The 2016 Sustainability Report of the Hera Group is now online, at the address http://bs.gruppohera.it/, in the complete, navigable and interactive version.
Approved by the Board of Directors in conjunction with the consolidated economic results, the Sustainability Report contains the numbers of economic, social and environmental responsibilities and the focus on the commitments made, the results achieved and future prospects. To experience first-hand, with the utmost transparency and clarity, the results achieved in the various fields, confirming the multi-utility's attention to the territory and to local businesses, which grow together with the Group.
300 million euros from EBITDA, Hera's contribution to the priorities of the UN Agenda
Among the first companies in Europe to do so, Hera's Sustainability Report quantifies the portion of EBITDA that derives from activities that meet the priorities set by the Global Agenda, defined by the UN for 2030, and therefore capable of contributing concrete way to the sustainable development of the area served and to the challenges for change.
This is the so-called shared value, i.e. the creation of value for the company with activities and projects that respond to society's needs, a challenge that Hera has fully taken up and which corresponds to 300 million euro in 2016, equal to approximately 33% of the total gross operating margin. The "shared value" EBITDA is divided into three areas: efficient use of resources, intelligent use of energy, innovation and contribution to local development. A contribution certainly destined to grow in the future.
Efficient use of resources: European 10 targets achieved 2030 years ahead of schedule
In the context of the efficient use of resources, the activities reported by Hera mainly concern the circular economy and the sustainable management of water resources.
On the circular economy front, we are talking about the recycling and energy recovery of urban and industrial waste, in which Hera ranks as the main national operator, with results that anticipate the objectives set by the European Union by a decade; for example as regards the use of landfills for urban waste, which drops further and stands at 7,6%, against a European target of 10% by 2030 and an Italian average in 2015 (latest available data) of 29,8 %. But not only. In terms of recycling, especially packaging, the area served by Hera is in line with the most virtuous European countries and reaches 64% compared to the European target of 65% by 2025.
Separate waste collection is growing, reaching 2016% in 56,6 (well above the national average), of which over 94% is actually recovered through 191 plants, generating the virtuous circle of the circular economy. Furthermore, in Italy, half of the ten best provincial capitals for separate waste collection per capita with more than 100 inhabitants are managed by Hera (Forlì, Rimini, Ravenna, Modena and Ferrara), while Bologna is the third best Italian city among those with over 300 inhabitants. The goal is to increasingly increase the rate of recovery of industrial waste and the recent acquisition of Aliplast, a leading company in Italy in the recycling of plastics, goes precisely in the direction of an ever greater presence in activities oriented towards the development of circularity.
In the sustainable management of the water resource, the main investments were aimed at the reorganization of the Rimini purification sewage system, the adaptation works of the Servola purification plant in Trieste and the conclusion of the interventions to improve the effectiveness of four important purification plants in Abano Terme (PD ), Cesenatico (FC), Cattolica (RN) and Ozzano dell'Emilia (BO). Overall, the purification service covers 91% of the inhabitants served and the effectiveness of the purification reaches excellent levels: the quality of the purified water is in fact 58% better than the legal limits.
Intelligent use of energy: 5% reduction in own consumption by 2020
The Hera Group's commitment in terms of energy efficiency continues with the overcoming of the objective of reducing its consumption by 3% by 2017. With the 117 interventions carried out in 2016, the Group's consumption has already decreased by 2,6% , with savings of over 6.100 tonnes of oil equivalent, and with those planned for this year the 3% target will in fact be exceeded, so much so that the target has been raised to 5% by 2020.
Energy efficiency initiatives have also been carried out within companies, to which Hera makes its know-how available, and for domestic customers to whom the new commercial offers are addressed which provide tools for reducing consumption.
Hera's contribution to the fight against climate change is also enhanced, starting this year, by the decision to exclusively use energy from renewable sources for all the activities managed in Emilia-Romagna. Furthermore, in 2016 the carbon footprint of energy production, and therefore the quantity of greenhouse gases deriving from the production cycle, was reduced by 10% and is expected to further reduce by 2020.
Innovation and sustainable development of the territory: 1,7 billion euros distributed to stakeholders
The 2016 Sustainability Report provides for the first time an overview of the numerous innovative projects completed and in progress, among which the extension of Hergoambiente in the Triveneto and Marche regions stands out, to allow fully computerized management of the waste collection, and the start-up of the new plant in S. Agata Bolognese which will produce biomethane from the organic fraction of differentiated waste collected in the area.
The important role of the Hera Group in the fabric in which it operates is also confirmed: also considering the 560,2 million in local supplies, the overall economic value distributed throughout the area to workers, shareholders, lenders and banking institutions, public administration and the local community in 2016 rises to 1.729,7 million (+4,9% compared to 2015). The impact on employment generated in 2016 reached a total of over 14.500 units: in fact, the Group's 8.487 employees are joined by 6.037 units generated by supplies. It is also important to point out that the collaboration relationships with 50 social cooperatives have allowed the employment of over 740 disadvantaged people.
Attention to employees, customers and the supply chain
The Group's approach to sustainability also requires strong sharing among workers and for this reason safety in the workplace, training and professional development, internal climate and company welfare were once again areas of great commitment in 2016. Last year, the new corporate welfare plan, Hextra, was launched, in which the share of 1,9 million euro available to workers was allocated to welfare services in six different areas, to promote work-life balance and solidarity. Hera also ranks among the top 100 companies in the world in the Thomson Reuters Diversity and Inclusion index classification, compiled according to criteria related to policies on diversity, inclusion and people development. The per capita training hours, 29,3 in 2016, mainly concerned the technical-operating areas, environmental safety quality and social responsibility; the injury frequency index for blue collar workers, the professional category most exposed to risk, is clearly improving, 34,9 against 39 in 2015.
Customer satisfaction is also at the center of Hera's attention and 2016 saw further development of the project which aims to improve the experience that the customer has with the company (customer experience): they decreased by 45% claims for unsolicited contracts (0,05% of the total concluded contracts); subscribers to online services rose by 11% to 272 thousand, 17% of total customers; the average waiting time at customer branches was 12,3 minutes and 40 seconds at the call center for residential customers (in line with 2015 despite an 18% increase in the number of calls equal to over 2 million 700 thousand). In 2016 installments were granted for a value of over 112 million euro (down by 8% compared to 2015) to meet the needs of families in difficult situations.
The Sustainability Report also highlights Hera's attention to the supply chain: 69% of suppliers are local, with further growth also in 2016, and the use of the most economically advantageous offer, instead of the maximum discount , was in 2016, and since 2008, the prevailing award method, anticipating by about 10 years the legislation contained in the new Procurement Code which came into force in April last year.
UN Agenda 2030: a challenge accepted by Hera
“The positive results of 2016 in terms of economic, social and environmental sustainability that we are also reporting this year are the result of the constant commitment and strong determination that guides our daily activity – recalls Stefano Venier, Hera's Chief Executive Officer. “This time we have chosen to take a further step forward and start a path that leads us to transparently report also the contribution we make to the calls to action that the UN agency sets for 2030, urging companies to adopt sustainable practices for a concrete change. It is an opportunity and a challenge for the business world, which Hera has decided to fully accept and the 2016 results set the tone for the serious and committed work done so far".
