GRI economic and social performance indicators

The indicators relating to the economic and social performances (core and additional) envisaged by the GRI-G3.1 Guidelines, edition 2011, together the indicators introduced by the Sector Supplement for Utility companies in the electric sector are shown below30, with indication of the sections and pages of the report where it is possible to find them. The meaning of each performance indicator is illustrated in the Guidelines and Sector Supplement, available on the website www.globalreporting.org.

Table No. 13 – GRI-G3.1 ECONOMIC AND SOCIAL INDICATORS

Economic performance

EC1 (Core)

  • Direct economic value generated and distributed, including revenues, operating costs, employee compensation, donations and other communit investments, retained earnings, and payments to capital providers and governments. Corporate  identity pages 26, 57; The socio-economic relationships with the stakeholders pages 131, 139, 143

EC2(Core)

  • Financial implications and other risks and opportunities for the organization’s activities due to climate change.
    Corporate Identity pages 26, 57; Environmental issues pages 158, 171

EC3 (Core)

  • Coverage of the organization’s defined benefit plan obligations.
    The socio-economic relationships with the stakeholders page 132

EC4 (Core)

  • Significant financial assistance received from government.
    Corporate Identity page 57 note 29

Market presence

EC5

  • (Additional) Range of ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation.The salaries of new recruits are disciplined by National Collective Labour Agreements for the sector (electricity, gas and water).
    Socio-economic relationships with the stakeholders page 131

EC6 (Core)

  • Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.
    Socio-economic relationships with the stakeholders page 114

EC7 (Core)

  • Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.
    The procedures for employing individuals in Acea do not envisage the requirement of geographic residence as an element of pre-emption, in that it is potentially discriminatory and non-functional with regard to Group logics.

Indirect economic impacts

EC8

  • Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
    Socio-economic relationships with the stakeholders pages 105-108

EC9 (Additional)

  • Understanding and describing significant indirect economic impacts, including the extent of impacts.
    Socio-economic relationships with the stakeholders pages 86, 91, 100, 105-108

Availability and reliability

EU6 (Core)

  • Management approach to ensure short and long-term electricity availability and reliability.
    Corporate Identity page 29; Socio-economic relationships with the stakeholders pages 75, 82, 93, 94, 109, 110 note 82, 144, 146;
    Environmental issues page 170

EU10 (Core)

  • Planned capacity against projected electricity demand over the long term, broken down by energy source and regulatory regime.
    Corporate Identity pages 29, 30 nota 17; Environmental issues page 166

Handling of demand

EU7 (Core)

  • Demand-side management programs including residential, commercial, institutional and industrial programs.
    Socio-economic relationships with the stakeholdersr pages 759394; Environmental issues page 170

30 The indicators of the Sector Supplement for Utility companies in the electric sector (EU) are supplemented in the table; the text disciplines distinct matters for energy companies, introduces new indicators (EU) and a number of in-depth notes (commentary) relating to indicators already envisaged by the 2006 version of the GRI Guidelines.

Research and development

EU8 (Core)

  • Research and development activity and expenditure aimed at providing reliable electricity and promoting sustainable development.
    Socio-economic relationships with the stakeholders pages 75, 146; Environmental issues pages 189-193

Plant decommissioning

  • EU9 (Core) Provisions for decommissioning of nuclear power sites.
    There are no nuclear plants in the Acea group of installations.

System efficiency

EU11 (Core)

Average generation efficiency of thermal plants by energy source and by regulatory regime.
Environmental issues page 167

EU12 (Core)

  • Transmission and distribution losses as a percentage of total energy.
    Environmental issues page 169

LABOR PRACTICES & DECENT WORK

Employment

LA1 (Core)

  • Total workforce by employment type, employment contract, and region, broken down by gender.
    Socio-economic relationships with the stakeholders pages 118, 119-122, 123-125

LA2 (Core)

  • Total number and rate of new employee hires and employee turnover by age group, gender, and region.
    Socio-economic relationships with the stakeholders pages 119, 122

LA3 (Additional)

  • Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major significant locations of operation.
    Socio-economic relationships with the stakeholders page 132

LA15 (Core)

  • Return to work and retention rates after parental leave, by gender.
    Acea operates in observance of the Consolidation Act regarding the protection and support of maternity and paternity (Italian Legislative Decree No 151/2001 and subsequent amendments and additions), which disciplines leave, sick leave, time off and economic support for male and female workers associated with the maternity and paternity of natural, adopted or fostered children.
    The legislation prohibits any discrimination for reasons associated with gender, with particular regard to any less favourable treatment in relation to pregnancy, maternity or paternity; it establishes obligatory maternity leave for a period inclusive of between two months prior and three months after the birth and guarantees the maintenance of the employment position during this period, imposing the prohibition of dismissal; it also establishes the re-employment of the resource with the duties performed before the period of leave or equivalent duties, envisaging sanctions for employers who violate this legislation. Therefore, 100% of the employees who avail of this type of leave keep their jobs and return to work.

EU14 (Core)

  • Programs and processes to ensure the availability of a skilled workforce.
    Socio-economic relationships with the stakeholders pages 75, 135, 136

EU15 (Core)

  • Percentage of employees eligible to retire in the next 5 and 10 years broken down by job category and by region.
    With reference to the Group companies active in the electricity sector (Acea Distribuzione, Acea Reti e Servizi Energetici, Acea Energia and Acea Produzione, mainly located in Lazio) employees eligible for retirement in the next 5 years equate to 2.3% of the total workforce of the companies included within the scope of the reporting in the section Composition and turnover, broken down into: 0% of executives, 0.1% of middle management, 1.5% of white-collar workers and 0.7% of blue-collar workers; 15.2% of the workforce is by contrast eligible for retirement in the next 10 years, broken down into: 0.2% of executives, 0.9% of middle management, 10.3% of white-collar workers and 3.8% of blue-collar workers.

EU17 (Core)

  • Days worked by contractor and subcontractor employees involved in construction, operation & maintenance activities.

Labor/Management Relations

LA4 (Core)

  • Percentage of employees covered by collective bargaining agreements.
    Socio-economic relationships with the stakeholders pages 123-125

human resources employed by contracting firms covered by the national collective labour agreement is not available, however the companies which are entrusted services and work under contract are obliged to comply with the Acea value codes, in which explicit reference is made to the obligation to observe current legislation.

LA5 (Core)

  • Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements.
    Socio-economic relationships with the stakeholders pages 123-125

Occupational health and safety

LA6 (Additional)

  • Percentage of total workforce represented in formal joint management-worker health and safety committees that help
    monitor and advise on occupational health and safety programs.
    In Acea, the matters established by Italian Legislative Decree No. 81/08 regarding health and safety in the workplace are observed.
    Socio-economic relationships with the stakeholders pages 116, 129, 130

LA7 (Core)

  • Rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities by region and by gender.
    Socio-economic relationships with the stakeholders page 129

LA8 (Core)

  • Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
    Socio-economic relationships with the stakeholders page 130

LA9 (Additional)

  • Health and safety topics covered in formal agreements with trade unions.
    Socio-economic relationships with the stakeholders page 129
    In 2011, the topic of safety was not subject to specific trade union agreements.

EU16 (Core)

  • Policies and requirements regarding health and safety of employees and employees of contractors and subcontractors.
    A Site Inspection Unit exists within Acea Distribuzione, present within the Quality and Safety B.U. which constantly carries out
    inspections at sites, checking the observance of the safety parameters for the work carried out by contractor companies on behalf of the company.
    Socio-economic relationships with the stakeholders pages 116, 134

EU18 (Core)

  • Percentage of contractor and subcontractor employees that have undergone relevant health and safety training.
    The figure relating to the percentage of contractor and subcontractor employees trained with regard to safety is not available. Acea applies work Qualification Systems for the water sector and the energy sector and the respective Regulations impose the acceptance and observance of the Group’s value codes as well as the obligation to observe the safety norms. Furthermore, with regard to works - energy sector, compliance with the Health and Safety in the workplace Policy is envisaged, as an indispensable requirement for admission to tenders and a Vendor Rating system is applied centred on quality and safety: in 2011, 33 worksites were suspended for non-compliances on safety, in the face of a total of 962 inspections made. In conclusion, the presence of the Prevention and Protection Service Manager (RSPP) is envisaged at the sites.

