SUSTAINABILITY REPORT 2009 EDISON IN ITALY 4 KHR plants (Edison 20%) Mese (12 plants)** Campo Venina Udine (8 plants)** Pieve Vergonte Albano Armisia Val Meduna (5 plants) Battiggio Val Caffaro (4 plants) Cologno Monzese Chivasso* Milan Turbigo* Piacenza* Sermide* Minerbio Naide Rosignano Calipso Sambuceto Ripabottoni Lucito Rome Volturara-Motta Volturino Tusciano (8 c.li)** Vaglio Brindisi* Golfo Aranci Sella di Conza Head offices Thermoelectric power plants Melissa - Strongoli Porto Botte R&D Center Hydroelectric power plants Wind Farms Gas field Mistretta San Filippo del Mela* Oil field Storage concession Planned LNG terminal GALSI LNG terminal Compressor station Siracusa Tresauro Gas pipelines in planning/under construction * Edipower thermoelectric power plants ** Edipower hydroelectric power plants FACILITIES AND INFRASTRUCTURES AT ITALY’S SERVICE 28 thermoelectric power plants 29 wind farms 68 hydroelectric power plants 1 photovoltaic power plant 3 mini hydro power plants 1 biomass power plant 12,232 MW of installed capacity, including 2,104 MW in capacity from renewable sources* * Installed capacity data include those of Edipower at 50% 58 concessions and exploration permits in Italy 22 concessions and permits for natural gas and crude oil exploration and production outside Italy 3 storage center concessions in Italy* 56.1 billion m3 equiv. in hydrocarbon reserves HYDROCARBONS ELECTRIC POWER 3.71 thousand km of natural gas distribution networks * 2 storage centers in operation and 1 under development EDISON’S INTERNATIONAL PRESENCE Hydrocarbon concessions and permits Norway Electric power generation IGI Trading branches UK Hungary Romania Croatia Bulgaria Greece Iran Algeria Egypt Senegal Ivory Coast 2 A LETTER TO OUR STAKEHOLDERS 5 EDISON’S SUSTAINABLE DEVELOPMENT POLICY 6 WHO WE ARE 8 STRUCTURE OF THE GROUP 9 BUSINESS ENVIRONMENT 9 FUTURE STRATEGY AND CHALLENGES 10 MAIN COMPLETED PROJECTS 12 OUR RESPONSIBILITY 13 CORPORATE GOVERNANCE 15 RISK MANAGEMENT 18 EDISON AND ITS STAKEHOLDERS 20 ECONOMIC RESPONSIBILITY 21 THE WEALTH WE CREATED 21 RELATIONS WITH THE FINANCIAL COMMUNITY 24 ENVIRONMENTAL RESPONSIBILITY 25 PROMOTING A SUSTAINABLE DEVELOPMENT 29 EDISON AND CLIMATE CHANGE 34 SOCIAL RESPONSIBILITY 35 OUR EMPLOYEES 41 OUR CUSTOMERS 45 OUR SUPPLIERS 47 PUBLIC INSTITUTIONS 48 OUR COMMUNITIES 54 A NOTE ON METHODOLOGY 62 CERTIFICATION OF CONFORMITY GRI INDEX Edison decided to renew its Sustainability Report, focusing on the main socio-environmental issues and emphasizing the results it achieved in these areas. Other corporate communication tools are available on the www.edison.it website, to which we specifically ask you to refer for further information, in accordance with the “Guidelines for Sustainability Reporting” published by the Global Reporting Initiative (GRI) and the principles of the U.N. Global Compact. Many of the photographs that illustrate this Report were taken by Edison employees who participated in the 2008-209 editions of the internal photographic context on sustainability. Starting with this reporting year, this report includes the data and performances of Edison International, a company that operates at the Abu Qir concession, in Egypt, and of AMG Gas Palermo, both having joined the Group in 2009. SUSTAINABILITY REPORT 2009 A LETTER TO OUR STAKEHOLDERS In 2009, Edison intensified the process of making social about energy conservation in the classroom and the musical responsibility an integral part of its business model. For Edison, world to energy efficiency services and the offer of green energy corporate social responsibility is more than just charitable to customers. In 2009, there was a further reduction in CO2 contributions and sponsorships. It is something that it applies every emissions (specific emissions 486 g/kWh) released by Edison day to the management of its business operations, always keeping in facilities, confirming the positive trend of the past three years, mind the expectations of its stakeholders. and, on the other side, an increase in production from renewable sources (5,954 GWh). In 2008, Edison published its Sustainable Development Policy For our Group, energy efficiency is a business in the true sense of setting down four challenges regarding the fight against climate the word. Specifically, a unit created in 2009 helps Edison’s change and environmental protection, occupational health and customers adopt a rational approach to the use of energy safety, transparency and fairness in market transactions, and resources, starting with optimization of energy utilization processes, relationships with its host communities. through production with low environmental impact sources and, The Sustainable Development Policy provides a strategic ultimately, offsetting the residual