Comparative Analysis of Sustainability Performance
Methodological Remarks
Convinced that a comparison of environmental, social and governance performance is of interest, not only to the Company itself, but also to its stakeholders, certain comparisons between Terna's results and those of other companies are included in the 2013 Sustainability Report, as was the case in the preceding three years. Listed below are the main criteria adopted in the analysis, as an introduction to the reading and interpretation of the comparisons of individual indicators in the Report: ‐ three panels of companies were identified: an industry panel, composed of the European transmission system operators and the major extra-European operators in terms of kilometres of lines managed; and two multi-industry panels, the first relative to large Italian companies (the 40 companies of the FTSE-MIB at 18 December 2013) and the second relative to the best international performers (the 24 world Sustainability Industry Group Leaders, identified by the RobecoSAM sustainability rating agency and disclosed at the publishing of the Dow Jones Sustainability Index of September 2013). The purpose of the three panels is to guarantee, also relative to the type of indicator reviewed, a comparison between companies with the same operational characteristics, an Italian comparison, and a comparison with the top international performers. The Terna figures do not contribute to the calculation of the average in the case of the RobecoSAM – Supersector Leaders panel; ‐ the companies considered from among those in the three panels were those which publicise the information necessary for comparisons either on their websites, through the Sustainability Report (even if not prepared following the GRI guidelines) or through other documentation (HSE Report, financial report, etc.). This led to a reduction in the sample compared to the starting panel, as demonstrated in the following table; ‐ the use of published Sustainability Reports entails reference to 2012 data, since the comparisons were drafted when the 2013 Reports were still being prepared, as was the case for Terna. It must be noted that, despite the exclusion of data which was explicitly not homogeneous, in numerous cases doubts remain around the actual comparability between companies, especially when the average and best performances are viewed from a distance: it is in fact probable that significant deviations depend on different application criteria – not explained – of the GRI protocols, rather than on particularly progressive corporate behaviour.
Some of the indicators considered (water consumption, waste produced, CO2 emissions) are expressed as physical quantities in absolute terms and therefore show very different levels depending on the type of production activity and the size of the company. In these cases, the comparison provides information on the varying significance of the environmental aspects being considered for the individual companies, but does not fulfil the task of making the performance comparable.
For further details, see the Terna website and the note “Comparing sustainability performance: Terna's experience” contained in the study “Beyond the financial figures: companies and collective well-being”, drafted by CSR Manager Network and ISTAT, and available on their respective websites (www.csrmanagernetwork.it and www.istat.it/it/archivio/85255).
TSO Panel FTSE-MIB Panel ROBECOSAM Panel Companies considered (No.) 55 41 24 Companies with sustainability document (No.) 23 27 24 Companies with relevant data (No.) 30 27 24
CO2 emissions: comparative data
The figures used for comparison as regards the emission of greenhouse gases in thousands of tonnes of CO2 are composed of the relative figures on direct and indirect emissions (aims 1 and 2).
In the absence of normalisation factors valid for all sectors, it was deemed of interest to present the company data on CO2 emissions in absolute terms – despite the poor comparability. Such figures, which vary greatly in magnitude from one case to another, at least provide an indication of the importance of greenhouse gas emissions – and therefore of the practical need to contain and mitigate them from the point of view of sustainability – in the various sectors and companies.
The comparison was thus made with the companies of all three panels: TSO, RobecoSAM Super Sector Leaders and the FTSE MIB companies.
In 2013, Terna emitted 138 thousand tonnes of CO2. In 2012, the year for which comparative data is available, the figure was 140 thousand tonnes, significantly lower than the average of all three panels.
CO2 emissions (thousands of tonnes) 2012 TSO FTSE-MIB(1) RobecoSAM – Supersector Leaders Figures available 19 24 25 Average 9,825.3 9,253.0 3,853.5 Max. 122,000.0 127,870.0 28,210.0 Min. 3.1 11.0 22.7 Terna 140.0
“(1)” For the indicator of CO2 emissions for two of the companies on the FTSE-MIB panel, the figure published in the document “CDP Italy 100 Climate Change report 2013” as part of the Carbon Disclosure Project was considered.
