Abstract of the A2A 2016 Integrated Report I
Creating sustainable value in A2A Abstract of the 2016 Integrated Report
Circular Economy
Decarbonisation
Smartness in Networks and
Services
People Innovation
Abstract of the A2A 2016 Integrated Report 1
For people, for the planet, for innovation,
A2A creates sustainable
value
The Sustainability Policy describes in its statement the A2A Group’s
definition of sustainability: “Helping communities to be sustainable”.
This commitment for the Group means improving people’s quality of life through a new circular, low-carbon
economy based on smart networks and services. The policy is built on 4 pillars (Circular Economy,
Decarbonisation, Smartness in Networks and Services and People Innovation) that summarise the path that
the Group wishes to pursue, contributing to the achievement of
Sustainable Development Goals set by the 2030 UN Agenda.
Abstract of the A2A 2016 Integrated Report 3
RESOU
RCES EXTRACTION
RE-INTRODUCTION TO THE M
ARKETDISTRICT HEATING
C O M M U N I T Y
Private Users
Corporate Users Industrial Users Commercial Users
Recycling Non –recycled
Waste-to-energy
Recovery of material
Cogeneration
Gas network
SPECIAL WASTE
Transport
URBAN WASTE
Hydroelectric
Capture and treatment
Collection and purification
�ermoelectric
Photovoltaic
OUTPUT
OUTPUT
OU
TPUT
OUTPUT
INPUT INPUT
INPU
T
WaterElectricity GasHeatWaste
DISTRIBU
TION
DISTRIBUTION DISTRICT HEATING
DISTRIBUTION
OUTPUT
The A2A value chain
MissionWe aim to be a Group capable of providingcities with essential services that meet the
highest standards of quality and efficiency due to their sustainability, optimal relationship with the local
community and openness to change.
Our strategy aims to develop a repositioning process that in 2020 will result in more modern multi utility,
leader in the environment, smart grids and new energy models, with a more balanced and profitable position, able to seize the opportunities that will
be presented by the green economy and smart cities.
RESOU
RCES EXTRACTION
RE-INTRODUCTION TO THE M
ARKET
DISTRICT HEATING
C O M M U N I T Y
Private Users
Corporate Users Industrial Users Commercial Users
Recycling Non –recycled
Waste-to-energy
Recovery of material
Cogeneration
Gas network
SPECIAL WASTE
Transport
URBAN WASTE
Hydroelectric
Capture and treatment
Collection and purification
�ermoelectric
Photovoltaic
OUTPUT
OUTPUT
OU
TPUT
OUTPUT
INPUT INPUT
INPU
T
WaterElectricity GasHeatWaste
DISTRIBU
TION
DISTRIBUTION DISTRICT HEATING
DISTRIBUTION
OUTPUT
Abstract of the A2A 2016 Integrated Report 5
A2A People
Customers and the
communityInstitutions and society
Suppliers
EnvironmentShareholders and investors
A2A has identified its reference stakeholders, that is to say, the categories of internal and external representatives who are influenced or who influence Group activities.
Listening to the demands of these stakeholders, meeting their relative needs and expectations, forms the basis for putting into effect the concept of sustainability. In 2016, around 240 involvement initiatives were organised. During these occasions of meeting and outside involvement, stakeholders are transformed into promoters of change and of the development of Group sustainability strategies.
The six types of capital
Sustainable Value
Valu
e cr
eatio
n pr
oces
s
Human Financial Relational Intellectual Manufacturing Natural
MISSIONS& VALUES
Environment BU
International BU
Commercial BUCorporate BU
Networks and Heat BUGeneration
and Trading BU
Sustainability Policy
Business and Sustainability Plan
Governance
Principles
Risk Management
Stra
tegies
The business model
A2A has developed a business model that,in line with its mission and key values, enables its Business Units to manage accurately the various forms of capital (Financial, Manufacturing, Natural, Human, Intellectual and Relational), on which the organisation depends to guarantee its services, thanks to a system of governance, guiding principles, risk assessment tools and an operational strategy, characterised by medium and long-term objectives (Sustainability Policy and Industrial and Sustainability Plan). This is the method by which A2A intends to create sustainable value over time for itself and for its stakeholders.
THE A2A GROUP VALUES
• Innovation: we build a future made of ideas, research, technology, to face every challenge with courage;• Sustainability: we work to reduce to a minimum the environmental impact of our activities and to
ensure a sustainable tomorrow for future generations; • Participation: we focus on people, promoting dialogue, collaboration and sharing; • Responsibility: we undertake to generate value for the future, to keep promises and to take
responsibility for our actions with transparency;• Excellence: we invest our expertise with commitment and determination to provide a permanent
guarantee of the highest standards of quality.
