Iren Group 1 Table of Contents Letter to Stakeholders .............................................................................................. 4 Presentation 2020 Highlights ........................................................................................................ 6 Iren for sustainable development ............................................................................. 8 • Iren and the global goals .................................................................................. 8 • Materiality analysis and priority topics ............................................................. 8 Iren: business model .............................................................................................. 14 Iren Group • Iren Group structure ....................................................................................... 15 • Main areas served .......................................................................................... 16 Iren in 2020 ............................................................................................................ 17 • Covid-19 emergency management ................................................................ 17 • Important events in 2020 ................................................................................ 18 Business sectors .................................................................................................... 20 • Production of electricity and thermal energy .................................................. 20 • Market ............................................................................................................ 20 • Gas distribution .............................................................................................. 21 • Electricity distribution...................................................................................... 21 • District heating................................................................................................ 21 • Integrated water service ................................................................................. 21 • Environmental services .................................................................................. 21 • Smart solutions............................................................................................... 22 • Other services ................................................................................................ 22 • Companies reported separately ..................................................................... 22 • Companies outside the reporting boundary ................................................... 23 Awards and recognition .......................................................................................... 26 Sustainable strategy ............................................................................................... 28 Sustainability • Context and scenario analysis ....................................................................... 28 • Materiality analysis ......................................................................................... 29 Strategy • Strategic plan: the multicircle economy .......................................................... 29 • Reporting ........................................................................................................ 31 Improvement plans ................................................................................................. 31 Sustainability governance ...................................................................................... 36 Sustainability • Shareholders .................................................................................................. 36 • Corporate Governance ................................................................................... 37 Governance Risk Management System ..................................................................................... 44 Governance tools ................................................................................................... 50 • Code of Ethics ................................................................................................ 50 • Organisational model 231 .............................................................................. 51 • Protection of human rights ............................................................................. 52 • QSE certified system ...................................................................................... 53 • Legal compliance ........................................................................................... 55 • Codes of Conduct........................................................................................... 55 Stakeholder Engagement ....................................................................................... 56 Creating and distributing value ............................................................................... 60 Growing and creating • Creation of Added Value ................................................................................ 61 • Taxes and duties ............................................................................................ 62 value Relations with investors and financial backers ....................................................... 64 • Iren share performance .................................................................................. 64 • Relations with financial backers ..................................................................... 65 • Sustainable finance ........................................................................................ 66 • ESG indices and ratings ................................................................................. 68 Research and innovation ....................................................................................... 68 • Research and innovation projects .................................................................. 69 • AMGA Foundation .......................................................................................... 70 Policies for the environment ................................................................................... 74 Sustainable resources Production processes and environmental impacts ................................................. 74 • Direct and indirect energy consumption ......................................................... 74 • Water withdrawals .......................................................................................... 75 • Water discharges ........................................................................................... 75 • Waste production ........................................................................................... 76 • Atmospheric emissions .................................................................................. 77 • PCB management .......................................................................................... 79 • Measures taken to reduce acoustic impact .................................................... 79 2 2020 Sustainability Report • Electromagnetic fields .................................................................................... 79 • Materials used ................................................................................................ 80 Reduction of emissions and environmental impacts .............................................. 80 • Investments for the environment .................................................................... 80 • Reduction of emissions .................................................................................. 80 • Initiatives to mitigate environmental impacts.................................................. 81 • Mobility management ..................................................................................... 82 Integrated Water Service ....................................................................................... 83 • Water production and distribution .................................................................. 83 • Sewerage and treatment quality .................................................................... 83 Environmental Services ......................................................................................... 84 • Waste collection ............................................................................................. 84 • Waste recovery, treatment and disposal ........................................................ 85 Energy production and services ............................................................................. 87 • Renewable and similar sources ..................................................................... 87 • Efficiency and energy savings........................................................................ 87 Biodiversity ............................................................................................................. 90 • Group policy and principles ............................................................................ 90 • Activities in protected areas or areas of environmental interest..................... 90 • Main areas and species protected ................................................................ 91 • Compliance with environmental laws and regulations and reporting mechanisms ................................................................................................... 92 • Relations with customers ..............................................................................