SF6 leaks: comparative data
SF6 gas has an extremely powerful greenhouse effect (22,800 times more than CO2(1)) and is used by electricity transmission operators as a result of its excellent electrical insulation properties. On account of the specific nature of use of this gas, only the TSO panel was considered for the comparison.
The SF6 figure is given as the leak rate with respect to the total quantity of gas in the station equipment.
In 2013, Terna recorded a leak rate of 0.49%, lower than in 2012 (0.59%), the year for which comparative data is available.
In 2012, Terna's performance was above average (0.76%).
A graph of the data available for 2012 is shown below:
% INCIDENCE OF SF6 LEAKAGE – 2012 FIGURES
2.00 1.80
1.50
1.00 0.76 0.59 0.50 0.09 0.00 Min Terna Media Max
(1) See the “IPCC Fourth Assessment Report: Climate Change 2007”
Water consumption: comparative data
The comparison of relative data on water consumption is made both in terms of absolute values and per capita consumption. The difficulties in terms of comparability are evident, since water consumption is related to the production process and is, therefore, high for companies producing tangible goods and, above all, for utilities using water in cooling processes; while it is low for companies supplying intangible goods or services such as banks. It should also be noted that consumption does not prove to be significantly influenced by the number of employees. Despite the poor comparability, comparison and disclosure of water consumption levels are considered of interest since they highlight the differences among sectors and emphasise the importance of limiting consumption for various sectors and companies. In 2013, Terna's total water consumption was 198.2 thousand m3 (equal to 57.6 m3 per capita), a lower figure than 2012, the year for which comparative data is available in which consumption was 219.3 thousand m3 (equal to 63.9 m3 per capita).
Water consumption (1) 2012
TSO FTSE-MIB RobecoSAM
Figures 12 23 12 available
thousands of cubic thousands of cubic thousands of cubic Unit of cubic metres metres/emplo cubic metres metres/emplo cubic metres metres/emplo measure yee yee yee
Average 315,890.4 24,765.5 116,123.3 1,565.7 27,498.7 386.3
Max. 1,509,660.7 256,599.0 2,357,560.0 30,288.0 283,000.0 5,591.8
Min. 41.6 25.3 34.3 3.5 1.2 0.8
Terna 219.3 63.9 219.3 63.9 219.3 63.9
(1) No distinction was made between fresh water and sea water.
Production of waste: comparative data
The comparison of waste production by the various companies was made on absolute and per capita production of total waste. The quantity of waste produced depends largely on the sector in which the company operates and, to a lesser extent, on the number of employees. Despite the intrinsic limitations of the comparison and in the absence of more effective normalisation factors than the number of employees, it was deemed of interest to present the main figures on waste production. Such figures do at least provide an indication of the importance of waste – and therefore of its practical significance in terms of sustainability – in the various sectors and companies. The companies with the biggest waste production in each panel (TSO, RobecoSAM and FTSE-MIB) present absolute values considerably higher than those of Terna; such companies respectively produce 177, 414 and 1,951 times the waste produced by Terna. In 2013, Terna produced a total of 5,263.6 tonnes of waste, 1.53 tonnes per capita. This is compared to the 6,208.1 tonnes in 2012, the year for which comparative data is available, implying 1.8 tonnes per capita. A figure, as stated below, which is the average of all three panels.
Tonnes of waste produced and tonnes of waste produced per capita 2012
TSO FTSE-MIB RobecoSAM
Figures 14 24 19 available
Unit of tonnes/employee tonnes/employee tonnes/employe tonnes tonnes tonnes measure e
708,727. Average 260,464.6 21.0 12.0 285,193.0 5.3 0
1,394,274. 2,572,798. 106.4 12,114.8 164.4 53.1 Max. 4 0
Min. 52.9 0.1 608.5 0.01 581.0 0.1
Terna 6,208.1 1.8 6,208.1 1.8 6,208.1 1.8
Staff turnover: comparative data
Terna's staff turnover rate is defined as the ratio of employees leaving during the year to the number of employees as at 31 December of the previous year.
As the staff turnover rate is an indirect indicator of the internal company climate affecting all divisions, the figures for the transmission companies (TSO panel) and those of the large companies listed on the Italian stock exchange (FTSE-MIB) were taken into account, as well as those for the international leaders in sustainability (RobecoSAM – Supersector Leaders).
