits, mainly consisting of: ees and employers. Employees pay contributions The following table illustrates employees’ selec- created the method, boasts one of the most ex- mobile phones, insurance coverage for both oc- equal to 9.19% of their remuneration base. This tion of where to allocate their post-employment tensive databases on remuneration in the world. cupational and other accidents and permanent percentage is increased by 1% if the monthly benefits. The guidelines used to define the remuneration disability due to illness and death, the supple- base for the calculation of contributions exceeds polices for managers are: market benchmarking mentary health care plan (FASI), the supplemen- € 3 3,844 . On the other hand, employers pay Allocation of post-employment to check that the remuneration offered is consist- tary pension fund (PREVINDAI) and additional contributions equal to 23.81% of each employ- benefits – 2016 ent, focus that remuneration is also consistent in- supplementary healthcare insurance (ASSIDAI). ees’ remuneration base for the calculation of con- ternally considering the complexity of the position tributions. Employers in the Group cover, for all held and updates of evaluation of managerial employees, additional costs for maternity leave, positions to benchmark remuneration against the 8.6% illness, social employment insurance4 and ordi- development of the Group’s organisational struc- nary contributions to the fund for income and em- ture over time. Remuneration policies provide ployment assistance. Such fund implements ac- for two types of bonuses: merit-based to support tions for Group company employees to promote 41.4% internal management and development policies training programmes for professional retraining 23.5% and annual bonuses to recognise the contribution and/or requalification, set up active income of individuals. and employment assistance policies, and pro- For almost all managers, the overall remunera- vide extraordinary allowances to support income 26.5% tion offered also includes a system of short-term due to employees under voluntary redundancy. incentives as part of the MBO (Management With regard to the supplementary pension fund, By Objective) plan, in which the variable com- Group employees can pay into the negotiation ponent of remuneration is linked to the achieve- fund provided for by the railway national labour ment of specific performance targets that are agreement (Eurofer) or an open-end fund. Fully transferred to INPS indicated in advance and set on the basis of The employer and the employee share contribu- Fully transferred to Eurofer business targets6. tions to the Eurofer fund equally5. Employees may Transferred to both INPS/Eurofer As in the past, again in 2016, FS Italiane has an increase their contributions on a voluntary basis, Fully transferred to other funds incentive system in which individual objectives without any obligation for the employer to in- are defined in direct relation to each manager’s crease its share of the contributions. Furthermore, responsibilities and the collective results of the the Mobility Contract and FS Italiane Group’s On the other hand, the national labour agree- company and/or Group for business optimisa- contract of 16 December 2016 introduced ad- ment for managers of companies that produce tion and development. ditional increases in contributions to the Eurofer goods and services are used for the Group In the 2016 MBO process, occupational safety fund, including an annual contribution of €100 company managers. The remuneration system and environmental sustainability were confirmed each for all employees, another €100 per em- for Ferrovie dello Stato Italiane Group managers as crucial principles and values to be used as the ployee for those who did not receive work/life implements that set forth by the relevant national basis for growing the culture and awareness of balance benefits and a voluntary contribution of labour agreement with respect to the definition all Group employees. up to 40% of the 2016 performance bonus. of the minimum guaranteed salary. The rest of The data in the table show that the gap between The employer is not required to match contri- remuneration - both fixed and variable - is de- women’s and men’s gross annual remuneration butions to the open-end funds, to which the full fined considering the professional and manageri- and total annual remuneration is narrowing. amount of post-employment benefits required by al duties of each position and management and Italian law is transferred. performance assessment scores. Each position is Since 2012, non-managerial employees are of- evaluated using a specific weighting method to Remuneration of management personnel: Ratio fered supplementary healthcare plans covering obtain objective elements for planning and man- of women’s annual remuneration to men’s annual remuneration (%) specific medical services for employees of the aging remuneration policies, organisational de- Group companies that apply the Mobility Con- cisions and career paths. 2016 2015 2014 tract for the railway sector and FS Italiane Group’s The method adopted to evaluate positions and contract. compare their remuneration with similar posi- Gross annual remuneration 95.51% 94.70% 93.90% Employees have the option of extending the insur- tions within the Group and on the market was Total annual remuneration 96.63% 95.90% 93.30%

3 INPS maximum for 2016. workers with employment contracts who have involuntarily lost their jobs, has been in place. 4 As per article 1 of Legislative decree no. 22 of 4 March 5 2015, as of 1 May 2015, a monthly unemployment bene- Contributions to the Eurofer fund amount to 1% of monthly 6 The objectives must reflect the priorities of business strate- measured and certified objectively through the Group’s ac- fit called NASpI, aimed at providing income assistance to remuneration, as per article 22 of the Group contract. gies and should be identified transparently so they can be counting and reporting systems.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 144 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 145 the environment information

people care

G4-10 G4-LA12

FS Italiane Group manages and organises hu- The activities and projects for the big family of to pursue technical studies, to tell them about man resources in full compliance with the rights Group employees are supported by both the Na- job prospects and to provide them with tools guaranteed by legislation and its Code of Ethics tional and Local Equal Opportunities Committees to best realise their potential and talent, In- which expressly states that “human resources are and directly by specific internal structures. ternal events include a change management the Group’s great wealth”. Through the Code programme to improve working conditions for of Ethics, the Group undertakes in a formal and women employed in technical fields and to substantial manner, to never discriminate based break down cultural barriers. In this respect, on gender, ethnicity, language, religion, political Group initiatives 13 focus groups were held (involving 63 opinions or personal/social status. Furthermore, male and female resources responsible for through the steps taken by the relevant HR depart- Structural and transversal activities: Trenitalia’s and RFI’s maintenance plants); an ments and the Equal Opportunities Committee, in-house survey (involving over 1,000 main- the Group is also committed to promoting inclu- ⁄⁄ A policy on D&I (Diversity&Inclusion) issues tenance employees); six improvement groups sive environments in order to make the most of is under development for various Human Re- with the aim of finding tangible ways of over- diversity and encourage programmes for women sources processes and a monitoring system is coming obstacles to women entering technical workers. At the end of 2016, women made up being defined with specific indicators for each fields (49 resources participated). The external 1 15% of the Group’s employees. process; actions included a survey conducted in order to analyse the perception of careers with FS Italiane based on gender and mentorship from Gender: December 2016 to February 2017 (involving Percentage of female employees approximately 80 women from FS Italiane by position ⁄⁄ 30% Club: the Group’s top management has Group in five separate modules); joined the “30% Club”, a global initiative cre- ⁄⁄ parental leave management: another four ated to promote more women in private and sessions were held for 47 women after they public management by 2020. To this end, the returned from maternity leave, with the involve- 25% Board of Directors of FS S.p.A. has signed ment of 31 of their direct or higher supervi- 19.87% 19.64% a measure committing the Group to reaching sors for a total of 360 man/days. As with 18.90% 30% of women in managerial staff positions the previous editions, over the six days of the 20% 17.32% 16.41% 16.48% and 20% in managerial line positions by course, the employees with their supervisors 16.15% 15.47% 15.12% 2020, entailing an increase of 9% in both worked on their awareness of the reciprocal 15% areas; demands of motherhood; the women reflected ⁄⁄ Network of Chairwomen: a network of wom- on strategies and tools to establish a balance en who chair large companies, leading asso- between their professional life and family life 10% ciations or small and medium size companies and on their own motivation and professional 5.23% 4.97% 4.82% was established to support women in the busi- effectiveness; their direct supervisors explored 5% ness world. FS S.p.A. coordinates the work issues related to multi-faceted leadership and group on D&I issues, the creation of a shared managing motivation; policy and activities in connection with the ⁄⁄ Associazione Valore D: this association led 0% new joint project Women in Motion (WIM); to participation in 57 skill building and work/ 2014 2015 2016 ⁄⁄ Women in Motion: the WIM project was life balance events to support women with Managers Junior managers White collars Blue collars kicked off in collaboration with “Valore D”, targeted training and four intercompany men- an association of large companies focused toring programmes (91 employees participat- on diversity and female leadership whose ed). The Group’s role as a supporting member mission is to promote women’s careers in of the association also entailed its continued technical fields and business sectors that un- membership in the network of companies that 1 A bilateral body with equal standing set up pursuant to til now have been predominantly male. The focus on diversity and the equal employment article 1.3.C) of the National Labour Agreement for the overall campaign was planned in 2016 with of men and women with its participation in Mobility/Railway sector and article 3 of the Ferrovie dello Stato Italiane Group's Contract of 16 December 2016. The outside events consisting of visits to schools workshops and knowledge sharing meetings Committee is organized in one national committee and 15 and universities to encourage female students for HR experts; local committees.

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⁄⁄ programming specific seminars on female ⁄⁄ National labour agreement section: a spe- at the Pisa station to spread awareness about agreement that was renewed on 16 Decem- talent: in particular, three one-day sessions cific section was created on the company violence against women; ber 2016; aimed at guiding the Group’s women on a intranet about the new national labour agree- ⁄⁄ Code of conduct to prevent sexual harass- ⁄⁄ “female” work shifts: support continued for journey of discovery and observation of the ment, enabling employees to view content ment in the workplace: consistent guide- the “female shifts” with reduced working hours distinctive traits of female models, with their and send online requests for information. lines were drawn up on how to prevent sex- for female on-board train personnel; extended positive and negative aspects, in order to ⁄⁄ ual harassment in the workplace. The code to men under parental leave. recognise them, see them in themselves and was implemented in the new national labour enhance them. The project comprises three laboratories on issues of self-confidence, self-awareness and awareness of one’s own Equal Opportunities multiple identities and on various communi- Committee initiatives cation styles.

Welfare Prevention

⁄⁄ Smart working – following the legislation anal- ⁄⁄ Prevention… off we go!”: local seminars for yses and benchmarking carried out in 2015, cancer prevention held with Europa Donna an intercompany work group was set up to Italia, involving employees not covered by re- analyse organisation and identify the areas gional screening services in the Marche, Um- in which the implementation of a pilot pro- bria, , Veneto, Trentino Alto Adige, gramme could be tested; Friuli Venezia Giulia and Calabria regions; ⁄⁄ in addition to the activities planned via the ⁄⁄ “Frecciarosa: high speed prevention”: the company intranet (e.g., discounted tickets for fifth edition of the initiative sponsored in part- cultural events in Italy offered to employees), nership with Incontra Donna Onlus, INAIL and 36 socio-cultural events and classical and the National Councilwoman for Equal Oppor- modern music concerts were organised; tunities with the Ministry of Labour and Social ⁄⁄ carrying on from previous years, the Group’s Policy, involving Group employees and, in team was rewarded for its participation in the 2016 for the first time, including men, to pre- Rome edition of the “Race For the Cure” relay vent cancer and encourage healthy lifestyles, for solidarity in support of scientific research including in the workplace; and cancer prevention; ⁄⁄ “Give yourself the gift of a week of preven- ⁄⁄ a health awareness section was developed tion”: a breast cancer prevention campaign on the Group’s intranet in collaboration with for employees in Genoa, in partnership with RFI’s Health Department. LILT, the Regional INAIL Department and the Liguria Councilwoman for Equal Opportuni- ties, who sponsored the initiative as a good business practice. Internal communication ⁄⁄ “Take care of yourself… start prevention”: initiative to prevent breast cancer and encour- ⁄⁄ Moving forward and Cascading of the busi- age healthy habits and occupational safety ness plan: a new website was designed for employees in and Valle d’Aos- to share with all employees the values and ta in partnership with LILT, the Regional INAIL guidelines of the new business plan: in ad- Department and the Turin Councilwoman for dition to the material presented at the man- Equal Opportunities, who sponsored the initi- agers’ convention, the website now provides ative as a good business practice. testimonials about cascading activities (with geolocalisation) carried out locally by the var- ious managers to spread the main themes of ➢Working conditions the plan. In 2017, the CEOs will go on a roadshow to reinforce the commitment of the ⁄⁄ “The language of non-violence”: a booklet Group’s operating sites; was distributed at the railway plants in Tus- ⁄⁄ Self service area: a new employee service cany and was published on the company in- section was designed for the company web- tranet. It is a compendium of testimonials of site with quick access and updated graphics visitors to the photography exhibition (“Stop! (launched in the first few months of 2017); Look at the faces of violence”) held in 2015

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 148 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 149 the environment information

The Group companies’ occupational health Health and safety and safety organisation*

G4-25 G4-LA6 G4-LA7 2016 2015 2014

Number of production units 119 125 123

Production units with occupational safety certification 84 114 113 The new 2017-2026 business plan puts occu- table, despite unconsolidated data, there was a pational health and safety at the centre of the decrease in the number of accidents and in the Prevention and Protection Representatives 104 115 113 Group’s growth and development as a deter- frequency rate, down by approximately 6% on Company doctors 158 192 190 minant element for its industrial identity. With a 2015, outperforming the target improvements of specific Group measure, FS S.p.A.’s CEO has 3% and 2% respectively. However, accidents in- Workers’ Safety Representatives 474 473 534 defined new prevention targets for the Group volving employees on the way to work were up Personnel subject to health monitoring check-ups 45,074 45,495 46,753 companies, which include an annual reduction in the year. of at least 3% in the number of accidents and an In Italy, occupational diseases, which lead to Personnel subject to railway safety medical check-ups 16,266 15,772 14,646 annual decrease of at least 2% in the accident immediate damage to employees’ health, are re- * frequency rate, particularly the most serious ac- ported by the employer to INAIL within the scope ( ) The data refer to the following companies: Ferrovie dello Stato Italiane, RFI, Trenitalia, Ferservizi, Italferr and FS Sistemi Urbani. Italcertifer and FS Logistica have been included in the reporting scope since 2015. cidents. Achieving these targets will confirm the of accidents at work, as required by relevant leg- Group’s position as a European leader in occu- islation, and they are counted by INAIL among pational health and safety. the category of accidents at work. In the Group’s Accidents indemnified by INAIL, with accidents at work and in transit Accident prevention in 2016 has focused on ful- case, specifically, there are reports of accidents shown separately* ly implementing the targets to reduce accidents at work relating to the post-traumatic stress of and improve prevention measures in accordance train drivers (in cases of hitting people along the Accidents Accidents Seriousness Accidents Year Frequency** with the new guidelines. train tracks, generally suicides). at work Fatalities index*** in transit The methods for actively involving workers and In addition, there are professional diseases origi- **** ***** empowering them in the prevention of accidents nating in the long term due to pathogenic factors 2016 1,322 22.09 2 n.a. 290 were covered in a seminar held in Rome in July found in the workplace. In the Group’s case, by 2015****** 1,453 24.08 0 827 264 “The conscious role and responsibility of workers their nature, professional diseases, which usual- in occupational health and safety”. This initia- ly account for no more than 50% of reports, re- 2014 1,717 27.84 5 939 314 tive involved the health and safety managers of late to organisational events dating back many 2013 1,933 30.01 2 1,022 344 Group companies and is part of the schedule years, in some cases decades. of events to develop good practices and better In general, the most common professional diseas- 2012 2,197 32.79 1 1,210 420 solutions within the Group. es in the railway sector are hearing impairment As part of the activities under the “Intercompany caused by noise and bone and joint or skeletal (*) The slight differences with the data published in the 2015 Sustainability Report are due to changes in INAIL’s data. health and safety panel”, in which leading Italian muscle problems. The following table sets out the (**) Frequency rate: [no. of accidents at work/amount]x 1,000 employees, calculated in accordance with European ESAW standards. companies take part (ENI, Enel, Telecom, Poste data of the periodical medical check-ups, related (***) Seriousness index: [number of missed days]/amount]x 1,000 employees. Italiane, Terna, Anas, Autostrade per l’Italia, to various risk factors, which are one of the most (****) 2016 INAIL data subject to consolidation. (*****) INAIL data not yet available. Vodafone, etc.), two seminars were held in Rome significant elements of Group companies’ efforts (******) INAIL data under consolidation. in June and November, respectively concerning to prevent occupational diseases. the organisation of health monitoring and the About 15% of man-days in the technical/profes- prevention of accidents and on “Work, alcohol sional learning area were devoted to occupa- Accidents indemnified by INAIL: broken down by gender and drugs: the past, present and future”. tional health and safety and environment train- The continuous improvement in the accident trend ing, for a total of 52,000 man-days. continued in 2016. In particular, as shown in the Year Accidents - women Accidents - men Frequency - women Frequency - men

2016* 165 1,157 19.15 22.59

2015** 177 1,276 20.02 24.60

2014 198 1,519 23.23 30.80

2013 225 1,708 25.41 31.30

2012 230 1,967 25.11 34.00

(*) 2016 INAIL data subject to consolidation. (**) INAIL data under consolidation.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 150 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 151 the environment information

Parental leave To complete maternity protection measures, the Trade unions Group also offers leave for prenatal medical ap- FS Italiane Group implemented the new meas- pointments and tests, as well as for check-ups for G4-11 G4-15 G4-LA3 G4-LA4 G4-LA6 G4-LA8 ures introduced by the Jobs Act, increasing the babies. Also in this case, the Group’s supplemen- term of parental leave up to 12 years of the tary contract provides for better terms than those child’s life: in addition to the mandatory mater- under the applicable national labour agreement. nity leave established by law, employees (father Relationships with trade unions are based on utmost absenteeism remained substantially the same at and/or mother) may opt to take a period of vol- respect for the commitments required by the rele- 63.16% and 8.9%, respectively. untary leave for up to a maximum of six months vant Italian legislation and applicable contracts. for each parent, but the parental leave may not The trade unions receive the required disclo- exceed a total of 11 months for both parents. sures and carry out bargaining activities in ac- The national labour agreement for the mobility 1 cordance with the national labour agreement . sector implements the provisions of Legislative Changes to the overall corporate organisational decree no. 151/20112 and establishes, in the structures and those of the individual production Group’s supplementary contract, better econom- 2016 2015 2014 units are disclosed to the trade unions. ic conditions during the voluntary leave for any The national labour agreement requires that be- employee who takes it (from three to six years of Absenteeism fore changes can be made to the organisation of 8.9% 8.8% 8.8% rate* the child’s life in accordance with the new legis- labour and the structure of time shifts, they must lation amendments introduced). be specifically negotiated, with the negotiation Missed hours 108,776 50,617 167,439 The number of employees who took at least one due to strikes procedure ending within no more than 20 days day of parental leave in 2016 is as follows: after it begins. Negotiations with the trade un- (*) The absenteeism rate is calculated considering, specifically, hours missed due to ions take place centrally through the respective illness, accidents, maternity leave, strikes, Law no. 104, study leave, marital and ex- national divisions and locally through the region- traordinary leave. al divisions, in conjunction with the unit trade un- ion representatives. No. days The Group has formal agreements in place with The number of missed hours due to strikes in- the trade unions protecting workers’ health and creased on the previous year due to political Women 988 22,284 safety, to promote projects that foster a culture of strikes called by the independent trade unions safety and prevention among workers by constant- that are not signatories of the national labour Men 3,530 48,110 ly updating employee training and with the intro- agreement. Hours missed because of these Total 4,518 70,394 duction of new equipment and new technologies. strikes accounted for 85% of the total. For additional information, reference should be made to the 2016 Annual Report (Directors’ re- port: Human resources). The percentage of Group employees who are members of trade unions and Group employee 2 Consolidated act of legislation protecting and supporting parenthood.

1 There are no risks to the freedom of association and bar- gaining within Ferrovie dello Stato Italiane Group.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 152 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 153 the environment information

Disputes with employees1

G4-SO8

2016 2015 2014

No. of appeals filed during the year 1,680 2,074 2,398

No. of pending disputes 3,238 3,939 5,144

Economic value of the disputes (€) 44,494,000 46,811,000 47,678,000

The most significant types of disputes in 2016, number of disputes pursuant to article 29.2 with regard to potential costs, for the main Group of Legislative decree no. 276/2003 initiated companies are detailed below:1 by employees of contracting companies that, ⁄⁄ Claims for promotions. when their employers are insolvent, turn to the These are human resource management dis- Group companies, as customers, for payment ment was indicated to fixed-term employment contracts. Accordingly, they ruled in favour of putes and are a significant issue for the Group of outstanding amounts due from the contrac- contracts and therefore disagreed with the the workers. companies, both in terms of costs and conse- tor for remuneration and contributions. workers’ demands. ⁄⁄ Asbestos quences for the organisational plan. Following the Supreme Court’s important rul- However, previous court rulings on recruitment The Group also manages asbestos lawsuits ⁄⁄ Claims for subordinated employment contracts ing no. 15432/2014, which had upheld the agreements for “one or more journeys” have filed by workers who have fallen ill after being against Group companies for alleged viola- non-applicability of article 29 of Legislative continued to be unfavourable to the company, exposed to asbestos in the course of their du- tion of current labour legislation prohibiting decree no. 276/03 for public contracts, as as the contracts appealed in court have been ties and in the areas where they worked. the interposition of labour. the contractor’s or sub-contractor’s employees found to be in violation of the requirement of Since the use of asbestos dates back to before In the light of current legislation, disputes in must use the special tools available to them the waterway code and, for this reason, have Law no. 257/1992 prohibiting the use of the relation to the fraudulent interposition of labour for their protection under articles 4 and 5 been converted into one open-ended contract material, the asbestos dispute mainly relates remain significant, especially in terms of the of Presidential decree no. 207/2010, var- terminated with compensation for workers. to RFI, as the successor of Ente Ferrovie dello companies’ financial exposure. ious rulings were issued in 2016, both first In cases in which the judges have found there Stato, as it was known at that time. The dis- In order to reduce the costs arising from the instance and appeal rulings, which confirmed to be abusive use of repeated fixed-term con- pute now consists of lawsuits filed by former assignment of contracting companies’ per- such position. tracts, certain judges have found that the mere Group employees or their heirs, for workers sonnel in positions at Group companies, the ⁄⁄ Conversion of fixed-term employment con- formal existence of several fixed-term contracts who have died, who, when the asbestos-re- Group seeks to settle these disputes if the tracts in the shipping sector into open-ended did not suffice for consideration as fraudulent lated illnesses arose, claimed compensation Group companies are found in violation, by contracts. conduct by the employer, whereas other judg- for financial and non-financial (physical, emo- paying amounts out of court in exchange for In 2016, based on their claims that they es have found these circumstances to consti- tional or death) damage on their own behalf the charges to be dropped. worked for RFI over several periods of time, tute fraud under the law, based on the num- and/or as heirs. ⁄⁄ Joint obligation. shipping sector workers took legal action, ber, frequency and proximity of the recruitment As in 2015, this year once again saw a de- asking the court to admit the existence of one crease with respect to previous years in the open-ended subordinated employment ar- rangement, with their right to be re-hired, and 1 The scope of analysis covers the following companies: FS, to order the company to pay missed remuner- RFI, Trenitalia, Ferservizi, Italferr, Busitalia - Sita Nord and ation and social security contributions. Sita Ataf Gestioni, Bluferries, FS Logistica, Metropark, Gran- di Stazioni Rail and Serfer. The economic value refers to the The judges equated the recruitment agree- first five companies only. ments in which the maximum term of employ-

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Respecting and protecting Constant interaction the environment among different aspects of the Group 07 towards a continuous improvement 156 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 157 the environment information

OUR approach

G4-1 G4-2

FS Italiane Group’s aim is to meet passenger ane Group intends to promote and offer services and cargo transport needs, offering a transport capable of meeting the need for flexible, wide- system centred around the railway network spread and punctual transport, reinforcing strong and integrated by other mass and sustainable lines and hubs and combining the solutions of- mobility means. fered by different means, infrastructures and The Group’s environmental management model technological platforms. As for passengers, the inspires and coordinates the environmental pro- primary target is to decrease the amount of travel gramme, setting out short and long-term strategies by private car and increase the use of mass trans- and principles, stimulating the internalisation of port by road, rail or both (i.e., sharing mobility). environmental sustainability protection strategies. This development is a crucial aspect, particularly Thanks to a procedure-making process comprised in urban areas where most of the population is of actions, monitoring and assessment, the com- concentrated and where the most negative re- panies translate the Group’s environmental strat- percussions of transport are seen (concentration egy into independent paths for improving their of pollution, average speed of vehicles, rate of own performance, maximising the environmental accidents, etc.). advantages of their activities and especially fo- This is why FS Italiane Group is interested in cusing on the rational use of resources, cutting local public transport - with the acquisition of

emissions of CO2 and other polluting substances, new LPT players throughout the country - and in and generally reducing their carbon footprint. road transport - for long hauls to cover routes The level of maturity achieved in this field has that it does not offer - and why it is focused on spurred additional developments: in 2016, a the expansion of Freccialink connections, which process began that will transform the current it can use to combine road transport with high environmental management system governance speed trains. model into a business model that ensures a bal- In addition to these initiatives, partnerships are ance between the economic, social and environ- being forged with other public and private oper- mental components of Group activities. ators, consisting of, for example, the car/scoot- Beginning with the 2017-2026 FS Italiane er/bike sharing services launched in various cit- Group business plan, the Group aims to pro- ies in previous years. mote a complex long-term mobility project within Furthermore, key parts of this modal integration which it will strive to achieve greater sustainabili- project include the development of platforms that ty through the development of two areas: reduce inconveniences for travellers (real-time in- ⁄⁄ reduction in the consumption of natural capital; formation, integrated ticketing, etc.) and encour- ⁄⁄ synergies between operators and technolo- aging an alternative mobility offer that is a com- gies to promote a shift towards more efficient petitive solution to individual transport, helping modes of transport. shift choices towards mass mobility solutions. In terms of reducing the consumption of natural Similarly, for cargo traffic, FS Italiane Group pur- capital, the Group’s target is to cut emissions sue as strategy aimed at maximising the benefits (pollutants and greenhouse gases) and ration- of intermodal transport by creating a logistics alise the consumption of the railway network, hub and strengthening corridors and hubs to reor- transport services and buildings by taking steps ganise the cargo segment with railway transport that include renewing the vehicle fleet, making as the main axis. buildings more energy efficient, building plants This is all subject to the optimisation of material powered by renewable sources and purchasing infrastructures (e.g., stations, car parts and hubs) certified green energy. and digital infrastructures (e.g., software, IT sys- The scope of the synergies between operators tems, etc.) that make it easier for users to choose and technologies constitutes a significant part of more sustainable means of transport. the business plan, on the basis of which FS Itali-

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 158 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 159 the environment information

Environmental performance

Highlights G4-2

WHAT WE HAVE ACCOMPLISHED>

Over renewable Environmental targets € included in the 2017-2026 14.8 million energy strategic plan is the cost of personnel Signing of an under-standing • Energy efficiency of the railway network, dedicated to managing with Terna passenger transport, stations and fixed plant environmental issues to identify renewable • Energy procurement: construction of solar power • Rationalisation of utilities accounts systems and mini-wind farms and purchase showing the Group’s commitment energy initiatives for electricity, natural gas and water of certified green energy to reducing environmental impacts Over Over 410 km 2,100 of sound absorption tonnes of CO2 per day In 2016, passengers who opted for high speed barriers and direct trains over their own cars prevented atmospheric The design and implementation emissions of over 2,100 tonnes of CO2 works on isolated of works to reduce noise receivers as of 2016 are important activities for the Group

€ 665,000 WHAT WE AIM TO DO > in environmental training costs Transition to the new standard to ensure the professional growth of personnel Evaluate dedicated to managing ISO14001:2015 external environmental environmental issues extending improvement strategies to a wider range factors of environmental with a focus on creating sustainability issues shared value di valore condiviso

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 160 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 161 the environment information

The Group’s ⁄⁄ Infrastructure: RFI, Italferr; DIESEL ⁄⁄ Transport: Trenitalia, Netinera Group, Busita- 130,000 tonnes main environmental issues lia - Sita Nord, Busitalia Veneto, Mercitalia Logistics (formerly FS Logistica), Serfer, Termi- G4-2 G4-EN31 nali Italia, TX Logistik, Ataf Gestioni and Blu- ferries; FS Italiane Group continuously monitors its en- ⁄⁄ Real estate services: Grandi Stazioni Rail, vironmental impacts with the aim of minimising Centostazioni, FS Sistemi Urbani and Ferrovie 0.1% dello Stato Italiane1; 68.4% negative impacts, while taking the necessary 0.2% 88.4% ⁄⁄ Other services: Ferservizi. 8.9% steps to promote the environmental advantages 11.3% of mass transport, making the most of local re- sources. 22.7% The companies included in the reporting scope 1 Ferrovie dello Stato Italiane’s environmental aspects were are grouped together on the basis of their busi- included in the “Real estate services” because they relate to ness sector: the company’s real estate management activities. Transport Railway traction Infrastructure Road vehicle traction (public transport) Real estate services Other Other services CONSUMPTION OF PRIMARY ENERGY 40.4 million GJ NATURAL GAS 46.8 million metric cubes

