2020 Sustainability Report Acea Group
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2020 SUSTAINABILITY REPORT ACEA GROUP (Consolidated Non-Financial Statement pursuant to Legislative Decree no. 254/2016, prepared according to the GRI Standards) CONTENTS LETTER TO THE STAKEHOLDERS 4 HIGHLIGHTS 6 DISCLOSING SUSTAINABILITY: METHODOLOGICAL NOTE 10 JOINING THE UNITED NATIONS GLOBAL COMPACT 18 CORPORATE IDENTITY GROUP PROFILE 22 Acea’s history 22 Businesses and functions of the main Group Companies 22 Context analysis and business model 24 Ownership structure and general economic indicators 30 STRATEGY AND SUSTAINABILITY 31 Integrated strategy overview 31 Plan for 2020-2024 and the operational goals 36 CORPORATE GOVERNANCE AND MANAGEMENT SYSTEMS 58 Corporate governance at Acea 58 Internal Control and Risk Management System 61 Management systems 69 STAKEHOLDERS AND ALLOCATION OF GENERATED VALUE 71 Stakeholders and their involvement 71 Distribution of the value generated by Acea 75 RELATIONS WITH THE STAKEHOLDERS CUSTOMERS AND THE COMMUNITY 78 Acea Group customers: electricity and water services 78 Perceived quality 82 Quality delivered 89 Pricing 111 Customer care 112 Communications, events and solidarity 123 SUPPLIERS 131 Consolidated External Costs 131 Procurement Policies 131 Analysis of procurements and the supply chain 133 Sustainability in the selection and assessment of suppliers: from qualification to ongoing contracts 137 Health and safety along the supply chain: awareness raising and audits 139 STAFF 142 Acea's employees 142 Hours worked, salary and pension funds 147 Labour-management relations 149 Occupational health and safety 150 Human capital development and communications 154 Diversity and inclusion 161 Community life at Acea 162 2 ACEA GROUP / SUSTAINABILITY REPORT 2020 SHAREHOLDERS AND INVESTORS 163 Economic flow to shareholders and Investors 163 Agency ratings 163 Financial disclosure 164 INSTITUTIONS AND THE COMPANY 164 Relations with Institutions 165 The Company as a stakeholder 170 RELATIONS WITH THE ENVIRONMENT ENVIRONMENTAL SUSTAINABILITY AND THE PRIMARY CHALLENGES 178 Environmental and climate risks: in-depth analysis and disclosure 179 Environmental management 180 Safeguarding of land and biodiversity 180 ENERGY SEGMENT 187 Energy production: fossil and renewable energy sources 187 Energy distribution 190 ENVIRONMENT SEGMENT – WASTE MANAGEMENT 191 Waste management: composting, waste-to-energy, disposal of liquid waste and related services 192 WATER SEGMENT 194 Water quality 195 Water Safety Plans (WSPS) 196 Water leaks 197 Sewerage service and treatment system 198 THE USE OF MATERIALS, ENERGY AND WATER 202 Consumption of materials 202 Energy consumption 202 Energy saving 203 Attention to the use of water resources 205 EMISSIONS 206 Atmospheric emissions 206 WATER COMPANY DATA SHEETS AND OVERSEAS ACTIVITIES 210 GRI CONTENT INDEX: REPORTING PRINCIPLES, UNIVERSAL STANDARDS AND MATERIAL TOPIC-SPECIFIC STANDARDS 226 INDEX OF CHARTS AND TABLES 244 ENVIRONMENTAL ACCOUNTS 247 OPINION LETTER OF THE INDEPENDENT AUDITOR 281 CONTENTS 3 LETTER TO THE STAKEHOLDERS As we introduce the stakeholders to the Acea Group’s 2020 In this sense, the Action Plan to fund sustainable growth and the sustainability performance, we look to the past year with the “Next Generation EU” growth tool will increasingly drive investment. knowledge that we are not yet clear of the health emergency Acea has embraced the suggestions that arose from the caused by the Covid-19 pandemic. Italy and the entire world have new context and defined its path of growth in the circular suffered an immense loss of human life and we are all coping, day economy. It has made the challenge of climate change its by day, with the social and economic consequences of these cir- own, by planning and launching the development of energy cumstances. production from renewable sources, by continuing energy ef- And yet, though in March 2020 we felt dismay, twelve months ficiency measures and the adoption of green energy for inter- later we share the belief that we can overcome the pandemic, nal use and by challenging itself to make use of additional tools defeat it even, thanks to the joint effort of the scientific com- for analysing and reporting aspects related to climate change, munity and all those who have worked to support it. We see a thanks to a steady alignment with the recommendations of country that is down but not out and that is also seeking to restart the Taskforce on Climate-related Financial Disclosure. with renewed enthusiasm. The Company will continue to optimise the resilience of its Our Company has been fortunate to operate in business sec- strategic electrical and water infrastructure, to strive towards tors – public services – that have experienced rather limited the protection