A2A and its stakeholders
Abstract of the A2A 2016 Integrated Report 7
CIRCULAR ECONOMY
DECARBONISATION
70% sorted waste collection to be achieved in the municipalities served.
99% of collected urban waste used for the recovery of materials
or energy.
Material recovery capacity in Group owned plants at least equivalent to the
total collected recycled urban waste.
Actively contribute to the wellbeing of the community and the improvement of working conditions:
100% of executives with Sustainability MbO and employees assessed according to CSR parameters (to be achieved by 2020).
20% smart working allocated systematically among employees for roles where it is applicable.
- 25% reduction in weighted injury frequency rate (frequency index x severity index), by 2020, as compared to the average for 2013-2015.
Sustainable management of waste during its life cycle:
Increasing grid reliability through technological innovation:
15% smart networks (advanced automation) in total
20% smart investment of total investments in the Network and Heat BU
Contribute to achieving national and European objectives for the reduction
of greenhouse gas emissions:
Some goals for 2030
-62% reduction in CO2 emissions from electricity generation plants (2008-2012
average baseline).
50% heat from non-fossil fuels and heat recovery in the mix used to produce heat for high
efficiency district heating and cooling.
46,000 tonnes of CO2 avoided thanks to the promotion of adopting energy efficiency and
renewable sources in end use.
A2A’s Sustainability
Policy
SMARTNESS IN NETWORKS AND
SERVICES
PEOPLE INNOVATION
Abstract of the A2A 2016 Integrated Report 9
Circular Economy 2020 Objectives
Waste recovery and treatment2020 OBJECTIVE99%
Waste recovered as material or energy (% of total)
0 10 20 30 40 50 60 70 80 90 100
98.90%
98.86%2015
2016
2020 OBJECTIVE67%
0 10 20 30 40 50 60 70 80 90 100
2015
2016
Average recycling (% of total)
55.0%
56.2%
2020 OBJECTIVE
888.5
2020 OBJECTIVE
60%Increase the treatment capacity of waste water
treatment plants, extending the service to areas without
service (in terms of population equivalent)
Maximise the recovery of material and energy
from waste
Increase the percentage of sorted waste
collection in the municipalities served
Increase the ratio between waste recovered as material in Group plants and the volume
of urban waste collected as recycling
Increase the installed capacity of plants for the
recovery of material from urban and special waste
Water
0 100 200 300 400 500 600 700 800 900 1000
658354
Material recovery capacity (Kt)
2015
2016
5%2016
0 10 20 30 40 50 60 70
Treated population equivalent (% of total 2015 untreated)
0 10 20 30 40 50 60 70 80 90 100
2015
2016 84%
Waste recovered as material in Group plants (% of total collected waste)
31%
2020 OBJECTIVE80%
Abstract of the A2A 2016 Integrated Report 11
Recycling and otherrecovery
Waste-to-energy
Disposal(landfill or other)
1.1
37.261.7
%
Final destination of urban waste collected in 2016
Potability analysis of the acqueduct service (n°/Mm3)
6000
4000
2000
0
4,152 4,123 4,287
2015 20162014
Circular Economy Actions for 2016 RECYCLING IN BRESCIA
In 2016, in order to improve recycling in Brescia, a combined recycling system was implemented, involving two different collection methods. Non-recycled and organic waste are collected using street bins fitted with dome lids that can be opened only by means of a personal electronic card. Paper, plastic packaging, glass and metals are instead collected door-to-door. For optimum management of the transition, the new collection system has been introduced progressively into the local area, with complete coverage of the city foreseen by the end of 2017. Initial results have been very encouraging: in the first three zones involved achieved 64% recycling, an increase by around 26 percentage points. The goal is to achieve a recycling rate of 65% of urban waste and to recycle 50% of material in 2016.
New combined recycling system in Brescia Launch of waste
food oil collection in Milan in supermarkets
and organic waste collection at outdoor
markets
Start up of new bioreactor in
Giussago
Development of the Asti plant for
glass recycling
Planned investments of 161 million euro in
the water system aimed at improving
the quality of the environment
Recycling and otherrecovery
Waste-to-energy
Disposal(landfill or other)
1.1
37.261.7
%
Waste-to-energy
Landfills
Biodrying plants and secondary solid fuel production
Recycling platforms
7.4
54.5
18.6
19.5
%
* All the incoming waste to Group plants is considered.
