DRAWING UP THIS REPORT
STANDARDS
Sustainability Report 2005 was drawn up on the basis of the AA1000 standard which provides the steps required for preparing social and sustainability reports. The report content matter was selected in compliance with GRI, GBS and CSR-SC project guidelines, while bearing in mind information requests of interest to corporate stakeholders.
The Sustainability Reporting Guidelines standard was developed in 2002 by Global Reporting Initiative for an assessment of corporate economic, environmental and social performance ratings. The Gruppo di studio per il Bilancio Sociale (GBS) had, instead, proposed its Principi di Redazione del Bilancio Sociale (principles for the preparation of social reports) in 2001 . In 2003, the Ministry of Labour and Social Policies presented the CSR-SC (Corporate Social Responsibility-Social Commitment) project for fostering and disseminating Corporate Social Responsibility. Stakeholder involvement activities were conducted with reference to the AA1000 SES standard .
REPORT DOCUMENT (STRUCTURAL OVERVIEW)
The first three sections of the report provide an account of method of construction, notes on the identity of the company, mission, corporate strategies, sustainability strategies, the key indicators for an assessment of the company from the angle of economic, environmental and social sustainability, and dialogue actions with stakeholders.
The fourth section highlights corporate economic returns by means of the methodology based on value added allocated to stakeholders proposed by the GBS.
The next sections provide an account of the results achieved for each class of stakeholder, given as performance ratings of a qualitative and quantitative nature and related to the objectives set forth in the previous report and achievement of these. The objectives for the coming years for each class of stakeholder have been set. These objectives are aligned with the company's strategic planning instruments. In certain cases, future targets to which the company is committed have been specified.
REPORTING ACTIONS
The reporting actions comply with the AA1000 standard.
The process of setting sustainability objectives entailed analysis of the corporate strategic planning instruments and pinpointing projects prospected as objectives that impact stakeholders according to the Balanced Scorecard system. This information was obtained by means of interviews with the managers of the major divisions and pertaining management teams.
The data collection actions required for the report entailed the preparation and distribution of forms providing the technical indications used for construction of indicators. Approx. 70 organisational units from all corporate structures were involved.
The audit of the report was drawn up by an external audit company which certified report compliance with GRI and GBS standards and the reliability of the quantitative data provided.
The company's Internal Auditing function has also planned inspections and controls for the purpose of certifying the data collection method. The corporate quality management system, certified by DNV in compliance with the ISO 9001:2000 ISO standard, foresees collection of quality KPIs on a regular basis.
Integration with the Business Plan, Balanced Scorecard and the yearly Budget has been foreseen in order to ensure consistency, with respect to the indications provided and the instruments for planning and internal controls.
The activities of listening and dialogue with stakeholders were broadened out and extended, as reported in the dedicated section of this report.
SCOPE OF REPORTING
For precision, with regard to the events of 2005, it was decided to draw up the Sustainability Report also including data for the Meta Group. Integration of the Meta Group took legal effect (according to civil law) on 1 January 2005. The scope of reporting is therefore aligned with that of the Consolidated Financial Statement Pro-Forma published as part of the Annual Report for 2005. Clearly, as from year 2005 it is mandatory for the Hera Group, as for all other listed companies to apply (IFRS) international principles when drawing up the Consolidated Financial Statement. Application of the said IFRS principles to the Consolidated Financial Statement for 2005, and in particular IFRS 3, required exclusion of the economic contribution of the Meta Group. The Annual Report for 2005 contains not only the Consolidated Financial Statement and the Statutory Financial Statement but also a Consolidated Financial Statement Pro-Forma.
The Consolidated Financial Statement Pro-Forma document also includes the Meta Group. The calculated data for 2004 included the activities managed by the companies, Agea, Acosea and Ecologia Ambiente (companies operational in the energy, water and environmental sectors in the provinces of Ferrara and Ravenna), which joined Hera in 2005 but for which consolidation in the Annual Report was effective as from 1 January 2004. There may therefore be certain data discrepancies with respect to the 2004 report, published in June 2005. In certain cases, the findings do not tally fully with the report, in terms of scope of reporting. The data gaps in question (indicated by notes accompanying the individual tables) may be ascribed, variously, to the lack of certain items, or to the fact that certain items are not sufficiently significant, or to the fact that the pertaining data cannot be collected in a manner complying satisfactorily with quality standards or, alternatively, in an economically feasible manner. Our objective for the future is ongoing development of our reporting activities for greater precision as to the area of consolidation of the Annual Report.