0.8% 0.1% 2.3% 1.9% 88.6% 91.2% 2.5% 68.7% 9.4% 14.6% 4.0% 65.3% 31.3% 19.3%

Transport Railway traction Infrastructure Road vehicle traction (public transport) Transport Real estate services Heating Infrastructure Other services Other Real estate services Heating Other services Road vehicle traction (public transport)

ELECTRICITY 5,164 GJ GREENHOUSE GAS EMISSIONS 2.2 million tonnes of CO²

0.1% 2.5% 0.1% 1.6% 90.2% 97.5% 90.5% 1.9% 1.6% 88.6% 8.1% 2.5% 9.7% 5.1%

Railway traction Transport Electricity Transport Railway traction Infrastructure Infrastructure Road vehicle traction (public transport) Real estate services Real estate services Heating Other services Other services Other

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 162 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 163 the environment information

As illustrated by the figures and charts, the Water consumption Waste produced transport segment, which is significantly af- 24.5 million m³ fected by railway operations, makes up the largest share of the Group’s energy consump- tion by far, accounting for 89% of primary 1.4% energy. In particular, transport activities ac- Other services count for approximately 90% of electricity 48.3% 50.3% consumption, nearly all of which for railway 0.6% traction, while the remaining electrical energy 73.2% was used for the infrastructure (lighting in the 0.2% Real estate services 99.4% stations, railway yards, etc.). 9.7%

The observations on the use of diesel differ 16.9% Infrastructure 18% 82% because, while diesel consumption is concen- trated on transport services as well, the vari- Transport 5.8% ous activities contribute differently: while rail- Infrastructure Transport 17% 77.2% way transport accounts for a significant share Real estate services Other services of the consumption - nearly two-thirds of the 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% total - road transport (for the passenger ser- vice), is a substantial part of the total value. On the other hand, the segments use natural Water use is another critical aspect of envi- Hazardous special waste Non-hazardous special waste Urban waste gas mainly for a different reason: the real es- ronmental performance for FS Italiane Group. tate services, infrastructure and transport seg- Most water is used for non-industrial purpos- Waste sent for treatment ments mainly use natural gas to heat stations, es (offices, toilets, showers, drinking water workshops, offices and buildings. at stations, etc.) and the Group companies To offset the consumption described above, periodically run awareness campaigns for the responsible use of water. Furthermore, the FS Italiane Group monitors and analyses the Other services 91.6% 8.4% quantities of greenhouse gases that its oper- Group has activated various systems to ration- (286 t) ations emit each year. Its direct and indirect alise the use of water for industrial purposes, emissions make up roughly 0.5% of total both for appropriate water collection and ef- Real estate services 14.2% 85.8% annual emissions in Italy. The amount of cli- fective treatment at the end of its use in the (20,361 t) mate-changing gases emitted by the Group production cycle. 0.8% in 2016 came to an estimated 2.2 million Infrastructure tonnes, nearly the same as in the previous (159,707 t) 99.2% year. Similarly to its use of primary energy, Waste produced 235,000 tonnes nearly 90% of emissions were due to the Transport 79.1% 20.9% different types of transport operations, with (54,839 t) most due to railway transport and a residu- al amount of emissions due to infrastructure 0% 20% 40% 60% 80% 100% management. Waste sent for recovering/ Waste sent for disposal/ sorted waste collection unsorted 67.8% 0.1% 8.7% The Group’s focus on the use of materials also for its collection and more effective awareness extends to disposal. Within the Group, infrastruc- campaigns. ture and rolling stock maintenance activities are However, the Group’s commitment to reducing 23.4% those that generate the most waste, which can environmental impacts is not limited exclusively be duly sent to treatment centres for recycling to waste management but extends to all environ- Transport (e.g., iron for the infrastructure). mental issues as well, which can be seen in the Infrastructure Initiatives are being carried out to increase the analysis of personnel expenses (over €14.8 mil- Real estate services sorting of waste produced in the Group’s public lion spent for personnel dedicated to managing Other services areas, like stations. The percentage of waste that environmental aspects) and expenditure (roughly is sorted could be improved through new systems €665 thousand) for their professional growth.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 164 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 165 the environment information

Energy Primary energy consumption trends

G4-EN3 G4-EN4 G4-EN5 G4-EN6 G4-EN7 G4-EN27 Primary energy consumption trends

As FS Italiane Group is aware that it is a high-energy consumption business and one of 45 the largest energy consumers in the country, it Road vehicle firmly believes in searching for the best energy 40 traction (cars efficiency solutions to improve its energy per- and work formance and offer low environmental impact 35 vehicles) services. 30 The range of activities in which the Group Heating companies are involved cover a variety of sec- 25 tors, and each with its own impact on energy Electricity consumption. Passenger and cargo transport 20

accounts for the largest share of energy con- (Million GJ) Waterways sumption, with around 86% in 2016, and is 15 Road vehicle also the factor that generated most of the in- 10 crease (4%) in primary energy consumption2, traction (public due to the growing trend in railway traction. 5 transport) The higher volume of energy used by railway transport was due to a number of different fac- - Railway tors, including the increase in railway traffic, 2016 2015 2014 traction with train-km up by over 2% on 2015. On the other hand, primary energy used for electricity and heating remained substantially the same. Specific final consumption for Trenitalia’s rail- train is managed by a series of sensors installed Primary energy consumption by destination* way traction only can be broken down into the on board carriages and latest generation heat passenger segment (measured in KJ per passen- pumps are used for maximum comfort and mini- ger*km) and the cargo segment (measured in KJ mum consumption. per tonne*km). Specific final consumption for cargo transport 2016 2015 2014 % Δ 16/15 The increase in passenger transport was substan- decreased by 11% in the year, counter to the Railway traction 32,714,556 31,034,957 29,495,992 5.4% tially due to the greater HS offer as the fleet of +17% trend seen in 2014-2015. This result was new Frecciarossa 1000 trains is progressively partly due to the decrease in distances travelled Road vehicle traction (public transport) 1,444,503 1,407,618 1,330,878 2.6% rolled out. by cargo trains powered by diesel, which were Waterway 537,695 573,361 562,937 -6.2% Travelling at speeds of over 250 km/h, these approximately halved in 2016 compared to Electricity 3,861,580 3,917,958 3,960,659 -1.4% trains’ total air resistance constitutes up to 80% 2015. Heating 1,514,334 1,512,147 1,392,902 0.1% of their total motion resistance, accounting for However, there are additional factors to con- Road vehicle traction a significant share of total energy consumption. sider. As reported in the previous year’s report, 286,543 286,845 280,541 -0.1% (road and work vehicles) This is why the Frecciarossa 1000 was specifi- 2014 data were irregular compared to expect- Total 40,359,211 38,732,886 37,023,909 4.2% cally designed with utmost focus on details, for ed trends and the reason can be traced to possi- Amounts in GJ an aerodynamic shape tested in wind tunnels, ble future energy adjustments that can be notified (*) Our processing of data according to the guidelines issued by Terna, International Union of Railways (UIC), Eurostat, International Energy Agency (IEA) and ISPRA. enabling the train to fluidly and silently reach up to five years after the consumption period. high speeds with over 35% more efficiency than Another element of uncertainty is the significant Over the three years considered, all transport as waterway transport was particularly affect- the previous generation of Frecciarossa trains. transaction that began in late 2015, when Ter- activities consumed more energy, except for ed by the drop in commercial traffic across the To offset the higher energy consumption due to na acquired RFI’s high voltage electricity grid en- waterways, which consumed less in both ab- Messina Strait in 2016. the high speeds at which it travels, additional compassing approximately 8,400 km of power solute terms and as a percentage of the total, solutions involving other aspects of its build were lines to optimise its use. Because of this transac- studied: the LEDs used to light the carriages gen- tion, energy lost as it leaves the grid that formerly 2 Primary energy is the energy content of sources that can be used rol, which is derived from the treatment of crude oil, or electrical directly, as they are found in nature, such as carbon, oil and nat- energy, which is generated by the transformation of mechanical erate energy savings of over 70% compared to belonged to RFI cannot be fairly recognised. ural gas, sun, wind, seas, mountain lakes and rivers (which can or chemical energy and is, in this form, delivered to end users. previous light bulbs; devices were installed that In any event, the FS Italiane Group companies generate hydroelectric energy) and the heat trapped by the earth Final energy is the quantity of energy that end users use to com- recover energy from braking and return up to have aligned their environmental policies to which provides geothermal energy. Primary energy differs from plete a task, after any further transformation (e.g., from alternating secondary (or intermediate) energy which is instead derived from current to direct current) or in the same form in which it was deliv- 15% of energy withdrawn from the electricity maximise the environmental benefits of their op- the transformation of the primary sources of energy (such as pet- ered, in which case intermediate and final energy are the same. grid back to it; temperature control inside the erations and to minimise their environmental im-

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pacts. They pursue these policies through routine signals with LED technology and plans to replace Total consumption of primary energy and non-routine activities. fluorescent light bulbs with LED lights in more than by use (2016) The new generation of vehicles periodically pro- 500 stations and offices over five years, extend- vided to customers ensure more energy efficiency ing LED lighting systems to workshops, traffic con- services without losing service quality. trol centres, etc. over the next decade. Primary energy by use Following the roll-out of the Frecciarossa 1000 The energy diagnoses carried out by the Group 40.4 million GJ trains that began in 2015 with the initial models companies further propelled the installation of en- and continued into 2016, Trenitalia launched a ergy efficient systems. Trenitalia has conducted sweeping campaign to update the rolling stock diagnoses on ten of its plants, kicked off ener- Railway traction 1% 81% for regional transport. Indeed, it recently complet- gy efficiency projects including the installation Electricity 1% Road vehicle traction (public transport) ed the call for bids to supply 450 trains meeting of radiant strips for heating at the current main- 4% extremely high energy efficiency standards. The tenance workshops in Rimini and Vicenza and Heating Waterways 4% trains will begin operating in 2019, first in Emilia prepared works for the transition to LED lighting 9% Romagna, where Trenitalia, together with TPER, systems at the ETR current maintenance plant at Road vehicle traction (cars and has won the “rail contest” and where the first 86 the Napoli Gianturco station, the cur- work vehicles) new trains will hit the tracks. rent maintenance plant in Rome, the rolling stock Older vehicles are being progressively replaced maintenance workshop in Lecce and the current with more energy efficient vehicles in the road maintenance workshop in Foligno. transport sector as well. In 2016, Ataf Gestioni, Furthermore, based on the self-assessment ques- Direct consumption of energy Busitalia - Sita Nord and Busitalia Veneto rolled tionnaire distributed to the Group’s main suppli- from primary sources out more than 90 new vehicles featuring con- ers, it is estimated that RFI’s suppliers use over 26 struction technologies and equipped with devic- billion kJ of energy to manufacture the materials 2016 2015 2014 % Δ 16/15 es that increasingly reduce consumption. purchased in the year for railway infrastructures Total direct consumption of energy from Additional efficiency initiatives have also involved and 200 billion kJ of energy was consumed by 7, 2 3 8, 7 7 9 7,278,229 6,465,697 -0.5% primary sources (A+B) the infrastructure and building management. RFI Hitachi Rail to build the trains supplied to Trenita- Direct consumption of energy from 7, 2 3 6, 3 51 7, 2 75, 3 81 6,463,432 -0.5% continues its campaign to install more efficient lia in the year. non-renewable primary sources (A) lighting systems: it has already replaced near- Diesel 5,611,869 5,674,722 5,055,985 -1.1% ly one-third of the roughly 13,000 low shunting Natural gas 1,603,403 1,575,582 1,372,906 1.8% Petrol 6,974 10,376 14,452 -32.8% LPG 4,470 6,853 7,567 -34.8% Fuel oil 9,635 7,847 12,522 22.8% Direct consumption of energy from Final specific consumption for railway traction (Trenitalia) 2,428 2,849 2,264 -14.8% renewable primary sources (B)

Solar power used internally 2,428 2,849 2,264 -14.8% 400 Amounts in GJ 350

Passenger traffic 300 Indirect consumption of energy (kJ/pkm) from primary sources 250 2016 2015 2014 % Δ 16/15 200 Indirect consumption of primary energy 33,120,432 31,454,657 30,558,212 5.3% for the generation of intermediate energy 150 Direct intermediate energy consumption 18,621,182 17, 52 2 , 2 59 16,478,586 6.3% Cargo traffic 100 (kJ/tkm) Electricity 18,589,585 17, 49 2 ,913 16,451,775 6.3%

50 - for railway traction 16,368,857 15,330,442 14,364,059 6.8% 2016 2015 2014 2013 2012 - for other uses 2,220,728 2,162,471 2,087,716 2.7% Heat 31,597 29,346 26,811 7. 7 %

- for heating energy 31,597 29,346 26,811 7.7%

Amounts in GJ

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 168 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 169 the environment information

Emissions The trends described above are the same for specific carbon dioxide emissions analysed by G4-EN6 G4-EN15 G4-EN16 traffic unit for each type of traction. In the passen- G4-EN17 G4-EN18 G4-EN19 ger transport segment, these trends continued to show the growth seen in the previous two years, G4-EN20 G4-EN21 G4-EN27 while cargo transport, thanks to the reduction in G4-EN30 G4-PR1 diesel consumption, returned to the same grams per tonne-km of 2014. In the past three years, the greenhouse gases gen- erated by the Group’s activities rose by 1% from 2014 to 2015 and by 5% from 2015 to 2016. While direct emission volumes remained more or Specific CO emissions for railway traction (Trenitalia) less the same as in the previous year, there was 2 a considerable increase in indirect emissions (+6.7%), mainly due to electricity on railways, which, as illustrated in the data on energy, was redefined both in terms of traffic and the quality 45 offered. In 2016, more than 1.5 million tonnes

of CO2 were generated for electrical traction, 40 accounting for more than two-thirds of the 2.2 million tonnes emitted by the entire Group. 35 Passenger traffic

(gCO2/pkm) 30

25 Greenhouse gas emissions* 20

2016 2015 2014 % Δ 16/15 15 Total greenhouse Cargo traffic 2,224,065 2,119,862 2,094,927 4.9% gas emissions (A+B) 10 (gCO2/tkm) Total direct greenhouse 5 07, 55 8 510,926 453,340 -0.7% gas emissions (A) 5 Diesel 414,677 419,326 372,711 -1.1% - Natural gas 91,339 89,791 78,165 1.7% 2016 2015 2014 2013 2012 Petrol 511 761 1,028 -32.8%

LPG 293 450 491 -34.8%

Fuel oil 737 600 945 22.8% In addition to its carbon dioxide emissions, the carefully and constantly monitor what and how Total indirect greenhouse 1,716,507 1,608,936 1,641,586 6.7% transport sector is also responsible for other pol- much is emitted into the atmosphere. According- gas emissions (B) lutants that are harmful to air quality, with reper- ly, it has registered a general increase in other Electricity 1,714,707 1, 6 07, 2 6 4 1,640,060 6.7% cussions on people’s health, especially in urban main emissions, an increase that is particularly areas, and for the environment. Although the dramatic for nitrogen oxide and particulates. - for railway traction 1,531,721 1,414,908 1,433,290 8.3% mobility system that the Group promotes centres Most of the increase in these two substances is - for other uses 182,986 192,355 206,770 -4.9% around reducing environmental impacts, espe- due to direct emissions, whereas sulphur oxide cially through railway transport, it is crucial to emissions are mostly the result of indirect sources. Heat 1,800 1,672 1,526 7. 6 %

- for heating energy 1,800 1,672 1,526 7.6%

Amounts in t CO2 (*) The rates indicated in the IPCC’s “2006 Guidelines for National Greenhouse Gas inventories” and the ISPRA’s rates were used to calculate 2015 emissions.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 170 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 171 the environment information

Other material atmospheric emissions* 4 special devices to ensure low consumption. proximately 4,067 tonnes of CO2 ; CO2 was Furthermore, consolidating this commitment, a calculated considering all services booked on tyre pressure monitoring system was rolled out the centralised system and includes air and 2016 2015 2014 % Δ 16/15 and a pilot project began to check the drivers’ road transport in addition to hotel accommo- performance in terms of energy savings. dation. Total indirect emissions During the year, Busitalia Veneto rolled out 28 Euro 6 buses for urban and suburban lines,

SO2 1,015.7 967.9 1,030.0 4.9% which replaced the old generation (Euro 0 and Euro 2) buses and are technologically built Land development NO 1,282.2 1,164.7 1,185.7 10.1% X and equipped with special devices to ensure and protection low consumption. Four of these new buses run PM10 35.1 36.7 39.7 -4.3% on biodiesel. G4-14 G4-EN1 G4-EN2 G4-EN3 Total direct emissions G4-EN4 G4-EN6 G4-EN8 G4-EN9 In order to spread more awareness of environ- SO 381.9 399.0 394.2 -4.3% G4-EN22 G4-EN23 G4-EN24 2 mental issues, especially among young peo- G4-EN25 G4-EN26 G4-EN27 ple, Ferrovie dello Stato Italiane and Legam- NOX 6,401.5 6,469.6 5,710.6 -1.1% biente put the Green Train back on the tracks G4-EN31 G4-EC7 G4-SO1 PM 182.2 184.0 163.3 -1.0% 10 in 2016. This is an environmental initiative G4-SO2 G4-SO10 G4-PR1 that, since 1988, helps spread environmental Total emissions awareness and promote environmental sus- Making the most of the land: tainability in consumption, lifestyle, productive SO2 1, 397. 5 1,366.9 1,424.2 2.2% activities and, especially, mobility. The Green design

NOX 7, 6 8 3 . 7 7, 6 3 4 . 3 6,896.3 0.6% Train stopped at 11 places around the Italian peninsula, highlighting virtuous anti-smog ex- The Group believes it is a priority to plan PM 217.3 220.7 203.0 -1.5% and implement infrastructural investments to 10 periments in towns and cities that have had the courage to bet on urban regeneration, en- minimise environmental impacts on the land. Amounts in t ergy efficiency, urban parks and sustainability The tools it uses to prevent and mitigate the (*) The transformation rates indicated in the “EMEP/EEA air Guidebook 2009” were used to calculate direct emissions, while the ENEL rates in the “2015 Sustainability potential environmental impacts of the design Report” - datasheet were used for indirect emissions. mobility. and construction of infrastructural works are Other immaterial emissions consisted of SF6, which is used as a dielectric in high voltage switches at the electric substations, and HFC, which is used as a cooling gas in the air conditioning systems. Only a small number of air conditioning systems use HCFC and they are continuously being reduced: any ozone-depleting gas leaks as follows: have been estimated and are not material for the purposes of this report. As part of its focus on integrated door-to-door mobility, FS Italiane Group, and, in particular, ⁄⁄ Environmental Impact Assessment (EIA); Trenitalia, has forged a series of partnerships ⁄⁄ Service Conference; with leading urban mobility companies, achiev- ⁄⁄ special rules for priority projects. As demonstrated by several different studies3, tion plants with Pt > 20 MW being used at ing considerable success in terms of reducing As the proposing party, when submitting the the transport sector has a significant impact on the sites of the Technical divisions at Rimini, transport volumes using individual vehicles. In designs to assessment and authorisation pro- climate change and pollution, and this is close- Foligno and Bologna); In the past, these plants 2016, the agreement between Trenitalia and cedures as per ruling legislation, right from the ly related to the sector’s current dependence were subject to technical and managerial ef- Clear Channel was renewed to promote bike early study and design stages (performed by on fossil fuels, as transport is heavily skewed ficiency measures and, therefore, emissions sharing in Verona and Milan, while another RFI itself or via the technical company Italferr towards with a prevalence of private transport. data are mainly linked to oscillations in aver- partnership was signed with Bicincittà, which or other third parties engaged), RFI looks at age seasonal temperatures. Overall, the 2016 offers regional transport service customers spe- every possible area of impact on the environ- With the approval of the 2017-2026 business CO emissions of the above plants amounted cial discounts for annual bike sharing services 2 ment and the land, identifying the most suit- plan, FS Italiane Group renewed its commit- to 7,525 tonnes. in most Italian cities. Enjoy, the sharing mo- able technical and design solutions starting ment to promoting an integrated mobility sys- The Group’s road transport companies have bility service managed by Eni in partnership with the definition of where the tracks will run, tem with the aim of improving the mass trans- also implemented policies to minimise their en- with Trenitalia, has extended the scooter and the lowest-impact types of works, required port of passengers and cargo, and thereby vironmental impacts. One example of this is three-wheeled Piaggio MP3 rentals already mitigation works, in relation to the natural, helping curtail greenhouse gas emissions. This the renewal of their vehicle fleets. Ataf Ges- available in Milan to Rome as well. Further- anthropic and historical-archaeological char- new goal makes it even more important to pro- tioni rolled out 39 new Euro 6 diesel buses more, during the year, car and scooter sharing acteristics of the areas being crossed through mote transport solution synergies supported by and pulled 11 Euro 1 and 2 buses that ran services were launched in Catania, increasing and depending on the type of transport to be the foundation of sustainability transport: rail- on petrol out of service, replacing them with the total number of cities in which Enjoy offers used (cargo, passenger, LPT, long haul), as way transport. more modern Euro 5 diesel buses. Busitalia - its mobility solutions to five. Enjoy rentals con- well as in reference to the type and duration There was a 4.5% decrease in the CO emis- Sita Nord is moving in the same direction. In sist of over 2,000 Fiat 500s in Milan, Rome, 2 of the work-site activities. sions of Trenitalia’s industrial plants subject to 2016, it included 25 new Euro 6 motorised Catania, Turin and Florence and Piaggio MP3 As the technical expert, Italferr initially prepares the Emission Trading System directive (combus- buses technologically built and equipped with scooters in Milan, Rome and Catania. In 2016, greenhouse gas emissions resulting 3 See, inter alia, IEA - UIC, Railway handbook 2016, Energy clean and smart mobility. Transport and environment in Eu- from travel for work were estimated to be ap- 4 Source: Cisalpina Tour.

consumption and CO2 emissions (2016) and EEA, Toward rope (2016).

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 172 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 173 the environment information

an environmental pre-feasibility study for the fere with the work. Where planning decisions Making the most of the land: an environmental analysis of the site activities project, which: require, the study is integrated with excavated constructing new infrastructures that identify the material environmental aspects ⁄⁄ checks the project’s compatibility with the land and rock management or use plans report- to be managed during the work and define the provisions of any landscape, land and urban ing the description of the planned works, as The construction of new infrastructures is a com- operating methods to be used for the proper en- planning; well as information on surveys and the charac- plex stage, particularly given the potential envi- vironmental supervision of the site. ⁄⁄ identifies the foreseeable effects of the pro- teristics, quantity and management of resulting ronmental repercussions on the land where the Through this procedure, over time, Italferr has con- ject and its execution on the environment and scraps. projects are being carried out. tributed to establishing a growing awareness of residents’ health; Environmental communication policies are, As the customer, RFI entrusts the works to third-par- and focus on environmental management issues ⁄⁄ determines the environmental impact miti- for Italferr, a tool that gives it a complete and ty companies, assigning Italferr the role of tech- and land protection in the construction sector. gation measures and any reclamation, re- transparent view of the effects resulting from the nical party in addition to, depending on the Environmental control at sites includes inspections development and environmental/landscape choices made in the planning stage. Where requirements and specific type of contract, co- and periodic supervisory audits conducted by a improvements. necessary - in collaboration with the Ministry of ordination and/or supervision of the works, with team of Italferr experts and environmental moni- the Environment and Land and Sea Protection the duty of directly performing any agreed-upon toring activities to check whether the construction To improve the way in which the work interacts and with local bodies and government - data- environmental monitoring activities before, dur- work has caused any changes to the environment. with the land and local communities, Italferr bases and websites have been designed and ing and after the works, identifying any critical Environmental status monitoring enables Italferr to: develops specific design plans, including the developed to constantly inform residents about issues and suitable corrective measures. ⁄⁄ check whether the expected impact has actu- environmental site plan and the environmental construction activities, the progress of environ- Construction contracts for works require the con- ally occurred; monitoring plan, to identify material aspects re- mental mitigation and/or offsetting works in tractors to adopt specific environmental man- ⁄⁄ check that the mitigation systems in place are lating to work sites, along with mitigation meas- connection with the project and environmental agement systems that meet UNI EN ISO 14001 effective; ures and environmental monitoring activities. In monitoring activities. standards. Italferr requires that the construction ⁄⁄ ensure proper environmental management at particular, the environmental monitoring plan In particular, to ensure the accurate effective companies responsible for the works design and the site; defines the material factors to be recorded and management and consultation of the environ- implement, for the entire duration of the works, ⁄⁄ monitor and immediately manage any envi- monitored, the measurement points, parameters mental data it acquires through the various environmental management systems for the sites ronmental emergencies. and the frequency of monitoring activities be- monitoring activities, Italferr has developed a that provide the company and appointed bod- The most material environmental aspects in re- fore, during and after the work. database called SIGMAP (geographical envi- ies with objective evidence of the controls con- lation to Italferr’s operations at the work sites of Since 2009, for the most complex projects, Ital- ronmental and project information monitoring ducted over the course of the work. In particular, new railway infrastructures are described in this 5 ferr also monitors social aspects to assess the system). In recent years, it has expanded the these systems require that, before commencing paragraph . local population’s perception of works, both system to include a section on environmental the work, the contracting companies carry out during construction and during operation. Pro- reclamation, which enables it to constantly track moting engagement in the decisions regard- and plan the activities of all reclamation pro- ing infrastructural development as early as the jects underway, along with a “Planning” section design stage, by actively involving institutional that gathers data and information useful for the and non-institutional stakeholders, makes it pos- development of new projects. sible to focus on specific needs and therefore A map portal was created to centralise local improve relationships with the local communi- geographical data, share the thematic maps ties. Systematic consultation with all players in- generated by Italferr’s special units and archive volved in the construction of large works, such specific data. It makes it possible to search for, as railway infrastructures includes, for example, analyse and download geographical infor- participation in Service Conferences where mation. These data are also reorganised and it is possible to steer project decisions. In this made available to the public. respect, in 2016, the social and environmen- The systems described provide ARPA (the regional tal aspects of the Bari hub restructuring project environmental protection agency) with valid sup- were monitored to determine stakeholders’ port in control activities during construction, and needs and their perception of the works. help the various environmental observers as well. Finally, the section “Environment and Sustain- Environmental plans also include a specific ability” is constantly updated on Italferr’s web- study to identify the sites where inert materials site. It was created to showcase the company’s to be used in infrastructure construction can be approach to environmental planning, which, delivered and where the resulting scraps can by giving a broader and more integrated view be disposed of. They also provide for inquiries of traditional issues and aspects, enables visi- 5 The data reported below refer to the work sites consid- variation, the Ogliastrillo-Castelbuono line, the closure of ered for 2016, i.e.: the Florence hub, the Palermo hub, the the Palermo railway ring, the general urban planning reg- with the regional municipal offices regarding tors to see the actual environmental balance of Bari-Sant’Andrea Bitetto line, the Fiumetorto-Ogliastrillo line, ulation for the Bari station, the Bradano River viaduct, the the census of contaminated sites that might inter- work, rather than its impact only. the Castelplanio-Montecarotto line, the laying of double Arcisate-Stabio line, Brescia contract 2, the Treviglio-Brescia tracks north of Ortona, the Brescia hub, the Catania Og- HS line, advance works on the Catenanuova-Raddusa Agira nina-Catania Centrale line, the Catania-Siracusa line, the line, advance works on the Bicocca-Catenanuova line, the Lunghezza-Guidonia line, the Arcisate-Stabio line, the Cat- closure of the Istrana railroad crossing, the Turin-Padua line tolica tunnel, the Rastignano variation, the Bologna hub - lot and the central computerised device in Brescia. 15, the Bologna hub - lot 13, the Bologna hub - Rastignano

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 174 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 175 the environment information

The indicators relate exclusively to the current vant as the figures are significantly influenced by Drained wastewater (sites) year because performance over time is not rele- the number, type and progress of site operations.