In 2013, Terna's turnover rate was 1.8%. In 2012, the year for which comparative data is available, the turnover rate was 3.0%, below the average of all the reference panels.
Turnover rate – percentage values 2012 TSO FTSE-MIB RobecoSAM – Supersector Leaders
Figures available 20 24 14
Average 4.3 7.4 10.6
Max. 11.8 15.9 26.6
Min. 1.0 1.1 0.4
Terna 1.8
Training for employees: comparative data
The comparison of staff-training performance uses the per capita hours of training provided by companies as a reference.
Since per capita training does not depend on the size of the company or on the sector in which companies operate, figures for the companies on all three panels were examined.
In 2013, Terna provided an average of 35 hours of training per capita compared to 41 hours in 2012 (the year for which comparative data is available). Compared to the other companies, Terna is in line with the average value for the RobecoSAM panel, below average for the TSO panel and above average for the FTSE-MIB panel.
Hours of training per capita – 2012 TSO FTSE-MIB RobecoSAM – Supersector Leaders Figures available 14 27 13 Average 48.7 30.8 42.0 Max. 71.0 64.7 143.2 Min. 36.3 3.6 10.0 Terna 41.0
Gender pay gap: comparative data The comparison between Terna and other companies in terms of equal opportunities is conducted by taking the percentage gender pay gap as a reference; the result of the ratio between men's and women's basic annual salary for the same categories of work. On account of the difference between categories from one country to another, the comparison was only performed for the companies in the FTSE-MIB panel, where most of the companies use typical Italian categories to classify employees. In 2013, the percentage gender pay gap at Terna was 81.3 % for senior executives, 96.3% for the junior executives and 95.1% for white-collar workers; in 2012, the year for which comparative data is available, the pay gap was 80% at the senior executive level and 94% for both junior executives and white-collar workers. The difference was not calculated for blue-collar workers, as there are no women working in that category at Terna.
Gender pay gap – percentage values 2012 – FTSE-MIB Panel Senior executives Junior executives White-collar workers
Figures available 19 21 21
Average 87.0 90.3 87.7 Max. 103.0 101.0 97.9 Min. 74.0 80.0 43.0 Terna 79.0 94.5 94.0
Relevant Panels
TSO Panel The following table sets out the transmission operators which have been analysed, specifying the country in which they operate and any additional sectors in which they have interests. Finally, an "x" in the final column indicates the companies for which it has been possible to acquire the relevant data for comparison.
Data Name Country Other Sectors acquired
50 Hertz Transmission Germany Generation of electrical
American Electric Power USA x energy
Amprion Germany
Augstsprieguma tīkls Latvia Generation of electrical Centrais Elétricas Brasileiras Brazil x energy
ČEPS Czech Republic
China Southern Power Grid China x
Creos Luxembourg Luxembourg Gas x
Crnogorski elektroprenosni sistem AD Montenegro
Croatian Transmission System Operator Croatia x
Cyprus Transmission System Operator Cyprus
EirGrid Ireland
Electroenergien Sistemen Operator Bulgaria
Elektro-Slovenija Slovenia x
Elering Estonia Elia System Operator SA Belgium x
Energinet.dk Denmark Gas x Generation of electrical
Eskom South Africa x energy
Fingrid Finland x
Gujarat Energy Transmission Corp. India Generation of electrical
Hydro-Quebec Canada x energy Independent Power Transmission Greece Operator
Interconexion Eleéctrica SA Latin America Telecommunications x International Tranmission USA x
Company/Entergy
ISO BiH Bosnia-Herz.
