SUSTAINABILITY REPORT CONSOLIDATED NON-FINANCIAL STATEMENT PURSUANT TO LEGISLATIVE DECREE 254/2016 2019 2 THE SUSTAINABILITY REPORT HAS BEEN TRANSLATED INTO ENGLISH SOLELY FOR THE CONVENIENCE OF THE INTERNATIONAL READER. IN THE EVENT OF CONFLICT OR INCONSISTENCY BETWEEN THE TERMS USED IN THE ITALIAN VERSION OF THE DOCUMENT AND THE ENGLISH VERSION, THE ITALIAN VERSION SHALL PREVAIL, AS THE ITALIAN VERSION CONSTITUTES THE OFFICIAL RECORD 2019 Sustainability Report 1 CONTENTS 2 Letter to Stakeholders 4 Methodological note 01 THE ASTM GROUP 05 OUR BUSINESS SEGMENTS AND SUSTAINABILITY 10 Corporate ownership 108 Motorway concessions 12 Business 126 EPC 13 Group structure and business segments 133 Technology 14 2019 highlights 15 Vision and values 16 Sustainability for the Group 18 Corporate Governance 20 Internal Audit and Risk Management System 22 Main risks concerning sustainability issues 06 FOCUS 33 Ethics and integrity 37 Stakeholder map and materiality analysis 138 EcoRodovias 02 OUR ECONOMIC RESPONSIBILITY 47 Economic value generated and distributed 07 ANNEXES 48 Impact measurement 50 Supply chain 142 Table of the boundary of material topics for the ASTM Group 144 GRI Content Index 03 OUR RESPONSIBILITY TOWARDS PEOPLE 57 People 65 Diversity and inclusion 08 70 Remuneration and benefits INDEPENDENT 74 Human capital development AUDITOR’S REPORT 78 Health and safety 152 Independent Auditor’s Report 04 OUR RESPONSIBILITY TOWARDS THE ENVIRONMENT AND LOCAL AREAS 87 Environmental issues management 88 Use of resources 94 Waste 96 Noise management 97 Protection of the local area, reduction in land use and protection of biodiversity 103 Donations and sponsorships 2 LETTER TO STAKEHOLDERS Our business segments are spread across various countries with different cultures, but the objectives that guide us are the same and shared by all. Many challenges await us. We are the second operator in the world of motor- way infrastructure management: it is our responsi- bility to contribute to provide the best service pos- sible to our customers, operating in a virtuous and responsible manner and offering increasingly high service quality levels. We wish to continue aligning our activities with the United Nations 2030 Agenda for Sustainable De- It is with deep satisfaction that I present the fourth velopment, encouraging long-lasting economic edition of the Sustainability Report. ASTM Group growth that includes the construction of resilient This is the first time I am doing so as Chief Execu- infrastructure. tive Officer, inheriting, alongside the new Board of We are promoting technology applied to the main- Directors appointed on 12 February, the valuable tenance, control and monitoring of works across work carried out over the years thus far by the Com- our motorway assets. Our commitment is aimed pany in the development of environmental and so- at continuous innovation, our efforts are focused cial issues. on anticipating change, becoming a leader in cut- 2019 was a very important year for the Group, char- ting-edge processes, the result of merging tech- acterised by many events, the main one being the nology and human sensibility, which is the genuine successful merger by incorporation of the subsidi- spirit of change. The infrastructure of tomorrow ary SIAS S.p.A., a holding in the motorway conces- must serve people more and more and take shape sions sector, into ASTM S.p.A. around the sense of environmental, technological and social responsibility that guides our behaviour. The operation represented the completion of a strategic and industrial corporate streamlining We acknowledge the scientific evidence around process initiated several years ago, which has climate change. It is a phenomenon that impacts made it possible to give life to a single listed in- people’s lives, businesses and the very infrastruc- dustrial holding and create a veritable “One Com- tures that we are called upon to manage. Each year, pany” with specific expertise in the motorway con- this phenomenon becomes more and more violent cessions, construction and technology sectors. and forces the adoption of new risk and invest- ment management models. A study published by This renewed and ambitious corporate context the Global Environment Change journal of Elsevier, must include the sustainability policies promoted the world’s most prestigious publisher for medicine by the Group, which have become an integral part and science, calculated that the economic impact of managing our business segments. of these atmospheric phenomena is destined to be- come more and more significant. In fact, we are fully aware that sustainable actions are a tool to improve our industrial and economic European countries currently spend over USD 3.4 performance and to create medium- to long-term billion per year on extraordinary interventions on value for all our Stakeholders. infrastructure following these events. But this figure 2019 Sustainability Report 3 could shoot up to 19.6 billion in 2050 and 37 billion sidered factors for growth and success. We