2016

Raw materials (sites) Industrial wastewater sent to sewers 135,992 Industrial wastewater sent to sewers - for treatment 135,892 Industrial wastewater sent elsewhere 181,543 2016 Industrial wastewater sent elsewhere - for treatment 16,972 Earth - procurement 163,424 Domestic wastewater sent to sewers 2,246 Earth - reuse 1,897,038 Domestic wastewater sent elsewhere 135 Concrete 1,449,796 Amounts in cubic metres Inert material 366,825 Steel for railway superstructure 1,710 Steel for railway technology systems 59,884 In 2016, as in the previous year, there were no design and construction of railway infrastructures. Stone 478,841 significant withdrawals of water from sources in The results of using this methodology have shown CAP sleepers 1,695 protected areas, i.e., there were no withdrawals that emissions from the production of cement and of water exceeding 5% of total water volumes. steel outweigh total CO emissions during con- Iron 58,946 2 In the design and construction of infrastructural struction. In this respect, in 2015, a status report Aluminium 2,440 works, RFI and Italferr have launched a number was set up for the application of the methodol- Copper 430 of different initiatives to achieve an ever more ogy used to calculate the carbon footprint, cur-

Amounts in tonnes rationalised use of resources, privileging the use rently applied to projects in the implementation of materials available in the area, re-using exca- stage with the involvement of contractors. Waste produced (sites) vated materials as much as possible and trans- In 2016, the costs incurred for environmental porting materials by railway whenever possible. monitoring totalled roughly €2.4 million, while Specific focus has been devoted to the use of the costs of environmental reclamation, including 2016 the methodology that Italferr has developed in soil reclamation, came to just under €4.4 million. accordance with the UNI EN ISO 14064-1 Non-hazardous special waste 653,072 standard to calculate its carbon footprint in the Hazardous special waste 8,876 Hazardous special waste - asbestos 124

Amounts in tonnes

Waste sent for disposal or recycling (sites) Primary energy consumption (sites)

2016 2016

Non-hazardous special waste sent for recycling 564,078 Electricity 161,420 Non-hazardous special waste sent for disposal 90,996 Diesel for road and work vehicles 713,333

Hazardous special waste sent for recycling 6,346 Amounts in GJ Hazardous special waste sent for disposal 2,529

Amounts in tonnes

Water withdrawn (sites) Greenhouse gas emissions* (sites)

2016 2016

Water withdrawn from the aqueduct for non-industrial use 61,615 Electricity 54 Water withdrawn from the aqueduct for industrial use 31,256 Diesel for road and work vehicles 52,536

Water withdrawn from bodies of water for industrial use 7,118 Amounts in tonnes of CO2 (*) The rates indicated in the IPCC’s “2006 Guidelines for National Greenhouse Gas inventories” and the ISPRA’s Water withdrawn from underground water for industrial use 133,082 “National Inventory Report 2015” were used to calculation emissions

Amounts in cubic metres

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 176 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 177 the environment information

Land protection: biodiversity The results are sent to the relevant local superin- Waste management ⁄⁄ Measured in absolute tonnes, the waste pro- tendents who may, if necessary, request the ac- duced by RFI, which contributes over 74% of The development of transport infrastructures plays tivation of a prior archaeological interest assess- G4-EN23 G4-EN25 G4-EN27 the Group’s total special waste production, a particularly delicate role with respect to biodi- ment procedure consisting of progressive stages decreased by 4.1% on 2015, a year in versity. Indeed, it can cause the loss of habitats, of analysis that integrate the technical/economic The Group’s commitment to reducing waste pro- which maintenance on the infrastructure net- the fragmentation of ecosystems, an increase in feasibility study: duction can be seen in the analysis of waste work outsized previous years. the mortality of certain species and other nega- ⁄⁄ probing; indicators, which show a steady trend in re- ⁄⁄ Trenitalia contributes roughly 21% of special tive repercussions on biological diversity. ⁄⁄ geo-physical and geo-chemical surveys; cent years. In particular, despite increasing on waste and saw a specific increase of around Making infrastructure development sustainable ⁄⁄ archaeological sampling and, where neces- the previous year (+1.4%), waste produced in 15% on 2015 to over 43,000 tonnes pro- means, inter alia: sary, extended surveys and digs. 2016 remained slightly below 2014 levels. The duced. This is due to the equal increases in ⁄⁄ prevention: abstaining from building unneces- rationalisation and improvement of waste man- hazardous and non-hazardous special waste. sary infrastructures and, above all, not involv- The findings of these explorations enable the agement activities within the management sys- The increase in the former is nearly entirely ing protected areas; superintendent to express a justified opinion on tems implemented by the Group companies also due to maintenance and the consequent pro- ⁄⁄ mitigation: minimising impacts where preven- each stage of the design. ensure a smaller environmental impact, which is duction of waste of the Long Haul Passenger tion is not possible, with suitable measures (un- In particular, in 2016, to obtain the local archae- achieved partly through the constant recovery of Transport Division. On the other hand, the derpasses, overpasses and fencing); ological superintendent’s opinions, archaeolog- the special waste that is produced, equal to 95% growth in non-hazardous special waste is due ⁄⁄ offsetting: restoring the overall balance of bi- ical studies were carried out on the following in 2016. to the non-routine production of waste by the odiversity lost due to the construction of the projects: demolishing of regional transport rolling stock infrastructure by re-establishing ecosystems, ⁄⁄ Trieste-Divaca; An analysis of data related to RFI and Trenitalia6, and the increase in waste produced to clean recreating alternative habitats elsewhere. ⁄⁄ Strassoldo-Cargnacco line; which account for 95% of the Group’s overall long haul trains. ⁄⁄ Verona-Fortezza lot 3, bypassing of Trento figure, shows that: The deep commitment to preserving biodiversity and Rovereto; ⁄⁄ Verona west entrance, lot 4 Verona Fortezza; includes the definitive “Potenza Foggia line - lot 6 Reference should be made to the company attachments for 3 - Mitigation of hydrological and hydraulic risk ⁄⁄ Technological upgrade of the Bologna Ferrara data on the individual Group companies. on the line” project developed in 2016. In this line; case, the areas in the “Natura 2000” network ⁄⁄ Potenza-Foggia, Lot 3; of sites of EC interest - the Cervaro valley, Incor- ⁄⁄ Bari hub, Sant’Anna underpass. onata forest and additional sites of EC interest – the Ofanto valley and Capaciotti lake affected During the year, work was also carried out direct- by the railway line, were analysed for potential ly by Italferr on the design and execution of the interference with habitats of EC interest. following surveys/archaeological digs: ⁄⁄ Turin-Lyon line, Ferriera stop; ⁄⁄ Turin-Lyon line; ⁄⁄ HS Milan-Genoa line, Libarna archaeological Land preservation: archaeology area; ⁄⁄ Bologna Carracci roundabout hub, stage 2; The archaeological findings known to be present ⁄⁄ Guidonia line, auxiliary works; since the start are considered basic data, which ⁄⁄ Aprilia line, Campoleone-Villa Literno; must be considered during the design stage. Ital- ⁄⁄ Naples-Bari route on the Cancello-Frasso line; ferr has created an archaeological impact as- ⁄⁄ Naples-Bari route on the Naples-Cancello sessment procedure to identify the interference of line; civil works on archaeological assets from when it ⁄⁄ Naples-Bari route on the Frasso-Vitulano line; begins the initial design. This procedure was in- ⁄⁄ Naples-Bari route on the Apice-Orsara line; cluded in the public contract code and has since ⁄⁄ Afragola HS station; become a legal requirement. An archaeological ⁄⁄ Access roads to the Afragola HS station, letter assessment is first conducted to identify the risk b and letters d-g; level for archaeological assets, which may in- ⁄⁄ technological upgrade to the Naples hub; clude: ⁄⁄ Falconara hub, Esino road viaduct variation; ⁄⁄ analysis of bibliographical and archive data; ⁄⁄ Termoli-Lesina line, Ripalta Lesina, Lot 1; ⁄⁄ analysis of current and historic maps; ⁄⁄ laying of double track on the Cervaro-Bovino ⁄⁄ toponomy analysis; line; ⁄⁄ analysis of aerial photographs; ⁄⁄ updating of the Potenza-Foggia line, lots 2 ⁄⁄ survey of the area affected by the railway and 4. plans.

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Waste produced Under the Basel Convention, Trenitalia and TX by Ferrovie dello Stato Italiane Group Logistik transport hazardous waste to and from abroad on behalf of third parties. The following 2016 2015 2014 table shows the volumes of waste monitored in accordance with the convention. Waste classified as urban waste 3,852 3,266 4,442

sorted waste 1,457 1,413 2,606 Hazardous waste transported on behalf of third parties Non-hazardous special waste 173,649 154,738 168,873 under the Basel Convention

Hazardous special waste 38,101 54,720 42,572 2016 2015 2014 Total waste produced 215,601 212,724 215,887 Recovered waste 138,532 156,449 159,509 Amounts in tonnes Disposed waste 190,459 316,328 150,863

Amounts in tonnes Waste sent for disposal or recoveing by Ferrovie dello Stato Italiane Group Special waste is also transported domestically. The volumes that Trenitalia transports on behalf 2016 2015 2014 of the Group companies and third parties are reported below.

Total special waste 211, 520 209,376 211,299

recovered 95% 96% 94% Waste transported domestically Amounts in tonnes

2016 2015 2014 The Group companies have also improved the The Group companies are also aware of the collection systems for waste classified as urban importance of monitoring and, where possible, Non-hazardous waste 55,974 58,746 90,953 waste resulting from their own activities and improving - including through training - the quan- transported on behalf of third parties 100% 100% 100% those of their customers or suppliers. In this re- tities of waste created at its sites by third parties, spect, Centostazioni and Grandi Stazioni Rail whether they are contractors/suppliers or cus- Hazardous waste 21,604 37,082 24,498 continue to make efforts to maintain the efficiency tomers. This has led to increased control over the transported on behalf of third parties 92% 61% 92% of the sorted waste collection systems for waste work of external businesses, as provided for by produced by commercial businesses and in the the environmental criteria introduced in tenders Amounts in tonnes public areas at stations in the network. and contracts.

Waste produced by third parties on behalf of Ferrovie dello Stato Italiane Group*

2016

Waste classified as urban waste** 19,964 sorted waste 14% Non-hazardous special waste 8,489 recovered 73% Hazardous special waste 356 recovered 32%

Amounts in tonnes (*) *Excluding waste produced at the sites for new railway lines, which is covered in the paragraph “Land development and protection”. (**) Including the waste collected at the main railway stations.

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Noise The mitigation that can be achieved varies on a case-by-case basis, depending on a multitude of G4-EN27 G4-EN31 variables (reciprocal source/receptor position, topography, obstacles to the propagation of 2016 2015 2014 In the development and execution of infrastructur- noise, etc.), and can reach 10-15 dB(A). al investments and, in particular, within the scope In investing substantial resources for projects to Design of acoustic barriers 452,837 394,387 371,316 of activities to mitigate the resulting environmen- maintain and improve the existing network (new Acoustic barriers approved 12,950 17,110 17,008 tal impact, the design and implementation of pro- technologies for train traffic, electrification, dou- jects to reduce noise are particularly important, ble tracks, upgrading, redevelopment of stations, Acoustic barriers under construction 12,376 8,927 8,423 and relate to site activities and noise produced maintenance, etc.) and for new railway infrastruc- Acoustic barriers built (total accumulated length per year) 60,566 60,566 58,988 by the passing of trains following the activation tures (new lines and new systems for passenger of new lines and plants. and cargo traffic, including intermodal solutions), Amounts in metres The following are the most common solutions that RFI is constantly committed to mitigating noise at The table shows the data of noise dampening barriers in various stages of progress (design, approved and under construction) for the year. can be used to mitigate noise pollution generat- source, at sites and stations, as well as imple- ed by fixed plants and sites: menting permanent sound reduction fixtures due ⁄⁄ enclosing the noisiest machinery, operations to railway operations and in experimenting with and maintenance permitting; devices to be applied to the superstructure to re- Trenitalia did not perform any mitigation projects In 2016, monitoring, environmental classifica- ⁄⁄ acoustic screens (noise dampening barriers or duce the noise generated by train/track contact. in 2016 on the source of railway noise (main- tion and reclamation activities continued with enclosures with noise dampening treatment); With regard to new lines or those being upgrad- tenance systems and rolling stock) as it carried respect to the infrastructural upgrading of the ⁄⁄ scaling of shifts when the noisiest machinery ed, for which Italferr acts as technical expert for out, where necessary, management/operating Genoa hub, the Brescia hub, the Porto di Taran- operates and its use during the day where per- RFI, design and implementation activities have projects to reduce any impact of sound pollution to railway connection to the national network, mitted by production requirements. attained the following results to date: connected to its activities. Lastly, no criticalities the Bologna Centrale HS station, Bologna Cava were noted at maintenance sites in terms of the Corticella, the Napoli Centrale station, the Cam- environmental impact caused by vibrations. poleone – Villa Literno line, the Falconara hub, the new Chiasso station, RFI’s areas in Trieste and Pioltello Rodano and the Madonna della Grotta landfill on the Bari-Bitetto line. Other impacts Trenitalia continued managing the issues arising G4-EN8 G4-EN9 G4-EN10 from its contaminated sites and their upgrading to safety standards. In particular, it monitored G4-EN22 G4-EN24 G4-EN26 design activities commissioned outside the com- G4-EN27 G4-EN31 G4-PR1 2016 2015 2014 pany and defined technical/operational aspects to include in technical specifications for the Design of acoustic barriers 114,078 37,000 29,500 Management of potentially contracting of reclamation/upgrading to safety contaminated sites standards. The activities that RFI performed direct- Acoustic barriers under construction 48,208 66,487 102,755 ly include a total of 18 sites under reclamation in Acoustic barriers built (total accumulated length per year) 350,352 343,434 306,816 In RFI’s building of new infrastructures and up- 2016, nearly all of which were polluted in the grading of existing lines with the technical sup- past. The decrease on the 41 reclamation sites Amounts in metres of 2015 was due to the conclusion of many of The table shows the data of acoustic barriers in various stages of progress (design and under construction) for the year. port of Italferr, the survey of potentially contam- inated sites is aimed at identifying, during the the reclamation processes that were in progress preliminary design stage, all areas interfering in 2015. Environmental recovery costs incurred, with project works where there could be an alter- including the cost of reclamation, amounted to ation in the quality of the surface soil, subsoil and almost €2 million. For the lines that are already operational, RFI is underground water. An environmental character- involved in the noise reduction activities included isation plan is then defined for any risk areas in the noise reclamation plan approved by the that are identified, consisting of the assessment Water Unified Government-Region Conference based of any pollutants. on the scale of priorities defined by the Decree of The information that Italferr gathers is collected in The Group companies remained committed to the Ministry for the Environment of 29 November the geographical environmental monitoring and rationalising the use of water, and this includes 2000. Current plans provide for 428 improve- project information system’s database (SIGMAP, training and spreading awareness on water ef- ment projects over the course of four years, and Sistema Informativo Geografico Monitoraggio ficiency. The water use data analysis shows a these projects will be monitored using specific Ambiente e Progetti). This system includes the steady trend despite the slight increase in 2016 company noise mitigation monitoring software section for environmental reclamation in which (+4.4% on the previous year and +3.6% on called MoIRA. the reclamation and recovery procedures under- 2014). The Group companies did not withdraw The following provides a summary of RFI’s results. way can be checked and planned. any water from protected areas.

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The Group’s water withdrawals are mainly for Electromagnetic fields ⁄⁄ electrical traction contact cables; non-industrial use (offices, bathrooms and work- ⁄⁄ telecommunication and radio transmission sys- shop showers, fountains at stations, etc.), equal Since the early 1980s, in collaboration with tems used to meet service requirements; to over 87% of total consumption. In the with- qualified national structures such as the Istituto Su- ⁄⁄ medium and low voltage systems for lighting drawal of water for non-industrial use, one of periore di Sanità (Italian institute of health), ANPA and other services. the key aspects that cannot be overlooked is the (environmental protection agency) and Enel, the management of biological risk. Water to replen- main Ferrovie dello Stato Italiane operating com- Trenitalia now measures the electromagnet- panies have provided a genuine contribution to ic fields of its rolling stock for the purposes of analysing and assessing the interaction between risk assessment as per Legislative decree no. Withdrawals by use and source the environment and the electromagnetic fields 81/2008. Testing in the drivers’ cabs show an created on the rails. Many investigations have overall profile that is in line with the legislative been conducted to check that the electromagnet- requirements for occupational exposure to elec- tromagnetic fields. With respect to the 50 Hz 2016 2015 2014 ic field thresholds pursuant to law are complied with, both on board operating trains and in the electromagnetic fields generated by the power lines and systems, RFI constantly monitors voltage Industrial use 3,098,311 2,963,111 3,174,072 areas surrounding the infrastructure that gener- ates the radiation. In particular, the following on its high voltage lines7 and reports the values to from aqueducts 47.5% 50.6% 45.5% railway systems generate electromagnetic fields the relevant ARPA (environmental agency) offices. from underground water* 51.1% 47.9% 53.1% with non-negligible frequencies under current leg- islation: from bodies of water 1.4% 1.5% 1.4% ⁄⁄ electrical power lines and stations, i.e., all Non-industrial use m3 21,395,030 20,497,764 20,459,199 electrical lines, substations and transformation stations; 7 Title was transferred to Terna on 23 December 2015. from aqueducts 39.3% 36.9% 41.9%

from underground water* 60.7% 63.1% 58.1%

Total water withdrawn 24,493,341 23,460,874 23,633,271

Amounts in cubic metres (*) Withdrawal of water from the water table and sources.

ish passenger carriages, for example, must meet is disposed of by being sent to the municipal health and bacteriological standards. Indeed, sewage system in accordance with the require- utmost attention is devoted to the quality of water ments of Legislative decree no. 152/06. used, the management and maintenance of wa- ter infrastructures and the ways in which loading Finally, the Group’s main workshops are operations are handled. In this respect, routine equipped with systems to collect and treat (chem- checks are scheduled to provide information on ically/physically) the wastewater resulting from the water quality and the effectiveness of water the Group companies’ industrial activities. The treatment. The entire train water circuit is also re- water treatment process is managed by special- claimed (tanks, pipes, etc.) with the removal of ised companies. lime and sanitising. Wastewater resulting from the Group use is main- ly classified as domestic wastewater. This water

Water disposal

2016 2015 2014

Wastewater sent to sewers 20,624,268 19,796,923 19,881,307

water treated beforehand 4.5% 4.2% 5.0%

Wastewater sent elsewhere 360,257 388,969 363,561

water treated beforehand 92.5% 90.1% 89.2%

Amounts in cubic metres

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Additional 08 information

Focus on details 186 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 187 the environment information

Methodology

Since 2011, an IT solution (SuPM – Sustain- Guidelines. The audit, performed by an inde- ability Performance Management) has been pendent company (KPMG), was conducted to adopted for the data collection process to mon- evaluate the accuracy of data and the com- itor and report information. The implementation pliance of contents with such Guidelines. As of SuPM involves, throughout all the Group’s required by the GRI Guidelines, an integrated operating companies, reporting at various lev- Disclosure Management Approach document els, in order to collect and monitor data across was prepared - summarising the approach of Italy. To date, the implementation at different Ferrovie dello Stato Italiane Group to sustain- levels has been completed for Trenitalia, RFI, ability management - along with the Content Ferservizi, FS Italiane, Busitalia-Sita Nord and Index, indicating the sections of the document Netinera Group, while the other Group com- containing standard information on the organ- panies, because they fall within the scope of isation and its performance. Such document is the Sustainability Report, are included in the attached to this report. system with one single reporting level.

The approach taken has enabled the Group to report on the standard elements and per- formance indicators required by the GRI’s G4

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 188 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 189 the environment information

MATERIAL ISSUES GRI ISSUE COMMENTS FOR FS ITALIANE GROUP SCOPE SCOPE INTERNAL EXTERNAL

The assessment only calculates Energy efficiency   Energy consumption related to site operations for the external scope Customer safety  Consumer health and safety The assessment only calculates Atmospheric emissions   Emissions emissions related to site activities for the external scope Occupational health and safety  Occupational health and safety

Economic value directly generated Financial performance and distributed to the stakeholders 

Waste, wastewater and soil The assessment covers site operations Wastewater and waste pollution   for the external scope

Customer satisfaction   Labelling of products and services

Sustainable mobility  Emissions

Indirect economic impact Financial performance, Materiality matrix In order to gain an understanding of how well on communities  indirect economic impacts the Group’s strategies respond to sustainability Local communities issues, an internal survey was also conducted Materials The assessment covers site operations Since 2014, Ferrovie dello Stato Italiane Group Land development and protection has reported the economic, social and environ- online with the Group’s top management, along   Water for the external scope Wastewater and waste mental activities deemed to be the most signif- with interviews with the CEOs of the main Group companies (additional internal input was gath- icant (or material) in the Sustainability Report. Relationships with stakeholders  Stakeholder engagement With the aim of developing a broader and more ered from the 2017-2026 business plan, poli- organic stakeholder engagement process, the cies, principles and internal models guiding the Employee training and development Training and education Group has decided to gather in a structured way Group’s corporate governance).  external and internal feedback on the materiality Environmental requirements of the Only strategic core suppliers were of sustainability issues for the Group. The Group’s materiality matrix was prepared by  Environmental assessment of suppliers cross-referencing the results of the external stake- supply chain included in the assessment holder analysis with the Group’s strategies. To this end, in July 2016, an online survey was Diversity and equal opportunities  Diversity and equal opportunities conducted where the internal and external stake- The materiality of each issue has been calculated as the weighted average of the internal and ex- holder community (roughly 300 stakeholders) Employment Personnel policies were asked to rate the materiality of 35 sustaina- ternal sources and mapped in the matrix report-  Equal pay for men and women bility issues identified on the basis of the GRI-G4 ed in the Methodology section. Guidelines. Additional input for the external con- The Sustainability Report amply reports on the Anti-corruption  Anti-corruption text analysis came from a media analysis, the issues deemed material, placed in the top right- hand corner. fourth stakeholder panel, sustainability standards Digital transformation   Transversal aspect (Global Reporting Initiative, Down Jones Sustain- ability Index, ISO14001, etc.) and studies of The following is a bridging table between the competitors, peers, best in class and trade asso- material issues identified, the related GRI issue ciations (UIC, CER, etc.). and the scope of reporting.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 190 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 191 the environment information

Group RFI

sustainability Integrated systems: Q + E + S

Commercial and Network Operation Department and Steering Departments Scope: Management systems ⁄⁄ management of train traffic to ensure safe railway operation. Production Department (PD) and Local Production Units The following table shows the certification Scope: standards for each company and the related ⁄⁄ maintenance of the railway infrastructure to ensure safe train travel and railway operation and the scope. The “Integrated systems” column shows performance of train travel and shunting activities; ⁄⁄ design in the railway engineering sector (superstructure, signalling and telecommunications sys- information on the integration of the manage- tems and electrical traction), civil engineering, road engineering and environmental protection in ment systems (Quality, Environment, Occupa- the railway field. tional safety). National Electrical Equipment Workshop - Bologna, the PD’s national workshops Quality (Q) Scope: ISO 9001 ⁄⁄ maintenance to ensure safe train travel and railway operation through the inspection, repair, FERROVIE DELLO STATO ITAIANE rehaul and assistance for vehicles operating on the rails and railway equipment for electrical traction systems and safety and signalling systems.

National Superstructure Workshop - Pontassieve, the PD’s national workshops Integrated systems: - Scope: ⁄⁄ maintenance to ensure safe train travel and railway operation; construction of railway super Central Audit Department and audit departments of Ferrovie dello Stato Italiane Group structure equipment through mechanical processing, welding, assembly and attachment of rails and railway diverters. Quality (Q) Scope: ISO 9001 ⁄⁄ design and provision of internal audit services to the Group companies. National Carriage Workshop - Catanzaro, the PD’s national workshops Scope: Ferrovie dello Stato Italiane (Headquarters) ⁄⁄ maintenance to ensure safe train travel and railway operation through general inspections, Scope: non-routine maintenance, 5-year checks, repairs and assistance for the vehicles operating on rails. Environment (E) ⁄⁄ setting the guidelines and coordinating policies and industrial strategies for the Group’s operating ISO 14001 companies, implementing corporate governance processes, preparing the Group’s business plan, governing and monitoring corporate relationships within the Group, managing relationships with Central Divisions the government and other institutional authorities. Scope: ⁄⁄ design, construction, implementation, management and maintenance of national railway infra- structure.

Steering Divisions Scope: ⁄⁄ management of train traffic to ensure safe railway operation.

Local Production Units Scope: ⁄⁄ maintenance of the railway infrastructure to ensure safe train travel and railway operation and the performance of train travel and shunting activities.

Environment (E) National Electrical Equipment Workshop - Bologna, the PD’s national workshops ISO 14001 Scope: ⁄⁄ maintenance to ensure safe train travel and railway operation through the inspection, repair, rehaul and assistance for vehicles operating on the rails and railway equipment for electrical traction systems and safety and signalling systems.

National Superstructure Workshop - Pontassieve, the PD’s national workshops Scope: ⁄⁄ maintenance to ensure safe train travel and railway operation; construction of railway super structure equipment through mechanical processing, welding, assembly and attachment of rails and railway diverters.

National Carriage Workshop - Catanzaro, the PD’s national workshops Scope: ⁄⁄ maintenance to ensure safe train travel and railway operation through general inspections, non-routine maintenance, 5-year checks, repairs and assistance for the vehicles operating on rails.

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RFI italferr

Integrated systems: Q + E + S Integrated systems: Q + E + S

Quality (Q) Steering Divisions ISO 9001 Scope: ⁄⁄  management of train traffic to ensure safe railway operation. Italferr (Headquarters and operating sites) Environment (E) Scope: Local Production Units ISO 14001 ⁄⁄ design, management of works contracting, works oversight and supervision of works on guided Scope: transport and the related interferences. ⁄⁄ maintenance of the railway infrastructure to ensure safe train travel and railway operation and the performance of train travel and shunting activities. Occupational safety (S) National Electrical Equipment Workshop - Bologna, the PD’s national workshops OHSAS 18001 Scope: Occupational safety (S) ⁄⁄ maintenance to ensure safe train travel and railway operation through the inspection, repair, OHSAS 18001 rehaul and assistance for vehicles operating on the rails and railway equipment for electrical Netinera Group* traction systems and safety and signalling systems.

National Superstructure Workshop - Pontassieve, the PD’s national workshops Scope: Integrated systems: - ⁄⁄ maintenance to ensure safe train travel and railway operation; construction of railway super structure equipment through mechanical processing, welding, assembly and attachment of rails SBN (Headquarters and operating sites) and railway diverters. Scope:

National Carriage Workshop - Catanzaro, the PD’s national workshops ⁄⁄ transport services using buses: regional and urban public transport, occasional transport, mainte- Scope: nance and customer assistance. ⁄⁄ maintenance to ensure safe train travel and railway operation through general inspections, Netinera Werke non-routine maintenance, 5-year checks, repairs and assistance for the vehicles operating on rails. Quality (Q) Scope: ISO 9001 ⁄⁄ maintenance and inspection of railway vehicles in accordance with the operating rules of con- struction and the German railway service.

OHE (Headquarters and operating sites) trenitalia Scope: ⁄⁄ maintenance and updating of owned and third party railway vehicles.

Integrated systems: Q + E + S (*) The Netinera Group companies that fall under the scope of the Sustainability Report have been considered.