Training and education

LA10 (Core)

  • Average hours of training per year per employee by gender, and by employee category.
    Socio-economic relationships with the stakeholders pages 135, 136

LA11 (Additional)

  • Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings.
    Socio-economic relationships with the stakeholders page 133

LA12 (Additional)

  • Percentage of employees receiving regular performance and career development reviews, by gender.
    In 2011, 31.5% of the employees were appraised (15 executives and 65 middle managers of Acea Distribuzione and the entire workforce of Acea Ato2 equating to 1,530 out of a total of 5,114 resources). Reference should be made to the section Human Resources, Human Resource appraisal systems and The training and development of the Human Resources parts.
    Socio-economic relationships with the stakeholders page 133

Diversity and Equal Opportunities

LA13 (Core)

  • Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.
    Socio-economic relationships with the stakeholders pages 122, 126, 138

Equal remuneration for women and men

LA14 (Core)

  • Ratio of basic salary and remuneration women to men by employee category, by significant locations of operation.
    On the basis of the current national collective labour agreement (CCNL), the basic salary of men is equal to that of women, for each category. However, it is the variable part of the salary which determines certain differences.
    Socio-economic relationships with the stakeholders page 131

HUMAN RIGHTS

Investment and procurement practices

HR1 (Core)

  • Percentage and total number of significant investment agreements and contracts that include clauses incorporating human rights concerns, or that have undergone human rights screening.
    The Group has adopted value codes - Ethical Code and Tender Ethics Code - which all the parties who operate on behalf of Acea in the management of the corporate activities are obliged to observe and this guarantees an adequate protection of the human rights also in the event of entering into investment and/or supply agreements.
    Socio-economic relationships with the stakeholders page 115

HR2 (Core)

  • Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.
    The percentage is not available but Acea applies Qualification Systems which force suppliers and contractors to accept and observe the Group value codes, as well as the obligation to observe national norms concerning health, safety and hygiene in the workplace, remunerative, contribution and insurance-related fulfilments.
    Socio-economic relationships with the stakeholders pages 109, 115, 143

HR3 (Core)

  • Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
    In 2011, training hours provided to employees which also concerned such topics amounted to around 1,359, relating to new recruits (90 individuals x 15.1 hours of training per head) who normally are the sole recipients of these training activities.
    Socio-economic relationships with the stakeholders page 135

Non-discrimination

HR4 (Core)

  • Total number of incidents of discrimination and corrective actions taken.
    No episodes of discrimination were reported.
    For the prevention policies, in other words the value codes adopted by the Group and the protection of the diversity and equal opportunities, please refer to Corporate Identity page 32 and Socio-economic relationships with the stakeholders pages 126, 138

Freedom of Association and Collective Bargaining

HR5 (Core)

  • Operations and significant suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk, and actions taken to support these rights.
    There are no activities where the freedom of association and collective bargaining is exposed to risks. Please refer to the section Human Resources, in particular Industrial relations and Social activities (where reference is also made to other associative forms present inhouse: CRA, ANMIC, The Gold Medal Association).
    Socio-economic relationships with the stakeholders pages 123-125, 137, 138

Child labour

HR6 (Core)

  • Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.
    In its dealings with its employees and collaborators, Acea applies the National Collective Labour Agreements and other contractual forms envisaged by current legislation. With regard to the absence of child labour in the supply chain, Acea binds any potential supplier to observe the Tender Ethics Code and the Group’s Ethical Code, which protects workers from any form of abuse (see sections Human Resources and Suppliers in Socio-economic relationships with the stakeholders).

