Iren has always been committed to ensuring the economic, social and environmental sustainability of its business, a way of doing business that finds its foundation in the Group’s business model and Strategic Plan, which includes a solid commitment to the 2030 Agenda for Sustainable Development Goals (SDGs), reinforced by the choice to join the United Nations Global Compact, made in 2020.
A way of doing business that guarantees long-term resilience and reacting quickly and effectively to exogenous phenomena of unprecedented magnitudes, such as the socio-economic crisis resulting from the Coronavirus spread.
Iren and the Global Goals
For the preparation of the Group’s Strategic Plan (see page 28 of the “Sustainability Report”), an assessment was made of the SDGs to which Iren contributes and can contribute most in the future. All 17 SGDs were analysed, with their relative targets, and the areas of the Group activity that contribute to their achievement were identified, enabling the selection of 9 Priority Objectives that were assumed in the Strategic Plan, and are highlighted below, to which Objective 17, considered a tool for achieving the other objectives, is added in a transversal manner.
Even for those Objectives not selected as priorities, Iren Group can have an impact on their implementation. For this reason, the materiality analysis highlighted how the priority topics impact all SDGs (see page 9 of the “Sustainability Report”) and the contents of this document contribute to providing an exhaustive information framework on them, as highlighted in the reconciliation table on page 148 of the “Sustainability Report”.
Materiality analysis
The SDGs, therefore, are central to the materiality analysis through which Iren and its stakeholders attribute an assessment to topics considered priorities for the Group’s strategic development and for reporting in this Sustainability Report.
Materiality underlines the connection of priority topics with the Group’s strategy and ensures that the expectations of different stakeholders are considered.
The materiality analysis carried out annually by Iren Group takes into consideration the guidelines of the Global Reporting Initiative (GRI) and is a dynamic process that takes place in several stages:
- desk review: identification of the spectrum of potentially significant topics through the analysis of Italian Legislative Decree 254/2016, GRI standards and other publications, domestic and international sustainable development targets, the principles of the United Nations Global Compact, the Group’s Mission, Memorandum and Strategic Plan and related sustainability objectives, the Group’s financial and sustainability reporting, previous materiality analyses, customer satisfaction surveys, risk analysis, media analysis, and relevant sustainability issues for peers and competitors;
- internal engagement: sharing and assessing potentially significant topics by the top line of the Group’s management in order to identify priority topics for Iren;
- external engagement: sharing and assessing potentially significant topics by Iren Local Committees in order to focus interests and identify priority economic, social and/or environmental topics for stakeholders. The 98 associations/institutions that compose the Local Committees are representative of the main categories of stakeholders of Iren Group: consumers/customers, employees, suppliers, institutions, shareholders, environment, local communities, NGOs, world of research and universities, future generations. The stakeholder engagement activities allowed Iren to conduct the materiality analysis, also taking into account the principles of the United Nations Global Compact;
- development of the materiality matrix, which defines the priority topics, and approval of the results of the materiality analysis by the Board of Directors on 19 January 2021.
In 2020, the work of internal and external engagement led to the definition of 23 topics, compared to 28 topics in the previous year, reflecting a different articulation of these topics, in order to make them even more consistent in terms of priorities, without reducing their content value.
For example, the topic “Impacts on local areas (suppliers)” has been included in the topic “Value and economic development for local areas”, which is considered a significant and integral aspect. For the same reasons, the topic “Construction site management” has been incorporated into the topic “Responsible management of business segments”, just as the topic “Marketing policies” has been incorporated into the topic “Service levels, customer focus and changes in customer expectations”. Again, for the sake of consistency and coherence, the topics “Employment, development of human resources and welfare” and “Ethics, fight against corruption and legal compliance” have been merged, while the topic “Diversity and inclusion” has been explained separately.
The 2020 matrix, therefore, albeit outlined differently, presents a substantial confirmation of the topics identified in 2019, which obtain ratings above the materiality threshold (2.0) both by management and by stakeholders.
The materiality matrix, provided below, highlights the priority topics and establishes them in relation to the strategic pillars of Iren Group, intersecting them with the topics indicated in the Italian Legislative Decree 254/2016 and additional topics deemed relevant by the Group and its stakeholders.
