Comparative Analysis of Sustainability Performance Methodological Remarks

Transcription

1 Comparative Analysis of Sustainability Performance Methodological Remarks Convinced that a comparison of environmental, social and governance performance is of interest, not only to the Company itself, but also to its stakeholders, certain comparisons between Terna's results and those of other companies are included in the 2013 Sustainability Report, as was the case in the preceding three years. Listed below are the main criteria adopted in the analysis, as an introduction to the reading and interpretation of the comparisons of individual indicators in the Report: three panels of companies were identified: an industry panel, composed of the European transmission system operators and the major etra-european operators in terms of kilometres of lines managed; and two multi-industry panels, the first relative to large Italian companies (the 40 companies of the FTSE-MIB at 18 December 2013) and the second relative to the best international performers (the 24 world Sustainability Industry Group Leaders, identified by the RobecoSAM sustainability rating agency and disclosed at the publishing of the Dow Jones Sustainability Inde of September 2013). The purpose of the three panels is to guarantee, also relative to the type of indicator reviewed, a comparison between companies with the same operational characteristics, an Italian comparison, and a comparison with the top international performers. The Terna figures do not contribute to the calculation of the average in the case of the RobecoSAM Supersector Leaders panel; the companies considered from among those in the three panels were those which publicise the information necessary for comparisons either on their websites, through the Sustainability Report (even if not prepared following the GRI guidelines) or through other documentation (HSE Report, financial report, etc.). This led to a reduction in the sample compared to the starting panel, as demonstrated in the following table; the use of published Sustainability Reports entails reference to 2012 data, since the comparisons were drafted when the 2013 Reports were still being prepared, as was the case for Terna. It must be noted that, despite the eclusion of data which was eplicitly not homogeneous, in numerous cases doubts remain around the actual comparability between companies, especially when the average and best performances are viewed from a distance: it is in fact probable that significant deviations depend on different application criteria not eplained of the GRI protocols, rather than on particularly progressive corporate behaviour. Some of the indicators considered (water consumption, waste produced, CO 2 emissions) are epressed as physical quantities in absolute terms and therefore show very different levels depending on the type of production activity and the size of the company. In these cases, the comparison provides information on the varying significance of the

2 environmental aspects being considered for the individual companies, but does not fulfil the task of making the performance comparable. For further details, see the Terna website and the note Comparing sustainability performance: Terna's eperience contained in the study Beyond the financial figures: companies and collective well-being, drafted by CSR Manager Network and ISTAT, and available on their respective websites ( and TSO Panel FTSE-MIB Panel ROBECOSAM Panel Companies considered (No.) Companies with sustainability document (No.) Companies with relevant data (No.)

3 CO 2 emissions: comparative data The figures used for comparison as regards the emission of greenhouse gases in thousands of tonnes of CO 2 are composed of the relative figures on direct and indirect emissions (aims 1 and 2). In the absence of normalisation factors valid for all sectors, it was deemed of interest to present the company data on CO 2 emissions in absolute terms despite the poor comparability. Such figures, which vary greatly in magnitude from one case to another, at least provide an indication of the importance of greenhouse gas emissions and therefore of the practical need to contain and mitigate them from the point of view of sustainability in the various sectors and companies. The comparison was thus made with the companies of all three panels: TSO, RobecoSAM Super Sector Leaders and the FTSE MIB companies. In 2013, Terna emitted 138 thousand tonnes of CO 2. In 2012, the year for which comparative data is available, the figure was 140 thousand tonnes, significantly lower than the average of all three panels. CO 2 emissions (thousands of tonnes) 2012 TSO FTSE-MIB (1) RobecoSAM Supersector Leaders Figures available Average 9, , ,853.5 Ma. 122, , ,210.0 Min Terna (1) For the indicator of CO 2 emissions for two of the companies on the FTSE-MIB panel, the figure published in the document CDP Italy 100 Climate Change report 2013 as part of the Carbon Disclosure Project was considered.

4 SF 6 leaks: comparative data SF 6 gas has an etremely powerful greenhouse effect (22,800 times more than CO 2 (1)) and is used by electricity transmission operators as a result of its ecellent electrical insulation properties. On account of the specific nature of use of this gas, only the TSO panel was considered for the comparison. The SF 6 figure is given as the leak rate with respect to the total quantity of gas in the station equipment. In 2013, Terna recorded a leak rate of 0.49%, lower than in 2012 (0.59%), the year for which comparative data is available. In 2012, Terna's performance was above average (0.76%). A graph of the data available for 2012 is shown below: % INCIDENCE OF SF6 LEAKAGE 2012 FIGURES Min Terna Media Ma (1) See the IPCC Fourth Assessment Report: Climate Change 2007