Quality (Q) Busitalia - Sita Nord ISO 9001

Trenitalia (Headquarters and operating sites) Integrated systems: Q + E + S Environment (E) Scope: ISO 14001 ⁄⁄ design and provision of passenger and cargo transport services by rail. Quality (Q) ISO 9001 Occupational safety (S) Busitalia-Sita Nord (Headquarters and operating sites)* OHSAS 18001 Scope: Environment (E) ISO 14001 ⁄⁄ design and provision of transport services using buses and trolleys: local public transport. Design and provision of transport services using buses: long haul lines, rentals and atypical services. Maintenance and depot facilities for its own vehicle fleet. Occupational safety (S) OHSAS 18001

(*) The certification authority has approved the quality and environment management system integration process of Umbria Mobilità Esercizio (a company that was transformed into the regional division of Busitalia – Sita Nord in 2016) for it to be- come part of Busitalia – Sita Nord’s integrated management system. Certification will not cover all the operating sites of the Umbria regional division. In the first half of 2017, activities will begin to extend ISO 14001 certification to other Umbrian sites and a process will also be defined in collaboration with the certification authority to extend Busitalia – Sita Nord’s OHSAS 18001 certification to the Umbria regional division.

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Busitalia Veneto Mercitalia Logistics

Integrated systems: Q + E + S Integrated systems: Q + E + S

Mercitalia Logistics (Rome headquarters) Quality (Q) Quality (Q) Scope: ISO 9001 ISO 9001 ⁄⁄ organisation and provision of logistics services in connection with sundry cargo; Busitalia Veneto (Headquarters and operating sites) ⁄⁄ management of real estate assets. Scope: Environment (E) Mercitalia Logistics (Rome headquarters, Bologna San Donato and Catania Bicocca sites ISO 14001 ⁄⁄ design and provision of transport services using buses and trolleys: local public transport. Design and the local units in Torino Orbassano, Bologna Interport, Pomezia S. Palomba, Verona and provision of transport services using buses: long haul lines, rentals and atypical services. Porta Nuova and Marcianise) Maintenance and depot facilities for its own vehicle fleet. Environment (E) Scope: Occupational ISO 14001 ⁄⁄ management and development of the company’s real estate assets; safety (S) ⁄⁄ organisation of logistics services in relation to sundry cargo and the provision of such services OHSAS 18001 via third parties.

Mercitalia Logistics (Rome headquarters, Bologna Interport and Milan via Valtellina) Centostazioni Occupational Scope: safety (S) OHSAS 18001 ⁄⁄  management and development of the company’s real estate assets; ⁄⁄  organisation and coordination of logistics services in connection with sundry cargo; ⁄⁄  services supporting business activities. Integrated systems: Q + E + S

Quality (Q) ISO 9001 FS Sistemi Urbani Centostazioni (Headquarters and sites) Scope: Environment (E) ⁄⁄  development and redevelopment of real estate complexes; ISO 14001 ⁄⁄  design and works oversight services; Integrated systems: - ⁄⁄  commercial development and advertising services; ⁄⁄  real estate portfolio management, property and facility management services. FS Sistemi Urbani (Sede centrale) Occupational Scope: safety (S) OHSAS 18001 ⁄⁄ management, on its own behalf or by appointing third parties, of the company’s real estate assets; Environment (E) ⁄⁄ real estate development, on its own behalf or by appointing third parties, of the company’s real ISO 14001 estate assets and other Group companies’ real estate assets not functional for railway operations. ⁄⁄ planning, development and implementation of real estate development and management process- es and urban intermodal systems FERservizi

Integrated systems: Q + E + S

Ferservizi (Headquarters and operating units) Scope: Quality (Q) ⁄⁄ service management: administration, procurement, real estate sales services, leases and agree- ISO 9001 ments, technical and asset services, maintenance and facility management services for office buildings and hotels, the issue of travel concessions, company canteen services, real estate and legal custody services, printing services, credit management, tax services, correspondence and notifications.

Ferservizi (Headquarters and operating units) Scope: Environment (E) ISO 14001 ⁄⁄ provision of all the activities that the company performs to manage administrative, sale and lease of real estate, custody and safeguarding of real estate and facility services, in addition to Group procurement, IT and maintenance and provision of assistance services for creches.

Ferservizi (Headquarters and operating units) Occupational Scope: safety (S) ⁄⁄ provision of all the activities that the company performs to manage administrative, sale and lease OHSAS 18001 of real estate, custody and safeguarding of real estate and facility services, in addition to Group procurement, IT and maintenance; ⁄⁄ provision of assistance services for creches.

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Serfer Business Integrated systems: Q + E + S sustainability

Quality (Q) ISO 9001 Serfer (Headquarters, Genoa office* and operating site in Udine) Scope: Customers ⁄⁄ design, construction, maintenance and restructuring of railway connections; Environment (E) ⁄⁄ cargo and passenger transport services as railway company in the national railway infrastructure; ISO 14001 ⁄⁄ welcome, assistance and catering services on equipped passenger cars; ⁄⁄ management of shunting in railway connections; ⁄⁄ maintenance and reconditioning of diesel traction vehicles, railway rolling stock for cargo trans- Highlights Occupational port and related services. safety (S) OHSAS 18001 What we have accomplished (*) The Genoa office is only certified in accordance with ISO 14001. Passenger services RFI

⁄⁄ Continuation of works under the 500 stations project, with specific regard to works to raise platforms, install new lifts, install tactile walkways, refloor platforms and halls and replace lighting systems with LED lights. Terminali Italia ⁄⁄ Expansion of the scope of stations to be renovated and redesign of projects to make them more accessible, connected and sustainable: €2.5 billion allocated in the new business plan for the “Easy Stations” and “Smart Stations” projects. Integrated systems: - ⁄⁄ Continuation of the plan to activate the new public information system IeC - information and communication Terminali Italia (Headquarters and operating sites) (included in the scope of the Easy Stations project). Scope: Environment (E) ⁄⁄ Continuation of activities to assign cleaning services at RFI stations according to assessment criteria that con- ISO 14001 ⁄⁄ management and operation of terminals equipped for intermodal transport; sider the environmental sustainability of products, machinery and equipment used. ⁄⁄ provision of terminal services ⁄⁄ Improvement in accessibility at stations included in the agreement with FIAB (the Italian federation of bicycle lovers) to implement facilities for bike-train exchanges (adequately floored and equipped compartments, sys- tems for taking bikes up and down stairs in underpasses, rental/maintenance in areas at stations, bike sharing zones and specific fixed signs and digital message panels).

⁄⁄ Publication of the call for bids for the Muovilarte - street art project at stations to renovate them.

Ataf Gestioni TRENITALIA

Long Haul Passenger Transport Division Integrated systems: Q + E ⁄⁄ Increase in the Frecciarossa 1000 fleet on the Turin - Salerno route by upgrading services operated using ETR500 trains and the introduction of new connections during peak hours. Ataf Gestioni (Headquarters and operating sites) Scope: ⁄⁄ Roll-out of the Frecciarossa on the Po Valley line connecting Turin, Milan and Venice. Quality (Q) design of public transport; ISO 9001 ⁄⁄ ⁄ Consolidation of the Frecciarossa trains used on the Venice-Rome/Naples/Salerno route by upgrading Frec- provision of customised urban public transport services: conventional and flexible services. ⁄ ⁄⁄ ciargento services and adding new connections.

Launch of the Frecciargento Bolzen-Trento-Verona-Naples, Rome-Modena-Mantua and Rome-Bergamo routes. Ataf Gestioni (Headquarters and operating sites) ⁄⁄ Scope: Environment (E) ⁄⁄ Completion of the restyling of the Frecciarossa Bistrò cars. ISO 14001 ⁄⁄ provision of public mass transport services by road in the following stages: transport service operation, deposit, cleaning, electrical and mechanical maintenance, provisioning, entry and ⁄⁄ Consolidation of the new single on board website named “FRECCE”, with new services and a completely exit of vehicles. free offer.

⁄⁄ Launch of the new free app for Androids and IOS to use the on board “FRECCE” website. ⁄⁄ Launch of new on-board monitor functions (such as geo-referencing content, customised broadcasting sched- ules based on where the train stops and news updates).

⁄⁄ Continuation of the project to give the Frecciabianca trains a new look. ⁄⁄ Revamping of vehicles used in daytime Intercity services. ⁄⁄ Start of the upgrading project for WiFi on ETR500 trains with the installation of new, higher performance modems.

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What we have accomplished What we have accomplished

Passenger services TRENITALIA Train traffic safety TRENITALIA

Regional Passenger Division ⁄⁄ Better traceability of maintenance on vehicle safety systems. ⁄⁄ Continuation of the fleet modernisation, also in the light of the long-term service contracts signed with the ⁄⁄ Continuation of the implementation of systems to measure the temperature of the axle boxes by crew using regions. portable devices.

⁄⁄ Introduction of the new regional tickets which indicate the travel date and elimination of distance-based ticket- ⁄⁄ Conclusion of the mapping of hydro-geological and anthropic risks with a potential impact on railway lines. ing: these are key components of the plan to counter fare evasion launched in 2015 by Trenitalia’s Regional Passenger Division, which employs a force of over 150 agents who conduct more than 3 million checks in ⁄⁄ Continued improvement of the IT systems used to manage and monitor activities for maintenance and operating about a year. safety.

⁄⁄ Introduction of the possibility to purchase regional e-tickets up to five minutes before the train departs, rather ⁄⁄ Continuation of activities to equip shunting locomotives with security devices in accordance with ANSF decree than up to 20 minutes before as was previously the case. no. 1/2015.

⁄⁄ Elimination of the requirement of printing monthly passes that are purchased online, allowing passholders to ⁄⁄ Continuation of activities to reactivate the system used to control driver vigilance. show their passes on an electronic device (e.g., smartphone or tablet). ⁄⁄ Continuation of activities to update hardware installed on the computerised brake testing equipment. ⁄⁄ Signing of agreements to create incentives for integrated train+bike mobility. ⁄⁄ Conclusion of the project to improve the safety of hazardous cargo transport. ⁄⁄ Organisation of the 1st international training day on “Commuter and Regional Train Services”. In collaboration with the UIC, the purpose of this event is to explore certain European regional transport issues. ⁄⁄ Installation of the new door system on “ALn 668/663” vehicles and improvements to the door system on medium-haul and low-floor carriages. Cargo Division ⁄⁄ Development of predictive maintenance to identify and prevent possible breakdowns before they happen ⁄⁄ Establishment of the new company Mercitalia Rail within the single Mercitalia logistics hub, which will give rise during operation. to more synergies with other Group companies that handle logistics.

⁄⁄ Strengthening of the customer care service with the aim of consolidating and improving information provided Safety services Ferrovie dello Stato Italiane - Company Security to customers. ⁄⁄ Building of approximately 70 new security systems at railway stations located throughout Italy. BUSITALIA - SITA NORD ⁄⁄ Start of work sites and activities in preparation for the construction of definitive access gates separating the train operating areas and the commercial areas at the Rome Termini station. ⁄⁄ 25 new Euro 6 motorised buses technologically built and equipped with special devices to ensure lower consumption joined the fleet. Assistance to passengers RFI ⁄⁄ The Bus & Bike service was set up with the Umbria regional division on the Terni-Scheggino and Spoleto-Nor- with disabilities cia lines using buses with bike racks. ⁄⁄ Extension of assistance for people with reduced mobility, expanding the network of stations where assistance is offered to include the Campobasso, Isernia and Scalea stations and HS passengers using modal exchanges ⁄⁄ Busitalia-Sita Nord e-commerce sales were launched for connections to the The Mall, allowing customers to with buses provided by the railway companies to/from: Siena and Perugia (Firenze SMN), L’Aquila (Roma buy their tickets online. Tiburtina), Potenza and Matera (Salerno), Cortina D’Ampezzo (Venezia Mestre), Courmayeur (Torino Porta Susa) and Madonna di Campiglio (Verona and Trento). ⁄⁄ Co-marketing campaigns were launched to promote events and projects through advertising space made available on board buses, on the website, etc., to give customers the chance to use discounts and promotions ⁄⁄ Increase in the number of stations in the circuit with lifts to help people in wheelchairs board and deboard for exhibitions, cinemas, trade fairs, etc.. (these are necessary when the track is not at the same height as the train’s running board), now also installed at Belluno, Cagliari, Campobasso, Isernia, , Scalea and Villafranca di Verona. ⁄⁄ Restyling of ticketing offices at the bus terminals in Perugia and Terni ⁄⁄ Equipping ferries crossing the Messina Strait with lifts. Ataf Gestioni ⁄⁄ Introduction of a new call centre using VoIP technology, which has considerably improved the efficiency of the telephone channel (national number 199303060 and toll-free number 800906060), raising the percentage ⁄⁄ Roll-out of new buses in the vehicle fleet (39 Euro 6 diesel vehicles). of customers who receive responses on their first try to 90%. ⁄⁄ Activities were completed to monitor consumption, thanks in part to the Mercurio programme for the automated ⁄⁄ Advancement of the Infoaccessibilità information service at stations (on the RFI website in the “Station accessi- management of energy data to quantify energy savings as a result of actions taken. bility” section) to provide information on accessibility services and facilities at the main stations in the network.

⁄⁄ Issue of ReteBlu functions for railway companies and contracting firms. BUSITALIA VENETO ⁄⁄ Start of the activation of the PRM-Assistance Booking Tool IT system for international journeys between stations ⁄⁄ Establishment of new urban and suburban connections in Padua and urban connections in Rovigo. in European networks.

⁄⁄ Growth in the offer of evening trolley services and roll-out of two new trolleys for more frequent runs. ⁄⁄ Activation of a specific control for the management of complaints relating to assistance services for people with disabilities and reduced mobility. ⁄⁄ Roll-out of 28 urban and suburban buses with devices that can improve the service offered. Busitalia Veneto will continue upgrading its fleet to EU environmental standards in line with more modern technologies.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 200 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 201 the environment information

What we have accomplished What we aim to do

To make use of assets RFI Passenger services TRENITALIA for social purposes ⁄⁄ Renewal and signing of new agreements with non-profit organisations and local bodies to grant areas in Regional Passenger Division stations and nearby areas on free loan. ⁄⁄ Extension of the Trenitalia Smart Card - already present in Piedmont and Valle d’Aosta - to other regions as well, ⁄⁄ Publication of the “Atlas of the discontinued lines” to promote their reuse as greenways by local institutions beginning with Veneto, Emilia Romagna, Tuscany, Umbria and Lazio. and bodies. ⁄⁄ Expansion of the possibility of purchasing tickets and passes online and via apps even using credit with mobile ⁄⁄ Reactivation or maintenance of secondary lines no longer used for local public transport in historic and scenic telephone service providers. areas for the creation of tourist routes on historic trains organised by Fondazione FS. ⁄⁄ Creation of automated push notices via apps, with real time information on railway scheduling.

BUSITALIA - SITA NORD

⁄⁄ Activation of an integrated train/bus service to/from the The Mall in partnership with Trenitalia. What we aim to do ⁄⁄ Design of a new connection between the Livorno port and the The Mall during the cruise ship season (March - October)

Passenger services RFI ⁄⁄ Activation of online ticketing systems to purchase tickets for The Mall and Volainbus (connection between the city of Florence and the Vespucci airport); ⁄⁄ Continuation of works under the 500 stations project in accordance with RFI’s business plan for the Easy Station and Smart Station projects. ⁄⁄ Implementation of a new management system for complaints and reports from customers, optimised at both the front and back ends for the alignment of complaints management throughout all Busitalia Group subsidiaries. ⁄⁄ Continuation of the plan to activate the new public information system IeC (included in the scope of the Easy Stations project). ⁄⁄ Redesign of customer satisfaction surveys, using a shared methodology for all Busitalia Group companies.

⁄⁄ Equipping the stations included in the FIAB agreement with facilities for bike/train exchanges. ⁄⁄ Continuation of the project to integrate the road/railway LPT services operated by Busitalia, Trenitalia and Centostazioni in the Umbria regional division. ⁄⁄ Testing of a remote control and management system for lifting plants. Ataf Gestioni TRENITALIA ⁄⁄ The roll-out of 34 new Euro 6 vehicles has been planned to replace the old Euro 2 and Euro 3 buses in 2017. Long Haul Passenger Transport Division ⁄⁄ Four automatic ticketing machines will be installed in areas agreed with the University of Florence. ⁄⁄ Conclusion of the roll-out of the Frecciarossa 1000 fleet. ⁄⁄ Completion of the conversion of trains used for the Po Valley connection between Turin-Milan-Venice to Frec- ciarossa.

⁄⁄ Use of the Frecciarossa 1000 fleet on the Venice-Romr/Naples/Salerno route. ⁄⁄ Launch of the double-train Frecciarossa 1000 service. ⁄⁄ Increase in seats offered and connections during peak hours on the most popular routes. ⁄⁄ Launch of the Frecciargento Rome-Genoa via Florence route. ⁄⁄ Access to the waterway service from the on-board website for mobile devices with Windows software. ⁄⁄ Completion of the WiFi upgrading project on ETR500 trains with the installation of new, higher performance modems.

⁄⁄ Creation of a unique experience on the multimedia entertainment services and internet connectivity between stations, FrecciaClub and on board trains.

⁄⁄ Continuation of the project to give the Frecciabianca trains a new look. ⁄⁄ Start of interior restyling on Frecciabianca trains. ⁄⁄ Creation of a new look for Intercity and Intercity night trains. ⁄⁄ Inclusion of the travelling cleaning service on longer haul trains and the minibar service on high-capacity trains and universal service trains.

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Infrastructure sector: ⁄⁄ 15 with applicants classified as entities of public interest (13 with regions and two signed with autonomous provinces); What we aim to do mobility services ⁄⁄ three with applicants classified as entities of In the period from 1 January 2016 to 10 Decem- commercial interest, for cargo transport; Train traffic safety trenitalia ber 2016, the market has: ⁄⁄ three with railway companies, including two for passenger transport on the network and ⁄⁄ Development of the “My bag” app on tablets to implement tools that help drivers reduce the risk of skipping stops ⁄⁄ 39 railway companies with valid railway op- one for cargo transport. eration licences issued by the MIT (three of Safety services Ferrovie dello Stato Italiane - Company Security which were valid for traffic originating/end- ing in Italy)1; ⁄⁄ Construction of five access gates dividing the train areas from the commercial areas at the Roma Termini and Firenze Santa Maria Novella stations and start of designs for similar structures at the Venezia Santa Lucia ⁄⁄ one railway company with a European rail- Service quality station. way licence issued by the German authority (TX Logistik); ⁄⁄ Boosting the ability to identify security glitches in traffic sent online and file sharing via e-mail. Trenitalia ⁄⁄ 33 railway companies providing transport ser- ⁄⁄ Creation of a centralised infrastructure and activation of technical and organisational measures to monitor the vices after signing infrastructure use contracts; >>Complaints management status of the Group’s logical security. ⁄⁄ 41 infrastructure use contracts, broken down as follows:2 ⁄⁄ Signing/renewal of agreements between FS S.p.A. and the local branches of the Civil Protection Service. The complaints management process is as fol- -- 19 for passenger traffic; lows: ⁄⁄ Creation of new integrated security systems installed at high-passenger traffic stations throughout Italy. -- 19 for cargo traffic; ⁄⁄ complaints received from customers - online, -- three for technical train traffic in order to ⁄⁄ Installation of fixed and mobile obstacles to prevent cars from illegally accessing the Roma Tiburtina station. complaint form or via letter - are forwarded test the rolling stock. ⁄⁄ Preparation and disclosure of the functional operating procedure for the “Prevention and management of ag- to the IT programme for complaints and as- gression against Company Security personnel” for all such personnel operating on the front line. signed to the specific local offices responsible In the period from 11 December 2016 to 31 for managing them; December 2016, the only changes in the market Assistance RFI ⁄⁄ after being analysed, the complaint is sent to on the previous period relate to the following: to passengers the focal points, i.e., technical staff capable with disabilities ⁄⁄ 32 railway companies providing transport ser- ⁄⁄ Expansion of the InfoAccessibilità stations web service to new stations. of identifying the issues reported by the cus- vices after signing infrastructure use contracts; tomer, taking any corrective action to resolve ⁄⁄ Start-up of the new contract for the assistance to people with reduced mobility service, structured in a way that ⁄⁄ 39 infrastructure use contracts, broken down promotes intermodal transport. the reason for the fault reported and providing as follows:3 the complaint manager with the information ⁄⁄ Development of apps with functions for people with reduced mobility. -- 19 for passenger traffic; necessary to send a response (if necessary, -- 19 for cargo traffic; ⁄⁄ Publication of the online form to request Sala Blu assistance, which can be accessed from the websites of the customer is asked for additional details); -- one for technical train traffic in order to test associations for people with disabilities. ⁄⁄ the response is sent and, where appropriate, the rolling stock. ⁄⁄ Activation of the new channel for booking services for the visually and hearing impaired using chat and vide- consideration the seriousness of the fault, the ochat functions already existing on the VoIP platform. customer is offered a voucher. In addition, 21 framework agreements/proto- ⁄⁄ Creation of a new Sala Blu in Rome. cols of understanding were in place at 31 De- cember 2016, broken down as follows: ⁄⁄ Further developments in the ReteBlu IT system functions.

Management RFI of reports and complaints ⁄⁄ Re-engineering of the IT system to support the “RFI in transit” complaints process and develop new areas and functions, particularly to encourage interaction with the IT systems used to manage complaints of Grandi Stazi- oni Rail, Centostazioni and railway companies.

1 Source: Ministry of Infrastructure and Transport - General 3 The difference between the number of contracts (39) and Railway Transport Department ( (http://www.mit.gov.it/doc- the number of railway companies party to such contracts (32) umentazione/imprese-ferroviarie-titolari-licenza). is due to the fact that the railway company Trenitalia has five contracts (cargo, long haul passenger transport (market ser- 2 The difference between the number of contracts (41) and vice), long haul passenger transport (universal service), long the number of railway companies party to such contracts (33) haul passenger transport on the HS network and regional is due to the fact that the railway company Trenitalia has six passenger transport) and the railway companies TUA, Serfer contracts (cargo, long haul passenger transport (market ser- and Ferrovie Udine Cividale have each signed two contracts vice), long haul passenger transport (universal service), long (which differ depending on the type of service). haul passenger transport on the HS network, regional passen- ger transport and technical trains) and the railway companies TUA, Serfer and Ferrovie Udine Cividale have each signed two contracts (which differ depending on the type of service).

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 204 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 205 the environment information

to set local improvement plans, strategic and -- medium/small stations and stops with high Rete Ferroviaria Italiana Classification of stations operational marketing decisions and contracts or very high traffic volumes in urban cities with companies involved in station manage- The four classes are identified as follows: (traffic may exceed 4,000 average users Customer satisfaction: ment. Within 24 hours of the survey, the data ⁄⁄ platinum: includes extremely high-traffic sta- per day), frequently without passenger survey techniques are made available to company management tions (over 25,000 average users per day buildings open to the public, unmanned so that if there are any critical issues, immedi- approximately) and high-quality passenger by RFI personnel and only equipped with The standard customer satisfaction surveys are ate solutions can be prepared where possible. services for long, medium and short haul jour- regional/metropolitan services. RFI mostly performed monthly on a sample of 755 stations ⁄⁄ The results of the most meaningful indicators neys. Services for HS and specific services for manages these stations or, at times, man- and are integrated by ad-hoc focus groups to of the 90 indicators that are monitored are the city and non-passenger users are generally agement is assigned to institutional bodies gather qualitative information on specific areas presented annually in the RFI service charter always guaranteed. RFI normally assigns man- or non-profit associations based on free or issues: together with the corresponding objectives. agement of platinum to Grandi Stazioni and loan agreements; ⁄⁄ the detailed results of the surveys with respect Centostazioni (the only exceptions being the ⁄⁄ bronze: includes small low or very low-traffic to the indicators subject to monitoring are used Milan Porta Garibaldi underground stations stations/stops (generally over 500 average which RFI manages directly); users per day), with no passenger buildings ⁄⁄ gold: includes medium/large high-traffic sta- open to the public, unmanned by RFI person- tions (over 10,000 average users per day nel and only equipped with regional/metro- Customer satisfaction – Survey methods approximately) and high-quality passenger politan services. They are managed directly services for long, medium and short haul jour- by RFI or, at times, management is assigned to neys. These stations generally offer services to institutional bodies or non-profit associations More than 2,000 RFI stations with active passenger services, which it manages directly and indirect- based on free loan agreements. Scope non-travelling users as well and less frequently ly through Grandi Stazioni and Centostazioni provide services for the city. RFI normally as- The classification parameters were recently up- signs management of gold stations to Grandi dated to consider the outcome of the UIC Station Target Departing passengers aged over 14 years old and resident in Italy Stazioni and Centostazioni; Managers Global working group and the shared ⁄⁄ silver: includes two types of stations: interest in a single trans-national classification -- medium/small stations and stops with high system for public railway stations. The most im- 755 stations, through which almost 95% of passengers travel, belonging to the platinum, gold and portant changes comprise, inter alia, the exten- Perceived silver categories traffic volumes (generally over 2,500 av- quality erage users per day approximately) and sion of the classification criteria to include an annual services for long, medium and short haul assessment of the station’s interchange capacity, sample 157,160 interviews journeys: they are normally managed by i.e., the ability of a railway station to connect, Centostazioni or directly by RFI (for a spe- interact and operate in an integrated way with cific analysis, this category also includes other public transport systems. Delivered 755 stations, the same that were surveyed for perceived quality the “Top Silver” sub-category of stations quality with the highest traffic volumes); annual sample 9,404 mystery customer surveys

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Busitalia - Sita Nord EXTENSION OF THE SALES NETWORK

The indicators that the Umbria regional division Type of 2016 2016 2015 of Busitalia - Sita Nord uses to monitor the service service result target result quality that it delivers are given below. Resales 1,105 1,146 1,146

Resales/km network 0.49 0.5 0.5 PUNCTUALITY AND REGULARITY LPT road service* Resales/towns served 10.94 11.4 11.4 100% of trains ran according to schedule, ex- cluding the effects of strikes and force majeure. Buses with on-board ticket sales with surcharge 100% 100% 100%

Resales 57 58 58

Resales/km network 0.38 0.4 0.4 Railway service Resales/towns served 4.07 4.1 4.1 Type of 2016 2016 2015 2016 vs 2015 service result target result (%) Trains with on-board ticket sales with surcharge 100% 100% 100%

On-time journeys 95.50% 95.6% 95.6% -0.10 Resales 4** 4** 4** Waterway service Journeys with delays of >5’ to <=10’ 4.35% 4.3% 4.3% 0.05 Resales/berths 1 1 1 LPT urban for internal reasons 0.01% 0.0% 0.0% 0.01 road service (*) Resales are adequately covered locally in relation to network kilometres and municipalities served, although there has been a drop in the absolute number of resales mainly due to the discontinuance of news agent resales in 2016. Journeys with delays of >10’ 0.15% 0.1% 0.1% 0.05 (**) including one permanent resale office and three peak season offices; during the peak season, one ticket office is open for each berth. for internal reasons 0.01% 0.0% 0.0% 0.01

On-time journeys 96.50% 96.6% 96.6% -0.10 ACCIDENT RATE*

Journeys with delays of >5’ to <=10’ 3.30% 3.2% 3.2% 0.10 LPT suburban for internal reasons 0.01% 0.0% 0.0% 0.01 road service* Type of service 2016 result 2016 target 2015 result Journeys with delays of >10’ 0.20% 0.2% 0.2% 0.00 LPT road service 1 per every 1 per every 1 per every for internal reasons 0.01% 0.0% 0.0% 0.01 Accidents suffered 84,931 km travelled 90,000 km travelled 85,078 km travelled

On-time journeys 37. 6 % 34.7% 34.7% 2.90 Railway service 1 per every 1 per every 1 per every Accidents suffered 570,015 km travelled 690,000 km travelled 608,222 km travelled Journeys with delays of >1’ to <=5’ 30.2% 35.78% 35.8% -5.60% Waterway service Railway 0 0 0 Journeys with delays of >5’ to <=15’ 24.6% 24.8% 24.8% -0.20% Accidents suffered service Journeys with delays of >15’ 7. 6 % 4.7% 4.7% 2.90% Alternative mobility 1 per every 72,877 km 1 per every 32,000 km equiv- 1 per every 31,776 km Accidents suffered equivalent travelled alent travelled equivalent travelled Km travelled / Km scheduled 99.90% 100% 100% -0.10% (*) With respect to the rate of accidents, claims received are substantially due to passengers slipping and falling. Changes in this figure are due to slight increases/decreases % journeys arriving on time (0’-5’) during peak times 99.20% 9 7. 8 % 97.8% 1.40% in the number of these accidents (+1 in the railway segment, +7 in LPT road transport and -13 in alternative mobility). Waterway % of journeys arriving on time (0’-5’) at other hours 99.99% 100% 100% -0.01% service % of actual journeys out of scheduled journeys 100% 100% 100% 0.00% FOCUS ON THE ENVIRONMENT (*) The slight decrease (-0.1%) in the “on-time journeys” indicator for LPT urban and suburban road transport is substantially due to the greater traffic congestion resulting from non-routine maintenance on the Perugia-A1 motorway connector. Type of service 2016 result 2016 target 2015 result The current performance of railway service punctu- ture that arose in 2015 and 20161. The punctuali- ality indicators, with particular reference to journeys ty data relate to the total railway service, including LPT urban road service 98.4% 98.1% 98.1% with delays of more than 15 minutes, is due to limi- portions operated using replacement buses. Vehicle with Euro 2 or higher engines tations arising from the use of the railway infrastruc- LPT suburban road service 87.9% 8 7. 2 % 87.2% Vehicles with Euro 2 or higher engines 1 The interruption of the Umbertide -Città di Castello route from mitigation measures imposed by ANSF since September 2016 Railway service September 2015 to date; the unavailability of tracks at the Peru- (maximum speed of 70 km/h, stops at railroad crossings with- 8.2% 8.2% 8.2% gia Ponte San Giovanni station (since 2015); the introduction of out barriers). Electrical traction vehicle combinations

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Suppliers ⁄⁄ SQ001 “Work on electrical traction and pow- er systems”; ⁄⁄ SQ004 “Work on the railway superstructure”. Purchase sustainability TYPE OF TENDER REQUIREMENTS In general, the standard format for work contracts includes clauses requiring that the contractor, The criteria used by various Group companies to ⁄⁄ ISO 14001 and OHSAS 18001 certification select suppliers are described below. when the project is being approved or during ⁄⁄ Priority requirements: use of low environmental-impact products the work, comply with current legislation on the Rolling stock cleaning and materials; use of energy-efficient machinery, preparation of environment and meet the requirements of envi- environmental and occupational health and safety reports; provision of technical/professional training FERSERVIZI ronmental bodies. Ferservizi uses environmental criteria as reward- As for the electronic assignment of contracts for ing factors in selecting operators to supply goods work, services and supplies, RFI has continued and services. Following the awarding of the con- the expansion of e-procurement system functions Demolition of railway carriages and sale ⁄⁄ ISO 14001 or EMAS certification tract, such criteria become contractual clauses “RFI Purchase Portal” to enable online registra- of resulting metal scraps to all intents and purposes. The purpose of such tion with qualification systems and help reduce environmental criteria is to ensure sustainable use production and transmission of paper documen- of resources. For example, in 2016, they related tation. to the following: For purchases of stone chippings, RFI mainly ⁄⁄ product certification (e.g., Ecolabel and prod- focuses on increasing the number of mines that Supply of medium- and high-capacity EMU ⁄⁄ Priority requirements: energy efficiency, soundless and efficient air uct compliance with ISO 14024 environmen- have received specific approval from the ap- (Electrical Multiple Units) trains conditioning tal standards); pointed Technical Department in accordance ⁄⁄ reducing energy consumption (e.g., reducing with the criteria in the technical specifications energy consumption in electric equipment issued in June 2012, in order to improve the en- compared to the threshold amount -Energy vironmental impact. Star 5.0 certification); Electrical/electronic re-engineering ⁄⁄ Priority requirements: energy efficiency, ISO 14001 and OHSAS Furthermore, suppliers of wood sleepers must of high-frequency trains 18001 certification ⁄⁄ noise levels. have obtained FSC® certification.

