In the update of the materiality process, We have examined both internal and external sources, as well as major ESG ratings, to identify the impacts that the organization has on the external context.
A crucial step was the involvement of a panel of internal and external stakeholders to assess the 'significance and likelihood’ of the possible impacts generated (impact materiality) and suffered (financial materiality).
The impacts have been grouped into 18 macro-themes that concern different business areas and the Group's governance. Among these, 5 themes have been assessed by the Board of Directors as primary.
Implemented at A2A, we have a clear system of identification, assessment and management of the risks and opportunities related to climate change, integrated in the Group’s enterprise risk management (ERM) process.
Our transparency is also demonstrated by our compliance with the guidelines of the Task Force on Climate-Related Financial Disclosure (TCFD), which commits us to identifying and reporting the most significant climate-related risks and opportunities and their economic impact on our business.
In the latest update of the Strategic Plan, A2A has reiterated its commitment to ecological transition, stating the goal of reaching Net Zero for Scope 1 and Scope 2 emissions by 2040.
To achieve this goal, we have identified three phases of action: a first phase with investments in renewable and the initiation of pilot projects for Carbon Capture Utilization & Storage (CCUS); a second phase focused on the phasedown of certain carbon-intensive plants and the introduction of new technologies; and a third phase involving the expansion of CCUS facilities, growth in renewable energy sources (RES), and potential offsets for residual emissions
We published a commitment document for emissions reduction across its entire value chain (Scope 3), focusing on accelerating the energy transition through its technologies, responsible investments, promoting positive impact engagement throughout its value chain, and implementing sustainable business practices.
In total, in 2022, the use of waste-to-energy, renewable energy production, and efficient cogeneration helped avoid the production of 2.3 million tons of CO2 and saved nearly 1 million tons of primary energy (TEP).
We have in place a system for the identification, assessment, and management of risks related to climate variations and opportunities, integrated into the Group's Enterprise Risk Management process. Below are the main features of the system with reference to climate risks.
The risks identified for the A2A Group result from a materiality analysis based on references to climate-related hazards, as classified by the EU Taxonomy and the delegated acts issued in implementation of EU Regulation 2020/852 on Green investments. Additionally, the risk categories outlined by the recommendations of the Taskforce on Climate-related Financial Disclosure (TCFD) are considered, along with the businesses operated and services offered by the Group, as well as risks already included in the overall risk profile of the Group.
Notes:
Note:
| CC1 | Change in the precipitation regime | Risk/Opportunity |
| CC2 | Competition on water use | Risk |
| CC3 | Emission authorisations | Risk/Opportunity |
| CC4 | Thermal energy demand for heating | Risk |
| CC5 | Energy efficiency systems | Opportunity |
| CC6 | Efficiency of electricity distribution networks | Risk/Opportunity |
| CC7 | Scarcity of water for drinking water use | Risk/Opportunity |
| CC8 | Extreme weather events | Risk |
| CC9 | Green Financing Framework | Risk/Opportunity |
| CC10 | Plant cooling | Risk |
| CC11 | ETS Directive revision R | Risk |
Furthermore, so as to include these considerations in an increasingly structured way in the assessments of the financial impacts of climate change, the ERM function has carried out further in-depth analysis to quantify the impacts of climate risks and opportunities on the Group’s economic-financial risks. Such effects are assessed in terms of variations in the Group’s overall EBITDA as foreseen in the Business Plan.
It is estimated that physical climate uncertainties may impact the overall EBITDA of the Group as projected in the Industrial Plan, with a variation ranging from -2.3% to +0.2%
For transition-related risks and opportunities, the estimated impact on the overall EBITDA of the Group as projected in the Industrial Plan ranges from -2.1% to +0.6%.
Investments amounting to 16 billion euros in 10 years and the commitment to zero direct and indirect emissions (both Scope 1 and Scope 2) generated by the Group by 2040, ahead of the targets set by COP26.
Energy independence is a topic of paramount importance to us and the national system, necessitating an accelerated development in line with European Union directives.
Through our energy efficiency initiatives and investments in the development of available Renewable Energy Sources (RES) within the national territory, the Group contributes to the country's transition towards energy independence. A2A also promotes the energy recovery of waste and agricultural and food production residues to support the development of the biomethane sector, bridging an infrastructural gap compared to other EU countries.
The current scenario is fostering awareness of the need to maximize the use of renewable energy sources to make the country as energy independent as possible and to accelerate the process of decarbonization and ecological transition.