Treated waste according to type of plant* in 2016
Waste-to-energy
Landfills
Biodrying plants and secondary solid fuel production
Recycling platforms
7.4
54.5
18.6
19.5
%
Recycling in 2016 (% index)
80
60
40
20
0
Reinforced A2A presence in both material and energy recovery with
the acquisition of the Rieco-Resmal and LGH
Groups and the company La BI.CO due
BG p
rovi
nce
BS a
nd M
N p
rovi
nces
MI p
rovi
nce
VA p
rovi
nce
66.3
Berg
amo
Bres
cia
Com
o
Mila
n
Vare
se
44.5
62.952.4
62.2 59.769.1
58.4
70.1
un leone sul divano…
Con il Nuovo Sistema di Raccolta Differenziata ogni cosa andrà al posto giusto.
Separiamo con cura il vetro, i metalli, la plastica, la carta, l’organico: i rifiuti raccolti correttamente possono diventare una grande risorsa.
Per l’ambiente, per Brescia, per tutti noi.
Con A2A, presente nel futuro
www.differenziatabrescia.itNumero Verde 800 437678scarica l’app PULIamo
ma SaRà iL suo posto?
Abstract of the A2A 2016 Integrated Report 13
Decarbonisation2020 Objectives
District heating
Emissions in Electricity Generation
Green marketing
Education
NOx avoided (t/a)
CO2 avoided (t/a)
Green energy sold (GWh)
Students involved (number)
2020 OBJECTIVE-194
2020 OBJECTIVE
1,260
2020 OBJECTIVE34,800
2020 OBJECTIVE
-234, 000
Reduce NOx emissions through
the development of district heating
Reduce CO2 emissions through
the development of district heating
Reduce the carbon intensity of electricity generation as compared
to the average levels of the period 2008-2012
Increase sales of green energy on the
mass market
Increase the number of students
at all levels of education involved in A2A
educational initiatives
2015
2015
2016
2016
-125
-125
-103
-102,80
0 -40 -80 -120 -160 -200
0 -60,000 -120,000 -180,000 -240,000
-161,498
-164,022
Specific emission factor (gCO2/KWh)
2008-2012
2016
2015
2016
0 100 200 300 400 500 600 700 800 900 1,000 1,100 1,200 1,300
768.7630.2
0 3,500 7,000 10,500 14,000 17,500 21,000 24,500 28,000 31,500 35,000
29,0002016
2020 OBJECTIVE394
417438
380500 480 460 440 420 400
Abstract of the A2A 2016 Integrated Report 15
DecarbonisationActions for 2016
IMPROVED PLANT FLEXIBILITY
The “Co-Development Programme FrameworkAgreement”, drawn up between A2A and GeneralElectric in April 2015, concerned the introduction of technologically advanced hardware and software for the performance improvement, in terms of emissions and the management of Combined Cycle Gas Turbine (CCGT) plants. The operations concluded in 2016 on one of the gas turbines at the Chivasso Plant have had excellent results in terms of improved capacity to respond to supplier demands and reduced start-up times and consequent reduction in gas consumption, as well as reduced emissions. In 2017, activity on the Chivasso Plant will be completed and a similar operation will begin at the Sermide Plant, as well as preliminary analysis of the Cassano d’Adda Plant.