Forced and compulsory labor

HR7 (Core)

  • Operations and significant suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of all forms of forced or compulsory labor.
    In its dealings with its employees and collaborators, Acea applies the National Collective Labour Agreements and other contractual forms envisaged by current legislation. With regard to the absence of forced or compulsory in the supply chain, Acea binds any potential

supplier to observe the Tender Ethics Code and the Group’s Ethical Code, which protects workers from any form of abuse (see sections Human Resources and Suppliers in Socio-economic relationships with the stakeholders).

Security practices

HR8 (Additional)

  • Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights
    that are relevant to operations.
    The security activities are entrusted to an external security company. The rules of conduct for security staff comply with those in force in the security corps of the Italian state.

Indigenous rights

HR9 (Additional)

  • Total number of incidents of violations involving rights of indigenous people and actions taken.
    No violations to the detriment of local communities were reported. For the action undertaken by Acea benefiting local communities, please refer to the initiatives supporting the most deprived categories of the population, described in Socio-economic relationships with the stakeholders, Customers and the Community and in the section Activities abroad.

Assessment

HR10 (Core)

  • Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments.
    The Group has adopted value codes - Ethical Code and Tender Ethics Code - which all the parties who operate on behalf of Acea in the management of the corporate activities are obliged to observe and this guarantees an adequate protection of the human rights, therefore specific activities have not been subject to re-examination.

Remediation

HR11 (Core)

  • Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms.
    No protests have been presented related to human rights. The adoption of the value codes ensures adequate supervision of the protection of the human rights and also the company’s commercial partners must observe the same or be excluded from the tender.

SOCIETY

Local communities

SO1 (Core)

  • Percentage of operations with implemented local community engagement, impact assessments, and development programs.
    Corporate Identity pages 50, 52, 53, 55; Socio-economic relationships with the stakeholders pages 68-74, 92, 101-105, 109, 116, 146

SO9 (Core)

  • Operations with significant potential or actual negative impacts on local communities.
    Socio-economic relationships with the stakeholders pages 74-92, 105-108

SO10 (Core)

  • Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities.
    With reference to the projects regarding which a considerable environmental impact is envisaged, in particular due to their nature, their size of location, before issuing authorisation, the competent authorities carry out an assessment of their environmental impact (EIA). The assessment involves the prior estimation of the significant direct and indirect effects, short and long-term, which the possible performance of an activity may have on the ecosystem (man, fauna and flora, the ground, the water and the air, the interaction between the afore-mentioned elements, material assets and cultural assets).
    Furthermore, with regard to the creation of electricity distribution networks and public lighting systems Acea operates in compliance with current provisions in this connection and the regulations which contain provisions for energy saving and for the reduction of the dispersed lighting flux.
    Socio-economic relationships with the stakeholders page 145

EU19 (Core)

  • Stakeholder participation in the decision making process related to energy planning and infrastructure development.
    Socio-economic relationships with the stakeholders page 145

EU20 (Core)

  • Approach to managing the impacts of displacement.
    Socio-economic relationships with the stakeholders page 145

EU21 (Core)

  • Contingency planning measures, disaster/emergency management plan and training programs and recovery/restoration plans.
    Socio-economic relationships with the stakeholders page 144

EU22 (Core)

  • Number of people physically or economically displaced and compensation, broken down by type of project.
    No episodes of this type took place.

Corruption

SO2 (Core)

  • Percentage and total number of business units analyzed for risks related to corruption.
    Corporate Identity pages 46, 49, 50

SO3 (Core)

  • Percentage of employees trained in organization’s anti-corruption policies and procedures.
    The percentage of workers who have received training on anti-corruption policies and procedures refers to new recruits who normally are the sole recipients of these training activities, and corresponds to around 1.7% of the workers included within the area of reporting of the Human Resources section (90 individuals out of 5,114 workers). These training activities are illustrated in the section
    Socio-economic relationships with the stakeholders pages 133, 134

SO4 (Core)

  • Actions taken in response to incidents of corruption.
    There have been no episodes of corruption.