RFI Based on the negotiation plan, RFI manages the TRENITALIA order procedures with specific tenders, vetting Some time ago, Trenitalia introduced specific suppliers by verifying that they meet the neces- green procurement policies and initiatives. The sary requirements, or using the “qualification sys- “Operating instructions for the management of tems” set up pursuant to article 134 of Legislative negotiations” define the criteria for managing en- Decree no. 50/2016, with the aim of identify- vironmental aspects in procurement procedures. ing operators that meet specific moral, technical Furthermore, the Purchase Portal includes a sec- and financial requirements, and which are certi- tion devoted to green procurement. fied in accordance with ISO 9001 standards. Where possible, Trenitalia has included environ- Since 2011, RFI has established another sup- mental criteria in its supplier vetting procedure, plier qualification requirement, i.e., companies which consist of mandatory requirements and of- registered with the SQ007 “Control services for fer evaluation requirements. The latter are given vegetation infesting railway areas” system oper- percentage weights that range from a minimum ate with an environmental management system of 0.7% to a maximum of 25%. (EMS) that is certified in accordance with UNI A few examples of environmental requirements EN ISO 14001 standards. in tenders: Since 2014, EMS certification has been manda- tory for companies/suppliers that have obtained the certification under the following systems:

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ITALFERR Italferr has applied quality requirements since In contracts in which Group companies are the 1994, environmental management system re- Our role customer, in addition to the standard contractual quirements since 2001 and health and safety clauses, Italferr requires external contractors im- management system requirements since 2010. in the community plement quality, environmental and safety man- In 2016, Italferr’s contractual specifications agement systems. In particular, Italferr requires were revised following the implementation of the that the companies that are assigned the con- changes introduced by the new versions of ISO struction works design and implement, for the 14001 and ISO 9001. Solidarity initiatives entire duration of the works, an environmental management system for site activities that pro- Busitalia Group vides the company and environmental protection As part of the assignment of contracts for the sup- Help Centers and shelters bodies evidence of the environmental control ply and maintenance of buses, Busitalia Group The following charts illustrate the results and most performed during work by the contractor’s qual- has established technical environmental sustaina- significant analyses of Help Center operations. ified personnel. These systems provide that, be- bility requirements that must be met as a minimum fore starting the work, the contractor company and, as such, are considered explicit prerequi- prepares, as an extension of the environmental sites for the admissibility of bids, and technical project for setting up the site, an environmental environmental sustainability characteristics that analysis of site activities to identify the material are assessed and scored, accounting for approx- environmental aspects to be managed during the imately 10% of the maximum points that can be work and to define how to correctly manage en- given to a bid. vironmental surveillance of the site in line with the TOTAL REGISTERED ONDS NETWORK CENTRE USERS applicable legislative requirements. AND NEW USERS IN 2016

12,000 10,000 8,000 6,000 4,000 2,000

0 Trieste Turin Milan Bologna Florence Pescara Rome Naples Catania Messina Bari Reggio C. Users 575 1,463 9,780 1,875 1,523 630 2,602 961 848 253 1,775 327 New users 575 694 2,118 1,476 1,130 178 1,668 505 493 208 1,425 309

Users New users

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2013-2016 ONDS data GENDER BREAKDOWN OF ONDS USERS SERVED IN 2016

20,000 90% 18,000 77.8% 80% 40,000 450,000 16,000 70% 17,563 14,000 60% 400,000 35,000 12,000 50% 10,000 40% 350,000 30,000 8,000 30% 6,000 22% 300,000 20% 25,000 4,000 2,000 4,986 0.2% 10% 36 250,000 0 0 20,000 Men Women Transgender 200,000 Number 15,000 Percentage 150,000 10,000 100,000 BREAKDOWN OF ONDS USERS 50,000 5,000 SERVED BY NATIONALITY

0 0 2% 2016 2015 2014 2013 2014 25% 23% 50% Social orientation projects Low-threshold projects 3% Total users served Total new users served 2015 26% 12% 99,4% 59% Total days open Total hours open 2%

2016 26% 23% 49%

77,2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PERCENTAGE OF EXISTING ONDS USERS AND NEW USERS IN 2016 Italian EU Non-EU Not recorded

100%

80% AGE BREAKDOWN OF ONDS USERS 60% SERVED IN 2016 40% 20% 7,000 6,109 6,074 0% Trieste Turin Milan Bologna Florence Pescara Rome Naples Catania Messina Bari Reggio C. 6,000 4,774 5,000 Existing users 575 694 2,118 1,476 1,130 178 1,668 505 493 208 1,425 309 4,000 3,323 New users 0 769 7,662 399 393 452 934 456 355 45 350 18 3,000 1,422 Existing users New users 2,000 575 1,000 410 0 Minors 18-29 30-39 40-49 50-59 Over 60 Not recorded

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 214 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 215 the environment information

Reuse of idle real estate assets generally, greenways. There have been many and railway lines cases in which idle lines have been transformed Our people into bike paths (for a total distance of around Visit the following for an overview of the reuse of 160 km) by third parties, after having being areas for social use: transferred to them by FS Italiane Group. http://www.fsitaliane.it/cms-file/allegati/fsitali- To benefit local mobility in large urban areas, ane/Impegno/Ricerca_stazioni_impresenziate.pdf. FS Italiane Group has also identified portions of Workforce breakdown Furthermore, the following initiatives fall within track on residual railway areas, some running this scope: alongside operational track, which could be Additional graphical analyses of workforce ⁄⁄ protocol signed with Legambiente: the Group used for bike paths. As they connect urban ar- breakdown and turnover are provided below. granted premises at the Potenza Superiore, eas and railway stations, they stand to provide Pescara Centrale, Brenna-Alzate (Como) and a valid contribution to improving urban mobility. Santo Stino di Livenza (Venice) stations on free In particular, preliminary studies on two railway 1 hubs in Rome and Milan have shown potential loan as part of the Green Station project ; Breakdown of personnel by education ⁄⁄ agreement with AIG, the Italian association for around 18 km of bike paths in railway areas. of youth hostels: the redevelopment of real Another initiative to use the Group’s railway assets for the purposes of tourism has involved estate assets for social purposes and the re- 80.0% use of idle buildings and areas for tourism, dedicating railway routes that are still operation- particularly for young people by creating al into lines for historic/tourist trains journeys, 2016 2 which benefit the areas they pass through. This youth hostels . 69.17% 2015 reuse preserves the infrastructure’s function as a 68.94% 60.0% 67.79% 2014 There are many different ways to use idle lines railway and the role of secondary lines, which for social purposes to benefit the local areas and no longer benefit from significant demand for municipalities. Typical examples are the conver- commercial transport. sion of railway tracks into bike paths or, more 40.0%

20.0% 1 2 22.56% The objective of the Green Station project, the result of AIG endorses railway transport as the top choice for its 19.80% 20.59% the protocol of understanding signed by Ferrovie dello Stato members’ mobility, offering, inter alia, special tourism pack- Italiane and Legambiente, is to reuse idle areas in railway ages, “train plus hostel”, for schools, families and groups with 11.03% stations as centres for environmental sustainability, tourism a special focus on travellers with disabilities. 10.47% 9.65% and innovative mobility. 0% UNIVERSITY HIGH SCHOOL OTHER DIPLOMA/DEGREE

Geographical breakdown of personnel

60.0% 2016 46.51%

46.95% 2015 46.10% 2014 40.0% 27.91% 27.73% 27.25% 25.64% 25.60% 25.82%

20.0% 0.16% 0.17% 0.17% 0% NORTH CENTRE SOUTH ABROAD AND ISLANDS Ferrovie dello Stato Italiane Group 2016 Sustainability Report 216 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 217 the environment information

Turnover by age Group Incoming/outgoing employees by gender in 2016

New hires Resignations/dismissals 3%

2.64% 2016

3% 2.31% 2015 Men 2014 Women 80% 91% 2% 1.74%

1.68% 9% 20%

2% 1.40% 1.30% 1.20% 1.17%

1%

1% 0.44% 0.31% 0.31% 0.30% 0.29% 0.28% 0.26% 0.25% 0.21% 0.03% 0% New hires by type of contract – 2016 Up to 20 21-30 31-40 41-50 51-60 Over 60

8,2%

Apprenticeship Employee turnover by geographical area Open-ended Fixed-term 48.1%

43.7% 3% 2.68%

3% 2016 2015

1.95% New hires by age Group – 2016 1.88% 1.81% 2% 1.79% 2014 1.74% 1.59%

2% 1.41% 1.14%

1% 72.4% <=20 21-30 0.8% 1% 31-40 3.4% 41-50 5.6% 0.03% 0.05% 0.05% 51-60 0% >60 8.9% 8.9% NORTH CENTRE SOUTH ABROAD AND ISLANDS

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 218 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 219 the environment information

New hires by geographical area – 2016 Human capital spokespeople on the economic, social and man- agerial scenario, and the start of training projects The main training activities performed in 2016 on effective communications and leadership with are detailed as follows. managerial skill training workshops.

Corporate training Technical/professional training 40.8% Projects continue for fresh graduates and experts: Technical/professional training, with roughly the induction programme involved approximate- 320,000 man-days of training provided, fo- cused on imparting and updating specialised 1.5% ly 200 young people with training provided in the classroom, site visits - to encourage an un- know-how for the main professional families. The parent also involved over 500 employees 32.7% derstanding of the Group’s context and main 24.9% operating processes - and innovative teaching in training and specialised technical refresher North courses on administration and financial state- Centre techniques like learning games - to help young railway workers grow through fun activities - and ments, auditing, sustainability and training for South and islands human resources. Abroad gamification - in which teams of young people compete in business plan issues. The operating companies have focused their As in previous years, within the scope of diversity training on supporting their respective business- training, training for women returning from mater- es. As in previous years, technical courses for operating, maintenance and specialisation cer- Resignations/dismissals by age Group – 2016 nity leave and their direct supervisors continued to develop a balance between professional and tification were extremely important. In addition, family life (50 women were involved). Further- specific attention was devoted to occupational more, the year saw the completion of workshops health and safety with respect to both legislative to spread awareness about women’s talent, requirements and conduct and awareness. The which began in 2015, with another two mod- project to draw attention to “The Customer” con- ules in Rome. tinued, involving about 8,000 trainees. Finally, the Group’s engineering company focused on 44.7% the B.I.M. (Building Information Modeling) pro- Managerial training ject to provide the strategic and operational fun- 0.2% Training for junior managers heading micro-struc- damentals of this methodology, integrated with 3.2% tures continued (100 junior managers were training on IT tools and international projects, as >60 4.0% well as international training (Ethiopian Railways 43.4% involved in seven training days). The aim was 51-60 4.5% to train them in and develop human resource Corporation). 41-50 management aspects with respect to the objec- 31-40 tive evaluation of people, training and leading 21-30 Cross training <=20 work groups, managing motivation, establishing targets and managing feedback with a view to Language training increased by 30% on 2015 employee development and support. with substantial growth in both group and indi- Management training included participation in vidual courses and full-immersion programmes, in workshops and seminars for discussion with ex- line with the internationalisation underway. Resignations/dismissals ternal parties, such as institutions and premier by geographical area – 2016

44.3%

0.7%

31.0% 24.0% North Centre South and islands Abroad

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 220 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 221 the environment information

Trend in man-days of training content index

G4-EC8 G4-32

400,000 352,107 355,322

350,000 317,785 300,000 Managers 250,000 Junior managers GRI INDICATORS REFERENCE/COMMENTS 200,000 White collars 157,205 147,712 149,576 150,963 Blue collars 136,625 130,536 150,000 Total SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL 100,000 Strategy and analysis 48,521 48,292 47,988 50,000 Letter to the stakeholders 3,580 2,112 2,103 Strategy and objectives Our approach to sustainability 0 G4-1   Respecting and protecting the environment - our approach 2016 2015 2014 2016 Annual Report (“Macroeconomic context”, “Main events of the year”, “Notes to the consolidated financial statements - Events after the reporting date”) Man-days of training by professional position Letter to the stakeholders The Group’s sustainability in short Methodology Strategy and objectives Our approach to sustainability 200,000 The internal control and risk management system Results of operations - highlights Customers – highlights G4-2   Suppliers – highlights 175,000 Our role in the community - highlights Our people – highlights

157,205 Respecting and protecting the environment - our approach

147,712 Environmental performance – highlights

150,000 143,030 Environmental performance – the Group’s main environmental issues Annexes: Individual company attachments 2016 Annual Report 127,223 (“Risk factors”) 125,000 Men Women 100,000 Total

75,000 48,292

50,000 41,506 29,982 25,000 6,786 4,683 2,112 436 1,676 0 Managers Junior White collars Blue collars managers

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 222 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 223 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

Organisation Significant aspects and scope

The business model G4-3  Methodology The transport segment and the reference market G4-17   2016 Annual Report (“Annexes-Scope of consolidation and Group’s equity investments”) The business model G4-4  The transport segment and the reference market G4-18  Methodology The parent, “Ferrovie dello Stato Italiane” (or “FS S.p.A.”), is based at Piazza della G4-5 Croce Rossa, 1, Rome G4-19  Methodology G4-6 The transport segment and the reference market  G4-20  Methodology The business model The governance system G4-21  Methodology G4-7   2016 Annual Report (“Notes to the consolidated financial statements - Equity investments”; “Annex- Methodology es-Scope of consolidation and the Group’s equity investments”) G4-22 Any restatements/reclassifications are individually indicated in this document The transport segment and the reference market Transport: mobility services Methodology G4-8   Infrastructure sector: mobility services G4-23  2016 Annual Report Any restatements/reclassifications are individually indicated in this document (“Market performance and focus on FS Italiane Group”) Stakeholder engagement The business model The Group’s sustainability in short G4-9 G4-24   2016 Annual Report Stakeholders G4-25 (“The Group’s financial position and performance”) G4-26  The criteria used to identify stakeholders are as follows: responsibility, influence, Workforce G4-10 proximity, representation, strategy  People Care G4-27

Remuneration and pensions G 4-11  Relationships with trade unions

G4-12  Suppliers’ profile and assessment Methodology The business model G4-13   Suppliers’ profile and assessment 2016 Annual Report (“Main events of the year”) Land development and protection

G4-14  The Group applies the precautionary principle in the assessment and management of economic, environmental and social risks Management systems Our approach to sustainability G4-15  Service quality Travel safety Relationships with trade unions G4-16  Stakeholders

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 224 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 225 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

Report profile The governance system The internal control and risk management system G4-28 The reporting period is 2016 G4-38   2016 Annual Report  (“Report on corporate governance and ownership structure - Board of Directors of FS S.p.A.”) G4-29  Methodology 2016 Annual Report G4-39  (“Report on corporate governance and ownership structure - Board of Directors of G4-30  Sustainability reports are annual FS S.p.A.”)

Evaluation survey The governance system G4-31 Email: [email protected] 2016 Annual Report  G4-40 Fax: +39 06 644102077   (“Report on corporate governance and ownership structure - Board of Directors of FS S.p.A.”) Methodology Content index The governance system G4-32  Independent auditors’ report The internal control and risk management system In general, directors’ interests are governed by article 2391 of the Italian Civil The report was prepared using the “in accordance – Comprehensive” option Code and the Code of Ethics of Ferrovie dello Stato Italiane Group which pre- G4-41  vents the Group’s employees, when performing their duties, and the directors of Methodology G4-33 each company from taking decisions or operating against the Group’s interests or  Independent auditors’ report breaching their official duties. Any situation in contrast with said provision shall be reported to the relevant managers or the Ethics Committee. Govenance http://www.fsitaliane.it/fsi/Chi-Siamo/Governance/Codice-Etico

The governance system The internal control and risk management system G4-34   2016 Annual Report  The internal control and risk management system (“Report on corporate governance and ownership structure”) - The BoD proposes changes to the by-law’s, including the business object, to the The governance system shareholders’ meeting

- The BoD is responsible for defining, upon proposal of the CEO, the Company’s Ferrovie dello Stato Italiane SpA establishes and coordinates the Group operating G4-42   and the Group’s strategic lines companies’ policies and business strategies. It also ensures governance processes - By setting up the Audit, Risk Control and Corporate Governance Committee, the made up of divisions to define strategic lines and promote consensus on decisions. BoD also entrusted the latter with the responsibility for expressing an opinion on Specifically, the Central Strategies, Planning and Sustainability Department is re- specific issues related to the identification of the main business risks, including in sponsible for developing and updating the Group companies’ Environmental Man- G4-35, respect of the strategic plans and initiatives to be submitted to the BoD’s proposal agement Systems Governance Model and preparing the Sustainability Report. G4-36 (e.g., strategic, business and financial plans, non-recurring transactions, etc.).  The “Central Brand Strategy and Communication Department” is responsible for social and cultural initiatives, in collaboration with the “Central Strategies, Plan- 2016 Annual Report ning and Sustainability Department” (“Report on corporate governance and ownership structure”) Reference is made to the by-laws or the legislation that directly applies to the com- FS SpA manages institutional affairs with the government, considered in the broad- pany with respect to the measures adopted to ensure that the highest governance est sense (central government, ministries, regions and public administrations in body is aware of economic, environmental and social issues (e.g., reports from general). G4-43  the CEO on the exercise of powers in the performance of duties, Group activities and atypical or unusual transactions; prior information from the CEO on all trans- In accordance with current corporate legislation and considering the ownership actions that are financially strategic and/or significant; periodic reporting on the G4-37 structure, there are no specific mechanisms available to employees to provide implementation of the business plan; periodic reporting, at least half yearly, by the direct recommendations or suggestions to the highest governance body. board’s committees).

The governance system G4-44   2016 Annual Report (“Report on corporate governance and ownership structure”)

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 226 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 227 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

The governance system The head of the Internal Audit Department is responsible for reporting any critical The internal control and risk management system issues to the highest governance body. Accordingly, the head of the Internal Audit 2016 Annual Report Department periodically reports on the progress of operational activities carried (“Report on corporate governance and ownership structure”) out by all internal audit functions and indicates any findings requiring immediate attention. Furthermore, internal procedures also provide for urgently “reporting criti- Projects with a significant impact on the Group’s performance are brought to the cal concerns” to the highest governance body concerning facts and circumstances G4-49 Board of Directors’ attention, which analyses the related risks and opportunities. identified during internal audit activities which require immediate action prior to Furthermore, the BoD confirmed the setting up of an Audit, Risk Control and Corpo- the issue of the final report. FS S.p.A.’s Supervisory Body pursuant to Legislative rate Governance Committee responsible for supporting the board’s internal control decree no. 231/2001 also reports to the highest governance body. Finally, at and risk management assessments, the Company’s and the Group’s corporate the end of 2016, a project was launched to identify the best organisational and governance and social responsibility, by presenting proposals and providing advi- functional structure for the Group’s Internal Audit Department. This project is slated sory activities. Moreover, the BoD periodically receives a report from the Central for completion in the first half of 2017. Internal Audit Department that describes the activities carried out by all the Group’s internal audit departments in relation to internal control system assessments. The audit activities completed in 2016 did not indicate any facts or circumstances G4-45, G4-46   With respect to the internal control and risk management system, the Board of that would entail the need to report in advance any “critical concerns” to the Directors is responsible for the following duties, which it carries out subject to the highest governance body. In any event, in the performance of the internal audit Audit, Risk Control and Corporate Governance Committee’s approval: activities completed in 2016, there were 383 internal audit findings requiring an - defining the guidelines for the internal control and risk management system so improvement action plan. The improvement action plans were defined by the rele- that the main risks related to FS S.p.A. and the companies it controls are fully vant managers and include indication of those responsible for implementing them identified and adequately measured, managed and monitored; and the schedules for their completion. Some of these internal audit findings can - identifying the degree of compatibility of the above risks with business manage- be classified as structural weaknesses of the internal control system (ICS*); while ment that is in line with the company’s strategic goals and financial risk appetite; others – constituting most of the findings - can be classified as individual episodes - assessing, at least annually, the adequacy of the internal control and risk man- of non-compliance or inappropriate conduct. Approximately 60% of the corrective agement system against business characteristics and the risk profile in force, as action identified for the above findings had been completed by year end, while well as the efficiency of said system; around 40% at the same date was still underway. - approving, at least annually, the work plan prepared by the head of the Internal G4-50 The progress of corrective action is constantly monitored and reported to the high- Audit Department, after consulting the Board of Statutory Auditors; est governance body as part of routine reports to that body. - assessing, after consulting the Board of Statutory Auditors, the results as described by the independent auditors in the management letter, if any, and the report on the main issues that arose during the legally-required audit. A project was launched at the end of 2016 to improve the organisational and functional structure of the Group’s internal audit department. It will be completed The following is noted in addition to the information reported in the G4-43, G4- within the first half of 2017. 44, G4-45 and G4-46 indicators: - the Internal Audit, Risk Control and Corporate Governance Committee reports *The ICS is the set of tools available to the highest governance body to carry out at least twice a year on its activities and on the adequacy of the internal control governance activities. The current procedures define the ICS as the “organised, and risk management system; systemic system of resources, internal rules and operating procedures to achieve G4-47 - FS S.p.A.’s Supervisory Body reports to the BoD and the Board of Statutory Audi- company objectives, ensuring the effectiveness and efficiency of operations and tors twice yearly on activities performed during the reporting period; compliance with laws, regulations and contracts”. - FS S.p.A.’s Supervisory Body reports to the BoD Chairwoman and the CEO on any violations of the organisational model pursuant to Legislative decree no. 231/01 that have been identified or that could make it advisable to take urgent measures.

Methodology G4-48  The BoD approves the Sustainability Report

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 228 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 229 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

Remuneration and pensions Under the Code of Ethics, anyone (employees, customers, suppliers and freelanc- ers) who become aware of unlawful conduct or violations of the Code by any of G4-51 2016 Annual Report the parties with which the Group operates, is required to inform - in writing and G4-52   (“Report on corporate governance and ownership - Board of Directors of FS S.p.A. not anonymously - the Ethics Committee of their respective company or the parent’s - Directors’ remuneration) Ethics Committee. The confidentiality of the reporting party is ensured, without prejudice to legal To date, no stakeholder involvement mechanism is in place with respect to remu- G4-53 obligations. neration policies With respect to whistle blowing, the confidentiality of the whistleblower is ensured and management is committed to preventing any type of retaliation against the The ratio of the annual remuneration of the person with the highest pay compared G4-54 whistleblower. to the median annual remuneration of all employees is 20.69 G4-58 Additional whistleblowing obligations are those in place with the Supervisory Body The year-on-year percentage change in the annual remuneration of the highest-paid pursuant to Legislative decree no. 231/2001 set forth in the Group companies’ individual was -0.36%; G4-55 organisational models. The year-on-year percentage change in the median annual remuneration of other In particular, the organisational models include indication of the email addresses personnel was +0.11% (which concurrently forward the information to all members of the body) and the physical addresses to use when sending the relevant bodies complaints and reports Ethics and integrity of violations of the models or suspected crimes covered by Legislative decree no. 231/2001. Our approach to sustainability Senders of these types of reports are also protected against any form of retaliation, The governance system discrimination or penalisation and their confidentiality is guaranteed, except where 2016 Annual Report disclosure is required by legal obligation or to protect the rights of the company or (“Report on corporate governance and ownership structure-Profile and values”) the people involved.

http://www.fsitaliane.it/content/fsitaliane/en/about-us/governance/code-of- G4-56   ethics.html

Although the recommendations of the code of conduct which listed companies adopts on a voluntary basis do not apply to the company, it applied the provisions of said code to some governance aspects, specifically, setting up the two FS board committees: the Audit, Risk Control and Corporate Governance Committee and the Remuneration and Appointment Committee

As reported in the Group’s Code of Ethics, “The Group is committed to replying to suggestions and complaints from customers and consumer associations, using suita- ble and timely communication systems (post, e-mail, fax, call centre and the website). To this end, specific structures are devoted to this type of communication and provide explanations or resolve problems as the need arises with individual customers”. Furthermore, the Code of Ethics establishes that “Personnel is also required to: - […]; - report to their supervisors or the Ethics Committee for any necessary clarifications G4-57 on how to interpret or implement the clauses of the Code; - […].”

