Stakeholder and their involvement

[GRI - 102-29], [GRI - 103-2], [GRI - 103-3], [GRI - 201-1], [GRI - 203-1], [GRI - 203-2], [GRI - 413-1], [GRI - 413-2],

Stakeholders are the various parties that play a key role in making it possible to achieve the company’s objectives and represent the main recipients, direct or indirect, of the value created, but also the impacts generated, by the assets managed, according to a principle of mutual influence. For this reason, for example, the natural environmental and the community are also considered stakeholders.
As such, Acea is committed to developing trusting relationships, adopting an inclusive and proactive approach to stakeholders aimed at enhancing the outcomes of dialogue and debate, in line with the commitments expressed in the Management and Sustainability Systems Policy, the principles enshrined in the Code of Ethics, updated at the end of 2022, and the Principles and Values of Stakeholder Engagement.
In the stakeholder engagement process, the identification phase identifies the subjects involved in the company's activities, assessing the level of mutual influence at both qualitative and quantitative levels. The analysis phase examines the interactions between the company and the stakeholders and between different categories of stakeholders in order to develop opportunities for dialogue (engagement) and shared responsibilities. Finally, the management phase establishes the responses to the identified needs of stakeholders or the company itself, in order to pursue the achievement of the company's objectives while also meeting stakeholder expectations.

Chart no. 18 – Stakeholders and their involvement

Chart 18

LO STAKEHOLDER ENGAGEMENT NEL GRUPPO ACEA

By managing a responsible and long-lasting relationship with stakeholders, based on trust, dialogue and transparency in an ever-changing context, the Group is able to improve decision-making processes by directing its commitment to the most relevant issues, while building a shared path that creates value over time for the community and the market, with greater prospects for stability.
In this regard, in 2022 the Acea Stakeholder Engagement Unit conducted various measures to incorporate stakeholder engagement activities into the Group's strategies, processes and business. In particular, improvements to the tools, methods and stakeholder engagement initiatives and projects were made to further support the Group's Corporate Departments/Functions and Companies, which responded with growing interest and engagement.
The awareness-raising and analysis campaign launched in 2021 continued: meetings with sector experts were held with the aim of promoting the culture, skills and tools of stakeholder engagement in the various business contexts and increasing awareness of the strategic role of stakeholder engagement. Workshops were also held to acquire theoretical knowledge and develop applied methodologies through the adoption of operational tools aimed at stakeholder identification, mapping and weighting and the design and implementation of engagement methods.
The stakeholder engagement section of the intranet promoted greater awareness within the Group and allowed for the systematised sharing of processes, tools and materials. In particular, in December 2022 the first video pill of the stakeholder engagement awareness-raising module was posted, aimed at promoting methods for using stakeholder engagement tools and stimulating and strengthening the proactive involvement of Acea Group personnel. Other video pills will be posted in 2023.
The 2022 Report on the Group's Stakeholder Engagement Performance is currently being finalised. Stakeholder Engagement activities are managed in line with the international standards of reference (AA1000 Stakeholder Engagement Standard and Global Reporting Initiative).

Chart no. 19 – Stakeholder mapping

Chart no 19

The boxes below illustrate the most significant interactions between Acea and the main categories of stakeholders in 2022.

Stakeholder mapping

Material topics and impacts perceived by stakeholder

During the process to develop the 2022 materiality analysis (see Communicating Sustainability: Methodological Note for more details), stakeholders were involved in multi-stakeholder focus groups, and particular emphasis was given to the identification of the main perceived impacts regarding the topics of the Acea Group considered to be of “high” or “medium” significance. The results of the engagement activity, specifically the most significant areas of impact for stakeholders and the main positive and negative impacts, both actual or potential, are summarised in Table no. 15.

