BILANCIO DI SOSTENIBILITÀ 2014 | ACEA SUSTAINABILITY REPORT 2014

ACEA Sustainability Report 2014

2014

SUSTAINABILITY REPORT
ACEA GROUP

LETTER TO STAKEHOLDERS

Catia Tomasetti Chairman, Alberto Irace CEO

The Sustainability Report, now in its 17^th edition, seeks to give stakeholders a vision of the Company that combines economic and governance aspects with social and environmental concerns, in keeping with a focus on corporate sustainability that we want to strengthen and keep ever present in managing the Company. The business area in which the Group operates, providing services of general economic interest, and the long-term nature of its operations have helped to raise awareness within Acea of the social role it plays. Corporate social sustainability and responsibility are thus inherent in the Group’s identity, indeed they form part of its core values and code of conduct, its management methods and ways of engaging with stakeholders, as well as its monitoring of performance.

With regard to values, both the Code of Ethics, adopted in 2004 and updated in 2012, and commitment to the Global Compact, signed in 2007, bear witness to the constant efforts made over the years by Acea. This year we have attempted to strike the right balance between the principles set forth in the “Global compact” and actions undertaken, taken as elements belonging to the “advanced” level of the Communication on Progress disclosure, as per the Global Compact.

ACEA AND THE SUSTAINABILITY

Founded in 1909 as an utility company of the Municipality of Rome, Acea is now one of Italy’s major multiutility companies active in the management and development of networks and services in the water, energy and environment sector.

2014-2018 SUSTAINABILITY PLAN

TARGETS

We will improve relations with customers through the development of advanced management systems, and enhance the channels of contact.

We will also express the Public Utility mission through involvement in the social environment.

MEDIUM-TERM GOALS (2014 – 2018)

Reach and exceed the changing standards for technical and commercial quality, set by the AEEGSI.

Improve the layout of the energy bill. Reduce service-desk waiting time. Gain customer loyalty.

Improve performance of the digital electricity meters, for fair and quick billing of consumption.

Organise on-line access to information about the plants with highest environmental impact.

Develop customer/citizen awareness about the correct use of water and energy resources.

Plan generous sponsorships, in keeping with Point 8.1 of the “Communication Plan” Group executive rule.

Support artistic, cultural and sports initiatives for the benefit of the community, with special attention to the suburbs. Introduce systemised pre and post-event evaluation of Group sponsorships.

Make on-line content more complete, timely and easier to access.

Launch the SAP “Workforce Management” (WFM) project, with application of advanced IT processes to operations management, for optimisation of resource use and reduction in task times.

Improve the quality of customer service and relations, through development of high-technological content in the services (digital and multichannel)

TARGETS

We will enhance quality, environmental protection and safety in the supply of goods, services and works.

MEDIUM-TERM GOALS

Provide a vendor rating system for the operations of the different business areas.

Provide a supply chain monitoring tool for GRI-G4 reporting.

Develop Green Procurement for at least 50% of goods categories included in the NAP.

Develop a simpler and more efficient supply process for works and services: the “Single Tender” Project.

TARGETS

We will drive our people’s growth and professional development by promoting an innovation-oriented culture in the pursuit of our business goals.

MEDIUM-TERM GOALS

Extend the culture of merit to the entire company population,and the tools for its evaluation.

Promote the values of change and innovation as a way of company life, increasing the engagement and contribution from all individuals.

Develop professional development and training paths, including through intra-group mobility, which improve Group know-how: capable of meeting Acea’s new challenges.

Apply an industrial relations model that enhances the prerogatives of the Trade Unions to take an active part in the Group’s paths towards change.

Develop innovative organisational interventions for optimal performance and synergies.

Create a working environment and organisational culture that encourage merit and diversity.

TARGETS

We will ensure our governance system meets the highest principles of transparency and fairness.

We will support our management in the identification and assessment of business risks.

MEDIUM-TERM GOALS

Monitor the function and sufficiency of the Internal Control System. Confirm adherence to legislation, internal procedures and values.