Materiality analysis and priority topics
The priority topics are developed within the chapters of the Sustainability Report/NFS. To facilitate the interpretation of the document, the material topics covered are indicated at the beginning of each chapter.
For each topic in the matrix, the materiality connotations and correlation with the UN Sustainable Development Goals (SDGs) by 2030 and the UN Global Compact (UNGC) principles are highlighted below.
Concerning the 9 SDGs considered priorities (see page 8 of the “Sustainability Report”), the Group has defined specific objectives and targets in its 2025 Business Plan, which are described in more detail on pages 29-30 of the “Sustainability Report”.
Sustainability
Iren Group has set out important goals in its development plan aimed at preserving natural resources, particularly energy resources, and reducing emissions, thanks to the extension of district heating systems and electricity generation from renewable or similar sources. Furthermore, Iren guarantees high levels of energy efficiency in the management of its activities and proposes energy efficiency solutions to customers.
The goals outlined in the Group’s Business Plan include the rational use and protection of water resources; consequently, the Group has defined targets regarding the quantity of water resources withdrawn and the quality of waste returned to the environment, representing key factors for sustainable management.
Within its strategic guidelines, Iren Group has emphasised its commitment to consistently reducing its atmospheric emissions, specifically, it has defined objectives to reduce CO2 emissions and increase the amount of CO2 avoided by using renewable sources, district heating and obtaining energy from waste.
Iren Group manages its own waste and the waste managed on behalf of local communities with the aim of reducing its production and increasing recovery and production of energy from waste, according to the principles of prevention, sustainability and safety. Dialogue and a constant flow of information on the topic with institutions and residents are essential, as is the training provided in collaboration with schools and universities.
To protect biodiversity and habitats, as well as entering into partnerships with regulatory bodies, institutions and associations, Iren Group has developed a policy to ensure that the activities that take place in protected areas are compatible and sustainable for the environment and maintain its natural balance.
Iren Group believes that education is the most effective and strategic way to foster a culture of sustainability and innovation. Informed residents contribute significantly to improving the social and environmental impact of services, directing them towards new strategies. This is why Iren invests in initiatives consistent with the Global Compact principles, in its relationship with schools and universities, to prepare for the future.
People
Iren Group identifies the focus for progress and the creation of shared value in the current and future local areas of reference. Improving people’s quality of life, making businesses more competitive, looking to the growth of local areas through the eyes of change and making development and sustainability a single value. Iren Group’s vision is to make this future a reality.
Maintaining adequate employment levels, skill coverage and development and the quality of employment are essential for pursuing Group’s strategies, which, also in terms of jobs, support the Global Compact principles. Investment in developing internal skills and enhancing the value of human resources is a fundamental element of the pact between the company and the individual, along with the efforts to reconcile life and work needs and improve the working environment’s quality. The aim is to work as a team, to add value to the outcome of individual work and increase a feeling of belonging, creating a shared social ground, cultural, professional and intellectual.
The topic contributes to creating the best conditions for guaranteeing Iren Group the development of a business model that aims to involve and enhance human resources, in order to increase efficiency, quality of services and capacity to address market challenges with innovative solutions. Therefore, industrial relations must be developed according to a participatory, non-confrontational model, while respecting the various roles.
Consolidating a culture of risk prevention and assessment is a top priority for Iren Group which aims to ensure the health and safety of its workers and to improve the working environment, also with a view to increasing employees’ motivation and engagement and guarantee the continuity of production processes.
Diversity and inclusion are among the key objectives to support the Group’s growth strategy. The diversity of people, together with a culture of inclusion, brings a wealth of contributions and ideas that can strengthen decision-making processes, efficiency and collaboration. Diversity and inclusion are an integral part of the Group’s Code of Ethics and a determining factor in its growth model.
Iren Group supports the principles of the UN Global Compact on the subject and considers the UN Universal Declaration of Human Rights, the International Labour Conventions and Recommendations of the International Labour Organisation and the Earth Charter to be fundamental points in the definition of its values. The Group condemns any form of discrimination and promotes the respect and dignity of all individuals. The suppliers’ system is managed with same principles and is also constantly monitored on these aspects.
