sustainability lorenzo radice. 1 nome cognome del relatore group sustainability telecom italia group...

SUSTAINABILITY

Lorenzo Radice

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NOME COGNOMEDEL RELATORE

GROUP SUSTAINABILITY

Telecom Italia Group aims at creating value for all stakeholders

Pursuing Sustainability increases the company value in the medium/long term

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Sustainability included among the top six Group’s targets set by the CEOs for 2006-2008

Since 2003 integration between sustainability and financial performance

Sustainability management embedded in planning, controlling and risk management processes

Completely renewed Sustainability section on the Company’s internet site (english version will be available soon)

Focus on intangible assets

HIGHLIGHTS

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APPROACH

ExternalStakeholders

Customers

Suppliers

Competitors

Institutions

The Environment

The Community

InternalStakeholders

Employees

Shareholders

Image

Identity

Trust

Reputation

…

Performance

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EVOLUTION

Governance

1997 - 1999 2000 - 2001 2002 - 2006

• Environmental Charter• Charter of Values

• Socio-environmental reports

• ETNO

• Sodalitas

• CSR Europe

• TIM’s Code of Ethics

• Charter of Services

• Group’s Code of Ethics

• Code of Conduct for insider dealing

• Integration of Sustainability Reporting into the Group Financial Statement (TBL)

• Global Compact (ONU)

• European Road Map (UE)

• Internal reporting system

• Sustainability Plan in the Group Industrial Plan

Governance

Involvementwith (other) Organizations

Reporting

Chartersand Codes

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REFERENCES

WorldGlobal Compact UN – 10 principles Global Reporting Initiative (GRI)

OECD – ILO – LBG

Europe

Roadmap – Millennium Development GoalsGreen Paper European multi-stakeholder forum (2nd White Paper)UNICECSR Europe – CompaniesEU Directive 51 / 2003

ItalyConfindustria (Anima, Sodalitas); OSIF

Chartered Accountants; Auditors; ABI; AIAF

Social Statement – Ministry for Welfare

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ORGANIZATIONAL MODEL

CFO

Controlling Planning & Programming

Finance Planning & ControllingGroup Sustainability

Reporting

Budgeting

Investor Relation

Strategic guidelines

Process review

Rating Agencies

20 key people acting as points of reference within each BU/Central Department

3 Environmental Managers to guarantee the quality of environmental processes and related data

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INTERNAL REPORTING SYSTEM

Data-baseSelection of KPIs

Customers

300 Sustainability

Key Performance

Indicators

Group’s internal knowledge

Questionnairesfrom rating agencies

Benchmarking with best practices

The data-base is sharedwith the other softwareapplications for financials

The data-base is sharedwith the other softwareapplications for financials

Internationalstandards

Suppliers

Competitors

Institutions

The Environment

The Community

Human Resources

Shareholders

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KPI MAIN AREAS

Human Resources

• Involvement• Anti-trust procedures and

claims• Legislation updates

Competitors

• Dividends• Net debt• Corporate Governance • Risk management

• Donations• Investments• R & D• Involvement

• Natural resources consumption (energy, water, fuel, etc..)

• Emissions• Waste Management• Electromagnetism

ShareholdersCommunityEnvironment

• Tax and added value• Grants • Involvement• Legislation updates

• Supply chain management and controls

• Joint actions • Involvement

• Number of Lines

• Customer Relationship Management

• Service Quality

• Claims

• Services for customers with special needs

• Involvement

InstitutionsSuppliersCustomers

• Compensation policies• Training and development• Health and Safety• Equal opportunities• Industrial relations• Welfare• Human rights and working

conditions

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PLANNING

Ratingagencies

Improvementareas

Evaluation

form

Internalexperience

SustainabilityPlan

Business

projects

IndustrialPlan

SustainabilityTargets

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Model and definition of KPIs

Sustainability targets

StrategicSustainability Plan

Planning & Programming Controlling

Corporate

Reporting

Operating Units Corporate

Sustainability Section in financial reports (annual and half-year)