Regularly update the list of main risks to Acea and its subsidiaries, through application of corporate risk self-assessment (CRSA).

Support management in identifying improved controls for mitigation of risks and prevention of fraud.

Provide financial communication geared to the markets, respecting principles of fairness, transparency and equal information among all interested parties (the general public, analysts, Italian and foreign investors).

Introduce “non-financial” information in the Acea Annual Financial Report (European Union Directive No. 95, 22/10/2014)

TARGETS

We will ensure that Group companies are at the forefront of technological, process, and product innovation.

MEDIUM-TERM GOALS

Develop electric transport in the City of Rome.

Modernise the electricity networks for correct function in response to the evolving demands of the system and markets, and for improved reliability, transport capacity and efficiency. Apply new technologies as part of the modernisation.

Participate in EU-initiated projects for technological innovation.

Centralise and standardise the IT hardware and software solutions of the Group companies.

TARGETS

We will develop enhanced methods of environmental management.

MEDIUM-TERM GOALS

• Maintain and consolidate all management systems certified under ISO 14001 (Environment) and ISO 50001 (Energy) standards, integrated with ISO 9001 (Quality) and Safety (BS OHSAS 18001) systems standards. Pursue the extension of these systems to all Group companies.

Begin implementation of Social responsibility management system SA 8000, in Acea SpA.

Define the guidelines for the organisation of company events with low environmental impact, in keeping with ISO standard 20121

Reduce consumption by:
- 10% for internal use of drinking water;
- 3% for internal use of electrical energy
- 5% for heating and vehicle operation.

Reduce the “real losses” of water in the water distribution networks by 1%.

Reduce the consumption from Joule effect (technical loss in networks) by 1.5% in the Rome electrical distribution network.

Rome public illumination network: develop massive installation of LED lights within 2020.

Monitor CO₂ emissions from processes, for estimation of the carbon footprint and planning of potential interventions.

Carry out an energy diagnosis audit for the main Acea SpA and Acea Distribuzione buildings (operations centres).

Strategy and Sustainability 2014-2018 Sustainability Plan and medium-term goals Medium-term sustainability goals and main actions in 2014

ECONOMIC DIMENSION

CONTRIBUTION OF INDUSTRIAL AREAS TO THE GROSS OPERATING MARGIN

Gross operating margin (EBITDA) stood at 717.7 million euros, with a 6.3% increase thanks to the contribution of all industrial areas and the management efficiency actions taken by the holding company.

Note: Following changes resulting from the application of the new accounting standards, the perimeter of 2014
and the data 2013 were restated for comparative purposes.

ACEA AND THE SUSTAINABLE AND RESPONSIBLE FINANCE

Acea cultivates relations with the analysts of sustainable finance, that evaluate the ESG (Environmental, Social and Governance) aspects in the management of the company.

The Company is included in Kempen Capital Management’ investable universe, is rated by Oekom Research - who updated Acea’s ESG (Environmental, Social, Governance) profile in 2014, confirming its Prime Status recognition restricted to leading companies in terms of sustainability of their own business area. Kepler Cheuvreux ESG Research examines over 700 listed companies. Of this group it placed Acea in the group of 55 “green impact” companies.

Occasions for encounter and interaction between ACEA and operators in sustainable and responsible financing, stimulated by requests for deeper study, and for support in development of benchmarks, ratings and investment evaluations, in particular from Etica SGR, Symphonia SGR, Evalueserve and Vigeo.

Acea is present in the FTSE ECPI Italy SRI Benchmark index.

INVESTING FOR GROWTH

EURO 318.6 MILLION IN 2014 (+18.6%)

Note: The data on the water area are recalculated for the two-year period, in keeping with the change in scope of consolidation
to “net assets” for the companies operating in Tuscany, Umbria and Campania.