*An update to the Group’s Code of Ethics began in 2016. In particular, with Group measure no. 215/AD of 29 November 2016, the CEO and General Manager of FS S.p.A. set up a work Group to support Ferrovie dello Stato Italiane’s Ethics Committee in reviewing the current Code of Ethics and, if appropriate, updating it to strengthen its anti-corruption controls where necessary.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 230 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 231 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

Financial aspects Market presence

G4-DMA G4-EC5  Remuneration and pensions

Workforce G4-EC6  Letter to the stakeholders As the Group is mainly active in Italy, this indicator is of little significance. The business model Indirect economic impacts The planning and management control system ensures consistency with the strategic guidelines and goals set by the Board of Directors. For additional information, reference should be made to the paragraph “The internal control and risk management system”. Investments G4-EC7  Solidarity initiatives Through a Group measure, the parent defined the principles and the criteria that each company must comply with to ensure consistent and com- mon processes within the Group in relation to capital expenditure and the divestment of property, plant and equipment which are no longer useful. Our approach to sustainability G4-EC8 Specifically, it defines the guidelines for the processes concerning the approval of the Investment and Divestment Plan, the authorisation, control,  Solidarity initiatives re-authorisation, if any, and termination of investment/divestment programmes/projects. The investment and divestment management process focuses on the company’s explicit and independent authorisation of each programme/pro- Supplies ject. Consequently, the approval of the Investment and divestment plan does not require the authorisation of individual programmes/projects. In this respect, the Plan coincides with the strategic consolidation of investment/divestment strategies, at both company and Group level. G4-EC9 Suppliers’ profile and assessment The parent is responsible for defining and checking the correct application of the rules governing the approval, authorisation and control process-  es, including by monitoring the correct execution of the approved investment/divestment programmes/projects. Responsibility for the authorisation and re-authorisation processes of individual investment/divestment programmes/processes rests with individual companies. When the programmes/projects cover the Group, as detailed below, the parent’s preliminary approval is necessary. The Group’s Investment Committee approves the strategic, economic and financial aspects of the Group’s Investment and Divestment Plan/Budget Environment and validates the list of the Group’s significant investment/divestment programmes/plans, previously identified by the Central Strategies, Planning and Systems Department (CSPSD), as well as the parameters necessary for the financial evaluation of each company’s initiatives. G4-DMA The process that the Group began in 2015 to analyse and subsequently improve the sustainability performance of its supply chain continued in 2016 with the distribution of a self-assessment questionnaire to the companies’ strategic suppliers and the beginning of initial audit activities. Respecting and protecting the environment - our approach Management systems Procurement policies Suppliers’ profile and assessment The Group’s commitment to managing environmental aspects is described in the Environmental policy: http://www.fsitaliane.it/content/fsitaliane/en/commitment/environmental-commitment/environmental-policy.html Methodology - Materiality matrix Methodology - Materiality matrix

Economic performance

Economic highlights G4-EC1  Solidarity initiatives

2016 Annual Report (“Risk factors”) G4-EC2  To date, Group management has not estimated the possible financial impact of climate change.

Remuneration and pensions 2016 Annual Report G4-EC3   (“Notes to the consolidated financial statements - Post-employment benefits and other employee benefits”)

Investments G4-EC4   2016 Annual Report (“Main events of the year”)

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 232 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 233 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

Materials Waste and discharges

Land development and protection Land development and protection G4-EN22 G4-EN1   Other impacts At present, the percentage of non-renewable resources used cannot be identified. Land development and protection Land development and protection G4-EN23  Waste management G4-EN2  At present, the percentage of materials used that are recycled input materials cannot be identified. Land development and protection Other impacts Energy G4-EN24  Energy There were no significant spills in 2016. Land development and protection Land development and protection G4-EN3  G4-EN25  The Group companies’ owned photovoltaic plants generate and transmit to the Waste management electrical grid roughly 1,200 GJ of energy. Land development and protection Energy Other impacts G4-EN4 G4-EN26  Land development and protection  There are no discharges in protected areas. G4-EN5  Energy Products and services G4-EN6  Energy G4-EN27  Environmental performance G4-EN7 Energy  Compliance

Water Compliance Other impacts G4-EN8 G4-EN29   Land development and protection In 2016, no significant administrative or legal fines were imposed for violation of environmental regulations or laws. Other impacts G4-EN9  Land development and protection Transport

G4-EN10  Other impacts G4-EN30  Emissions

Emissions Overall G4-EN15  Emissions Land development and protection Environmental performance – the Group’s main environmental issues G4-EN31  G4-EN16 Emissions Noise  Other impacts G4-EN17  Emissions Supplier environmental assessment Procurement policies G4-EN18  Emissions G4-EN32  Suppliers’ profile and assessment Sustainable purchases G4-EN19 Emissions  Suppliers’ profile and assessment

G4-EN33 G4-EN20  Emissions  In 2016, there were no significant negative events caused by real or potential environmental impacts related to the Group’s supply chain. G4-EN21  Emissions

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 234 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 235 the environment information

GRI INDICATORS REFERENCE/COMMENTS GRI INDICATORS REFERENCE/COMMENTS SUSTAINABILITY SUSTAINABILITY REPORT REPORT ANNUAL SUSTAINABILITY REPORT REPORT ANNUAL

Environmental complaints mechanisms Occupational health and safety

The Group received 492 complaints in 2016, all of which were considered by G4-EN34 the Group companies, and 458 of which were resolved in the reporting period. G4-LA5 A Health and Safety Committee has not yet been set up. 48 complaints received before the reporting period were resolved in 2016.

Social Health and safety Relationships with trade unions Employment practices and adequate working conditions All data refer to INAIL statistics which, to calculate the days lost due to injury, consider that compensation is paid for all calendar days from the third day of G4-DMA absence. INAIL’s seriousness index does not provide for a breakdown of data by gender. The Group manages and organises human resources in full compliance with the rights established by the law and the Code of Ethics which it G4-LA6  adopted and which expressly states: “human resources are the Group’s main assets”. Through the Code of Ethics, Ferrovie dello Stato Italiane In 2015, the last year of available data, the frequency of occupational diseases Group formally and substantially commits to operate without any distinction whatsoever on grounds of gender, race, language, religion, political reported (i.i. mp = number of occupational diseases reported/average workforce opinion, personal or social origin. Furthermore, thanks to the Equal Opportunities Committee, the Group also undertakes to promote actions that x 1000) was 2.7 (scope: RFI, Trenitalia, Italferr, Ferservizi, FS, Italcertifer and FS provide female workers with more favourable conditions and greater opportunities. Logistica). Disease prevention measures include an important scheme of regular health monitoring by Group doctors in accordance with the occupational health The Group constantly spreads, strengthens and updates prevention measures in accordance with ruling legislation, promotes responsible be- and safety and train traffic safety legislation. Specifically, in 2016, 50,312 em- haviour by all personnel and regularly introduces new training and best practice tools. Furthermore, the Group’s main companies implemented ployees underwent at least one medical check-up. OHSAS 18001-certified management systems. G4-LA7 Health and safety The Group is constantly committed to supporting the professional growth of its resources.  As the parent, Ferrovie dello Stato Italiane plans and provides Group companies with cross training. Furthermore, each Group company ensures the professional growth and updating of its resources by offering specific business courses. G4-LA8  Relationships with trade unions

Our approach to sustainability Training and education Management systems http://www.fsitaliane.it/content/fsitaliane/en/about-us/governance/code-of-ethics.html G4-LA9  Human capital Methodology - Materiality matrix Workforce Workforce G4-LA10  Human capital Remuneration and pensions G4-LA1  Workforce G 4- L A11  Human capital G4-LA2 Remuneration and pensions  Diversity and equal opportunities

Relationships with trade unions The governance system

G4-LA3 Workforce  There is a 100% rate of return to work after parental leave. People care There is a 100% retention rate after parental leave except for voluntary resignation. G4-LA12  57% of the members of FS S.p.A.’s BoD are women and are over 50 years of Relationships with trade unions age, while the remaining 43% are men aged 30 to 50.

G4-LA4 Relationships with trade unions The Group is compliant with current regulations regarding protected groups of  people.

Equal remuneration for women and men

G4-LA13  Remuneration and pensions

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Supplier assessment for labour practices Non-discrimination

Suppliers’ profile and assessment During the year, there were no incidents of discrimination (related to race, na- G4-LA14  G4-HR3 tionality, political opinions, religion, gender, age, ability, sexual orientation and FS Italiane Group includes compliance with current labour laws as part of its personal or social conditions) involving internal and/or external stakeholders. supplier vetting process. Freedom of association and bargaining Suppliers’ profile and assessment All Group contracts require the full acceptance of the Code of Ethics. There are no G4-LA15  In 2016, there were no significant negative events caused by real or potential G4-HR4 suppliers or activities in which the freedom of association and collective bargain- impacts related to employment policies concerning the Group’s supply chain. ing is exposed to significant risk.

Labour practices grievance mechanisms Child labour In 2016, 1,172 letters of formal notice were received in connection with labour All Group contracts require the full acceptance of the Code of Ethics. There are no G4-LA16 law claims from the employees of the Group companies, their former employees or G4-HR5 contractors’ employees. Almost all complaints become legal disputes. suppliers or activities with significant risk of child labour.

Human rights Forced labour All Group contracts require the full acceptance of the Code of Ethics. There are no G4-HR6 G4-DMA suppliers or activities with significant risk of forced labour.

The Code of Ethics is a charter of fundamental rights and responsibilities whereby Ferrovie dello Stato Italiane Group establishes and clarifies its Safety practices responsibilities and commitments to internal and external stakeholders. No specific training is provided about human rights. Any action in this respect Our approach to sustainability G4-HR7 may be included in training on prevention promoting the health of employees and, http://www.fsitaliane.it/content/fsitaliane/en/about-us/governance/code-of-ethics.html hence, referring to occupational safety training.

Investments Rights of indigenous people

FS Italiane Group makes its purchases in accordance with EU Directives, as imple- G4-HR8 There were no violations of the rights of indigenous people. mented by the Contracting Code, and its own “Regulation for Negotiations with Group companies”, issued on 27 March 2012. Assessment Suppliers are vetted on the basis of assessments relating to quality, price and other corporate pre-requisites (the supplier’s location and nationality are not part of the vetting criteria). G4-HR9 To date, no human rights assessments have been conducted. The standard contractual clauses include requirements that the contractor comply with: Supplier assessment based on human rights - labour and social security laws, with the application of national labour agree- ments; All Group contracts require the full acceptance of the Code of Ethics. In 2016, G4-HR1 no contracts were entered into with suppliers, contractors and other partners that - occupational safety and hygiene obligations; G4-HR10 - the standards in the “Group’s Code of Ethics”. provided for the inclusion of provisions on human rights or that were subject to specific actions following the assessment of human rights. To date, no agreements and/or contracts have been formalised with the inclusion There were no real or potential impacts related to the Group’s supply chain in of specific human rights clauses or that are subject to the evaluation of the effective G 4- H R11 implementation of human rights protection policies. As reported in the Code of Eth- respect of human rights. ics, the FS Group safeguards and promotes human rights in all areas of operation, creating equal opportunities for its people and fair treatment for all, regardless of Company race, nationality, political opinions, religion, gender, age, ability, sexual orienta- tion and personal or social conditions. G4-DMA

G4-HR2 No specific training is provided in relation to human rights. Our approach to sustainability The governance system The internal control and risk management system

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Local communities Public policy

Stakeholders The Group does not provide direct or indirect contributions, in any form, to politi- G4-SO1  Land development and protection cal parties, movements, committees and political and trade unions organisations Solidarity initiatives or their representatives. Relationships with political parties, movements, committees and political and trade unions organisations are managed exclusively by formally G4-SO6 G4-SO2  Land development and protection designated company departments. http://www.fsitaliane.it/content/fsitaliane/en/about-us/governance/code-of-eth- Anti-corruption ics.html

The internal control and risk management system Unfair competition

The Group measure no. 172/AD “Guidelines for the prevention of corruption Compliance between private parties in the FS Italiane Group” was issued in 2014. G4-SO7   2016 Annual Report (“Other information - Litigation and disputes”) In RFI’s specific case, on 26 February 2016, it agreed a “collaborative oversight protocol” with ANAC to prevent bribery in railway contracts for the infrastructural Compliance and technological strengthening of the network. Compliance At all Group companies, although to varying depths depending on the thrust of G4-SO8   Disputes with employees the analyses, certain of the internal auditors’ activities make it possible to monitor 2016 Annual (“Other information - Litigation and disputes”) service risks of corruption and to identify the related dynamics, with specific regard to supervisory activities, such as: Suppliers’ assessment based on company impacts - a risk assessment to define and update the management and organisational models pursuant to Legislative decree no. 231/2001; Suppliers’ profile and assessment G4-SO10 - supervisory activities carried out upon the request of the Supervisory Bodies  Land development and protection pursuant to Legislative decree no. 231/2001; - the management of reports received about events in violation of the principles of the Code of Ethics and the regulations referred to in the management and G4-SO3  organisational models pursuant to Legislative decree no. 231/2001; - internal audits by resources with the necessary training to identify signs of fraud (knowledge of professional standards, CIA, CCSA and CFE certification). Additional activities performed by the internal auditors upon the request of the Supervisory Bodies pursuant to Legislative decree no. 231/2001 or top manage- ment, in order to mitigate the risk of corruption are: - training/information sessions on the risks of corruption pursuant to Legislative decree no. 231/2001; - workshops dealing with – inter alia – the risks of corruption. Furthermore, in November 2016, FS S.p.A.’s BoD approved the voluntary intro- duction of a corruption prevention model at FS S.p.A.

The Group measure no. 178/AD of 6 October 2014 “Risk management Group model” includes a risk glossary, which comprises the “Integrity risk” (wrongful acts against the company) category. In accordance with the Group measure, during risk assessment meetings, the Process Owners may identify, where present, specif- ic risks attributable to this category. Again, based on the Group measure, of the 20 macro-processes identified at Group level, 11 (55%) are potentially exposed to the integrity risk.

G4-SO4  The internal control and risk management system

The internal control and risk management system G4-SO5  Compliance

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Product liability Protection of privacy

G4-DMA Service quality G4-PR8  In 2016, no complaints were received for alleged violation of customers’ privacy. The Group companies are constantly committed to ensuring the utmost level of safety for customers, the community or employees, focusing, in particular, on a culture of risk prevention and involving all parties. Compliance

Travel safety is one of railways’ advantages over other means of transport and is an example of excellence for Ferrovie dello Stato Italiane Group, Compliance which shows results in line with those of the top European sector companies. In Italy, the legislative system governing regulations and assessments Service quality for train traffic safety has always been based on safeguarding human life. G4-PR9  No significant administrative or legal sanctions were imposed in 2016 for RFI and Trenitalia manage railway traffic safety in connection with train operation each to the extent that it is concerned. non-compliance with laws or regulations concerning the supply/use of products/ services. Each Group company devotes significant attention to offering passengers quality services.

The travel conditions and Service Charters of Group companies are given below: • Trenitalia’s general terms of passenger transport - http://www.trenitalia.com/tcom/Information/Condizioni-Generali-di-transport/Condizio- ni-Generali-di-transport • Long-haul passenger Service Charter - http://www.trenitalia.com/tcom/Information/Carta-dei-servizi • Regional Service Charter - the “Regional Service Charter” for the regional train passengers of each region, available in the “La tua Regione” section of the area dedicated to each region (http://www.trenitalia.com/tcom/Treni-Regionali) • RFI’s Service Charter - http://www.rfi.it/rfi/NOTIZIE-E-DOCUMENTI/La-Carta-dei-Servizi-2017 • Busitalia-Sita Nord’s Service Charter - http://www.fsbusitalia.it/fsb/Customers/Carta-dei-servizi • ATAF’s Service Charter - http://www.ataf.net/it/servizio-customers/carta-dei-servizi.aspx?idC=70&LN=it-IT • Busitalia veneto’s Service Charter - http://www.fsbusitaliaveneto.it/index.php/customers/carta-dei-servizi • Travel guide - http://www.trenitalia.com/tcom/Information/La-guida-del-viaggiatore/La-guida-del-viaggiatore

The Group operates in full compliance with legislation governing the protection of passengers’ and stakeholders’ privacy.

Our approach to sustainability http://www.fsitaliane.it/content/fsitaliane/en/about-us/governance/code-of-ethics.html Methodology - Materiality matrix

Consumer health and safety

Management systems Service quality Travel safety G4-PR1  Emissions Land development and protection Other impacts

G4-PR2  Travel safety

Product and service labelling

G4-PR4  Service quality G4-PR5  Service quality

Marketing

G4-PR7  Stakeholders

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 242 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 243 the environment information

Independent auditors’ report

G4-33

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 244 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 245 the environment information

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 246 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 247 the environment information

Assessment Attachments: questionnaire Company information

G4-2

Dear readers, this is the tenth edition of Ferrovie dello Stato Ital- iane Group’s Sustainability report. We have improved the report each year, and it ferrovie dello stato italiane has grown increasingly comprehensive, thanks to our stakeholders, who have contributed with their ideas and opinions. To this end, we ask that you please fill out the online questionnaire, which you will find at OUR APPROACH and the promotion of renewable energy sources with the aim of gradually reducing the Group’s The company intends to incorporate the protec- carbon footprint. tion of the environment into the strategies and ac- The environmental policy and environmental tivities of the entire Group by promoting and de- management system governance model guide veloping sustainable mass mobility built around the processes and actions towards continuous fsitaliane.it . improvement, carefully and continuously devel- Ferrovie dello Stato Italiane considers it essential oping natural capital by spreading awareness to establish, carry out and maintain objectives of environmental matters and actively supporting which require the rational use of resources, the the monitoring of environmental impacts. prevention and reduction of pollution and envi- ronmental risks, research into energy efficiency, in the Sustainability section. Requests for information on the 2016 Sustainability Report can be sent by e-mail to

Final energy consumption

2016 2015 2014

[email protected] Electricity MWh 6,397 6,579 6,176 Natural gas Sm3 291,046 318,502 275,760

Comments on the trend Ferrovie dello Stato Italiane GRI 2.4 Piazza della Croce Rossa, 1 Energy consumption relates mainly to the management of 00161 Rome the building housing the central headquarters in Villa Patri- zi, Rome. The trend in consumption is impacted by weather conditions and, accordingly, the varying needs for air con- ditioning.

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Total CO2 emissions

Commitments made what we have accomplished what we aim to do 3,712 The EMS and the governance model will A process began to develop new govern- The sustainability governance model will be updated in order to include the rules ance tools and will lead to the transfor- be issued, an organisational tool to en- 3,067 of the new ISO standard 14001 and to mation of the current environmental man- sure the integrated management of the 2,783 reinforce the parent’s role regarding guid- agement system governance model into a three sustainability aspects (economic, CO (t) ance and coordination business model that ensures a balance of social and environmental) 2 the economic, social and environmental aspects of Group activities Based on the Corporate Shared Value approach, pilot projects will be kicked off 2016 2015 2014 with the aim of creating a methodology Second-party audit activities on owned Second-party audit activities were carried that provides for a multi-dimensional as- assets throughout Italy will continue and out on the different types of assets sessment of activities new tools will be used to support the lo- Water cal implementation of the respective envi- The environmental management sys- ronmental management plans, including tem and guidelines will be updated in audits coordinated by the parent compliance with the new UNI EN ISO 14001:2015 standard

To ensure that the sustainability issues are FS Italiane Group has translated its long- Second-party audit activities on owned 2016 129,648 an integral part of the Group’s strategy, term vision into the new 2017-2026 assets will continue a sustainability committee will be estab- business plan, with which it has renewed lished and a vision will be defined, iden- and intensified its ambition of creating 2015 135,044 tifying the commitments and targets for transport works and services that create each of the three areas of analysis (eco- long-lasting value for the community by 2014 142,844 nomic, social and environmental) redefining the business through intermod- al transport. Furthermore, in July 2016, a Sustainability Committee was set up. Water withdrawals for non-industrial use (m3) It is an advisory body consisting of the top management of the Group’s main companies Comments on the trend Renovation work on Villa Patrizi, includ- Renovation work began on the Villa Patri- The figures in the table mainly refer to withdrawals for Villa Patrizi in Rome and are steady given the type of office activities carried ing, among other things, the replacement zi site in Rome out at that site. of around 2,000 air conditioners with a The decreasing trend that began in 2014 is due to a leak detected in that year and resolved in 2015. centralised air conditioning system was postponed until 2016

ASPECTS Waste

2016 0.4 7.0 100 % Continuous improvement Raw materials cycle Water cycle Energy and emissions Land 2015 0.3 11.1 100 %

2014 1.3 10.2 100 %

Hazardous special waste (t) Non-hazardous special waste (t) Recovered Special waste

Comments on the trend

The figures in the table refer to special waste produced by the Villa Patrizi site in Rome. The data reflect a nearly steady trend due to the type of office activities that are carried out at the site, which entails a constant production of waste (IT equipment, furnishings and air conditioners). Non-hazardous special waste decreased as the replacement of furnishings in areas occupied by personnel was completed.

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Total CO emissions RFI 2

217,247 216,724

213,729 tion of environmental and social impacts, and OUR APPROACH CO (t) pursuing the rational use of resources and 2 RFI’s environmental and social commitment is a land; strategic part of its industrial mission, which cov- ⁄⁄ working “on-site”, in contact with the various 2016 2015 2014 ers all the company’s productive activities and areas that the railway passes through, with those of its subsidiaries. Not only does it aim to a constant focus on making the most of the vocations and the natural, social, urban and protect the environment, but also to create shared Water value with a view to corporate responsibility and historical-archaeological heritage of the area, focus on the quality of life of the community. in close collaboration with the institutional RFI manages the rail network according to the bodies and the other stakeholders. In order to do this, RFI bases all its work on the principle of continuous improvement regarding 2016 17,920,347 efficiency, safety and accessibility, which means principals and values listed in its environmental policy, implementing them with the involvement that it is contributing to a modal shift towards 2015 16,967,138 an increasingly integrated sustainable transport of the entire organisation and its suppliers within system. the scope defined by the environmental manage- 17,092,223 In every day life, this means: ment system, included within the integrated safe- 2014 ⁄⁄ producing goods and services and develop- ty management system. 3 ing the management, maintenance, planning Water withdrawals for non-industrial use (m ) and construction of the infrastructure, lines and stations, with increased attention to the reduc- Comments on the trend Fluctuations in water consumption over the three-year period reflect the water withdrawn from aqueducts and, in 2016, are due to the trend in maintenance activities and the acquisition of new plants (e.g., washing platforms). Final energy consumption

2016 2015 2014 Waste

Diesel t 14,652 16,204 16,745

Electricity* MWh 414,113 416,764 399,696 2016 28,748.7 130,887.1 99 % Natural gas Sm3 8,992,544 8,913,116 8,029,684

*Including the electricity produced and consumed by solar power systems. Excluding high voltage electricity absorbed by the 2015 49,160.3 117,281.4 99 % railway companies’ trains operating on the national network. 2014 36,311.1 101,602.1 98 %

Hazardous special waste (t) Non-hazardous special waste (t) Comments on the trend Recovered Special waste An analysis of the overall three-year trend shows a substantial stability in electricity consumption. In 2016, despite the inclusion in the scope of the new national superstructure workshop at the Bari steel mill, whose production type and volumes require Commento al trend significant amounts of energy, electricity consumption is in line with that recorded in 2015, when new railway traffic safety equipment and systems were rolled out. Natural gas consumption also remained substantially steady due to the combined While total waste produced in 2016 decreased slightly on 2015 (-4%), there was a limited increase in non-hazardous waste effect of the rationalisation of individual utilities accounts and improvements in supply management, with an increase in the (which accounts for 82% of total waste) and a considerable drop in hazardous waste, particularly in the amount of hazardous use of natural gas in heating plants stations in place of less energy efficient diesel. The significant drop in diesel consumption waste sent for disposal. The change is related to the cyclical trend in maintenance activities and has kept the total volume of in 2016 is mainly due to the replacement of plants and, to a lesser extent, to the reduced requirement due to the favourable waste sent for recycling steady. climactic conditions and the decrease in commercial traffic on the Messina Strait.

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Commitments made what we have accomplished what we aim to do Commitments made what we have accomplished what we aim to do

Activities will continue in connection with The energy diagnosis was completed at The project will continue with the ob- A specific water management project will energy diagnoses pursuant to Legislative 23 sites, including workshops, stations, taining of expert in energy management begin to optimise and reduce water con- decree no. 102/2014 in order to pre- traffic operation plants and operating certification for at least three RFI Energy sumption through: pare the related reports and improvement rooms considered material for the defini- Managers ⁄⁄ structural repairs to eliminate leaks plans via inspections, analyses and spe- tion of aspects that could be made more ⁄ implementation of a monitoring sys- cific measurements at 23 RFI sites identi- efficient for the various types of RFI’s core An energy management system will be ⁄ fied on the basis of the functional analy- plants implemented within RFI’s environmental tem for the 700 main water plants in ses conducted in 2015 management system. The system will cov- the network (including stations, cargo er all local divisions and related Energy hubs and washing platforms) includ- Education and training programmes fo- An energy management course will be Managers ing the installation of remote metering cusing on the RFI’s energy management organised for the expert in energy man- will be provided for the local energy man- agement certification The “LED call for bids” will be awarded systems agers , and operators will be selected for and LED project implementation activities ⁄⁄ check and update of water contracts the expert in energy management certifi- will begin for alignment with “large user” param- cation training eters Activities will begin on the relamping of ⁄ separation of RFI’s promiscuous utilities The European call for bids will be held to The European call for bids was held with workshops with the new lighting systems ⁄ assign the supply of over 100,000 new assignment scheduled for the first half of as they become available following the accounts where possible; alternative- LED lighting systems to be installed at sta- 2017 “LED call for bids” ly, meters could be installed that sep- tions and offices arate/recharge costs to the related The technological updating of low shunt- third parties A technical-illumination study will be The technical-illumination study was com- ing signals will continue (replacement of launched at the four RFI workshops, aimed pleted another 800 signals with LED technology) at implementing a complete re-lamping Training sessions about the safeguarding Training sessions for local production The environmental indicators provided Inspections and analyses will be conduct- of protected areas and biodiversity also division personnel were held about the for by the “Environmental assessment of Approximately 13,000 low shunting ed to identify sites where the construction aimed at guaranteeing the application of safeguarding of protected areas and bi- investments” procedure in the analysis, signals with traditional light bulbs were of photovoltaic plants meets the techni- the new procedure issued in 2015 will odiversity, and a central figure was ap- planning and execution of investments replaced with low signals with LED tech- cal/cost effectiveness parameters be provided for local unit personnel pointed to ensure the consistent applica- will be monitored nology, bringing implementation of this tion of the new procedure in this respect initiative to roughly 1/3 Work will begin as planned in the new With respect to the environmental data- project to install meters and replace base, the tool for the automatic classifica- As part of renewable energies, a letter old-generation transformers in electrical The new “Environmental assessment of tion of the “environmental risk level” will of intent was signed with Terna for the substations investments” procedure was issued to be rolled out and the electronic storage development of a project to create photo- support the management environmental of environmental management documen- voltaic plants that will meet RFI’s electricity An agreement will be signed with a re- aspects by RFI in the analysis, planning tation will be developed (e.g., authorisa- requirements with clean energy search body to create two prototypes to and execution of works tion, permits, plans, etc.) recover and transform kinetic energy pro- Many energy efficiency activities/stud- duced by train braking into electricity ies/testing began in the technological The environmental data base will be up- The implementation of the environmental fields of signalling, telecommunications A supply agreement will be signed for dated with all the information on assets data base continued and a tool was de- and electrical traction, such as: study for energy from renewable sources for uses with environmental aspects veloped for the automatic classification of the photovoltaic powering of line control other than railway traction the “environmental risk level” of surveyed booths, use of LED signals for comput- assets er-based interlocking systems, technical solutions for 3kVcc electrical substations, the development temperature gauges on The central divisions’ scope of environ- The scope of ISO 14001 environmental The environmental management system the axle boxes and brakes (RTB and RTF), mental certification will be widened, certification will be extended to the entire will be updated to the new version of reduction of the GSM-R network elements, launching the activities necessary for company the ISO14001:2015 standard and envi- use of energy efficient devices, etc. ensuring compliance with the new ISO ronmental criteria will be included in the 14001:2015 standard assessment factors for awarding cleaning Activities continued to define a compa- service contracts for stations in the network ny procedure for mobility management. Meetings will be held for discussion and OHSAS 18001 certification will be ex- alignment between RFI’s Mobility Manag- tended to the entire company. ers during the workshoips organised by ASPECTS the parent. Home/work commuting plans were coordinated and presented for Na- ples, Florence, Genoa, Messina, Turin, Palermo and Bari and collaboration in preparing the commuting plans for other cities

The Atlantide information system for the The implementation of the “Atlantide” The training session will be completed electronic management of forms and reg- information system was completed and and the “Atlantide” information system Continuous improvement Raw materials cycle Water cycle Energy and emissions Land isters about the loading and unloading of training began to be planned for opera- will be rolled out, which is useful for, inter special waste and for the transfer of infor- tors to roll out the system alia, the single environmental report to the mation regarding hazardous waste using government SISTRI will be completed

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Total CO emissions RFI’s subsidiaries 2

24,308 23,856 23,222 CO (t) Final energy consumption 2

2016 2015 2014 2016 2015 2014

Diesel t 6,952 7,116 6,803 Water Electricity MWh 2,807 2,611 2,296

Comments on the trend 2016 1,609 Diesel consumption did not undergo any significant changes either for Bluferries, whose operating schedule remained sub- stantially the same (routes and number of journeys), or for Terminali Italia, which, while diesel consumption rose for railway 2015 4,330 shunting, saw a decrease in diesel consumption for mobile cranes due to the replacement of the fleet with vehicles presenting a lower environmental impact. Changes in electricity consumption relate to the trend in Terminali Italia’s commercial activities, particularly in the amount of 2014 15,586 handling using mobile cranes at the Verona terminal.