operate by 2080. The fight against climate change is there- internationally with people from different cultures fore one of the Group’s priorities. It is an objective and with different traditions: the key to the Group’s integrated into our risk assessment, our policies, growth will depend on our ability to develop their strategies and medium- to long-term plans. skills and promote the sharing of their diverse ex- periences. We are aware that institutional investors are in- corporating an ESG approach into their portfolios We understand the challenges before us and the more and more often. This approach considers en- commitment required to centre on the ambitious vironmental, social and governance factors as an objectives we have given ourselves. But we also integral part of the assessment process for invest- know that the management of social and environ- ments. Capital is now directed towards activities mental factors, in addition to promoting transpar- that not only generate an economic capital gain, ency in economic activities, represents an opportu- but are also useful to society and therefore more nity for each of us to develop new business models solid and sustainable over time, generating returns that can create medium- to long-term value for all that reflect the risk. Stakeholders. Lastly, investing in our people and collaborators lies This is an opportunity that we all wish to seize. at the heart of our sustainable action. We want to show commitment towards creating an increasingly more positive and attractive working environment Umberto Tosoni for young people and key talent across the world, where the values of inclusion and diversity are con- Chief Executive Officer 4 METHODOLOGICAL NOTE This consolidated non-financial statement (“NFS” or idated on a line by line basis, with the exception of “Sustainability Report”) of ASTM S.p.A. (“ASTM” or the social and environmental data and information the “Company”) and its wholly consolidated subsidi- of A.T.I.V.A. S.p.A. - Autostrada Torino-Ivrea-Valle aries (“ASTM Group” or “Group”) as at 31 December D’Aosta, Ativa Engineering S.p.A. and S.I.CO.GEN. 2019 describes initiatives and main results in terms S.r.l., control of which was acquired on 14 Novem- of sustainability performance relative to the period ber 2019, and which will be reported as of the next from 1 January to 31 December 2019 and complies financial year. Any additional exceptions are ex- with provisions in articles 3 and 4 of Italian Legislative pressly indicated in the text. Decree 254/16 (the “Decree”). Regarding the main changes to the scope of con- As required by article 5 of Italian Legislative Decree solidation as at 31 December 2019, the following 254/16, this document is a separate report, as in- is reported: dicated, referring to Consolidated Non-Financial Statement (NFS) required by law. • the scope of consolidation now includes the companies newly incorporated in 2019 The NFS, to the extent necessary to ensure an un- SINELEC USA Inc., Safe Roads S.c.a r.l., Itinera derstanding of a business’s activities, its perfor- Infrastructure and Concessions Inc., HINNS JV; mance, results and the impact it produces, covers environmental, social and personnel issues, respect • the scope of consolidation now includes the for human rights, and the fight against active and joint operations Arge H51, Consorzio BR-050 passive corruption, which are significant for the and MEP JV, and now excludes the company company’s activities and characteristics, and for the Bishop/Halmar JV following the achievement expectations of its Stakeholders, as shown in the of the corporate purpose; materiality matrix in this report in the section “The • the scope of consolidation now excludes ASTM Group and Sustainability”. CERVIT S.c.a r.l., Brescia Milano Manutenzioni This Sustainability Report has been prepared in com- S.c.ar.l., Mortara S.c.a r.l., Malpensa 2011 S.c.a pliance with the «GRI Sustainability Reporting Stand- r.l. and Brescia Milano Impianti S.c.a r.l. ards», published in 2016 by the Global Reporting With reference to the merger by incorporation of Initiative (GRI), based on the “in accordance-core” SIAS S.p.A. into ASTM S.p.A. taking effect on 31 De- option. As regards the specific GRI 403 Standard cember 2019, there are no changes to the scope of (Occupational Health and Safety), the most recent consolidation since the incorporated company was version from 2018 has been adopted. This Report is already consolidated on a "line-by-line method” in the fourth edition published by the Company. the financial statements of the ASTM Group in the The“GRI Content Index” is included in the annex of this previous financial year. document, with details on contents reported in compli- The non-financial data and information reported in ance with GRI. this document, unless specified otherwise, refer to For the preparation of the Sustainability Report, the entire financial year regardless of the date of ac- reference was also made to the “Ten Principles” of quisition of control of the company.