MAJOR SIZE AND STRUCTURE CHANGES
The major corporate changes in terms of size relate to mergers of 2004 and 2005 when the companies, Agea, Acosea, Ecologia Ambiente and the Meta Group joined Hera. In commenting the data, we split indicator variations generated by changes in area of consolidation off from those generated by effective changes in performance ratings.
THE WORKING GROUP
A Guidance Committee was set up with the task of providing guidelines and controls with respect to the tasks at hand. This committee is made up of the Managing Director, the General Director, and the managers of the divisione Ambiente (Environment Division), the (Networks Division) and the Corp. Communications manager.
The operational working group, coordinated by the Corporate Social Responsibility Unit, was made up of staff representing the Environment Division, the divisione Vendite e Marketing (Sales and Marketing Division), Hera Bologna, and Corp. Communications. This work saw the involvement of the Quality, Safety and Environment managers and the managers of the Local Operating Companies.
Guidance Committee: Maurizio Chiarini, Roberto Barilli, Claudio Galli, Giancarlo Leoni, Giuseppe Gagliano.
Working Group: Filippo M. Bocchi, Chiara Ciuffetelli, Giorgia Freddi, Annarita Lovito, Gabriele Magli, Leonarda Maresta, Gianluca Principato, Emanuel Zamagni.
Many people contributed to this report by through their data collection activities or by providing explanatory notes and comments. The list is as follows: Robert Accardo, Patrizia Albertazzi, Marta Alesi, Verardo Amerini, Claudio Anzalone, Alberto Apollo, Claudio Artioli, Paolo Avanzi, Silvia Baccarani, Stefano Baldassini, Giovanni Barberis, Paolo Bartoletti, Andrea Basso, Andrea Bazzi, Marina Bellei, Linda Benetti, Ivano Bertoni, Andrea Bertozzi, Roberto Biavati, Angelo Bruschi, Giancarlo Campri, Nicola Cascone, Dario Casone, Valentina Cervellati, Michele Corradini, Maurizio Corsi, Elisa Costa, Barbara D'Addezio, Gianni De Mastro, Chiara Di Rocco, Ennio Dottori, Alessia Evangelisti, Cristian Fabbri, Mila Fabbri, Silvana Faccini, Luca N. Favilli, Fausto Ferraresi, Giovanna Filanti, Myriam R. Finocchiaro, Franco Fogacci, Giacomo Fossi, Roberto Gasparetto, Cristina Gasperini, Virna Gioiellieri, Luca Giulianelli, Federico U. Giva, Maurizio Gregori, Adriana Grifoni, Ermete Guerra, Marcello Guerrini, Valeria Guizzardi, Jens K. Hansen, Giangiuseppe Lengueglia, Patrizia Lombardi, Loris Lorenzi, Nicoletta Lorenzi, Carla Macrelli, Liduina Magnani, Micaela Maini, Marco Malagoli, Rita Malossi, Silvia Malservisi, Paolo Manfredini, Claudio Masini, Pasquale Mauro, Tiziano Mazzoni, Edolo Minarelli, Laura Minelli, Mariarita Montevecchi, Lorena Morelli, Alessandro Morgagni, Chiara Navacchia, Simona Olivi, Fabrizio Pancino, Carla Petraglia, Claudio Poli, Mariella Poluzzi, Giancarla Predieri, Andrea Raggi, Gian Carlo Randi, Mirko Regazzi, Carmelo Riccio, Claudio Rubbi, Rita Rubinucci, Loris Rusticelli, Jorge L. Salinas, Marco Santandrea, Andrea Santinelli, Alberto Santini, Oriano Sirri, Walther Sirri, Giovanni Taglialatela, Gianluca Tambosso, Valerio Tognetti, Stefania Tomaro, Stefano Venier, Carlotta Venturoli, Daniela Verità, Stefania Virgili, Susanna Zucchelli.
Sustainability Report 2005 was drawn up on the basis of the AA1000 standard which provides the steps required for preparing social and sustainability reports. The report content matter was selected in compliance with GRI, GBS and CSR-SC project guidelines, while bearing in mind information requests of interest to corporate stakeholders.