Water withdrawals for non-industrial use (m3)

Comments on the trend

The subsidiaries use utilities under contracts in RFI’s name, except for two, which are in the name of Terminali Italia for plants not owned by RFI, the third Verona module and the Milan shunting hub. The trend reflecting a considerable decrease is due to the resolution in the second quarter of 2015 of a fault in the pipes which led to irregular withdrawals in previous years.

Waste

2016 143.8 120.8 56 %

2015 109.3 143.4 44 %

2014 172.3 208.5 78 %

Hazardous special waste (t) Non-hazardous special waste (t) Recovered Special waste

Comments on the trend

The overall volume of the subsidiaries’ waste production was substantially the same as in 2015 and the significant increase in the percentage of waste sent for recycling is up significantly for Bluferries and down for Terminali Italia. In particular, Bluferries, which carried out maintenance on vessels in the shipyard in 2016 according to a previously established schedule, presented a considerable increase in hazardous waste – however, there was a decrease in the amount sent for disposal - and a far larger increase in non-hazardous waste . At the same time, Terminali Italia presented a significant decrease in non-hazardous waste due the closure of the Milan Certosa terminal as part of the long-term trend with dramatic fluctuations, mainly due to non-routine maintenance on yards and vehicles.

The figures refer to the environmental aspects managed directly by the company or on behalf of other Group companies.

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Commitments made what we have accomplished what we aim to do Commitments made what we have accomplished what we aim to do Terminali Italia Bluferries

A contract will be signed with a spe- A contract was signed for 2016 with An advanced environmental emergency In order to strengthen the crew’s aware- The annual training and information ses- Annual training and information sessions cialised firm to ensure rapid response in a specialised firm for rapid ecological response course will be provided to cer- ness of the continuous monitoring and im- sions required by the new version of the will be provided as provided for by the the event of emergencies caused by ac- clean-up tain members of the emergency team provement of environmental performance, safety management system issued in July safety management system cidental spills of hazardous or polluting training sessions about the safety manage- 2016 were provided to the crew substances Preliminary activities will begin for ISO ment system and environmental compli- 14001 certification ance will be provided Training sessions about dangerous goods The training sessions about dangerous and crisis management will be provided goods and crisis management for all per- In collaboration with RFI, the new fire for all personnel sonnel were completed prevention system will be activated at the The new waste water treatment system New waste water treatment systems were Segrate terminal and the relocation of the will be installed and certified for high- installed and certified on two high-speed The integration of the Bologna terminal Activities continued to integrate the Bolo- diesel pump to the Catania terminal will speed craft as prescribed by the most craft into the integrated logistics platform will gna Interport terminal into the integrated be completed to improve internal road- recent legislation issued by the Maritime be pursued logistics platform to optimise and simplify ways and obstacle management Authority information flows between parties the in- termodal logistics chain Production began on a new ferry to re- place one of older vessels in the fleet. The Six new-generation mobile cranes with At the Verona terminal, in collaboration new engine - which is EIAPP (Engine Inter- better safety feature and lower environ- with RFI, approximately 140 old-genera- national Air Pollution Prevention) certified mental impact were purchased for the tion light bulbs were replaced with new - will generate fuel savings and cut down Verona and Segrate terminals LED technology light towers, generating on emissions, noise and vibrations energy savings of over 50% The ISO 14001 certification procedure The process to obtain ISO 14001 certifi- for the environmental management system cation will be completed In collaboration with RFI, work began to began with the issue of the materiality as- design a new rainwater treatment plant at sessment document in December 2016 the Verona terminal

ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 258 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 259 the environment information

Total CO emissions trenitalia 2

1,631,212 1,533,592 1,486,890 CO (t) OUR APPROACH standards. As for energy efficiency, Trenitalia is 2 furthering a broad energy diagnosis campaign at its industrial plants to progressively improve Trenitalia considers the quality of services provid- 2016 2015 2014 ed, the protection of the environment, the safe- the energy performance of its maintenance activ- guarding of the health and safety of its workers ities, through investments in the installation of LED and energy efficiency as strategic elements in its lighting systems and the redevelopment of the Water business. Trenitalia has therefore defined an inte- energy supplies for compressed air and heating grated policy (quality, environment, occupation- systems and the production of renewable energy al health and safety and energy) that generally from photovoltaic plants. Also with respect to the orients and guides the company in achieving its purchase of new rolling stock, Trenitalia is mak- mission and gaining a competitive edge, which ing efforts to include a series of clauses entailing 2016 971,533 3,019,780 uses the environmental benefits of railway trans- significant progress in the energy efficiency of port as leverage to create incentive for sustaina- vehicles, as in the call for bids for the contract for 2015 1,023,565 2,880,756 ble mobility. 450 regional trains awarded in 2016. 2014 997,637 3,113,613 This is why Trenitalia has implemented a manage- ment system in accordance with the requirements Water withdrawals for non-industrial use (m3) Water withdrawals for industrial use (m3) of OHSAS 18001, ISO 14001 and ISO 9001 Comments on the trend

The trend in water consumption – which has been substantially steady over the past three years, but shows an overall decrease compared to the past – is the result of projects to make processes more efficient and to control leaks in the same three-year period. The decrease is significant considering the fact that, in the past three years, production, measured in train-km, grew. Final energy consumption

2016 2015 2014 Waste

Diesel t 46,034 47,611 46,460 3,675.7 Total electricity MWh 4,300,109 4,030,149 3,746,274 2016 40,010.6 81 % for railway traction MWh 4,220,639 3,957,506 3,670,262

for other uses MWh 79,470 72,643 76,012 3,182.7 Natural gas Sm3 19,204,129 17,889,855 16,011,033 2015 34,760.2 82 %

Comments on the trend 4,211.0

The increase in electricity consumption for railway traction is substantially due to the increase in high speed services as the 2014 66,150.2 86 % new fleet of Frecciarossa 1000 trains was progressively rolled out during the year. The increase in electricity consumption for uses other than railway traction between 2015 and 2016 is due to the new utilities Hazardous special waste (t) accounts opened between the end of 2015 and 2016, some of which are for plants that run on massive amounts of energy. The rise in natural gas consumption is mostly due to improvements in how these data are recorded since late 2015. Non-hazardous special waste (t) Recovered Special waste

Comments on the trend

While the production of hazardous special waste remained substantially steady, the trend in the production of non-hazardous special waste was heavily influenced by periodic demolition campaigns for rolling stock no longer suitable for service.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 260 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 261 the environment information

Commitments made what we have accomplished what we aim to do Commitments made what we have accomplished what we aim to do

The construction of two new solar power Construction of photovoltaic roof for the There will be additional investments to Activities continued to increase aware- The quantity of purchased recycled paper systems will commence at the Roma San Firenze Osmannoro plant (53 kWp with produce energy from renewable sources ness among employees and suppliers will be increased, with a concurrent de- Lorenzo and Napoli Santa Maria La Bruna plant start-up slated for 2017) and to achieve energy efficiency, with par- about managing raw materials and crease in paper consumption by adopt- sites and another system will be installed at ticular reference to the installation of LED waste to ensure a more scrupulous use of ing and completing paperless projects the Milano Martesana workshop, for a total The start of construction work on the Roma lights and radiant strip heading systems, materials, improve waste and hazardous of approximately 4,000 kWp San Lorenzo and Napoli S.M.La Bruna improvements in systems to produce and substance storage management, reduce Additional targets will be set to reduce plants underwent a delay due to critical distribute compressed air at the Rome, Mi- the risks of environmental contamina- waste production difficulties in obtaining urban and environ- lan, Naples, Rimini and Foligno plants, with tion and increase sorted waste and the mental permits. Technical difficulties arose the aim of cutting electricity consumption by amount of waste sent for recycling Work will be carried out to improve the delaying the start of installation work at Mi- 50% and natural gas consumption for heat- areas set up for waste storage (current lano Martesana as well. At all three sites, ing by 30% at plants or in plant components maintenance plant in Milan) work is slated to begin by 2017 included in the scope of the work Work began and was carried out to re- Operational/technological solutions will The energy diagnosis campaign initiated in store underground water networks and be identified to minimise water consump- 2015 and continued in 2016 (for a total of separate drains (Puglia Regional Division, tion for non-industrial and industrial use 18 diagnoses already completed) will con- Marche Regional Division, Rome current and projects will be individuate defined to tinue further, with another nine diagnoses at maintenance plant and Naples and Reg- reduce water consumption at the sites with company industrial plants gio Calabria current maintenance plants the most critical issues. In certain cases, for the Long Haul Passenger Transport structural improvements will be planned to In collaboration with Ferservizi, a new sys- Division), specific meters and time-con- restore water networks (Marche and Abru- tem to monitor energy consumption by Tren- trolled dispensers were installed, old zzo Regional Divisions) italia will be created, based on a digital nozzles susceptible to malfunctioning at flow of data from suppliers the washing platforms were replaced Specific meters and time-controlled dis- (Veneto Regional Division and Campania pensers will be installed (Puglia, Sicily, Regional Division, Milan and Turin cur- Tuscany, Campania, Liguria and Piedmont rent maintenance plants in the Long Haul Regional Divisions and the Bari current The energy diagnosis campaign initiated in Energy diagnoses at the 10 sites identified Passenger Transport Division). Modern maintenance plant for the Long Haul Pas- 2015 will continue at another ten company were carried out treatment systems were installed for waste senger Division) industrial plants water classified as domestic waste water (Milan current maintenance plant) and Already commenced/planned work will rainwater after the first flush (Bari current be completed to revamp the water net- All natural gas supplies under company utili- A single supplier was identified via tender maintenance plant works (Long Haul Passenger Division: ties contracts will be subject to calls for bids for the approximately 120 natural gas util- Naples and Milan current maintenance with the aim of unifying all supply with one ities accounts plants and the Sardinia Regional Division) supplier, as for electricity The purification of water intended for The electricity consumption measurement A system to measure the amount of electrici- human consumption using ozone will be system for the Frecciarossa 1000 train will ty consumed by the Frecciarossa 1000 was tested (Friuli Venezia Giulia Regional Di- be fully implemented implemented vision)

New trains will be selected for the regional The call for bids was completed for the The assessment of industrial activities With the support of the Director of the transport service and purchased in forth- supply of 450 new high energy efficiency carried out near protected areas, special Campocatino Astronomy Observatory coming years, considering specific energy trains for regional transport preserves or astronomy observatories to (Union of Italian Astronomists), a seminar efficiency requirements prevent negative impacts on biodiversity will be designed and held on the light and natural habitats pollution caused by running exterior light- ing systems at night in large industrial Two more energy training modules will be Two training modules were taught to update areas and railway yards and their envi- provided to keep approximately 40 local personnel responsible for energy manage- ronmental impact (involving 50 resources) energy nominees up to date ment at plants A project will be completed to manage “Enjoy”, the car sharing service managed the transition to the ISO 14001:2015 by Eni in partnership with Trenitalia and standard and an integrated IT platform Fiat, was extended to Catania. Further- will be implemented for the management more, in Rome, the scooter sharing service and intelligent querying of data in Trenita- created through the partnership between lia’s management system Eni, Trenitalia and Piaggio Group was launched

The agreement between Trenitalia and Clear Channel to promote bike sharing in Milan and Verona was renewed. Thanks ASPECTS to the partnership with Bicincittà, regional transport customers received discounts on annual bike sharing passes in Turin and other Italian cities and, thanks to the agree- ment signed with FIAB, they also received discounts at bike friendly hotels in the Alber- gabici network Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 262 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 263 the environment information

Total CO emissions Trenitalia’s subsidiaries 2

87,028 89,481

Final energy consumption 82,857 CO2(t)

2016 2015 2014 2016 2015 2014 Diesel t 2,213 2,185 2,126

Total electricity MWh 160,672 171,034 175,596

for electrical traction MWh 159,644 170,050 175,004 Water for other uses MWh 1,029 984 592

Comments on the trend

In 2016, diesel consumption was substantially steady on the previous year. 2016 5,353 The change in electricity consumption in the past two years is due to the decrease in the portion of electricity used for railway traction by both the subsidiary Serfer - which decreased its traction activities in the year - and TX Logistik. 2015 12,150

2014 12,900

Water withdrawals for non-industrial use (m3)

Comments on the trend

The decrease in water consumption in 2016 is mainly due to the subsidiary Serfer as a result of the closure of utilities accounts and the fact that third party offices and changing rooms are predominantly used at shunting sites.

Waste

2016 2,890.3 1,455.8 89 %

2015 1,026.6 1,438.1 100 %

2014 504.8 164.4 95%

Hazardous special waste (t) Non-hazardous special waste (t) Recovered Special waste

Comments on the trend

The increase in waste in 2016 on 2015 is due to Serfer’s greater production of hazardous special waste because of the significant rise in works on the railway superstructure managed by the Construction Division.

The figures refer to the environmental aspects managed directly by the company or on behalf of other Group companies.

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Commitments made what we have accomplished what we aim to do Serfer

Revamping works will be carried out on The owned vehicle fleet was assessed to Service efficiency will be monitored once the owned vehicles, also aimed at reduc- identify which machines need to be re- the data have been consolidated using ing pollutant emissions conditioned and which should be sold, INFOPMS software, which monitors the also considering the acquisition of shunt- numbers of faults per machine and the ing machines (D245 model) number of days when machines are in- operative

Lighting in the workshop will be replaced The cost effectiveness of replacing light- Current situation: with LED systems ing systems at the workshop is being as- sessed Revamping of two V100 locomotives with another two under processing

Works to improve energy efficiency will The relocation of the administrative offic- Revamping of MAK C764 with two un- begin, including, for example, the instal- es to office space owned by third parties der processing lation of LED lighting systems at the head- prevented the replacement of lighting quarters, the replacement of obsolete systems With respect to emissions, V100 locomo- locomotives with more modern traction tive exhaust emissions are being analysed rented vehicles, the monitoring of energy 28 locomotives were scrapped and re- to gain benchmark values consumption at work sites and energy placed with 15 D245 models awareness campaigns for personnel.

Within the scope of non-routine mainte- Changing transmissions was deemed to nance to the vehicle fleet, catalytic trans- be too costly based on a cost/benefit missions will be installed on about 15 ve- analysis hicles to replace the current transmissions, thereby cutting atmospheric emissions

ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 266 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 267 the environment information

italferr Final energy consumption

2016 2015 2014

Diesel t 113 117 125

Electricity MWh 2,251 2,290 2,113 OUR APPROACH vation materials and using landscaping to help works blend into the surrounding area. Natural gas Sm3 33,355 39,276 42,151 In line with the FS Group’s strategies, Italferr’s Furthermore, work is carried out to improve and design decisions are in line with the principles redevelop the areas that are passed through, Comments on the trend of environment prevention and protection under with surveys and reclamation of contaminated sites where the infrastructure is built, an aware- EU regulations and sustainable development In 2016, the company’s diesel consumption for road vehicle traction decreased by 4% compared to 2015, due to the reduc- strategies, developing an integrated quality, en- ness of the way the area was historically used tion in company vehicles (-4 on 2015) and the procedure updating usage methods with a particular focus on daily distances. and inhabited and the consequent development Electricity consumption shows a steady trend and, for the Rome and Turin sites, an estimated overall decrease in consumption vironment and safety management system in line for heating (natural gas) of 15%. with ISO 9001, ISO 14001 and BS OHSAS of archaeological sites through preventive ar- 18001 standards to ensure the efficiency and ef- chaeology, highlighting the benefits of building fectiveness of production processes, improve its the infrastructure. environmental performance and supply products With respect to land use, Italferr pursues design and services in line with the applicable legisla- solutions focused on the compatibility of works tive requirements. with the condition of locations with a view to the most effective placement of the works. Over In Italy and abroad, Italferr develops design solu- Total CO2 emissions tions focused on the principles of sustainability the past decade, Italferr has ramped up its ar- through the adoption of innovative methodolo- chitectural designs and urban planning, refining an accurate and original design process in all gies that ensure a holistic approach to designing 1,286 and building infrastructure. Carrying out works stages, from local planning to the design of in- 1,280 with a local focus, stakeholder engagement, the dividual works, to the final design applied to the constructive solutions. Based on the careful integrated assessment of environmental, econom- 1,266 ic and social objectives, environmental and so- preparation of the functional plan, which imple- CO (t) cial monitoring and communication tools are key ments the requests of customers and stakeholders 2 elements for sustainable development. and the input arising from the transport study, the company prepares the architectural concept, Environmental planning plays a crucial role for 2016 2015 2014 improving the way the works interact with the i.e., the formal and formative idea that transforms local area and people concerned. The company all the functions and suggestions, as well as the carries out specialised studies to check the pro- adjustments required by the location, into an ar- jects’ impacts on the environment and landscape chitectural structure. Through the engineering of and, more in general, for the assessment of direct structures and plants, this process is completed and indirect effects that the construction of infra- with the components that ensure technical/cost structures could have. Furthermore, Italferr devel- feasibility and buildability. Water ops specific plans to identify material aspects re- Most of the control tools used during construction lated to processing at sites, mitigation measures are monitoring all environmental components and monitoring to ensure proper control over the that are potentially affected by processing to ver- construction of works. ify the actual occurrence of expected impacts, 2016 12,127 As part of environmentally sustainable projects, assess the effectiveness of systems to mitigate, solutions and projects are designed specifically record and manage any irregular situations in a 2015 11,750 to promote an increasingly rational use of the timely manner. resources used, through greater reuse of exca- 2014 9,489

Water withdrawals for non-industrial use (m3)

Comments on the trend

In 2016, total water withdrawal at sites was 12,127 m3, slightly up on 2015. To this end, the change in water consumption is due to the fluctuating trend in the number of resources at offices.

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Waste

Commitments made what we have accomplished what we aim to do

New rationalisation actions regarding Various initiatives were carried out at the In 2017, the rationalisation of energy 2016 1.4 17.4 87 % energy consumption at the sites will be Rome site to reduce energy consumption. consumption at sites continued, guiding assessed They related to the following, specifically: the decisions to transfer certain local com- pany offices to buildings with better ener- 2015 23.2 100 % Following the analyses and suggestions ⁄⁄ the inversion of the cooling system, in gy performance or to FS Italiane Group that came from the energy audit carried order to take advantage of the various buildings to take advantage of energy out at the Via Galati 71 site in Rome, it performance coefficients; saving initiatives. 2014 17.5 100 % has been decided that the study of two ⁄⁄ the balancing of thermal plant collec- projects will continue: tors to optimise water heater yield. Maintenance of UNI ISO 14064- 1:2012, UNI EN ISO 9001:2008, Hazardous special waste (t) ⁄⁄ the upgrading of the walls to improve UNI EN ISO 14001:2004 and OHSAS Non-hazardous special waste (t) the efficiency of the air conditioning 18001:2007 certification Recovered Special waste and reduce consumption; ⁄⁄ the inversion of the cooling system, in The company will monitor the inclusion order to take advantage of the various of requirements in construction contracts performance coefficients for reducing greenhouse gases. The aim Comments on the trend of this initiative is to encourage contrac- The opportunity to apply a bidirectional In 2016, whether to carry out this pro- tors to implement actions and conduct to With respect to the production of special waste, there was a reduction in the amounts produced (more than -19% on 2015). inverter to modulate the start-up current ject was assessed through a cost/benefit support the environmental sustainability Of the 18.8 tonnes of special waste produced in 2016, 1.4 tonnes were hazardous waste (electric and electronic devices, in order to recover the energy produced analysis which highlighted the lack of of works while they are being built and, lead batteries and excess paint). and inject it into the building’s network benefits that would be achieved in pro- more specifically, reduce their green- The nearly steady trend shows slight variations due to the closure and/or relocation of local branches in the past three years. will also be assessed portion to the investment needed for im- house gas emissions plementation

A report will be issued about the applica- SGS (Societè Gènèrale de Surveillance) tion of the climatic footprint calculation, completed an audit for the company to which is currently being applied, with the maintain UNI ISO 14064-1:2012 certi- involvement of the contractors, to projects fication of the “methodology to quantify ASPECTS in the realisation phase and report, on a design basis, the emis- sions (removals) of greenhouse gases generated by the design and construction of transport infrastructure”

The next contracts worth more than €30 Requirements to reduce greenhouse gas- million will be subject to contractual es were applied to construction contracts € Continuous improvement Raw materials cycle Water cycle Energy and emissions Land agreements for the reduction of green- worth more than 30 million to encour- house gas emissions during the develop- age contractors to take steps to improve ment phases the environmental characteristics of works under construction and, more specifically, to reduce the greenhouse gases emitted by the production and transport of con- struction materials (cement and steel)

Guidelines will be prepared for the ap- plication of the “Envision” sustainability protocol to railway infrastructures

New services will be developed for the enhancement of cultural assets and the reporting of archaeological activities

Building Information Modelling (B.I.M.) will be applied to land analyses with re- spect to the presence of environmental, landscape and archaeological restrictions

A work Group is being coordinated to The work Group’s project was completed develop the guidelines for the application with the issue of the “Environmental re- of the EMS regulations in work contracts quirements in construction contracts” by Group’s companies

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 270 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 271 the environment information

Total CO emissions ferservizi 2

3,391

2,898 ing in people and protecting environmental 2,564 OUR APPROACH CO2(t) resources; In accordance with the guidelines in FS Italiane ⁄⁄ the involvement of the concerned parties so Group’s environmental policy and its occupation- that they efficiently implement policies capable 2016 2015 2014 al health and safety guidelines and objectives of spreading awareness among all workers; and furthering its commitment to the integrated ⁄⁄ constant focus on the procurement chain, con- management of the requirements in major inter- sidering compliance with adequate technical and organisational requirements on occupa- national standards, Ferservizi considers the qual- Water ity of its services, the protection of the environ- tion health and safety and their adequacy ment and the protection of occupational health over time, in accordance with established and safety strategic elements in developing its standards and requirements, as necessary conditions for continuing the contractual rela- business. 2016 59,449 As part its goal of continuous improvement, Fer- tionship; ⁄⁄ the consolidation of a risk prevention culture servizi is committed to pursuing: 2015 36,438 ⁄⁄ customer satisfaction by meeting agreed re- to create healthy and safe work environments quirements, which it verifies through the ap- and promote responsible conduct, partly to propriate monitoring and recording of feed- pursue the Group’s objective of constantly re- 2014 56,584 back on customer satisfaction with services ducing accidents; 3 provided; ⁄⁄ the rational and efficient use of natural resourc- Water withdrawals for non-industrial use (m ) ⁄⁄ the engagement, awareness and information es and raw materials by reducing consumption of people through training and internal com- and energy use, promoting the use of energies Comments on the trend from renewable sources, the optimisation of munication, to raise their awareness of the The increase in the trend in 2016 is mainly due to the leak that was identified and resolved in the same year, estimated to the waste cycle and the prevention and reduc- 3 contribution that each can give; approximate 22,500 m . ⁄⁄ the definition of measurable objectives in line tion of pollution for the entire life cycle. with company strategies, using the necessary means and resources for their pursuit; ⁄⁄ full compliance with the applicable legislation and, where possible, exceeding it by invest- Waste

Final energy consumption 2016 3.9 138.1 100 %

2015 6.0 178.0 100 % 2016 2015 2014 172.2 94 % Diesel t 163 169 243 2014 2.9

Electricity MWh 3,375 4,206 4,585 Hazardous special waste (t) Natural gas Sm3 362,789 379,417 467,754 Non-hazardous special waste (t) Recovered Special waste

Comments on the trend Comments on the trend The decrease in energy consumption, which was less noticeable for diesel and natural gas and much more significant for The decrease in hazardous and non-hazardous special waste is essentially due to the demolition of certain buildings (e.g. electricity, is mainly due to the rationalisation of utilities and the optimisation of existing plants. Ferrotel and the relocation of the Trieste and Genoa sites). In 2015, the company took advantage of these events to send obsolete furniture and IT material for recycling. Activities also continued to make personnel increasingly knowledgeable about sorted waste.