JP Elektromreža Srbije Serbia
Landsnet Iceland x
Litgrid Lithuania Maharashtra State Electricity India Transmission
MAVIR Hungary
MEPSO Macedonia National Grid Electricity Transmission Great Britain Gas x plc National Grid US US Gas x
Polskie Sieci Elektroenergetyczne Poland x
Power Grid Corporation of India Ltd India Telecommunications
Red Eléctrica de España Spain x
Redes Energéticas Nacionais Portugal Gas x
Réseau de Transport d'Électricité France x
Rosseti / Federal Grid Company Russia x
Generation of electrical
Scottish and Southern Energy Scotland x energy
Generation of electrical
Scottish Power Transmission plc Scotland x energy Slovenska elektrizacna prenosova Slovakia sustava
State Grid Corporation of China China x
Statnett Norway x
Svenska Kraftnät Sweden Gas
Swissgrid ag Switzerland
System Operator for Northern Ireland Northern Ireland
TenneT TSO B.V. Netherlands x
TenneT TSO GmbH Germany x Terna Italy x
Transelectrica Romania Transmission Corporation of Andhra India
Pradesh TransnetBW GmbH Germany x Verbund Austrian Power Grid Austria x Vorarlberger Übertragungsnetz GmbH Austria
FTSE-MIB Panel The following table refers to the companies in the basket as at 18/12/2013. The relevant sector is specified, and an "x" in the final column indicates companies for which it has been possible to acquire the relevant data for comparison.
Name Sector Data acquired
A2A Energy x
Ansaldo STS Holding x
Atlantia Transport x
Autogrill Food x
Azimut Financial services
Banco Popolare società Banking x cooperativa
Banca Monte dei Paschi di Siena Banking x
Banca Popolare dell'Emilia Banking Romagna
Banca Popolare di Milano Banking x
Buzzi Unicem Cement x
Campari Drinks
DiaSorin Diagnostics
ENEL Energy x
Enel Green Power Energy
ENI Oil & Gas x Exor Holding
Fiat Vehicles & Publishing x
Fiat Industrial Industrial Vehicles x
Finmeccanica Aeronautics & Defence x
Fondiaria- Sai Insurance
Generali assicurazioni Insurance x
Gtech Lotteries & Betting x
Intesa Sanpaolo Banking x
Luxottica Eyewear
Mediaset Media & Communications
Mediobanca Banking
Mediolanum Insurance & Banking x
Parmalat Food Industry
Pirelli & C. Tyres & Real Estate x
Prysmian Cables x
Saipem Oil Industry x
Salvatore Ferragamo Luxury Goods
Snam Natural Gas x STMicroelectronics Electronics x
Telecom Italia Telecommunications x
Tenaris Iron & Steel x
Terna - Rete Elettrica Nazionale Transmission of electrical energy x
Tod's Footwear
Ubi banca Banking x
UniCredit Banking x
World Duty Free Travel retail
ROBECOSAM Panel – Sustainability Industry Group Leaders The following table sets out the names of the 24 global “Sustainability Industry Group Leaders”, identified by the RobecoSAM sustainability rating agency and presented with the publication of the Dow Jones Sustainability Index in September. The relevant sector is specified, along with the country in which the company carries out its business, and an "x" in the final column indicates the companies for which it has been possible to acquire the relevant data for comparison.
Name Sector Country Data acquired
Health Care Equipment & Abbott Laboratories United States x Services
Commercial & Adecco SA Switzerland x Professional Services
Air France-KLM Transportation France x
Akzo Nobel NV Materials Netherlands x
Technology Hardware & Alcatel-Lucent SA France x Equipment
Allianz SE Insurance Germany x
Australia & New Zealand Banks Australia x Banking Group Ltd
BG Group PLC Energy United Kingdom x
Citigroup Inc Diversified Financials United States x
EDP - Energias de Portugal Utilities Portugal x SA
Household & Personal Henkel AG & Co KGaA Germany x Products
Telecommunication KT Corp South Korea x Services
Lotte Shopping Co Ltd Retailing South Korea x
Food, Beverage & Nestlé SA Switzerland x Tobacco Consumer Durables & Panasonic Corp Japan x Apparel
Pharmaceuticals, Roche Holding AG Biotechnology & Life Switzerland x Sciences
SAP AG Software & Services Germany x
Siemens AG Capital Goods Germany x
Stockland Real Estate Australia x
Tabcorp Holdings Ltd Consumer Services Australia x
Semiconductors & Taiwan Semicon. Manu. Taiwan x Semiconductor Equipment
Telenet Group Holding NV Average Belgium x
Automobiles & Volkswagen AG Germany x Components
Woolworths Ltd Food & Staples Retailing Australia x