The Sustainability Reporting Guidelines standard was developed in 2002 by Global Reporting Initiative for an assessment of corporate economic, environmental and social performance ratings. The Gruppo di studio per il Bilancio Sociale (GBS) had, instead, proposed its Principi di Redazione del Bilancio Sociale (principles for the preparation of social reports) in 2001 . In 2003, the Ministry of Labour and Social Policies presented the CSR-SC (Corporate Social Responsibility-Social Commitment) project for fostering and disseminating Corporate Social Responsibility. Stakeholder involvement activities were conducted with reference to the AA1000 SES standard .
REPORT DOCUMENT (STRUCTURAL OVERVIEW)
The first three sections of the report provide an account of method of construction, notes on the identity of the company, mission, corporate strategies, sustainability strategies, the key indicators for an assessment of the company from the angle of economic, environmental and social sustainability, and dialogue actions with stakeholders.
The fourth section highlights corporate economic returns by means of the methodology based on value added allocated to stakeholders proposed by the GBS.
The next sections provide an account of the results achieved for each class of stakeholder, given as performance ratings of a qualitative and quantitative nature and related to the objectives set forth in the previous report and achievement of these. The objectives for the coming years for each class of stakeholder have been set. These objectives are aligned with the company's strategic planning instruments. In certain cases, future targets to which the company is committed have been specified.
HERA THIRD IN SOCIAL RESPONSIBILITY AWARD RANKING (PREMIO PER LA RESPONSABILITÀ SOCIALE DELLE IMPRESE)
In Rovigo, on 13 December 2005, national corporate social responsibility awards were distributed to companies displaying high levels of Corporate Social Responsibility during 2005 through actions in this field. This award was inaugurated by the municipality of Rovigo and the Ministry of Labour and Social Policies.
Hera was placed third in the ranking for awards in the larger enterprise class. The group was singled out for its
high awareness of environmental issues.
REPORTING ACTIONS
The reporting actions comply with the AA1000 standard.
The process of setting sustainability objectives entailed analysis of the corporate strategic planning instruments and pinpointing projects prospected as objectives that impact stakeholders according to the Balanced Scorecard system. This information was obtained by means of interviews with the managers of the major divisions and pertaining management teams.
The data collection actions required for the report entailed the preparation and distribution of forms providing the technical indications used for construction of indicators. Approx. 70 organisational units from all corporate structures were involved.
The audit of the report was drawn up by an external audit company which certified report compliance with GRI and GBS standards and the reliability of the quantitative data provided.
The company's Internal Auditing function has also planned inspections and controls for the purpose of certifying the data collection method. The corporate quality management system, certified by DNV in compliance with the ISO 9001:2000 ISO standard, foresees collection of quality KPIs on a regular basis.
Integration with the Business Plan, Balanced Scorecard and the yearly Budget has been foreseen in order to ensure consistency, with respect to the indications provided and the instruments for planning and internal controls.
The activities of listening and dialogue with stakeholders were broadened out and extended, as reported in the dedicated section of this report.
SCOPE OF REPORTING
For precision, with regard to the events of 2005, it was decided to draw up the Sustainability Report also including data for the Meta Group. Integration of the Meta Group took legal effect (according to civil law) on 1 January 2005. The scope of reporting is therefore aligned with that of the Consolidated Financial Statement Pro-Forma published as part of the Annual Report for 2005. Clearly, as from year 2005 it is mandatory for the Hera Group, as for all other listed companies to apply (IFRS) international principles when drawing up the Consolidated Financial Statement. Application of the said IFRS principles to the Consolidated Financial Statement for 2005, and in particular IFRS 3, required exclusion of the economic contribution of the Meta Group. The Annual Report for 2005 contains not only the Consolidated Financial Statement and the Statutory Financial Statement but also a Consolidated Financial Statement Pro-Forma.
The Consolidated Financial Statement Pro-Forma document also includes the Meta Group. The calculated data for 2004 included the activities managed by the companies, Agea, Acosea and Ecologia Ambiente (companies operational in the energy, water and environmental sectors in the provinces of Ferrara and Ravenna), which joined Hera in 2005 but for which consolidation in the Annual Report was effective as from 1 January 2004. There may therefore be certain data discrepancies with respect to the 2004 report, published in June 2005. In certain cases, the findings do not tally fully with the report, in terms of scope of reporting. The data gaps in question (indicated by notes accompanying the individual tables) may be ascribed, variously, to the lack of certain items, or to the fact that certain items are not sufficiently significant, or to the fact that the pertaining data cannot be collected in a manner complying satisfactorily with quality standards or, alternatively, in an economically feasible manner. Our objective for the future is ongoing development of our reporting activities for greater precision as to the area of consolidation of the Annual Report.