“Calore in Rete” project for research into heat sources from production cycles available in
the regionFlexibility
development operations to improve the
performance, emissions and management of
CCGT plantsLaunch of the first STEM®
thermodynamic solar plant in San Filippo del
Mela (Province of Messina)
Two new offers developed for
the sale of green energy: Valorenergia
and Fedeltà2a
“Progetto Scuola” with free activities:
guided tours to the Casa dell’Energia e
dell’Ambiente,competitions,classroom lessons,
digital platform, television programmes, seminars
for teachers
Emissions generated by the Network and Heat BU (t)
Emissions generated by the Generation and Trading BU (g/kWh)
20142014 20152015 20162016
203
0.24
0.17
0.014
118
0.4
250
200
150
100
50
0
0.5
0.4
0.3
0.2
0.1
0.0
193
0.47
0.15 0.15
0.016 0.013
0.34
127
210
144
0.41.0
NOxNOx SO2SO2ParticulatesParticulates
49
34
36
17
%
Renewable sources(hydraulics, renewable fraction of waste, biogas, solar)
Coal
Natural gas
Petroleum products
Non-renewable fraction of waste
Electricity produced by source in 2016
NON-GREEN ENERGY CONTRACTS
GREEN ENERGY CONTRACTS
DOMESTIC
BUSINESS
8
92
% %
11
89
Distribution of green energy contracts in the free market per customer segment in 2016
Launch of the “Estate Fredda”
project for the use in summer of heat recovered
from the district heating system
Abstract of the A2A 2016 Integrated Report 17
Smartness in Networks and Services2020 Objectives
Service quality
Maintain the performance of A2A
Energia in the “Multiclient Customer Satisfaction” surveys
2% above the national average and never below 90%
Customer Satisfaction Index 2016 (scale 0-100)
A2A Energia
National average
0 20 40 60 80 100
92.4
90.3
ANNUAL OBJECTIVE92.3
Smart Grid
Reduce average duration of power
interruptions in the city of Milan
Power interruption duration per low voltage user - high concentration (average minutes/year)
2016
2015
40 35 30 25 20 15 10 5 0
2020 OBJECTIVE14.3
26.6323.77
Digital
Increase the number of A2A Energia customers who use
the online desk
Active online customers (number)
2016
2015
0 5,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000
268,818
227,028
2020 OBJECTIVE
400, 000
Smart City
Improve investments in the Smart City field within
the region
2020 OBJECTIVE10
Investments (mln €)
2016
0 2.5 5.0 7.5 10.0
1.9
Abstract of the A2A 2016 Integrated Report 19
Actions for 2016 BANCO DELL’ENERGIA ONLUS
A2A and its AEM and ASM Foundations have founded Banco dell’Energia Onlus (ONLUS Energy Bank), a non-profit body founded with the aim of supporting people who find themselves in a situation of temporary economic and social hardship, through the provision of complete recovery assistance, including through the distribution of basic essential goods or the payment of urgent expenses, such as electricity and gas bills (of any energy supplier). A network of Non Profit Organisations, carefully selected via tender, in collaboration with Cariplo Foundation, will be responsible for selecting the direct beneficiaries, presenting concrete action plans for early intervention (before the decline into poverty) and promoting the escape from the situation of hardship. In order to reach the greatest possible number of benefactors, the Banco dell’Energia has launched a fundraising campaign targeting Group employees, partners, suppliers and customers, via donations made in energy bills. Indeed, for the first time in Italy, energy bills themselves have become a tool for making a simple donation. A2A Energia customers with domestic electricity contracts (free market) or gas contracts (free and protected market) will be able to donate directly via their bills. Anyone who wishes to take part in the fundraising can make a free donation via post office payment slip, bank transfer or credit card. To increase the value of the donation, A2A has undertaken to double the amount raised from domestic A2A Energia customer donations, up to the goal figure of one million euro by the end of 2017. The Cariplo Foundation, a partner in the project, undertakes in turn to double this total. The project, created based on a proposal at the Brescia Listening Forum in June 2015, was launched last November.
Improvement of customer satisfaction
feedback channels and surveys
Extraordinary four-year plan for the
improvement of resilience of the electricity network in the city of Milan for a
total investment of 13 million euro
A2A Energia customer satisfaction leadership
in the Monitor Energia Cerved
Foundation of the company A2A Smart City for the creation
of innovative IoT (Internet of Things) digital technologies to be applied to the
management of local services
Startup of the new primary station
in Via Rogoredo and of the new medium voltage switchgear
at the primary station in Benedetto Marcello
street in Milan
Smartness in Networks and Services
1st sem. 2014
2nd sem. 2014
1st sem. 2015
2nd sem. 2015
1st sem. 2016
Customer satisfaction for call centre operations* (% satisfied customers)
100
90
80
95.6 94.996.5
94.4
90.4 91.4 92.589.8
97.1
91.0
* Data relating to the second semester of 2016 will be available in the months following the publication of this document.