and preservation of water resources and to repercussions, as it plays a key role for the community and develop research activities, even initiating partnerships with the local region. In the final quarter of 2020 and with our re- start-ups, aimed at applying technological innovation to the sponsibility in mind, we wanted to define the Group’s growth management of infrastructure and organisational and pro- prospects and strengthen its ability to create value over time, duction processes, as well as the definition of more advanced by approving the new business and sustainability strategies stakeholder interaction tools and methods. for 2020-2024 in line with the Development Objectives of In 2020, Acea was quick to focus on all stakeholders, especially Agenda 2030, the values of our Code of Ethics and the prin- the categories hit hardest by the times, such as customers, em- ciples of the United Nations “Global Compact”, which Acea ployees and suppliers, ensuring not only the continuity of oper- continues to adhere to year after year. ations and services but the development of innovative projects Our idea of the future and the challenges that we have un- on infrastructure and further developments in digitisation. Acea dertaken are in agreement with those set out by the Euro- made particular commitment to its customers, by developing the pean Green Deal, which the international community has functionality of remote contact channels and creating new ones, confirmed and backed over the course of the previous year. in order to adequately meet new requirements. In the same way, As we know, the European Union’s growth strategy is aimed at thanks to upgraded IT infrastructure, 3,700 people were able the gradual transformation of development models, with a to switch immediately from office-based to remote working, by view to circular economy and the preservation of the natural centring working methods around employee empowerment and environment, beginning with the fight against climate change a relationship of trust. It became absolutely essential to protect and the protection of biodiversity. It targets carbon neutrality, the health and safety of our people, which we managed by es- providing for investments in renewable energy sources, ener- tablishing a Coronavirus Prevention Committee, tasked with co- gy efficiency, transport with a low environmental impact and ordinating and implementing all necessary measures, and similar the redevelopment of buildings. It specifies technology and attention was paid to the issues of contractor health and safety, innovation as key enablers and makes inclusivity an essential thus preserving the continuity of relations with the 2,500 suppli- point of reference. ers that supported the Group’s activities over the year. 4 ACEA GROUP / SUSTAINABILITY REPORT 2020 We wanted to express our active presence in the local region by This is the meaning that we have taken from the past year: persever- participating in various events and supporting numerous initia- ance in continuing activities and a forward-looking perspective. We are tives. We followed up on our recurring commitments to the com- confident of our Company’s prospects for growth and Italy’s economic munity, such as the Acea School initiatives, which we carried out and social recovery, to which we will continue to contribute, including online for the first time, with the successful involvement of over through significant investments in sustainability and innovation which 4,000 young people. will guarantee the development of the local regions we operate in. The Chief Executive Officer The Chairperson Giuseppe Gola Michaela Castelli LETTER TO THE STAKEHOLDERS 5 HIGHLIGHTS RELATIONS WITH THE STAKEHOLDERS CUSTOMERS COMMUNITY SHAREHOLDERS AND INVESTORS around MyAcea App 115 Water Kiosks active million in 2020: 27.7 million litres € 285 installed by Group net profit supplied, 554 tonnes of 290,000 plastic/year saved and 968 people (+61%) tonnes of CO2 not emitted into the atmosphere 5% Acea tonnes/year of the share capital held by 105.5 sustainable investors of paper saved School 2020 online edition: around (equal to 35% of thanks to the web institutional investors) 4,000 participants in bill option (+92%) Let’s Defend Water! Waidy: the App ESG analysts +20.3% used to identify the ratings of Acea: A- from green energy sold approximately 6,000 CDP and EE- from Standard Ethics; included to customers water supply points in the Bloomberg Gender in the free market in the local regions served Equality Index with 70.49% 6 ACEA GROUP / SUSTAINABILITY REPORT 2020 INSTITUTIONS AND STAFF SUPPLIERS THE COMPANY 2020 procurement € 907 million Acea is certified value of over in investments Biosafety Trust for for the year € 1.2 billion managing and containing the and over 2,500 suppliers risk of workplace