MAJOR SIZE AND STRUCTURE CHANGES
The major corporate changes in terms of size relate to mergers of 2004 and 2005 when the companies, Agea, Acosea, Ecologia Ambiente and the Meta Group joined Hera. In commenting the data, we split indicator variations generated by changes in area of consolidation off from those generated by effective changes in performance ratings.
THE WORKING GROUP
A Guidance Committee was set up with the task of providing guidelines and controls with respect to the tasks at hand. This committee is made up of the Managing Director, the General Director, and the managers of the divisione Ambiente (Environment Division), the (Networks Division) and the Corp. Communications manager.
The operational working group, coordinated by the Corporate Social Responsibility Unit, was made up of staff representing the Environment Division, the divisione Vendite e Marketing (Sales and Marketing Division), Hera Bologna, and Corp. Communications. This work saw the involvement of the Quality, Safety and Environment managers and the managers of the Local Operating Companies.
Guidance Committee: Maurizio Chiarini, Roberto Barilli, Claudio Galli, Giancarlo Leoni, Giuseppe Gagliano.
Working Group: Filippo M. Bocchi, Chiara Ciuffetelli, Giorgia Freddi, Annarita Lovito, Gabriele Magli, Leonarda Maresta, Gianluca Principato, Emanuel Zamagni.
Many people contributed to this report by through their data collection activities or by providing explanatory notes and comments. The list is as follows: Robert Accardo, Patrizia Albertazzi, Marta Alesi, Verardo Amerini, Claudio Anzalone, Alberto Apollo, Claudio Artioli, Paolo Avanzi, Silvia Baccarani, Stefano Baldassini, Giovanni Barberis, Paolo Bartoletti, Andrea Basso, Andrea Bazzi, Marina Bellei, Linda Benetti, Ivano Bertoni, Andrea Bertozzi, Roberto Biavati, Angelo Bruschi, Giancarlo Campri, Nicola Cascone, Dario Casone, Valentina Cervellati, Michele Corradini, Maurizio Corsi, Elisa Costa, Barbara D'Addezio, Gianni De Mastro, Chiara Di Rocco, Ennio Dottori, Alessia Evangelisti, Cristian Fabbri, Mila Fabbri, Silvana Faccini, Luca N. Favilli, Fausto Ferraresi, Giovanna Filanti, Myriam R. Finocchiaro, Franco Fogacci, Giacomo Fossi, Roberto Gasparetto, Cristina Gasperini, Virna Gioiellieri, Luca Giulianelli, Federico U. Giva, Maurizio Gregori, Adriana Grifoni, Ermete Guerra, Marcello Guerrini, Valeria Guizzardi, Jens K. Hansen, Giangiuseppe Lengueglia, Patrizia Lombardi, Loris Lorenzi, Nicoletta Lorenzi, Carla Macrelli, Liduina Magnani, Micaela Maini, Marco Malagoli, Rita Malossi, Silvia Malservisi, Paolo Manfredini, Claudio Masini, Pasquale Mauro, Tiziano Mazzoni, Edolo Minarelli, Laura Minelli, Mariarita Montevecchi, Lorena Morelli, Alessandro Morgagni, Chiara Navacchia, Simona Olivi, Fabrizio Pancino, Carla Petraglia, Claudio Poli, Mariella Poluzzi, Giancarla Predieri, Andrea Raggi, Gian Carlo Randi, Mirko Regazzi, Carmelo Riccio, Claudio Rubbi, Rita Rubinucci, Loris Rusticelli, Jorge L. Salinas, Marco Santandrea, Andrea Santinelli, Alberto Santini, Oriano Sirri, Walther Sirri, Giovanni Taglialatela, Gianluca Tambosso, Valerio Tognetti, Stefania Tomaro, Stefano Venier, Carlotta Venturoli, Daniela Verità, Stefania Virgili, Susanna Zucchelli.