5 Water consumption: comparative data The comparison of relative data on water consumption is made both in terms of absolute values and per capita consumption. The difficulties in terms of comparability are evident, since water consumption is related to the production process and is, therefore, high for companies producing tangible goods and, above all, for utilities using water in cooling processes; while it is low for companies supplying intangible goods or services such as banks. It should also be noted that consumption does not prove to be significantly influenced by the number of employees. Despite the poor comparability, comparison and disclosure of water consumption levels are considered of interest since they highlight the differences among sectors and emphasise the importance of limiting consumption for various sectors and companies. In 2013, Terna's total water consumption was thousand m 3 (equal to 57.6 m 3 per capita), a lower figure than 2012, the year for which comparative data is available in which consumption was thousand m 3 (equal to 63.9 m 3 per capita). Water consumption (1) 2012 TSO FTSE-MIB RobecoSAM Figures available Unit of measure thousands of cubic metres cubic metres/emplo yee thousands of cubic metres cubic metres/emplo yee thousands of cubic metres cubic metres/emplo yee Average 315, , , , , Ma. 1,509, , ,357, , , ,591.8 Min Terna (1) No distinction was made between fresh water and sea water.

6 Production of waste: comparative data The comparison of waste production by the various companies was made on absolute and per capita production of total waste. The quantity of waste produced depends largely on the sector in which the company operates and, to a lesser etent, on the number of employees. Despite the intrinsic limitations of the comparison and in the absence of more effective normalisation factors than the number of employees, it was deemed of interest to present the main figures on waste production. Such figures do at least provide an indication of the importance of waste and therefore of its practical significance in terms of sustainability in the various sectors and companies. The companies with the biggest waste production in each panel (TSO, RobecoSAM and FTSE-MIB) present absolute values considerably higher than those of Terna; such companies respectively produce 177, 414 and 1,951 times the waste produced by Terna. In 2013, Terna produced a total of 5,263.6 tonnes of waste, 1.53 tonnes per capita. This is compared to the 6,208.1 tonnes in 2012, the year for which comparative data is available, implying 1.8 tonnes per capita. A figure, as stated below, which is the average of all three panels. Tonnes of waste produced and tonnes of waste produced per capita 2012 TSO FTSE-MIB RobecoSAM Figures available Unit of measure tonnes tonnes/employee tonnes tonnes/employee tonnes tonnes/employe e Average 260, , , Ma. 1,394, , ,572, Min Terna 6, , ,

7 Staff turnover: comparative data Terna's staff turnover rate is defined as the ratio of employees leaving during the year to the number of employees as at 31 December of the previous year. As the staff turnover rate is an indirect indicator of the internal company climate affecting all divisions, the figures for the transmission companies (TSO panel) and those of the large companies listed on the Italian stock echange (FTSE-MIB) were taken into account, as well as those for the international leaders in sustainability (RobecoSAM Supersector Leaders). In 2013, Terna's turnover rate was 1.8%. In 2012, the year for which comparative data is available, the turnover rate was 3.0%, below the average of all the reference panels. Turnover rate percentage values 2012 TSO FTSE-MIB RobecoSAM Supersector Leaders Figures available Average Ma Min Terna 1.8

8 Training for employees: comparative data The comparison of staff-training performance uses the per capita hours of training provided by companies as a reference. Since per capita training does not depend on the size of the company or on the sector in which companies operate, figures for the companies on all three panels were eamined. In 2013, Terna provided an average of 35 hours of training per capita compared to 41 hours in 2012 (the year for which comparative data is available). Compared to the other companies, Terna is in line with the average value for the RobecoSAM panel, below average for the TSO panel and above average for the FTSE-MIB panel. Hours of training per capita 2012 TSO FTSE-MIB RobecoSAM Supersector Leaders Figures available Average Ma Min Terna 41.0

9 Gender pay gap: comparative data The comparison between Terna and other companies in terms of equal opportunities is conducted by taking the percentage gender pay gap as a reference; the result of the ratio between men's and women's basic annual salary for the same categories of work. On account of the difference between categories from one country to another, the comparison was only performed for the companies in the FTSE-MIB panel, where most of the companies use typical Italian categories to classify employees. In 2013, the percentage gender pay gap at Terna was 81.3 % for senior eecutives, 96.3% for the junior eecutives and 95.1% for white-collar workers; in 2012, the year for which comparative data is available, the pay gap was 80% at the senior eecutive level and 94% for both junior eecutives and white-collar workers. The difference was not calculated for blue-collar workers, as there are no women working in that category at Terna. Gender pay gap percentage values 2012 FTSE-MIB Panel Senior eecutives Junior eecutives White-collar workers Figures available Average Ma Min Terna