    Table no. 15 – Main impacts perceived by stakeholders, associated with 2022 material issues with high and medium significance

    MATERIAL TOPICS most significant areas of impact for stakeholders main (actual/potential) negative and positive impacts perceived by stakeholder
    SUSTAINABLE AND CIRCULAR WATER MANAGEMENT

    Optimisation of infrastructure and networks to increase resilience and guarantee water supply

     reduced access to high-quality water due to system inefficiencies related to water stress and extreme weather events

     

     safeguarding the water supply through the development of new infrastructural and technological solutions

    evolution towards a circular water resource management model (including water reuse, sewage sludge recovery and reuse, etc.)

     failure to reduce pressures on water resources due to limited reuse of treated water

     

     contribution to the improvement of environmental and social contexts by optimising solutions for the circular water resource management
    (reuse of treated water, sludge, etc. for different purposes)

    ETHICS AND INTEGRITY IN BUSINESS CONDUCT

    Compliance of company performance with industry standards

     deterioration of contextual conditions (quality of life, relations between the company and stakeholders, etc.) due to non-compliance, disputes and litigation

     

     greater guarantee of access to high-quality services that meet standards

    promotion of ethical values, including combating unlawful conduct and corruption, throughout the value chain

     weakening of action to promote ethical principles in the relevant contexts due to bureaucratic-administrative barriers and cultural resistance

     

     contribution to the development of a healthy socio-economic system guided by ethical principles and respect for rules

    PROTECTION OF ECOSYSTEMS AND BIODIVERSITY

    Reduction of pressure on ecosystems (e.g. reduced emissions, efficient use of natural resources, reduction of land use, etc.) to protect ecosystem health and preserve natural cycles

     inability of infrastructures to adapt to their host ecosystems

     

     increased awareness of the impact of activities on biodiversity and the ecosystem through the development of specific analysis models

    interventions aimed at protecting the ecosystems in areas in which the company operates (protection of springs, natural heritage, protected areas and animal and plant species, etc.)

     failure to formalise specific commitments to protect biodiversity and ecosystems

     

     development of synergies with scientific partners and institutions to monitor biodiversity-rich areas and create ecological corridors

    CLIMATE CHANGE AND ENERGY TRANSITION Adoption of energy models with a low environmental impact (generation from renewable sources, energy eciency, cogeneration, green energy consumption, etc.)

     slow development of low environmental impact solutions due to bureaucratic and authorisation constraints

     

     contribution to the sustainable development of regions and socio-economic contexts through climate action

    development of value-added services related to energy transition

     low scalability of green technologies for the community

     

     improvement of environmental and social contexts through the development of decarbonisation solutions in different contexts (smart cities, sustainable mobility, building efficiency, etc.)

    TECHNOLOGICAL INNOVATION AND DIGITAL TRANSFORMATION

    Development of innovative and environmentally sustainable services and products in response to the changing needs of the environment and people

     increased inequalities caused by services provided in a predominantly digital mode (elderly, poorly digitised population, etc.)

     

     improvement in the quality of life of the community through the availability of services and products in line with emerging needs

    creation of an high-quality, open and interconnected innovation and research ecosystem

     missed opportunities for innovative development due to lack of qualified skills and dedicated investment

     

     contribution to social progress and cultural growth

    MANAGEMENT AND TREATMENT OF WASTE FOR A CIRCULAR ECONOMY

    Management and reduction of waste produced by communities through its energy and material recovery (e.g. compost)

     possible community resistance to new facilities

     

     contribution to the resolution of critical issues related to mass waste production

    strengthening of secondary raw material recovery chains from waste materials (plastic, paper, etc.)

     possible challenges in the proper management of supply chains

     

     reduction of environmental changes caused by the use of raw materials

    OCCUPATIONAL HEALTH AND SAFETY

    Building safe and secure working environments, starting with accident prevention

     occurrence of occupational accidents, with possible effects on public safety

     

     increase in safety and consequent improvement of service levels

    promotion of a culture of workplace safety along the supply chain
    (contracts, etc.)

     weakened action of promoting a culture of workplace safety in less wellequipped contexts such as small and very small businesses

     

     contribution to the improvement of the occupational health and safety conditions of supplier personnel

    DIALOGUE AND ENGAGEMENT WITH STAKEHOLDERS AND TERRITORY

    Responses to multi-stakeholder requirements, with shared value projects and co-design initiatives

     increased disputes with stakeholders due to their ineffective involvement in projects with a high impact on the region

     

     synergetic development of projects and initiatives that better respond to genuine stakeholder needs

    specific identification and consideration of minorities and vulnerable stakeholders

     insuffcient implementation of initiatives for families and businesses in economic difficulty that reflect the challenging context (high bills, inflation, etc.)