DISTRIBUTION OF ACEA'S GENERATED VALUE TO THE STAKEHOLDERS

EURO 3,085.9 MILLION IN 2014

SUPPLIERS
(operating costs)

2,106.4

MILLION OF EURO

68.3%

PERSONNEL

229.5

MILLION OF EURO

7.4%

SHAREHOLDERS AND
INVESTORS

221.0

MILLION OF EURO

7.2%

PUBLIC
ADMINISTRATION

120.9

MILLION OF EURO

3.9%

COMMUNITY

3.4

MILLION OF EURO

0.1%

COMPANY

404.7

MILLION OF EURO

13.1%

General Economic Indicators Shareholders and Investors Institutions and the Company

SOCIAL DIMENSION

CONTACT CHANNELS

Acea provides customers multiple channels of contact, among which physical counters, online counters and free-phone numbers, through which you can request information, indicate faults and perform transactions.

In the last few years it is observed the rapid growth of the customers registered at the online counters of the operating companies.

ACEA’S PEOPLE

Human capital is one of the main asset of the company: Acea is implementing a management system of human resources based on skills and competences.

ACEA AND THE SAFEGUARD OF HEALTH AND SAFETY IN THE WORKPLACE

Between 2013 and 2014 the number of accidents has decreased and both the frequency and severity indices has recorded lower values.

Note: data of the two-year period have been restated, in keeping with the change in scope of consolidation.

CONTRIBUTION TO LOCAL SATELLITE ACTIVITIES

EURO 533 MILLION IN 2014

In 2014 saw the companies of the Acea Group employing more than 1,800 firms in Italy, leading to more than 3,500 contracts.

CONTRIBUTION TO LOCAL SATELLITE ACTIVITIES

Customers and Community Suppliers Human Resources

ENVIRONMENTAL DIMENSION

THE ELECTRIC POWER GENERATION MIX

In 2014 the share of renewable energy production was 80% of the total (647 GWh out of 808 GWh)

HYDROELECTRIC

495 GWh

61.3%

PHOTOVOLTAIC

16 GWh

2.0%

WASTE TO ENERGY
(renewable share)

136 GWh

16,8%

NATURAL
GAS

10 GWh

1.2%

WASTE TO ENERGY
(non-renewable share)

151 GWh

18.7%

EFFICIENCY OF THE TOTAL ELECTRICAL GENERATION SYSTEM

The average gross efficiency of the total Acea production system for energy electricity, estimated as the ratio of gross energy produced (808 GWh) and the energy input (2.191 GWh), results as 37% for 2014, in line with the average national values.

HYDROELECTRIC

(power in operation 122 MW)
Average value
5 plants in operation

Eff_e = 81%

WASTE
TO ENERGY

(power in operation 37 MW)
Average value
2 waste-to-energy plants

Eff_e = 20%

THERMOELECTRIC

(power in operation 19MW)
Tor di Valle plant

Eff_e = 26%

PHOTOVOLTAIC

(power in operation 14MW)
Average value
Small plants

Eff_e = 14%

AVERAGE VALUE
PLANTS EFFICIENCY

(power in operation 192MW)

Eff_e = 37%

ACEA AND WATER QUALITY

In 2014, Acea has entered into its water networks a total volume of drinking water equal to 1,308 million cubic metres.
To monitor the quality of drinking water supplied, Group Companies have performed a total of 1,187,937 analytical checks.

WASTE RECOVERY

Acea operates in the Waste Energy sector, with 2 plants in San Vittore del Lazio and Terni, and in high value environmental services, as the high quality production of compost.

In 2014 the full working of Terni plant has allowed an overall increase of 10% of the tons of waste to energy in the year.

Enviromental issues Environmental report

OUR PROJECTS

ACEA2PUNTOZERO Programme

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Diversity management charter

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Acea at the Sustainable Supply Chain Workgroup of the Global Compact Network Italia: launched the TenP platform

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Project RoMA - Resilience Enhancement of Metropolitan Area

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The public lighting system in Rome will be changed with led sources: plan finalisation

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Superfast Internet in Rome: status at 2014

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The first Water House was inaugurated: free-of-charge natural and sparkling cool water dispensers will be deployed in Rome and related provincial districts

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