Materiality analysis

The materiality analysis allows to identify and compare the priority issues for stakeholders and for the Group in the medium- and long-term strategy. The result of this analysis supports the definition of the Group’s sustainable development targets and topics for the drafting of the Sustainability Report. The methodology for performing the materiality analysis is described in detail on page 105.

Materiality thus underlines the connection of priority topics with the Group’s strategy and ensures that the expectations of different stakeholders are considered.

In 2021, the materiality analysis led to the definition of 20 topics, compared to 23 topics in the previous year, reflecting a different articulation of these topics to make them even more consistent in terms of priorities without reducing the scope of the analysis.

For example, the topic “Competitiveness on the market” has been included in “Economic development and value for local areas”, of which it is considered a significant and constitutive aspect. For the same reasons, the topic “Efficient and reliable services“ and “Responsible management of business segments“ have been merged into the new topic “Efficient, reliable and safe management of processes and infrastructures“, as well as the topic “Dialogue with Public Authorities“ and “Internal and external communication“ have been merged into the topic “Effective and transparent dialogue and communication with stakeholders“. In the interests of consistency and coherence with the lines of the Business Plan, the “Emissions“ topic was renamed to “Decarbonization and reduction of emissions“ and the “Circular economy: management, sorted waste collection and reuse of waste“ topic to “Circular waste management“. In addition, the topic “Solid and transparent governance for sustainable growth“, previously covered in other topics, was highlighted as a fundamental requirement for the governance and direction of the other topics.

The 2021 matrix, therefore, albeit with a different declination of the topics described above, presents a substantial confirmation of the priority topics identified in 2020, which obtain ratings above the materiality threshold (2.0) both by management and by stakeholders.

The priority topics identified with the materiality analysis 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, the materiality connotations and correlation with the UN Sustainable Development Goals (SDGs) by 2030 and the UN Global Compact (UNGC) principles are highlighted below (see page 280).

The SDGs are central to the materiality analysis through which Iren and its stakeholders attribute an assessment to strategic topics for the Group’s development. Concerning the 9 SDGs considered priorities by the Group (see page 37), the Business Plan defines specific objectives and targets, which are described in more detail on page 47.