Public policy

SO5 (Core)

  • Public policy positions and participation in public policy development and lobbying.
    Socio-economic relationships with the stakeholders page 143

SO6 (Additional)

  • Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country.
    Socio-economic relationships with the stakeholders page 143

Anti-competitive behavior

SO7 (Additional)

  • Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes.
    Socio-economic relationships with the stakeholders page 147

Compliance

SO8 (Core)

  • Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
    Socio-economic relationships with the stakeholders page 147

PRODUCT RESPONSIBILITY

Consumer health and safety

PR1 (Core)

  • Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
    Corporate Identity pages 50, 52, 53; Socio-economic relationships with the stakeholders pages 90, 116, 146

EU25 (Core)

  • Number of injuries and fatalities to the public involving company assets, including legal judgments, settlements and pending legal cases of diseases.
    No such episodes were registered in 2011. The verdict for the mortal accident following the collapse of a public lighting lamppost in Naples in December 2006 is still pending.

PR2 (Additional)

  • Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services, by type of outcomes.
    No cases of non-compliance have been reported.

Product and service labeling

PR3 (Core)

  • TType of product and service information required by procedures, and percentage of significant products and services subject to such information requirements.
    Socio-economic relationships with the stakeholders pages 74-92

PR4 (Additional)

  • Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
    Socio-economic relationships with the stakeholders pages 74-92

PR5 (Additional)

  • Practices related to customer satisfaction, including results of surveys measuring customer satisfaction.
    Corporate Identity page 55; Socio-economic relationships with the stakeholders pages 68-74

Marketing communication

PR6 (Core)

  • Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.

Marketing activities (advertising campaigns, sponsorships, disbursements, etc.) are disciplined by Group management regulations which establish the procedures so that observance of current legislation and the value codes is ensured. The Group management regulations dedicated to sponsorships and updated in 2009, «have the purpose of defining the operating formalities and controls which must be established in the handling of sponsorships and/or donations, so as to ensure the maximum observance of the fundamental and inalienable principles of professional and conduct-related ethics, as envisaged by the Code of Ethics, and to prevent the commission of the offences pursuant to Italian Legislative Decree No. 231/01». The Acea Group’s Ethical Code (available on-line on the company website, www.acea.it) dedicates Article 12.2 to “contracts and communications with the customers” and Article 20 to “grants and sponsorships”.
Socio-economic relationships with the stakeholders pages 96, 100

PR7 (Additional)

  • Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications,
    including advertising, promotion, and sponsorship, by type of outcomes.
    Socio-economic relationships with the stakeholders page 147

Customer privacy

PR8 (Additional)

  • Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data.
    No related episodes have been reported. For the prevention policies, please refer to the section: Corporate Identity page 46;
    Socio-economic relationships with the stakeholders page 96

Compliance

PR9 (Core)

  • Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services Socio-economic relationships with the stakeholders page 147

Access

EU23 (Core)

  • Programs, including those in partnership with government, to improve or maintain access to electricity and customer support services.
    In the energy sector, the public regulation system envisages economic concessions (for example the social bonus) aimed at facilitating access for less well-off members of society; the powering of electro-medical equipment is also guaranteed.

EU26 (Core)

  • Percentage of population unserved in licensed distribution or service areas.
    The distribution grid covers the whole country.

EU27 (Core)

  • Number of residential disconnections for non-payment, broken down by duration of disconnection and by regulatory regime.
    Only figures relating to re-connection after disconnection due to arrears are available, as established by the Electricity and Gas Authority.
    Socio-economic relationships with the stakeholders page 79

EU28 (Core)

  • Power outage frequency.
    Socio-economic relationships with the stakeholders page 82

EU29 (Core)

  • Average power outage duration.
    Socio-economic relationships with the stakeholders page 82

EU30 (Core)

  • Average plant availability factor by energy source and by regulatory regime.
    Environmental issues page 167

Provision of information

EU24 (Core)

  • Practices to address language, cultural, low literacy and disability related barriers to accessing and safely using electricity and customer support services.
    There are no specific programmes in-house; the public system guarantees forms of support aimed at reducing barriers among the population for energy use.