     

     community support through the promotion of targeted initiatives, also in synergy with local institutions and associations (new forms of poverty, energy crisis, etc.)

    SKILLS DEVELOPMENT AND EVOLUTION OF THE WORKING ENVIRONMENT

    Promotion of meritocratic working contexts able to optimise and increase skills and abilities

     resistance to cultural and professional change

     

     increase in skills, greater job satisfaction and creation of new jobs

    adoption of new work models capable
    of responding to the needs of digital transformation, also with agile logic, based on collaboration and flexibility

     shortage of new key skills (tech jobs, etc.)

     

     improvement of work/life balance and work contexts

    SUSTAINABILITY IN INFRASTRUCTURE DESIGN, CONSTRUCTION AND MANAGEMENT

    Creation of high-quality and environmentally and socially sustainable infrastructures and projects

     possible implementation difficulties caused by a lack of design models and expertise that incorporate sustainability

     

     development of a long-term design approach, capable of incorporating sustainability and “just transition” logics

    adoption of a design approach that integrates the genuine needs of stakeholders and promotes the acceptance of projects and infrastructures by the community

     reduced social acceptability of infrastructures due to inadequate management of participatory processes

     

     contribution to sustainable regional development

    CUSTOMER FOCUS

    Availability of easily accessible and customised customer care services, also thanks to the increasing use of digital channels

     decrease in the level of customer trust due to lack of clear communication and transparency

     

     improvement of the customer experience and relationship with the company

    availability of services in line with emerging customer needs and lifestyles

     insufficient attention to the growing difficulties faced by customers in the current context (war, energy crisis, high bills, inflation, etc.)

     

     increasing sustainability in practices and consumption styles

    SUSTAINABILITY AND CIRCULARITY ALONG THE SUPPLY CHAIN

    Implementation of procurement processes that prioritise the use of products and services that combine quality, eco-compatibility (recycled, reusable, etc.) and social responsibility

     possible exclusion of small and very small businesses that are less structured in terms of sustainability

     

     reduction of the socio-environmental impact of goods and services

    increasing supply chain certification, also
    in relation to social aspects (protection of employment rights, human rights, quality of supplies, etc.) and environmental aspects (emissions, pollution, etc.)

     increased initial burdens on suppliers who are required to make greater commitments to sustainability

     

     support for the promotion of sustainability among suppliers

    COMPANY WELLBEING, DIVERSITY AND INCLUSION

    Creation of inclusive and diverse models and workplaces that respect people

     failure to reduce cultural and organisational barriers to promoting diversity

     

     development of social and professional inclusion paths and projects

    promotion of a workplace culture oriented towards preserving the well-being of people within the organisation and respecting their private lives (welfare, work/life balance initiatives, etc.)

     reduced eectiveness of promotion initiatives due to cultural resistance caused by a “traditional” view of work

     

     development of the concept of well-being, which is extended to workers, the community and the region ("all-round" well-being)

    GOVERNANCE FOR SUSTAINABLE SUCCESS

    Long-term value creation through the integration of sustainable success (social and environmental dimensions) into strategic objectives, management remuneration policies and internal control systems

     incomplete and non-transparent information available to stakeholders

     

     effective incentive systems linked to sustainability targets;

    construction of governance models capable of developing long-term strategies that consider sustainability guidelines

     greenwashing

     

     lasting contribution to the social, environmental and economic development of the local context

    SUSTAINABLE FINANCE

    Promotion of environmental and social elements in business financing decisions (Green Bonds, etc.)

     lack of development of socio-economic contexts due to difficulties in managing public funding

     

    increased investment in sustainable development (ecological transition, social inclusion, etc.)

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