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Commitments made what we have accomplished what we aim to do Commitments made what we have accomplished what we aim to do

Activation of a solar power system at the The Genoa plant was inspected and the Activation of the photovoltaic plant at the Throughout Italy, agreements were started A study was launched to verify the type A guideline will be defined for the man- Genoa site and submission of the pre- preliminary project for a new photovolta- Genoa site with the non-profit organisations for the of assets, volume of materials that could agement of donations of hardware and liminary project for a new system at the ic system at the Verona site was submitted recovery and reuse of obsolete materials be donated and the implications that do- furniture to public bodies, recognised Verona site Completion of the executive plan for the such as computers and furnishings nations might have in terms of legislation associations and foundations whose ex- plant and assignment of work for the con- and management clusive purpose is to provide assistance, struction of the photovoltaic plant at the charity, education, training, studies or Verona site. Consumption is expected to The project for the procurement of recy- scientific research and non-profit organ- decrease by roughly 30MWh per annum cled paper only for office activities, which isations. The resulting decisions will be Ferservizi launched on an experimental aligned with the parent’s guidelines Utilities accounts at the Bari site will be basis, and which was subsequently ex- separated to monitor actual energy con- tended to the largest paper users among The campaign to increase personnel’s sumption and take steps to reduce energy customer companies, achieved the fol- awareness of the importance of properly consumption. The utilities are currently lowing results: sorting waste will continue shared with other companies and the ⁄⁄ 3,106 trees saved accounts are in their names, limiting the ⁄⁄ 90,270,000 litres of water saved The project for the procurement of recy- initiatives that can be taken for a more ⁄⁄ 1,400,000 KWh saved cled paper only for office activities follow- rational consumption of energy resources ing the testing launched in 2014 will be ⁄⁄ 269,000 kg less CO2 emitted into the atmosphere extended to all Group companies Energy diagnosis plan on at least three buildings with utilities accounts

ASPECTS Conversion of the thermal plant at the The gas conversion project submitted for Conversion of the Venice Ferrotel. Con- Venice Ferrotel from diesel to gas the Venice Ferrotel was approved. It is the sumption is expected to decrease by 20% last step in the conversion of plants from diesel to natural gas. The overall conver- sion plan excludes the following Ferrotels: Chiusi, Como and Ancona

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land Approval of the efficiency project for the Approval of the project to modernise the Exterior lighting system project for the Fol- lighting system at the Foligno site archives exterior lighting systems at the Foligno ar- igno document archive. Energy consump- chives with LED technology tion is expected to decrease by 3MWh per annum Preparation of a project to convert the common areas of the Rome site in Via Tri- Project to replace lighting systems in politania to LED lighting systems common areas at the via Tripolitania site with LED technology; energy savings of A new heat-pump air conditioning system approximately 50MWh per annum are was installed with the closure of the die- expected sel-powered thermal power plant

A new thermal condensation power plant was installed to serve the Turin Ferrotel (via Nizza)

A new tender will be launched for com- The tender was awarded for the rental of pany car leases, including environmental company cars, including environmental

requirements aimed at reducing CO2 requirements to reduce CO2 emissions emissions In coordination with the Group compa- nies’ Mobility Manager, the agreement was renewed with ATAC S.p.A. for the purchase of Metrebus Rome and Lazio passes at special rates

Bike rack installed at the Rome site (via Tripolitania) to encourage the use of clean means of transport for their commute

Ferrovie dello Stato Italiane Group Relazione F2016inanziaria Sustainability Annuale R 2016eport 274 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 275 the environment information

grandi stazioni rail Water

2016 2,205,747

2015 2,075,839 OUR APPROACH ⁄⁄ guaranteeing the proper management of waste, promoting sorted waste collection and 2014 1,827,693 Grandi Stazioni Rail manages the real estate recycling; Water withdrawals for non-industrial use (m3) complexes of major Italian railway stations and ⁄⁄ implementing its own environmental manage- developing management and logistics areas ment system and striving to continuously im- Comments on the trend and car parks, in accordance with FS Italiane prove its environmental performance; Group’s environmental policies. The company ⁄⁄ complying with and, where possible, exceed- The increase in consumption is mainly due to the new store openings, especially at Roma Termini. considers environmental sustainability is a stra- ing the legal requirements governing safety tegic element of the integrated management of and environmental protection; Waste maintenance and cleaning, development, de- ⁄⁄ helping raise stakeholders’ environmental sign and construction services. awareness. Grandi Stazioni is committed to: 2016 18,049 ⁄⁄ improving energy efficiency; The above commitments of Grandi Stazioni Rail will ⁄⁄ reducing its environmental impact, in terms of be transformed into measurable objectives to be peri- 2015 18,048 water resources and greenhouse gas emis- odically assessed. sions, noise pollution and electromagnetic 2014 18,048 emissions it releases into the atmosphere, the soil and water; Urban waste (t)

Comments on the trend Final energy consumption Waste production has not changed significantly over the years and the same estimation methods followed since 2013 are still in use. 2016 2015 2014

Diesel t 50 66 135 The figures refer to the environmental aspects managed directly by the company on its own behalf or on behalf of other Group companies. This includes consumption by station customers. Fuel oil t 188 182 171

Electricity MWh 78,127 74,043 66,126

District heating MWht 2,969 2,318 2,143

Natural gas Sm3 8,339,271 7,892,085 7,077,786

Comments on the trend

The general increase in consumption is mainly due to the new openings at stations, such as the utilities hook-ups for car parks, redeveloped shopping areas and office leases.

Total CO2 emissions

38,417 38,381

CO (t) 35,223 2

2016 2015 2014

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 276 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 277 the environment information

Commitments made what we have accomplished what we aim to do

Carry out the energy diagnostics pursuant Energy diagnostics were carried out pursu- Completion of checks concerning the to Legislative decree no. 102/2014 for ant to Legislative decree no. 102/2014 obligations pursuant to Legislative decree the Roma Termini and Napoli Centrale for the Milano Centrale, Venezia Santa no. 102/2014 stations Lucia, Venezia Mestre and Torino Porta Nuova stations in compliance with the clusterisation plan pursuant to regulations The energy rationalisation process at the applicable to multi-site companies Milano Centrale and Roma Tiburtina sta- tion real estate complexes will continue Research into the reduction of energy con- Energy sustainability surveys have com- with specific work on the exterior and sumption and the increase of comfort at menced for the Milano Centrale and plants. At the Roma Tiburtina station, this the Milanp Centrale station Roma Tiburtina stations work will entail energy savings equal to roughly 15% of current consumption and compliance with the project’s comfort tar- gets.

A reduction of around 2,300 tCO2 is ex- pected at the Milano Centrale station as a result of the thermal plant rationalisation work.

New electricity supply accounts will be assigned for all network stations, and they will require that at least 30% of the elec- tricity supplied comes from renewable sources.

Beginning of the process of separation of the utilities accounts for the new compa- nies GS Retail and GS Immobiliare.

Calls for bids were completed for the assignment of electricity and gas supply accounts for all the stations in the network

Outfitting/restructuring of waste collec- In agreement with the local utilities com- The waste collection areas at the Roma tion areas at the station complexes and panies, the waste collection areas in the Termini, Roma Tiburtina, Bologna Cen- updating of the waste management meth- Milano Centrale, Napoli Centrale and trale and Bari Centrale stations will be ods with new integrated environmental Venezia Santa Lucia stations were up- upgraded service contractors and local utilities com- graded. At the same time, a call for bids panies was carried out for the assignment of a cleaning service contract for the stations. The call required that bids included a spe- cific project to increase the percentage of sorted waste

Implementation and improvement in the Environmental management system im- New ISO 14001:2015 standard certifi- environmental management system by re- plementation and improvement activities cation will be obtained for the real estate viewing the procedures, operating instruc- continued complexes in Roma Termini, Milano Cen- tions and environmental analyses and by trale and Venezia Santa Lucia providing training sessions for the person- nel involved in maintaining the EMS

ISO 14001 certification for the real es- This was postponed after the organisa- tate complexes in Roma Termini, Milano tional changes in 2016 and work on Centrale and Venezia Santa Lucia assets in view of certification

ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 278 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 279 the environment information

Total CO emissions centostazioni 2

9,962 8,479 6,933 CO (t) OUR APPROACH significant impact and implementing specific 2 monitoring programmes that minimise their ef- fects; In line with FS Italiane Group’s policies, Cento- 2016 2015 2014 stazioni is taking genuine steps to develop a new ⁄⁄ updating the stations to the energy manage- railway station concept, making it smart and ment and sophisticated diagnosis model more functional. These steps include sustainable, through the SEM (Smart Energy Management) integrated mobility projects and offering travel-re- project developed by Rete Ferroviaria Italiana; Water lated services that meet users’ needs. ⁄⁄ adopting innovative technologies, purchasing The company’s environmental policy is based on energy from renewable sources and keeping two main principles: plants running efficiently to optimise and ra- ⁄⁄ maximising the environmental benefits of the tionalise consumption; development, maintenance and management ⁄⁄ designing operating solutions aimed at mak- 2016 456,916 of stations and related support services; ing buildings more energy efficient; ⁄⁄ minimising negative environmental impacts as ⁄⁄ selecting suppliers whose work takes ethical, 2015 467,437 a tangible form of corporate responsibility. environmental and safety matters into account, with a view to continuous improvement. 2014 511,745 In the management of activities already focused The management of environmental aspects re- on achieving the absolute highest service levels Water withdrawals for non-industrial use (m3) in terms of environmental sustainability, safety, garding the processes and activities performed is guaranteed by the integrated quality, safety punctuality and comfort, the company is commit- Comments on the trend ted to: and environmental management system, certified ⁄⁄ performing environmental analyses to identify according to the international standards ISO The company continues to report a positive trend in the reduction of water consumption thanks to the efficiency of the monitoring 9001, ISO 14001 and OHSAS 18001. systems it uses, which enable it to detect any irregular consumption in real time and take action on the network to limit waste. the environmental aspects that could have a Work was done to rationalise the system by eliminating continuous flow devices (e.g., fountains, etc.)

Waste

2016 1,861 Final energy consumption 2015 1,708

2016 2015 2014 2014 1,719

Diesel t 195 256 296 Urban waste (t) Electricity MWh 12,126 14,120 15,931 Comments on the trend Natural gas Sm3 1,520,387 1,773,356 1,541,512 The upwards trend is due to the high level of waste contamination in public areas, as not all station users properly dispose of their waste. Comments on the trend

The overall decrease in energy consumption is due to the steps take to rationalise and optimise electric and thermal plants. The use of smart correction boards and flow optimisers significantly contributed to reducing electricity consumption.

The figures refer to the environmental aspects managed directly by the company on its own behalf or on behalf of other Group companies. This includes consumption by station customers.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 280 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 281 the environment information

Commitments made what we have accomplished what we aim to do

The company will continue to sign supply 30% of the electricity purchased in 2016 Steps will begin to optimise and rational- agreements requiring that at least 30% of came from renewable sources and, fur- ise the energy performance of buildings the electricity supplied comes from certi- thermore, energy efficiency measures through: fied renewable sources. In addition, as were completed to reduce electricity con- part of the integrated maintenance ser- sumption by more than 10% ⁄⁄ energy diagnoses on 10 stations vice at the network stations, other energy ⁄⁄ installation of LED lighting in public diagnosis activities and the mapping of areas at 10 stations in order to make computer graphics for the electric circuits the electricity consumption of lighting to help monitor usage will begin systems more efficient ⁄⁄ creation of an accurate monitoring and consumption oversight system The plan for the monitoring of output and The plan for the monitoring of output and for electrical power stations (70% of emissions from all the thermal power sta- emissions from all thermal power stations buildings) and thermal power stations tions will be launched, also installing at was implemented (66% of buildings) by installing net- least 30 room-temperature probes, con- work gauges and heat sensors nected to the company’s information sys- The initiatives planned for 2016 con- tem at each of the network stations cerning the installation of room temper- ature sensors were deferred due to the postponement of the assignment of the facility management contract (integrated cleaning and environmental hygiene ser- vices, integrated routine and non-routine maintenance services and energy service at real estate complexes in the stations)

In relation to sorted waste collection, a The initiatives planned for 2016 concern- A systematic data collection process and daily process for the systematic monitor- ing the finalisation of optimisation systems the related reporting on volumes of sorted ing of data will be launched at the head- for sorted waste collection were deferred waste collection will be launched for all quarters and all network stations due to the postponement of the assign- network stations ment of the facility management contract

The mapping of computer graphics for The initiatives planned for 2016 concern- A monitoring and oversight system will be the water circuits at the stations will begin ing the mapping of station water circuits developed to read water consumption via were deferred due to the postponement the installation of specific water gauges. of the assignment of the facility manage- This will enable the company to process ment contract and manage consumption parameters and use them in planning improvements to the plants it manages

The following actions will be taken within Work was completed on all activities A revision process will begin on the envi- the scope of the “Operational station con- provided for by the “Operational station ronmental management system to update trol” management model: control” management model, with the it to the new UNI EN ISO 14001:2015 ⁄⁄ training and awareness building on extension of environmental management standard environmental issues will be provided system certification to the Roma Ostiense, to all personnel Padova, Milano Porta Garibaldi, Napoli ⁄⁄ 206 internal audits at the offices and Mergellina, Novara and Modena sta- network stations tions ⁄⁄ environmental analyses in accord- ance with the requirements of the ISO 14001 standard for the 103 network stations

The extension of the environmental man- agement system certification will continue at six network stations: Roma Ostiense, Padova, Milano Porta Garibaldi, Napoli Mergellina, Novara and Modena ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 282 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 283 the environment information

Total CO emissions busitalia - sita nord 2

64,985

46,158 45,545 CO (t) OUR APPROACH The company promotes the development of inno- 2 vative infrastructures and technologies in order to improve services in terms of their sustainable Busitalia-Sita Nord’s company policy resolves 2016 2015 2014 to adopt a management system that extends life cycle. throughout all operating sites (of the company The company carries out continuous market anal- and its subsidiaries) that allows for optimum ser- yses and research, aimed at making the most Water vice effectiveness and efficiency and continuous of development opportunities for integrated and improvement, including in terms of environmental sustainable mobility, also with plans discussed performance, in line with the changing needs of with stakeholders. the customer, the evolving rules and regulations, FS Italiane Group’s strategies and, in general, to 2016 41,627 15,922 keep up to date with the transformations within the social, cultural and economic context of Busi- 2015 47,749 17,028 talia-Sita Nord and its subsidiaries. 2014 42,474 23,189

Water withdrawals for non-industrial use (m3) Water withdrawals for industrial use (m3)

Final energy consumption Comments on the trend

The reduction in the consumption of water withdrawn for non-industrial use between 2015 and 2016 is mainly due to non-rou- 2016 2015 2014 tine maintenance on the water network at an Umbria Regional Division site. The trend in water consumption for industrial use between in 2015 and 2016 is substantially steady.

Diesel t 11,306 10,984 17,251

Electricity MWh 4,710 7,414 5,540 Waste

Natural gas Sm3 4,118,692 4,219,186 4,454,667

Comments on the trend 2016 612.3 247.8 82 %

The 2015 and 2016 trends in diesel and natural gas consumption are substantially the same. The 2016 reduction in electricity consumption is due to the division of duties between the Umbria regional division and Umbria 2015 351.0 181.3 80 % TPL e Mobilità S.p.A., which owns the assets and from which Busitalia – Sita Nord acquired management of local public transport rail and road operations and the waterway service on the Trasimeno Lake, along with other mobility-related activities. 2014 218.4 418.0 31 %

Hazardous special waste (t) Non-hazardous special waste (t) Recovered Special waste

Comments on the trend

The significant increase in hazardous special waste in 2016 on the previous year is due to the scrapping of many buses. The increase in non-hazardous special waste between 2015 and 2016 is due to non-routine cleaning activities at the Umbria Regional Department.

The figures refer to the environmental aspects managed directly by the company or on behalf of other Group companies. 2015 and 2014 data include the amounts reported by Umbria Mobilità Esercizio, which became Busitalia – Sita Nord’s Umbria Regional Department in 2016. Furthermore the 2014 data include the amounts reported by the Veneto operating site, which in 2015 became a newco controlled by Busitalia – Sita Nord.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 284 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 285 the environment information

Commitments made what we have accomplished what we aim to do

The company plans to purchase 37 Euro 25 new Euro 6 buses boasting construc- 71 new Euro 6 motorised buses will be 6 buses to replace old generation Euro tion technologies and devices that reduce purchased to replace the same number of 0/Euro 2 vehicles consumption joined the fleet old generation vehicles (Euro 0/Euro 1/ Euro 2), which will lead to a reduction in consumption and a decrease in emitted

The plan to progressively install new elec- The new electronic monitoring system particulates, nitrogen oxide and CO2 tronic monitoring systems in the fleet will was launched on an experimental basis be activated for the fleet of latest generation vehicles, A lighting system that uses energy efficient making it possible to constantly track driv- light bulbs will be built for the Perugia de- ers’ performance and pinpoint areas for pot office building improvement through individual training to improve personal performance and The old air conditioning systems in the consequently reduce consumption offices will be replaced with new latest generation systems in 2017 as well

In the offices, old air conditioning systems Replacement of the heat generator for the will continue to be replaced with the latest Terni office building with the new latest generation systems generation condensation water heater and replacement of the water heater fur- nace in the Perugia depot offices with a new higher-performance device: these projects reduced consumption and emis- sions

In the Florence offices, old R22 air con- ditioning units were replaced with new R410a refrigerant gas units

In the new Euro 6 vehicles, higher-per- In the new Euro 6 vehicles, higher-per- The implementation of devices restricting forming lubricating liquids will be used forming lubricating liquids were used the use of printers/photocopiers to au- for the drive-train, which will increase ser- for the drive-train, which increased the thenticated users only (use of company vice intervals, consequently reducing the amount of time before the need for re- badge) will continue at all company sites amount of waste being disposed of placement and, therefore, led to a reduc- to accurately monitor the consumption of tion in the amount of waste disposed of. toner and paper Furthermore, as the mechanical compo- nents are better protected, the life cycle is expected to be longer

At the Florence depot, a system will be The project for the closed-cycle reverse The closed-cycle reverse osmosis system activated that allows for the recovery of osmosis system was completed, making to recycle industrial water subject to treat- industrial water to be treated and for it it possible to reuse the treated water from ment to be reused to wash buses in order to be reused to wash the buses, in order the washing plant and consequently re- to reduce the withdrawal of well water to reduce the amount of water withdrawn duce the withdrawal of well water for will become operative in 2017 from wells industrial use

ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 286 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 287 the environment information

Total CO emissions Busitalia – Sita Nord’s subsidiaries 2

55,280.5 54,425.4

CO2(t) Final energy consumption 22,699.2 2016 2015 2014 2016 2015 2014

Diesel t 12,559 12,383 4,731 Water Electricity MWh 5,677 5,684 2,754

Natural gas Sm3 6,160,571 6,839,746 3,491,681 2016 19,779 18,316 Comments on the trend

Diesel and electricity consumption recorded in 2015 and 2016 is substantially unchanged. The 2016 decrease in the con- 2015 24,563 17,110 sumption of natural gas is due to the shorter distances travelled by buses running on natural gas. 2014 19,712 4,013

Water withdrawals for non-industrial use (m3) Water withdrawals for industrial use (m3)

Comments on the trend

The 2016 decrease in the consumption of water withdrawn for non-industrial use is substantially due to non-routine mainte- nance work performed in 2015 on the water network used by Ataf Gestioni.

Waste

2016 874.4 289.7 75 %

2015 434.9 310.0 66 %

2014 849.8 42.4 86 %

Hazardous special waste (t) Non-hazardous special waste (t) Recovered Special waste

Comments on the trend

The significant increase in hazardous special waste in 2016 is due to the substantial scrapping of buses, which also led to a percentage increase in special waste sent for recycling.

The figures refer to the environmental aspects managed directly by the company or on behalf of other Group companies. The data include the amounts reported by the subsidiary Ataf Gestioni, included in the reporting scope since 2014, and the amounts reported by Busitalia Veneto, included in the reporting scope since 2015.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 288 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 289 the environment information

Commitments made what we have accomplished what we aim to do Commitments made what we have accomplished what we aim to do Busitalia Veneto Ataf Gestioni

The roll-out of 20 new Euro 6 buses for 28 low-emission Euro 6 urban and subur- Ten new Euro 6 diesel buses for urban The plan to renew the company fleet with Training was provided to line drivers and Another 34 new Euro 6 buses will be public use in the municipalities and prov- ban buses replaced old generation buses transport will be rolled out as part of the another 39 new Euro 6 diesel buses and workshop and shunting personnel and 39 rolled out to replace the same number of inces of Padua and Rovigo is expected (Euro 0 – Euro 2), and feature construc- Padua and Rovigo public transport ser- the related training for drivers to equip new Euro 6 motorised diesel buses were old generation buses, and the plan to re- tion technologies and devices to reduce vice lines. them with all the tools needed for efficient purchased new the company car fleet will continue Activities will continue to update the fleet consumption (four buses run on biodiesel driving to EU environmental standards, with con- fuel) At the Padua trolley depot, a photovolta- Another 11 Euro 1 and 2 petrol-fuelled current investments in technological inno- ic covering will be built to protect rolling cars were replaced with more modern vation stock from atmospheric agents Euro 5 diesel vehicles

The analysis will continue to replace inte- An electric car recharging station was The transport service in Padua will be The Padua transport service streamlining rior lighting systems on board trolleys with created and two electric cars (ZEV - Zero streamlined to limit the overlap between process was launched. By making the LED technology Emission Vehicle) were rented under long- the urban and suburban transport servic- maintenance process more efficient, the term rental agreements es, reducing production costs and gener- company was able to reduce the total ating benefits in terms of energy consump- number of buses to six without losing any tion and environmental impact transport service quality. The acquisition of new bio-oxidation treat- The new bio-oxidation treatment plant be- New industrial waste water plants and a ment systems will be completed and the gan operating new closed-cycle reverse osmosis system sustainability policy in the procurement will be built for the re-use of water from Work was completed on the first flush New plants were built for the treatment and use of products and materials will the washing plant rainwater treatment plants at the Padua of first flush rainwater and to wash buses, continue and Rovigo plants which will generate benefits in terms of energy consumption and environmental impact

ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 290 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 291 the environment information

Total CO emissions mercitalia logistics 2

1,031 951 827

CO (t) OUR APPROACH The company’s commitment to the environment 2 is evidenced by the use of rails as the preferred mode of transport in its provision of integrated In accordance with the guidelines of FS Italiane 2016 2015 2014 Group’s environmental policy and its occupation- logistics services, thereby gaining an advantage al health and safety action areas and furthering in terms of sustainable mobility and reducing its commitment to the integrated management emissions. It confirmed this sensitivity to environ- mental issues in the installation - right back in of the requirements of major international stand- Water ards, Mercitalia Logistics considers the quality of 2007 – of a photovoltaic power station at the its services, the protection of the environment and Roma San Lorenzo site, which actively contrib- utes to preventing pollution by preventing CO the protection of occupational health and safety 2 strategic elements in developing its business, in emissions into the atmosphere. 2016 7,735 the pursuit of continuous improvement in logistics and the enhancement of its assets. 2015 7,367

2014 6,845

Water withdrawals for non-industrial use (m3)

Final energy consumption Comments on the trend

Water withdrawals for non-industrial use mainly refer to consumption for the Roma San Lorenzo site. The data indicate a nearly steady trend. 2016 2015 2014

Diesel t 13 23 28

Electricity MW 2,961 2,291 2,576 Waste

Comments on the trend 6.4 The trend in the consumption of diesel shows a decrease in 2016 following the creation of a fancoil heating system and the 2016 100 % consequent retirement of three diesel-powered water heaters. The increase in the consumption of electricity is due to the acquisition of three new utilities accounts. 2015 0.7 292.3 77 %

2014 15 % Production of energy from renewable sources 7.9

600 Hazardous special waste (t) Non-hazardous special waste (t) 587 Recovered Special waste 577 Comments on the trend Solar energy (MWh) Following the contractual changes identifying the companies that perform maintenance activities as producers of special waste, Mercitalia Logistics is no longer a producer of waste in 2016. The quantity of hazardous and non-hazardous special 2016 2015 2014 waste produced in 2015 was due to non-routine cleaning at local sites.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 292 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 293 the environment information

Commitments made what we have accomplished what we aim to do

Environmental training courses will be In 2016, one course on regulatory up- In 2017, the following environmental provided to company personnel, particu- dates was held for the management of training courses will be provided: larly regarding regulatory updates for the hazardous special waste. The main issues ⁄⁄ information on the new environmen- management of hazardous special waste covered were: tal management system within the ⁄⁄ new methods for identifying the haz- company following the adoption of ardous characteristics of waste the new UNI EN ISO 14001:2015 ⁄⁄ management of particular types of format waste ⁄⁄ ADR/RID 2017 hazardous cargo - ⁄⁄ administrative management of waste environmental impacts ⁄⁄ SISTRI ⁄⁄ environmental crimes and changes to the current organisational model pursuant to Legislative decree no. 231/01

A technical and economic feasibility anal- ysis will be performed on the replacement of traditional lighting with LED technology in hubs equipped with light towers

The company will continue extending the The company updated its certification In accordance with the parent’s instruc- integrated management system (safety, to the new UNI EN ISO 14001:2015 tions, Mercitalia Logistics S.p.A. will environment and quality) to other sites standard and extended the certification extend the scope of application of its throughout Italy. Specifically, it expects scope to the Pomezia S. Palomba and environmental management system to co- to obtain ISO 14001 certification for the Verona Porta Nuova sites. ordination and control processes as well, Pomezia and Verona Porta Nuova sites. as the Mercitalia Hub became a sub-hold- ing company on 1 January 2017.

ASPECTS

Continuous improvement Raw materials cycle Water cycle Energy and emissions Land

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 294 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 295 the environment information

Netinera Group Waste

2016 1,369.9 90 %

2015 494.7 85 % Final energy consumption 2014 300.0 100 % 2016 2015 2014 Special waste (t) Recovered Special waste Diesel t 35,856 34,256 22,212

Total electricity MWh 177,648 136,725 153,900

for railway traction MWh 166,622 130,900 144,750

for other uses MWh 11,026 5,825 9,150

Natural gas Sm3 1,116,568 919,592 1,600,850

Commitments made what we have accomplished what we aim to do

Greater environmental awareness will be The process to promote environmental The process to harmonise the Group promoted at the Netinera Group compa- sustainability within the organisation con- companies’ supply chain will continue, nies, through the planning of workshops, tinued, with a specific focus on the man- with the commencement of centralised Total CO emissions employee awareness activities and the agement of the Group companies’ supply management of the supply chain and 2 preparation of an implementation plan chain. the evaluation of whether sustainability for an environmental management system criteria should be included in the vetting requirements for suppliers of goods and/ 148,410 or providers of services. 129,621 A plan will be prepared to implement 113,918 an environmental management sys- tem in compliance with UNI EN ISO CO2(t) 14001:2015. At each of the subsidiaries that fall within The reporting process was further devel- the reporting scope of the Sustainability oped with the identification of managers 2016 2015 2014 Report, a “process owner” will be identi- within each Group company. fied and will be made responsible for all the sustainability data, using a two-level reporting approach in order to make the most of the opportunities that the compa- Water ny information systems can provide.

2016 33,576 ASPECTS

2015 32,739

2014 22,096 Continuous improvement Raw materials cycle Water cycle Energy and emissions Land Water withdrawals for industrial use (m3)

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 296 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 297 the environment information

emissioni totali di CO FS sistemi urbani 2

217,247 216,724

213,719 CO (t) OUR APPROACH 2

FS Sistemi Urbani is responsible for developing 2016 2015 2014 the Group’s assets which are not functional to railway operations and providing integrated ur- ban services with a business-oriented approach, acqua as well as streamlining and improving the func- tioning and service offered to the public. The company’s “mission” is, therefore, attentive to environmental matters, managing potentially critical environmental aspects through the trans- 2016 17,920,347 formation and redevelopment of land from an inter-modal and urban-planning point of view. 2015 16,967,138

2014 17,092,233

prelievi per uso civile (m3)

Commento al trend

Commitments made what we have accomplished what we aim to do L’oscillazione nei consumi idrici registrata nel triennio si rifer- isce alle acque prelevate da acquedotto e, nel 2016, è imput- The monitoring of the company’s assets Real estate asset monitoring activities Company asset monitoring activities will abile, oltre che all’andamento delle attività manutentive, all’ac- will continue, and a plan will be drawn continued throughout Italy, with over 100 continue and a plan to remedy irregular- quisizione di nuovi impianti (per esempio platee di lavaggio). up to resolve the irregularities identified in inspections to prevent any irregular situa- ities in the parking areas will be imple- the survey of the parking areas. tions, in collaboration with RFI. mented.

rifiuti A detailed environmental survey will be The remedial plan proposed by the sub- carried out on some of the most complex sidiary Metropark following a specific company assets, in order to identify cases survey of each area zoned for parking that can be used in the future to extend was approved. the analyses to include all assets 2016 28,748 130,887.1 99 % The ISO 14001 environmental certifi- The ISO 14001 environmental certifica- Activities will begin to ensure compliance cation will be extended to all company tion was extended to all the company’s with the new ISO 14001:2015 standard. 2015 49,160.3 117,281.4 99 % processes. operating and management processes. Activities have begun to certify an asset in Italy. 2014 36,311.1 101,602.1 98 %

rifiuti speciali pericolosi (t) rifiuti speciali non pericolosi (t) rifiuti speciali inviati a recupero

ASPECTS Commento al trend Dietro la lieve diminuzione del totale dei rifiuti prodotti nel 2016 rispetto al 2015 (-4%) si evidenzia un contenuto au- mento dei rifiuti non pericolosi (che rappresentano l’82% del totale) e una notevole flessione dei rifiuti pericolosi in parti- colare per la componente inviata a smaltimento. La variazi- one si correla all’andamento ciclico delle attività di manuten- Continuous improvement Raw materials cycle Water cycle Energy and emissions Land zione e consente di mantenere sostanzialmente invariato il quantitativo totale dei rifiuti inviati a recupero.

Ferrovie dello Stato Italiane Group 2016 Sustainability Report 298 The Group’s profile Group sustainability Corporate governance Business sustainability Our role in the community Our people Respecting and protecting Additional 299 the environment information

Ferrovie dello Stato Italiane Group 2016 Sustainability Report Central Strategies, Planning and Sustainability Department

Central Brand Strategy and Communication Department

Piazza della Croce Rossa,1 - 00161 Rome fsitaliane.it

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