The knowledge of the mission, values, policies and sustainable growth objectives of Iren Group, together with the capacity to listen, are crucial for the true involvement of human resources in developmental challenges. External communication is the primary vehicle for relations and transparency with stakeholders in order to provide information on the economic, environmental and social impacts of the Group, in a prompt and timely manner.
The prompt and proper management of critical situations or natural disasters is fundamental for guaranteeing safety and support to communities, also during events that fall outside the operational context of Iren Group. In line with this principle, Iren provides its support during natural disasters also on the national territory.
Client
Improving the efficiency of all services is important both in terms of the quality offered to residents and to ensure the proper use of resources, the reduction of environmental impacts, as well as reducing the Group’s operating expenses. Continuity and reliability of service are constantly strived for to comply with legislation and also on a voluntary basis.
High-quality levels and service innovation to meet new and emerging customer demands are a guarantee for Iren’s long-term development. The Group’s mission is to offer its customers and areas the best integrated management of energy, water and environmental resources, with innovative and sustainable solutions, to produce value over time. Innovative offers are changing Iren’s role, shifting it from a simple energy supplier to an expert in services with high added value, while at the same time increasing customer satisfaction and loyalty. Innovation, agility, smartness, fairness, and transparency inspire the Group to improve its relationship with its customers continuously.
Technological evolution and efficiency
The aim of the Group’s approach to innovation is to improve service quality, building relationships between material infrastructures and human capital, both intellectual and social, thanks to the use of new technologies, in order to improve quality of life and meet the needs of residents, companies and institutions. All actions are strongly focused on the local areas in which the Group operates, collaborating with local communities to develop smart cities.
Iren Group invests to guarantee security, continuity, health and business sustainability, aware of the responsibility that energy and environmental service management entails, for the present and for the future of communities and local areas. The commitment is aimed at developing initiatives and the ability to use the available time, money and resources appropriately, taking the social and environmental impact of business actions into consideration.
Growth
This is a cornerstone of Iren’s strategy, which aims to create value for shareholders and stakeholders. The economic development of the Group is crucial for growth and competitiveness, as well as for the significant economic, social and environmental impacts that it generates for communities in terms of the added value distributed, job creation, investments in the local area, returns and resource generation for local administrations. The contribution of all participants in the processes – employees as well as suppliers – is essential to guarantee positive outcomes that contribute to growth and local development.
The Group’s growth strategy is heavily focused on customers and the development of new integrated services in order to anticipate responses to market trends, with great attention to personnel skills and process efficiency. Technological innovation, sustainability of resources, energy transition and digitalisation are the main drivers that Iren Group uses to compete on the market and increase its market share.
Iren Group aims to build a system of correct and transparent relationships with suppliers, which are based on clear rules and shared values that are key to maintaining the quality of service levels, environmental protection and safety of workers and communities. The Group considers enhancing categories of suppliers that guarantee jobs for disadvantaged people to be important and consistent with its mission.
The Group’s Code of Ethics defines the general principles on relations with the various stakeholders, the conduct criteria and the control system for compliance with the Code of Ethics to maintain and strengthen trust with the stakeholders. Compliance management is an integral part of ethics both in a proactive way – to anticipate scenarios and regulatory developments, effectively assess risks and provide contributions to improve the regulatory framework of the sector – and in a preventive way: for this reason, concurrently with the Code of Ethics, Iren Group has adopted the Organisational Model 231 to prevent the commission of crimes, including corruption, which is also considered relevant in light of the requirements of the Global Compact. Training and raising the awareness of personnel are the keys to consolidating an ethical culture that can tangibly influence the Group’s development opportunities.
Relations and dialogue with Public Authorities, and more generally, with institutional entities at both local and national level, play a critical role for the Group’s activities and for addressing and outlining governance strategies in relation to energy and the environment sector, producing impacts for local areas and for the entire country that are increasingly efficient and sustainable. Dialogue is therefore constant, in line with respective roles.