A2A Energia National average
Gas emergency services (%)
Citizen satisfaction for environmental hygiene services (scale 1-10)
7.6 7.6 7.6 7.810
8
6
4
2
0Milano (Amsa)
Flero (Aprica)
Gardone (Aprica)
Bergamo (Aprica)
Energy withdrawn from the recharging network by electric vehicles («E-moving»)
2014 2015 2016
kWh 175,198 260,174 616,000
Annual number of calls to the switchboard with destination arrival time by the team <= 60 minBasic Level 90% Ref. Level 95%
Milan
Brescia
Bergamo
Varese
0 20 40 60 80 100
98.85%
99.72%
100%
100%
Abstract of the A2A 2016 Integrated Report 21
People Innovation2020 Objectives
Responsible Procurement
Inspections (number)
2020 OBJECTIVE
Increase inspections at construction sites for
network operations2016
0 1,500 3,000 4,500
1,406
4,000
Health and Safety
Weighted Injury Frequency RateReduce the weighted injury frequency
(frequency index x severity index), as compared to the
average for 2013-2015
2015
2016
35 30 25 20 15 10 5 0
2020 OBJECTIVE
19.3
30.725.69
Internal Engagement
Engage all employees in feedback surveys
2016
Employees surveyed (% of total)
0 20 40 60 80 100
100%
2020 OBJECTIVE
100%
Welfare
Extend the option of flexible working (SmartWorking) among
employees, for roles in which it is applicable
2020 OBJECTIVE
20%
2016 5%
0 20 40 60 80 100
Employees involved (% of total)
Stakeholder Engagement
Develop a programme of regional workshops
and actions based on stakeholder proposals
Workshops (number)
Actions (number)
0 10 20 30 40 50
2016
2016
2020 OBJECTIVE
2020 OBJECTIVE
30152
6
Abstract of the A2A 2016 Integrated Report 23
People InnovationActions for 2016 FORUMASCOLTO
In 2016, activity continued in the forumAscolto (listening forum), i.e. the multi-stakeholder feedback programme launched by A2A in 2015 to understand the demands of the area in which it operates. The forumAscolto is an occasion for dialogue and confrontation, with the aim of taking on board the specific issues of individual communities, creating discussions on themes important to A2A and to its stakeholders and contributing to the development of ideas and projects in line with the Group objectives, capable of creating shared value. The first forum was held on 8 June 2015 in Brescia and, in 2016, further two forums were organised. Following each forum, the ideas proposed were assessed by the Territory and Sustainability Committee and by the Group BUs, according to defined criteria, such as: consistency with the priorities that emerge from the forum, required investment, implementation times, compliance with the industrial plan, the social, economic and environmental benefits attainable.The selected ideas were then reported to the stakeholders and to the community in dedicated meetings, in which the Local Sustainability Report were also presented, drafted following the forums. The results of the multi-stakeholder forums, in fact, together with the regional economic, environmental and social performance of A2A, are included in the relative Local Sustainability Report, innovative sustainability reporting documents, which aim to become an annual local stakeholder communication fixture.
Programma Vita (Life Programme)
for the elimination of risks relating to the safety
of employees, contractors and customers of the
Network and Heat BU
Introduction of the new ARIAL application for managing health, safety, environmental
and auditing processes
Participation in the Lombardy WHP
Network (Workplace Health Promotion) with the aim of promoting the
informed adoption of a healthy lifestyle
Around 240 localengagement
initiativesforumAscolto
(engagement forum) set up in
Valtellina/Valchiavennaand Bergamo
Development of feedback and
teambuilding pathways with
employees: ABC project, AD Incontra,
Melograno
Value of issued orders assigned to suppliers with at least one certification (%)
Turnover rate (%)
Sponsoring according to area of activity (euro)
2014 2015 2016
Average training hours per person (hours)
20
15
10
0
14.9 14.5
16.8
70
6.739.77
76 77
6.80
100
80
60
40
20
0
20
15
10
5
0
2014
2014
2015
2015
2016
2016
Sports initiatives
Corporate and institutional initiatives
Cultural initiatives
Environmental initiatives
204,150
476,015
57,060
189,863
927,088Total €
The Group
Electricity produced (GWh)
Gas distributed (Mm3)
Heat distributed with district heating (GWh)
Water distributed (Mm3)
Electricity sold to end customers (GWh)
Electricity distributed (GWh)
Gas sold to end customers (Mm3)
2015
2015
2015
2015
20152015
2015
2016
2016
2016
2016
20162016
2016
16,006
1,832
2,297
63
7,548 13,339
1,121
16,081
2,096
2,412
62
8,284 13,387
1,372
Waste treated (Kton)
2015 2016
2,555 2,800
Average market capitalisation (millions of €)
2015 2016
3,405 3,685
People at A2A
2015 2016
12,08313,494
Installed capacity (GW)
2015 2016
10.4 9.7
Revenue (millions of €)
2015 2016
4,921 5,093
Updated as of 12/31/2016
hydroelectric plants
thermoelectric plants
CHP plants
waste treatment plants
technological partnerships
www.a2a.eu