Solid and transparent governance for sustainable growth		Governance for sustainable growth takes the form of integrating ESG (environmental, social and governance) factors into the Group’s strategy, defining medium and long-term sustainability objectives and targets, and identifying, assessing and managing risks and opportunities arising from ESG factors. The strategic guidelines for sustainable growth, approved by the Board of Directors, guide operations, affect the remuneration policies for management and are systematically monitored through a reporting system that forms the basis for transparent communication with stakeholders. Starting from the Board of Directors, the governance approach to sustainable growth adopted by Iren Group involves the entire organisation, attributing specific levels of responsibility to the various corporate bodies and roles.
Ethics, fight against corruption and legal compliance		The Group’s Code of Ethics defines the general principles, the conduct criteria and the control system to maintain and strengthen the relationship 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 for the regulatory framework of the sector – and in a preventive way: for this reason, Iren Group has also adopted the Organisational Model 231 to prevent the commission of crimes, including corruption, which is also relevant in light of the principles of the Global Compact. Training and raising the awareness of people are the keys to consolidating an ethical culture that tangibly influences the Group’s development opportunities.
Effective and transparent dialogue and communication with stakeholders		Dialogue and discussion with stakeholders, both at local and national level, is fundamental for the Group, also in order to face and outline growth strategies that produce increasingly sustainable impacts for the territory and the whole country. Knowledge of the mission, values and sustainable growth strategies of Iren Group, together with the ability to listen, are crucial for the real involvement of stakeholders in the development challenges, and for this reason communication and systematic engagement are the primary tools for gathering the present and future needs of stakeholders and for providing them with timely information on the economic, environmental and social impacts of the Group.
Energy efficiency, renewable sources and district heating		Iren Group has defined in its development plan important objectives to save natural resources, especially energy, and reduce emissions, thanks to the strong development of energy production from renewable sources, the extension of district heating, the high levels of energy efficiency in the management of production processes. Moreover, Iren acts as a territorial reference partner in the implementation of energy efficiency solutions for customers and Public Administrations.
Sustainable use of water resources		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. The sustainable use of water resources is also central to the management of production processes.
Decarbonization and reduction of emissions		Iren Group’s strategic guidelines include a commitment to the constant containment of atmospheric emissions, in particular, it has defined objectives for the reduction of direct and indirect CO2 emissions, in line with science, thanks mainly to the use of renewable sources, the use of waste as a material, the use of certified green electricity and the efficiency of its production processes.
Circular waste management		Iren Group manages its own waste and that managed for local communities with the objectives set out in the Business Plan to reduce production, increase sorted collection, increase material recovery, waste-to-energy, following 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.
Innovation, smart city and sustainable mobility		The Group’s approach to innovation is aimed at improving service quality, building relationships between infrastructures and human capital, both intellectual and social, thanks to the use of new technologies, in order to improve quality of life and the environment and meet the needs of residents, companies and institutions. All actions are strongly focused on the local areas in which the Group works, collaborating with local communities to develop smart cities, also through sustainable mobility projects at public and private level
Protection of biodiversity		To protect biodiversity and habitats, as well as entering into partnerships with Bodies, Institutions and Associations, Iren Group has developed a policy to ensure that the activities managed are compatible and sustainable for the environment and maintain its natural balance. Environmental analysis and assessment of the significance of the impacts that the Group’s activities have on the environment and biodiversity are aimed at adopting the necessary measures to minimise them.
Development of local communities		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.
Sustainability education		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.
Economic development and value for local areas		This is a cornerstone of Iren’s strategy, which aims to create value for shareholders and stakeholders. The economic development of the Group guarantees growth, competitiveness and produces significant economic, social and environmental impacts for communities in terms of the distributed added value, 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.
Employment, development of human resources and welfare		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 efforts to reconcile life and work needs and improve the working environment’s quality. The aim is to become a team, add value to the outcome of individual work and increase a feeling of belonging, creating a shared social, cultural, professional and intellectual terrain.
Industrial relations		Industrial relations contribute to create 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 in accordance with a participatory, non-confrontational model, while respecting the various roles.
Occupational health and safety		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		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 decisionmaking processes, efficiency and collaboration. Diversity and inclusion are an integral part of the Group’s Code of Ethics and subject of a specific Policy, as a determining growth factor.
Protection of human rights		Il Gruppo Iren sostiene i principi del UN Global Compact in materia di diritti umani e considera come punti irrinunciabili nella definizione dei propri valori la Dichiarazione Universale dei Diritti Umani dell’ONU, le Convenzioni e le Raccomandazioni Internazionali del Lavoro dell’ILO e la Carta della Terra. Il Gruppo condanna qualsiasi tipo di discriminazione e promuove il rispetto e la dignità delle persone. Con gli stessi principi è gestito il sistema dei fornitori, costantemente monitorato anche su questi aspetti.
Sustainable management of the supply chain		Iren Group aims to build proper and transparent relationships with suppliers, which are based on clear rules and shared values that are key to maintain the quality of services, environmental protection, safety and rights 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.
Efficient, reliable and safe management of processes and infrastructures		Efficiency, reliability and safety of processes and infrastructures are important for the quality of services offered to citizens, to ensure a proper use of resources and to reduce environmental impacts, as well as for the containment of operating costs. 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 resources appropriately, taking the social and environmental impact of business actions into consideration.
Service quality and customer orientation		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 have changed the role of Iren, 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, in line with a growth strategy strongly oriented towards the customer and the development of new integrated services to anticipate market trends. Innovation, the sustainability of resources, ecological transition and digitalization are some of the levers on which Iren Group acts to compete and extend its market.