10 Relevant Panels TSO Panel The following table sets out the transmission operators which have been analysed, specifying the country in which they operate and any additional sectors in which they have interests. Finally, an "" in the final column indicates the companies for which it has been possible to acquire the relevant data for comparison. Name Country Other Sectors 50 Hertz Transmission Germany American Electric Power Amprion Augstsprieguma tīkls Centrais Elétricas Brasileiras ČEPS USA Germany Latvia Brazil Czech Republic Generation of electrical energy Generation of electrical energy Data acquired China Southern Power Grid China Creos Luembourg Luembourg Gas Crnogorski elektroprenosni sistem AD Montenegro Croatian Transmission System Operator Croatia Cyprus Transmission System Operator EirGrid Electroenergien Sistemen Operator Cyprus Ireland Bulgaria Elektro-Slovenija Slovenia Elering Estonia Elia System Operator SA Belgium Energinet.dk Denmark Gas Eskom South Africa Generation of electrical energy Fingrid Finland Gujarat Energy Transmission Corp. Hydro-Quebec Independent Power Transmission Operator India Canada Greece Generation of electrical energy Interconeion Eleéctrica SA Latin America Telecommunications International Tranmission Company/Entergy ISO BiH JP Elektromreža Srbije USA Bosnia-Herz. Serbia Landsnet Iceland Litgrid Maharashtra State Electricity Lithuania India

11 Transmission MAVIR MEPSO National Grid Electricity Transmission plc Hungary Macedonia Great Britain Gas National Grid US US Gas Polskie Sieci Elektroenergetyczne Poland Power Grid Corporation of India Ltd India Telecommunications Red Eléctrica de España Spain Redes Energéticas Nacionais Portugal Gas Réseau de Transport d'électricité France Rosseti / Federal Grid Company Russia Scottish and Southern Energy Scotland Generation of electrical energy Scottish Power Transmission plc Slovenska elektrizacna prenosova sustava Scotland Slovakia Generation of electrical energy State Grid Corporation of China China Statnett Norway Svenska Kraftnät Sweden Gas Swissgrid ag System Operator for Northern Ireland Switzerland Northern Ireland TenneT TSO B.V. Netherlands TenneT TSO GmbH Germany Terna Italy Transelectrica Romania Transmission Corporation of Andhra Pradesh India TransnetBW GmbH Germany Verbund Austrian Power Grid Austria Vorarlberger Übertragungsnetz GmbH Austria

12 FTSE-MIB Panel The following table refers to the companies in the basket as at 18/12/2013. The relevant sector is specified, and an "" in the final column indicates companies for which it has been possible to acquire the relevant data for comparison. Name Sector Data acquired A2A Energy Ansaldo STS Holding Atlantia Transport Autogrill Food Azimut Financial services Banco Popolare società cooperativa Banking Banca Monte dei Paschi di Siena Banking Banca Popolare dell'emilia Romagna Banking Banca Popolare di Milano Banking Buzzi Unicem Cement Campari Drinks DiaSorin Diagnostics ENEL Energy Enel Green Power Energy ENI Oil & Gas

13 Eor Holding Fiat Vehicles & Publishing Fiat Industrial Industrial Vehicles Finmeccanica Aeronautics & Defence Fondiaria- Sai Insurance Generali assicurazioni Insurance Gtech Lotteries & Betting Intesa Sanpaolo Banking Luottica Eyewear Mediaset Media & Communications Mediobanca Banking Mediolanum Insurance & Banking Parmalat Food Industry Pirelli & C. Tyres & Real Estate Prysmian Cables Saipem Oil Industry Salvatore Ferragamo Luury Goods Snam Natural Gas

14 STMicroelectronics Electronics Telecom Italia Telecommunications Tenaris Iron & Steel Terna - Rete Elettrica Nazionale Transmission of electrical energy Tod's Footwear Ubi banca Banking UniCredit Banking World Duty Free Travel retail

15 ROBECOSAM Panel Sustainability Industry Group Leaders The following table sets out the names of the 24 global Sustainability Industry Group Leaders, identified by the RobecoSAM sustainability rating agency and presented with the publication of the Dow Jones Sustainability Inde in September. The relevant sector is specified, along with the country in which the company carries out its business, and an "" in the final column indicates the companies for which it has been possible to acquire the relevant data for comparison. Name Sector Country Data acquired Abbott Laboratories Health Care Equipment & Services United States Adecco SA Commercial & Professional Services Switzerland Air France-KLM Transportation France Akzo Nobel NV Materials Netherlands Alcatel-Lucent SA Technology Hardware & Equipment France Allianz SE Insurance Germany Australia & New Zealand Banking Group Ltd Banks Australia BG Group PLC Energy United Kingdom Citigroup Inc Diversified Financials United States EDP - Energias de Portugal SA Utilities Portugal Henkel AG & Co KGaA Household & Personal Products Germany KT Corp Telecommunication Services South Korea Lotte Shopping Co Ltd Retailing South Korea Nestlé SA Food, Beverage & Tobacco Switzerland

16 Panasonic Corp Consumer Durables & Apparel Japan Roche Holding AG Pharmaceuticals, Biotechnology & Life Sciences Switzerland SAP AG Software & Services Germany Siemens AG Capital Goods Germany Stockland Real Estate Australia Tabcorp Holdings Ltd Consumer Services Australia Taiwan Semicon. Manu. Semiconductors & Semiconductor Equipment Taiwan Telenet Group Holding NV Average Belgium Volkswagen AG Automobiles & Components Germany Woolworths Ltd Food & Staples Retailing Australia