carbon footprint. Energy frame of reference that enabled the Company to reach important conservation must be become a profit motive for our Group and achievements in 2009 and serves as the benchmark for the consumers alike. The problem of climate change is closely linked future of Edison. with that of protecting biodiversity, because the preservation of Edison intends to address with determination the issue of climate healthy ecosystems helps mitigate the impact of the climate. change and shares the vision presented in the European Union’s Edison has chosen to adopt a clear approach in this area. In 2010, E,U, 2020 Program of a strategy based on new synergies the International Biodiversity Year, it will define an action plan with between the social, economic and industrial stakeholders for the realistic objectives for the management and conservation of achievement of more sustainable development. Besides, biodiversity in the areas where its activities are located. achieving the Program’s objectives will prove to be difficult if they are not framed within a global context in which other countries The protection of health and safety in the workplace is a make concrete commitments towards greenhouse gas reduction. commitment that is constantly at the center of Edison’s attention. With such an approach, the Climate Package ceases to be a The adoption of management systems that comply with penalty for the countries of the European Union, providing international standards (BS OHSAS 18001) demonstrates the instead an opportunity to grow and reconvert the economic Group’s determination to go beyond mere regulatory compliance, system. The Copenhagen Accord had the merit of uniting all promoting a policy of continuous improvement with a beneficial participating countries in the political goal of preventing impact on the development of a culture of safety at all levels of the average global temperature from rising by more than the organization. For this reason, all employees are involved in two degrees centigrade. the pursuit of the “Zero Risk” objective. As part of this ongoing This was an important step forward, compared with the past, even effort, the MBO system now includes a safety target for all first- though a binding and uniform agreement on specific CO2 level managers. In 2009, following the significant improvements reduction targets and related mechanisms could not be reached. achieved in recent years, the Group’s occupational safety The current year will be a decisive year, as the requirement that all performance stabilized at levels of excellence both at the Italian European Union member countries define quantifiable CO2 and international level. This was especially true for employees of reduction targets will provide a measure of the true difficulties contractors (employee injury incidence rate of 3.04, down 5.6%), posed by the adoption of the Copenhagen Accord’s guidelines. reflecting the positive impact of numerous educational and Also in 2010, the other countries (beginnig from USA and China) training programs about safety. are expected to define their policies about their CO2 reduction. Edison maintains an ongoing dialog with the market and the Edison’s commitment to fighting climate change is carried out shareholder community, providing them with the information they concretely in a number of ways: from the choice of the best need to evaluate as effectively as possible the Company, its plans available technologies for the construction of new facilities to its and its strategies. Despite a highly negative market environment, capital investment decisions, particularly concerning renewable the Group succeeded in maintaining its profitability at a level sources; from the research and development of technologies with substantially in line with that of previous years. Continuous a low environmental impact to the promotion of sustainable communications helped make the market aware of the strategies development in emerging countries; from educational projects deployed by Edison to respond to the economic crisis. 2 In 2009, Edison focused intensely on its end customers. After with evaluating socially beneficial projects and address the need achieving in little more than a year a significant position in the to develop specific guidelines, take a proactive approach in the residential market for electric power and natural gas and identification of socially beneficial projects and make the entire improving its customer service activities (specifically, the Electric process transparent. As part of this effort, in selecting projects for Power and Natural Gas Authority placed Edison’s call center the areas where it operates, Edison decided to select projects that among the top performers in the Call Center Quality Rankings),