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HERA GROUP
C O R PO R AT E SO C IA L R ESPO N SIB IL IT Y
A N D S U S TA I N A B I L I T Y:
THE APPROACH OF THE HERA GROUP
Contents
1. Introduction to Hera: Presentation & Strategy
2. Sustainability at Hera
3. Green Bond
2
Introduction to Hera: Presentation & Strategy
3
Who is Hera Group?
Hera is a multi-utility leader
in environmental, water and
Hera pursues a responsible management of natural
resources and the use of solutions aimed at
improving the environmental impact of its activities
energy services.
Being a company built to last and to improve
society and the environment for future
generations
Key numbers
 4.5 bn/€ Revenues
 8,571 workers, 96.9% with an open–ended
contract
 52% share capital hold by 118 public shareholders
 1.3 million gas customers
 0.9 million electricity customers
 1.4 million integrated water services customers
 3.3 million citizens served by urban waste
services
4
GRUPPOHERA
Corporate Social Responsibility and
sustainability at Hera
5
Hera Group’s CSR Approach
The Values, the Mission and the Code of Ethics
represent, for the Hera Group, the landmarks to
define its sustainability objectives and reporting.
The Sustainability Report is integrated among the
Group’s management tools. The business plan
includes sustainability as a strategic priority.
Through the Balanced Scorecard the strategy has
been declined in goals assigned to the management.
These objectives include also the aspects of social
and environmental sustainability.
The Mission and Values: defined with the involvement of employees, have been approved by the board
of Directors on 26 June 2006.
Code of Ethics: established in 2007 with the involvement of employees is updated every three years.
The third edition of the Code was approved by the Board of Directors on the 23 January 2014.
Sustainability Report: is published since 2002 in accordance with the GRI guidelines. It is integrated
with the Strategic Plan and the Budget and contains sustainability objectives for each stakeholder.
Balanced Scorecard: Introduced in 2006, it is connected to the management’s incentive system. 20%
of the bonus is linked to sustainability goals.
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GRUPPOHERA
EU definition of CSR
“CSR is a concept whereby companies integrate social
and environmental concerns in their business
operations and in their interaction with their
stakeholders on a voluntary basis".
For the European Union, being socially responsible means
"not only fulfilling the applicable legal obligations, but also
going further, by investing in human capital, in the
environment and in relations with stakeholders".
2001 Communication from the European Commission («Green Paper»)
Corporate Social Responsibility: A business contribution to Sustainable
Development
7
GRUPPOHERA
Certifications and Ratings
Sustainability Report
It has been published since 2002 and approved by the
Board of Directors
It is Verified by an independent third party (DNV-GL) in
ESG Rating and Ethical Indices
Hera is included in the following:
Oekom research: Status: Prime / Rating: BKempen SNS Smaller Europe SRI Index
accordance with international guidelines: GRI-G4
ECPI Ethical Index EMU
(“Comprehensive” level)
Axia Ethical
Main Certifications
Global Compact
On 8 June 2004, the Hera Group has signed the commitments
contained in the Global Compact.
In 2011, Hera’s annual communication on progress achieved,
represented by the Sustainability Report, has been recognized
as advanced level within the Global Compact’s Differentiation
Programme.
ISO 9001: 14 certified companies– 95% of
employees
ISO 14001: 14 certified companies– 89% of
employees
OHSAS 18001: 14 certified companies – 89% of
employees
ISO 50001: 6 certified companies– 76% of
Carbon Disclosure Project - 2015
Performance: B
Disclosure: 98/100
employees
SA8000: 3 certified companies– 53% of
employees
EMAS: 45 plants - 77% of waste disposed
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GRUPPOHERA
2015 Sustainability Report
A new report for our
stakeholder…
Easy to read: all contents in 91 pages… and to know more
bs.gruppohera.it
Complete: compliant with GRI G4 guidelines at
«comprehensive» level
Focus on facts, commitments and targets:



9
92% targets achieved in 2015 (45)
51 new targets
65 case studies
GRUPPOHERA
2019 Goals in the Three Dimensions of Sustainability
Environmental sustainability
Social Sustainability
Economic Sustainability
Majority of Group’s electricity/heat
Exceeding AEEGSI1 standards on
Profitability consolidation:
production (73% in 2019) from
safety, continuity and commercial
EBITDA from € 884 million in 2015
renewable (and high efficiency)
quality
to € 1,050 million in 2019
sources
Continuous investments in training
Continuing growth pattern
Imola Cogeneration plant and WTE
and safety at work: 24 hours per
maintaining the economic /
emissions well below legal limits
capita / year and reduction of accident
financial balance: reduction of
Separate waste collection increase
index by a 3% yearly average
NFP/EBITDA to 2,82 in 2019
and decrease in use of landfills:
between 2015 and 2019 2
Synergies’ extraction from
65% of separate waste collection, less
Diversity management and work-
integrations: € 20 million of
than 9% of urban waste in landfills
life balance: carry out the actions
synergies planned thanks to
Plant mix increase in recovery and
contained in the 2015 welfare plan
AcegasApsAmga integration
recycling: new biodigestion plant for
Dialogue with stakeholders:
Increase distributed added
biomethane from organic waste
HeraLAB (multi stakeholder local
value:
Energy efficiency projects: -3%
council) consolidation
+ € 300 million in 2019 vs 2015
consumption in 2017
Sustainability integration in the
Approx 70% of customer requests
supply chain: 70% of the supplies
through virtual channels and 18%
selected with environmental and
electronic bills
social criteria (average score: 20/100)
1 Italian Authority for Electricity Gas and Water (AEEGSI).
2 Frequency index: number of accidents/hours worked x 1,000,000.
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GRUPPOHERA
Environmental Sustainability: Results and Objectives
Hera objectives have been defined under the framework of the
«Business plan 2015-19».
Hera is committed to reach and/or to maintain those performance levels
Objectives
2019 1
Results
2002
CO2 Emissions (g/KWh)
2015
628*
594
521
Production of Energy from renewable
sources (%)
20.4%
34.8%
35.0%
Production of Energy from renewable
sources (GWh)
103
824
976
Urban waste disposed of in landfills
49.0%
8.6%
<9%
Separate waste collection
26.4%
55.4%
65%
Separate waste collection per capita
(kg)
159
356
391
Compliance of WTE Emissions with
legal limits2
41%**
14.9%
≤14%
*The value represents CO2 emission that the Group started to measure in 2011 with the same methodology for all the plants.
** The value represents the compliance of emissions with legal limits for 2003.
1 The Objectives are defined considering the «Business plan 2015-19».
2 Compliance of waste-to-energy emissions with legally established limits in Legislative Decree no. 133/2005 – continuously monitored parameters (optimal values < 100%), average of
the plants managed. The Objective stated for 2017 consider the assumption that the levels of compliance compared to legal limits are far lower than prescription.
11
GRUPPOHERA
Social Sustainability: Results and Objectives
Objectives
2019 1
Results
2002
Gas emergency services (% of calls
2015
94.7%*
97.6%
98.5%
Training (hours per person)
14.1
31.4
24.55
Health and Safety (frequency index)2
49.6
20.6
19.6
Suppliers selected with a social and
environmental criteria (% supplies
0%
66.5%
70%
0
23.5
67**
70
706
50
63
655
with an action within 60 minutes)
value)
Suppliers selected with a social and
environmental criteria3 (out of 100)
Customer Satisfaction Index (out of
100)
Company Internal climate index (out
of 100)4
30
* The % of call actions was measured starting from 2005.
** The value represents the index for 2006.
The Objectives are defined considering the «Business plan 2015-19».
Frequency index: number of accidents/hours worked x 1,000,000.
3 Average score attributed on a social and environmental criteria.
4 Excluding AcegasApsAmga, the first Internal Climate survey was held in 2005
5 The Objective for 2019 include all the workforce of AcegasApsAmga after the merger.
6 For the international recognized methodology used values equal or superior to 70 represents «high satisfaction», as reported in the Sustainability Report.
1
2
12
GRUPPOHERA
Green Bond
13
Green Bond
In July 2014, the Hera Group launched a green bond, the first in Italy, with the aim of financing the
sustainability investments, so as to contribute via its activities to an improved environmental quality
The bond issue, availing of the euro medium term notes programme, for a total of 500 million
repayable in 10 years, was destined to finance or refinance projects linked to sustainability in four
main spheres: fight against climate change, reduction in emissions, quality in water treatment
and the waste cycle
The instrument envisages a coupon of 2.375% and a return on 2.436%.
The orders received were mainly taken from foreign investors (75% outside Italy ), and a
predominance of asset managers. 69% of demand came from investors who have Environment,
Social and Governance (ESG) among their investment criteria, so-called “sustainable” investors.
The list of the projects eligible for funding (25 projects) has been established by Hera on the basis of
precise environmental criteria and subsequently confirmed by DNV GL to ensure the correct
allocation of the funds. With regard to each sphere of the project, a set of indicators have been
identified which reflect the environmental benefits associated with the individual initiatives.
14
GRUPPOHERA
Selection Criteria of Projects Financed by the Green Bond
Environmental
Category
Environmental Green
Projects category
Definition of criteria for project eligibility
Photovoltaic plants for electrical energy production
Fight Against
Climate Change
Increase of energy
production by non-fossil
fuels
Biogas from composting plants for electrical energy production
District heating grids partly connected to cogeneration and/or
thermal energy production plants from non-fossil fuels
Increase of energy
efficiency
Increase Air
Quality
Biogas from landfills for electrical energy production
High Efficiency Cogeneration, combined production of heat and
power (CHP)
Improve WTE plants efficiency to increase electrical energy
production from waste treatment
Improvement of WTE plants
for waste treatment
Improve WTE plants efficiency to reduce air pollution from waste
treatment
Increase
Availability of
Clean Water
Improvement of wastewater
treatment plants
Improve wastewater treatment plants efficiency
Increase
Sustainable Waste
Management
Increase of sorted waste
collection and disposal and
reduction of waste
disposed in landfills
15
Community recycling depot
Bins for sorted waste collection
GRUPPOHERA
Green Projects at Hera
Increase
Availability of
Clean Water
Increase
Sustainable Waste
Management
500 mln
euro
Increase Air quality
Environmental
investments
selected for
the Green
Bond and
reviewed by
DNV-GL
Use of the
funds
received via
the Green
Bond (€ mln)
Fight Aginst Climate
Change
Renewable
Energy
efficiency
WTE Plants
Waste
water
Waste
TOTAL
9
7
4
4
1
25
2006-2014 investments
53.9
187.6
173.2
21.5
4.7
440.9
Investments 2015
1.5
17.6
-
5.4
5.2
29.7
-
13.9
-
5.0
10.5
29.4
55.4
219.1
173.2
31.9
20.4
500.0
Number of projects
Investments in pipeline
Total funds raised
16
GRUPPOHERA
Green Investment: Increase of Energy Production from Non-fossil Fuels
Photovoltaic plants, anaerobic digestion plants
(production of electricity from organic waste), biogas
plants (production of electricity from landfill biogas).
Date
Amount
(mln Euro)
Photovoltaic plants (# 5)
2010-12
15
Biogas plants (# 7)
2006-13
5
Anaerobic digestion plants (# 3)
2008-13
35
Investment
Total
55
Overall reduction of CO2
emitted in 2006-2015:
251,000 Tons
15 plants developed
in 2006- 2015
17
GRUPPOHERA
Green Investment – Increase of Energy Production From NonFossil Fuels: Example of Anaerobic Digester in Cesena
Hera manages (through Romagna Compost) a plant endowed with an
integrated anaerobic – aerobic system for the bio treatment of
urban and special (but not dangerous) waste.
The plant has a treatment capacity equal to:
40,000 ton/year of organic waste;
15,000 ton/year of lignocellulosic waste
The plant exclusively treats organic materials, which are reused based
on the following process:
Anaerobic Digestion (in the absence of oxygen) of organic waste
and production of biogas with high concentration of methane (around
55-60%) using the dry batch fermentation technology.
The outcome after the process:
Production of electricity and thermal
energy via internal-combusting engines
(cogenerators) fueled by the biogas (with
concentration of methane of ca. 55%)
Aerobic treatment (in the presence of oxygen) of the outcome of
produced by the anaerobic digestion
anaerobic digestion (digested) through a first phase of intensive
Production of mixed compost, so called
oxidation in aired lines and a second phase of aerobic stabilization in
“Romagna Compost” (compliant with Law
an aired slab.
Decree 75/2010), that can also be used
for bio agriculture.
Electricity produced in 2015: 4,428 MWh
equal to the annual consumption of 1,640 families
18
GRUPPOHERA
Green Investment – Increase of Energy Production From NonFossil Fuels: Biomethane plant
In 2015 the activities for the construction of the Biomethane Plant in
Sant’Agata Bolognese progressed.
In the same period the technical choices and designs were completed, while
the tenders for civil works will be completed in the first half of 2016 for the
biodigester and for the purification system for the biogas produced.
The authorization phase is expected to be completed before the end of the
third quarter of 2016.
The outcome after the process:
The target is to start the production in 2018.
The total investment is estimated in 30
million euro
The biomethane can be fed into the gas
networks, or used as fuels for vehicles
instead of fossil fuels.
Process 100 thousand tonnes per year of
organic waste from separate collection;
Produce about 6.3 million m3 per year of
biomethane
Produce about 20,000 tons of compost
The biomethane can be fed into the gas networks, after the regulatory
process, or used as fuels for vehicles instead of fossil fuels
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GRUPPOHERA
Green Investment: Increase of Energy Efficiency
Construction of cogeneration plants for the purpose of
district heating (production of electricity and thermal
energy), development of district heating network,
increase in housing units served with thermal energy.
Investment
Date
Amount
(mln €)
Cogeneration plant in Imola: plant start in 2009
2006-15
93
Development of district heating network
(BO, FE,FC,IF,MO)
2006-13
106
Development of industrial cogeneration
2014-15
6
Total
Sources used for district heating
205
Sustainability Indicators
Primary Energy saved:
33.060 TOE (Tons Oil Eq.)
+109% vs 2006
Around 84.000 appartements
served
+70% vs. 2006
20
GRUPPOHERA
Green Investment - Increase of Energy Efficiency: Example of Imola
Plant for the production of electricity and thermal energy for
the purposes of district heating in the Municipality of Imola.
Location: Casalegno (Imola)
Capacity: 80 MWe
Start date: 2009
Amount: 93 mln euro
Certifcation: EMAS, ISO14001
Incentives: Green Certificates for district heating
Sustainability Indicators
+200%
-34%
21
National
Limit
Authorized
Limit
2015
Nitrogen oxide
60
15
8.9
Carbon monoxide
50
10
1.6
Ammonia Slip
Not
regulated
2.5
0.1
Total Particulate Matter
Not
regulated
5
0.02
PM10
Not
regulated
1
<0.04
mg/Nm3
-54%
GRUPPOHERA
Green Investment - Increase of Energy Efficiency: the ISO 50001 certification
The energy improvement plans of Hera Spa, AcegasApsAmga and Marche Multiservizi drawn up as part of their energy
management systems ISO50001, include 99 measures to be implemented in the three-year span of the management
system.
These measures will reduce energy consumption by almost 6,000 toe, 85% of the target set for 2017.
The 44 measures already implemented by the end of 2015 have already saved about 2,200 toe, 30% of the target set for
2017.
Type of measure
N. of
measures
Annual
savings (toe)
No. measures
implemented at
31.12. 2015
Savings
achieved as at
31.12.2015 (toe)
Wastewater treatment
plants and potable water
treatment plants
55
3,416
25
1,084
Revamping of district
heating plants
16
1,758
6
554
9
339
5
263
Energy networks and
regulation and measuring
stations
Drive System Tool
project to reduce fuel
consumption
Rationalization of vehicle
routing
4
314
2
253
Other minor measures
15
136
6
24
Total
99
5,962
44
2,178
Equal to 85% of the reduction target of
3% of consumption by 2017
-3% of energy
consumption
at 2017
99 measures
identified,
44 already
implemented
Equal to 30% of the reduction target of 3%
of consumption by 2017
The 2014-2017 energy improvement plans (Hera, AcegasApsAmga and Marche Multiservizi)
22
GRUPPOHERA
Green Investment: Improvement of WTE Plants for Waste Treatment
Revamping of existing plants to improve plant
performances and reduce atmospheric emissions
Date
Plant
start
Amount
(mln €)
WTE Ferrara
2006-09
2008
43
WTE Modena 4th line
2006-11
2009
47
WTE Forlì
2006-10
2010
39
WTE Rimini
2006-11
2010
44
Investment
Total
173
Var. 2006 - 2015
Waste treated: +89%
Energy produced1: +271% (equal
to the consumption of over
124.000 families)
Total emissions2: -51%
* WTE atmospheric emissions (Ferrara, Forlì’, Rimini, Modena plants) compared to legal
limits defined by italian D.Lgs. 133/2005 (best value <100%) (%)
23
1 Electric and Thermal energy produced in the considered plants
2 Average of concentrations of atmospheric emissions variation of
the following parameters monitored continuously: particulates,
hydrochloric acid, nitric oxides, sulfur oxides, carbon monoxide,
hydrofluoric acid and total organic carbon
GRUPPOHERA
Green Investment: Improvement of Wastewater Treatment Plants
Efficiency
Development of existing wastewater treatment
plants and upgrade
Main investments to improve efficiency :
Bologna : denitrification section, aimed mainly at improving
New wastewater treatment plants:
the removal of nitrogen. the quality of outgoing water has
The Piano Salvaguardia della Balneazione
improved in terms of ammonia nitrogen(-68%), in terms of
(PSB) in Rimini aims to reduce by 100% the
BOD5 (-59%), as regards total phosphorus(-40%) and for
swimming bans and 84% the COD pollution.
total nitrogen (- 21%). Electricity consumption remains
stable.
Main
plants
financed
Forlì : total revamping of the plant. The quality of outgoing
Date
Plant Amount
Citizens
Start (mln €) equivalents
water shows an improvement in total nitrogen (-17%) and
Forlì
2009-13
2013
7
250.000
total phosphorus (-57%). Electricity consumption reduced of
Bologna
2009-12
2011
5
900.000
33%.
Lugo
2009-13
2012
5
270.000
Lugo (RA): quality of outgoing water has improved with
PSB Rimini
2013-18
-
10
-
27
1.539.000
Total
regard to all of the pollutants considered with percentage
improvements in terms of COD (-14% ), ammonia nitrogen
(-89%), total nitrogen (-69%) . Electricity consumption
remains stable.
*(BOD5, COD, SST, ammonia nitrogen) (%)
24
GRUPPOHERA
Green Investment: Increase of Separate Waste Collection and Disposal
and Reduction of Waste Disposed in Landfills
Extension of the separate waste collection services: purchase
of waste containers (skips/drums, “igloo” bins) and
construction of sorted waste collection plants
Investments
Separate waste collection services
development
Date
2014-15
Amount
(mln €)
10
Per-capita separate waste
collection 2015: 356 kg
(+64% vs. 2006)
In Bologna at the end of 2015,
65 underground drop-off
points were operational.
Separate waste collection in
the city centre increased from
28.0% in 2014 to 42.1% in
2015.
Urban waste collected and
disposed in landfills in 2015:
8.6% (37% in 2006)
Average in Italy: 34%
Average in EU: 28%
EU target 2030: <10%
Separate waste collection target
2019: 65%
25
GRUPPOHERA
Green Investment : Separate Waste Collection and Urban Waste
Management
Landfills continue to be the primary treatment method in 12 European countries. In Italy 34% of municipal waste is disposed
of in landfills. In Europe, the most virtuous countries are Germany, Sweden, Belgium, the Netherlands and Denmark.
In these countries little or no municipal waste is disposed of in landfills, while waste-to-energy treatment accounts for 35% to
54%. The remainder is recycled. Hera is in line with these countries in terms of recycling with further improvements
planned for the coming years.
Disposal of municipal waste in Europe Hera among the most virtuous
26
Thank you for your attention.
For more information: www.gruppohera.it
Discover the SR: bs.gruppohera.it
Filippo M. Bocchi
Director for Corporate Social Responsibility
[email protected]