Today, according to the indicator developed by Ambrosetti, Italy ranks fifth from last in Europe for energy independence but ranks second for the availability of renewable resources within its territory.
The enhancement of hydropower, through the repowering of existing plants and the development of mini-hydropower installations, could enable a power increase of 3.3 GW (concentrated in Lombardy, Trentino A. A., and Piedmont), exceeding 20% of the current installed hydropower capacity and reaching an installed hydropower capacity of 19.1 GW.
Leveraging solar development opportunities in Italy, considering current technologies and existing regulatory and structural constraints, could lead to an increase in installed capacity by 105.1 GW. This value is nearly 5 times the current capacity and includes 42 GW of photovoltaic energy installed on rooftops of civil, industrial, and commercial buildings (with 50% of this additional capacity concentrated in the North of the country) and 63 GW of ground-mounted photovoltaic energy (with 32% concentrated in Sicily, Puglia, and Sardinia).
Unlocking development opportunities in territories, considering current technologies and existing regulatory and structural constraints, could lead to an increase in power capacity by 21.1 GW compared to today. This value is nearly double the current installed capacity. Particularly, Sicily, Puglia, and Sardinia represent 63% of the wind energy development opportunity, totaling 13.3 GW.
Proper waste management, including energy recovery, reduces CO2 emissions, eliminates reliance on landfills, and contributes to the increase in national electricity production.
Approximately 8 million tons of waste could be utilized for energy recovery, avoiding landfill disposal and enabling an electricity production of over 7 TWh, equivalent to about 2% of Italy's annual electricity generation needs. Effective waste and production residue management can also create conditions for biomethane sector development, generating about 6.3 billion cubic meters of biomethane (equivalent to 8% of national consumption and 22% of gas imported from Russia).
Urban Sustainability. Decarbonization, Electrification, and Innovation: Opportunities and Solutions for Future-Fit Cities (ONLY ITALIAN VERSION)
Water: actions and investments for energy, people, and territories (ONLY ITALIAN VERSION)
Toward Italian energy autonomy: water, wind, sun, waste - our raw materials. The crucial contribution of the regions to achieve our goal (ONLY ITALIAN VERSION)
In addition, we contribute to promoting a more sustainable and conscious approach to procurement of supplies
In line with the Group's Strategic Plan, we have implemented several initiatives, including:
Adoption of supplier, collaborator, and business partner selection policies that emphasize sustainability as a key criterion in decision-making.
Implementation of practices and policies aimed at overseeing ESG issues and monitoring sustainability performance throughout the entire value chain.
Promotion of sustainable practices among suppliers and ensuring adherence to principles of fairness, legality, and transparency.
To evaluate the ESG performance of its suppliers and promote improvement, a "sustainable procurement maturity matrix" has been developed, along with an assessment methodology based on four pillars: environment, labor practices and human rights, ethics, and responsible procurement. For each parameter, EcoVadis provides a score that contributes to the final assessment.
This clause requires the supplier to join the sustainability program, meaning they need to share their ESG rating with the Group or commit to obtaining it within defined timelines.
The course, attended by colleagues from various business functions, aims at capacity building with the dual purpose of raising awareness about sustainable procurement and training buyers on the use of the EcoVadis platform.
We are committed to ensuring workplace safety along the supply chain, including inspection visits to construction sites. These visits serve to verify compliance with health and safety regulations and identify potential environmental impacts.
Value of orders issued
Value of orders issued to suppliers in possession of at least one certification
Orders issued to suppliers with ESG scoring
Orders issued to suppliers in possession of at least one certification
We adhere to the United Nations Guiding Principles on Business and Human Rights, which serve as our international framework in promoting and ensuring the protection of human rights.
The centrality of Human Rights within the A2A Group is reflected through the integration of behavioral principles in our Code of Ethics and the Organizational Model 231/01.
To further enhance and formalize our commitment, the Board of Directors has approved our Human Rights Policy. This policy not only unifies the companies within the A2A Group but also the entire value chain, in promoting and supporting the values and principles established by International Institutions and Conventions concerning Human Rights.
During the materiality analysis update in 2022, a comprehensive assessment of Human Rights compliance was conducted, involving various business functions and analyzing both internal and external sources, considering the GRI Standards' guidelines.
In the context of our core activities, the A2A Group has identified and implemented robust measures to safeguard Human Rights, contributing to the reduction of potential significant risks. The assessment revealed a medium-high level of safeguarding, yet we are committed to identifying further opportunities for improvement in the areas under investigation. We are dedicated to:
