Italgas Spa · MIL:IG
Italgas Spa — ESG Presentation (December 2024)
43 slides from Italgas Spa's sustainability presentation, December 2024
Slide 1: Italgas Sustainability and Engagement December 2024
Italgas Sustainability and Engagement December 2024
Slide 2: Disclaimer
Disclaimer This presentation contains forward-looking statements regarding future events and the future results of Italgas that are based on current expectations, estimates, forecasts, and projections about the industries in which Italgas operates and the beliefs and assumptions of the management of
Slide 3: Index
Index 1 Gas networks are core for energy transition 2 Governance and Remuneration 3 Sustainable Value Creation Plan 4 Regulation
Slide 4: Gas networks are core for energy transition
1 Gas networks are core for energy transition 4
Slide 5: Decarbonization and competitiveness
Decarbonization and competitiveness European energy costs remain high vs history. To manage long-term security of supply and meet European decarbonization targets, in a fast and efficient way, a pragmatic technology- neutral approach is needed. For Italgas, sector coupling remains the solution. Key
Slide 6: Gas networks are core for energy transition
Gas networks are core for energy transition In Italian PNIEC 20241 gas infrastructure maintains a core role in energy transition, ensuring system security and flexibility if coupled with renewables development. EU CO2 emissions cut EU Biomethane production PNIEC main objectives relevant for DSOs Vs
Slide 7: Biomethane capacity growth gaining momentum
Biomethane capacity growth gaining momentum Italy is among the top-3 countries in Europe in terms of planned biomethane investments to 2030, according to EBA. Italy biomethane Planned investments EU biomethane production production1 in Europe2 targets Mcm 2,300 €4bn 35 512 €3bn Steep acceleration ne
Slide 8: Hydrogen is the energy for the future
Hydrogen is the energy for the future Hydrogen momentum continues to accelerate, Out of $570bn investment announced, $310bn are in a Europe is the largest region in terms more advanced phase (between feasibility study and of announced supply (~14 Mt) operational) ~1,000 projects with full or partial
Slide 9: Our strategy to 2030
Our strategy to 2030 Innovation lead approach is the trademark of our strategy in support of the energy transition and for shareholders’ value maximisation. Now factoring 2i Rete Gas acquisition and the potentials of a new wave of AI-driven transformation across all businesses Low-risk profile, prof
Slide 10: Vision, Purpose, Mission
The values that drive us Vision To be a leading figure in the world of energy, Purpose Pioneers by passion and builders by calling, driving its sustainable evolution and we bring all our energy to accelerate the innovating each day to improve people’s ecological transition. We do it for us. We do qu
Slide 11: Governance and Remuneration
2 Governance and Remuneration 11
Slide 12: Corporate Governance Model
Corporate Governance Model • Appoints the Board of Directors, the Board of Statutory Auditors and the Independent Auditing Firm SHAREHOLDERS • Approves the financial statements and remuneration reports MEETING • Resolves on amendments to the Bylaws and extraordinary transactions such as mergers, M&A
Slide 13: Board of Directors Composition
Board of Directors Composition Gender KEY TRANSACTION TERMS INDEPENDENCY According 44% According to Corporate 56% to CLF1 Governance Independency1 Code Benedetta Navarra President No No Male Female Paolo Gallo Executive No No 44% Claudio De Marco Non-executive Yes Yes 56% Fabiola Mascardi Non-execut
Slide 14: Board Diversity Policy
Board Diversity Policy Italgas recognises the value of diversity in the composition of the corporate bodies, in terms of gender, nationality, age, background and professional Gender experience Diversity can foster discussion and new ideas within the 4 Board, making it open to innovation and lateral
Slide 15: Committees
Committees The BoD has established three committees within it to provide advice and recommendations. COMPOSITION 3 members, 1 of whom independent SUSTAINABLE VALUE The SVC carries out proposal and consultation functions on matters of Lorenzo Parola Chair CREATION sustainability, such term being unde
Slide 16: Scope of skills, knowledge and experience
Scope of skills, knowledge and experience The table summarises the education and professional characteristics of each Director in office ESG / HR / CYBER ERM / LEGAL & FINANCIAL INDUSTRIAL CLIMATE AUDIT PEOPLE / SECURITY RISKS GOVERNANCE CHANGE HS&Q Benedetta Navarra Paolo Gallo Claudio De Marco Fab
Slide 17: Compensation policy
Compensation policy • Profitability (EBITDA) 30% • Investments 25% SHORT TERM • Net financial position 20% INCENTIVE PLAN • Sustainability 25% (accident rate, leakages, energy consumption, gender pay gap) • Results measured on a scale 70/130 (minimum-maximum performance, overall threshold equal to 8
Slide 18: Compensation policy pay mix
Compensation policy pay mix* Chief Executive Officer Executives with Strategic Responsibilities 36% 35% 21% 18% 45% 49% 79% 82% 19% 16% Pay elements Payment methods Fixed Short-term variable Long-term variable Shares Monetary remuneration (STI) (Co-investment + LTI) *As reported in https://www.italg
Slide 19: Compensation policy risk mitigation factors
Compensation policy risk mitigation factors RISK MITIGATION FACTORS STI CO-INVESTMENT LTI Use of various performance objectives consistent with the corporate strategy Use of incentive curves for each objective with predefined performance levels and linear interpolation of results Deferral of a porti
Slide 20: Policy for managing dialogue with all shareholders
Policy for managing dialogue with all shareholders In order to further promote an open, constant dialogue with all its Shareholders and in compliance with the recommendations made in this regard by the new Code of Corporate Governance, to which the Company adheres, during the meeting held on 18 Dece
Slide 21: Sustainable Value Creation Plan
3 Sustainable Value Creation Plan 21
Slide 22: Our idea of sustainability
Our idea of sustainability To have a tangible impact on reality, it is necessary to be able to anticipate the market context in which we operate and to understand the drivers of change as early as possible. Value Increase Sustainable Value Medium-long-term Factor of change Capitals Strategic Plan Cr
Slide 23: Builders of the Future
Builders of the Future FOR THE FUTURE OF FOR THE FUTURE OF FOR A SUSTAINABLE THE PLANET PEOPLE FUTURE TOGETHER Digitalise to bring about the energy Improve the quality of life and ensure Promote innovation and dialogue transition and decarbonisation the safety of employees, citizens and through part
Slide 24: Italgas – for the future of the planet
Italgas – for the future of the PLANET Reduction commitments to 2030 and 2050 reiterated for the enlarged perimeter Net Energy Consumption1,2, GHG Emissions Scope 1&22,3,4 -33% -42% 103t CO2 eq 2050 Net Zero TJ 2i Rete Gas Carbon 2020 2030 Italgas 2020 2030 Efficiency measures for industrial consump
Slide 25: Italgas – for the future of the planet: Net Zero Carbon
Italgas – for the future of the PLANET Reduction commitments to 2030 and 2050 reiterated for the enlarged perimeter GHG Emissions Scope 31,2, -33% 2050 Net Zero Carbon TJ 2020 2030 2i Rete Gas Italgas To 2030 To 2050 Supply chain engagement initiatives: Also carbon removal and supply chain initiati
Slide 26: Italgas – for the future of the planet
Italgas – for the future of the PLANET We count on digitisation to bring about the energy transition, the decarbonization and the efficient management of resources ACTIONS TARGET MEDIUM LONG-TERM IMPACTS Repurposing the network to increase • 100% of gas distribution network ready to accommodate ▪ Ec
Slide 27: Italgas – for the future of the planet
Italgas – for the future of the PLANET We contribute to the fight against climate change ACTIONS TARGET MEDIUM LONG-TERM IMPACTS • 115,000 tons of CO₂ savings (including PV) through investment ▪ Decarbonisation of the Country in Enanching the activities of ESCo in Energy Performance Contracts for in
Slide 28: Italgas – for the future of the planet
Italgas – for the future of the PLANET We protect the ecosystems and promote a circular economy ACTIONS TARGET MEDIUM LONG-TERM IMPACTS Introducing ecodesign principles in • 6 millions «Nimbus» gas smart meters installed, designed ▪ Mitigation of environmental impacts, smart meter production accordi
Slide 29: Italgas – for the future of people
Italgas – for the future of PEOPLE The successful integration of 2i Rete Gas will require the collaboration of all the People of the two groups and the ability to valorise their diversity for a successful inclusion. Our enhanced targets reflect this effort Training hours1 Women in responsibility rol
Slide 30: Italgas – for the future of the planet
Italgas – for the future of the PLANET We improve the quality of life and ensure the safety of employees, citizens and the national energy system ACTIONS TARGET LONG-TERM IMPACTS • 90% compliance with the 10-day and 100% compliance with the 20-day time limit to complete procedures within Italgas’ re
Slide 31: Italgas – for the future of the planet
Italgas – for the future of the PLANET We improve the quality of life and ensure the safety of employees, citizens and the national energy system ACTIONS TARGET LONG-TERM IMPACTS • Maintain a combined employee and contractor accident index below 0.15 ▪ Development of a corporate culture (minimum ann
Slide 32: Italgas – for the future of the planet
Italgas – for the future of the PLANET We develop the skills of the future ACTIONS TARGET LONG-TERM IMPACTS Promoting the dissemination of digital ▪ Energy and digital literacy of the • 30,000 persons engaged in external training activities dedicated to the energy skills for the energy sector outsid
Slide 33: Italgas – for the future of the planet
Italgas – for the future of the PLANET We valorise diversity and support equal opportunities and inclusion ACTIONS TARGET LONG-TERM IMPACTS • 23% Women in the total workforce by 2030 • 30% Women in the total workforce (white collars) by 2030 • 33% of women in responsability roles by 2030 ▪ Developme
Slide 34: Italgas – for a sustainable future together
Italgas – for a sustainable future together We promote innovation and dialogue through partnerships ACTIONS TARGET LONG-TERM IMPACTS ▪ Promotion of innovation in the service of energy transition • 3,000 innovative SMEs and start-ups evaluated for collaboration between 2022 Promoting the culture of i
Slide 35: Italgas – for a sustainable future together
Italgas – for a sustainable future together We encourage the adoption of sustainability principles in the supply chain ACTIONS TARGET LONG-TERM IMPACTS ▪ Increased resilience of the supply Disseminating the culture of • 100% of the suppliers potentially posing high sustainability risks 1 involved an
Slide 36: Italgas – for a sustainable future together
Italgas – for a sustainable future together We take care of the territory ACTIONS TARGET LONG-TERM IMPACTS Supporting employment levels and the • Involvement, by 2030, of 25% of selected best SMEs from current Group business ▪ Generation of shared value for the economy of the municipalities where an
Slide 37: Sustainability performance
Sustainability performance Neglegible 100 A 5 A+ 100 AAA ESG Risk A 91 AA 4.3 B+ B A Low C+ 70 ESG Risk 2,9 53 39 High ESG Risk DJSI CDP Climate FTSE4Good ISS Moody's ESG MSCI Sustainalytics score Maximum score Italgas Sector Average Note: based on most recent published rating
Slide 38: Regulation
4 Regulation 38
Slide 39: Italian gas distribution regulation
Italian gas distribution regulation CURRENT REGULATORY PERIOD 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 WACC REGULATORY PERIOD WACC WACC WACC trigger trigger reset Key features of Italian regulation RAB-based framework set and regulated by ARERA Tariffs ensure return on assets No volume risk
Slide 40: Italy regulated revenues scheme
Italy regulated revenues scheme Key features Unitary tariffs are set for the regulatory period for each distribution area: Achieved revenues reflect return on asset base. Working capital temporarily impacted by volumes fluctuations. REQUIRED RAB X + DEPRECIATION + OPEX REVENUES = Reg. WACC RAB inclu
Slide 41: Greek regulation
Greek regulation REGULATORY PERIOD 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 REGULATORY PERIOD Key features of Greek regulation TRANSPARENT LONG RAB-based framework regulated by the Regulatory DOWNSIDE REGULATORY CONCESSION Authority for Energy, Waste and Water (RAEWW) PROTECTION FRAMEWORK D
Slide 42: Greek regulated revenues scheme
Greek regulated revenues scheme Key features in 2024 Unitary tariffs are set for the regulatory period for each distribution area: • Based on the approved business plans and allowed returns, and inflated annually: the DSO is entitled to collect (required) revenues based on all investments and operat
Slide 43: Investor.relations@italgas.it
Investor.relations@italgas.it Anna Maria Scaglia Emanuele Isella