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Supervising

KPIs & project monitoring

Variance assessment

Performance review

Follow up and corrective actions

Corporate

KPIs management

Current projects management

New projects proposals

Acting

SUSTAINABILITY CYCLE

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TI confirmed in Dow Jones Sustainability Indexes: DJSI World - Dow Jones Sustainability World Indexes

(including 317 companies from 24 countries, Sustainability leaders worldwide) DJSI STOXX - Dow Jones STOXX Sustainability Indexes

(including 156 companies from 12 Countries, Sustainability leaders at european level)

TI confirmed in FTSE4Good Indexes: FTSE4Good Global

(740 companies of which the first 100 for market capitalization are included in the FTSE4Good Global 100 tradeable index)

FTSE4Good Europe(290 companies of which the first 50 for market capitalization are included in the FTSE4Good Europe 50 tradeable index)

MAIN ACHIEVEMENTS (1/2)

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TI confirmed in the:

ESI (Ethibel Sustainability Index)Global Index includes 180 companies, European Index includes 84 companies

E.Capital PartnersGlobal Index includes 300 companies, European Index includes 150 companies

ASPI (Advanced Sustainable Performance Index) Eurozoneincludes 120 companies selected by the agency Vigeo

Axia Corporate Social Responsibility IndexesItalian Index includes 30 companies, European Index includes 40 companies

MAIN ACHIEVEMENTS (2/2)

TI included among the top 100 companies in the world in the “2004 Survey of Corporate Sustainability Reporters” (SustainAbility, UNEP, Standard & Poor’s)

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Digital Inclusion

Electromagnetism

E-security

Privacy

Protection of minors

SUSTAINABILITY “HOT TOPICS”

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Training courses on a responsible use of new technologies

Initiatives and services for disabled people and the erderly- Software “Talks” obtained a special mention in the Sodalitas Social Award 2005- “Big Angel and Teleassistency”

Future center and science festivals organized by Progetto Italia

Initiatives carried out through International Bodies (ITU)

DIGITAL INCLUSION

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Legal limits for electromagnetic emissions in Italy are among the lowest in Europe

TIM made an agreement with an independent NGO (Legambiente) for a joint verification of Base Transceiver Stations

Network controls are carried out in compliance with the ISO 14000 requirements which are even stricter than the ones established by the law

The Group is a supporting member of the Bordoni Foundation that carries out studies and research in the field of ICT

ELECTROMAGNETISM

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Research Group working on telecommunicaton networks security (20 patent requests in the last 3 years)

Security procedures integrated with business procedures

The Security cycle implemented is based on:- risk analysis- planning of measures for protection- day to day management- system review

E-SECURITY

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Common procedures defined at Group level

31 audits carried out in the corporate departments and subsidiaries to control the application of the procedures and to discuss suggestions for improvement

Software applications developed to facilitate the monitoring process

Intranet site, working groups, brochures and on line training to draw more attention on this matter

PRIVACY

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Telecom Italia, TIM and LA7 support specific self regulation codes to protect minors accessing on-line contents

Procedures created to detect pornographic contents involving minors exchanged through the mobile network (Chat, Iblog, MMS)

PROTECTION OF MINORS

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The estimated contribution to the stakeholder Community in 2005, measured in line with the London Benchmarking Group (LBG) method amounts to 193 million Euro (41.8 million Euro excluding business basics)

LBG, established in 1994, is an association including more than 100 important international member companies and representing a worldwide standard. The contributions to the Community are classified in 4 different categories. Moving from the top to the base of the pyramid the connection with business increases and that with the Community decreases

THE COMMUNITY

The London Benchmarking Group (LBG) Model

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3,9Charity

14,4Community Investment

23,5Initiatives for the Community

151,1Business basics

THE LBG PYRAMID

Estimated figures for 2005

(Euro million)

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Progetto Italia is a separate company operating within the TI Group with the mission of enhancing the corporate brand through a series of initiatives in the following fields:- Culture- Charity- Science and education- SportsThe budget of PI is 30 million Euro.The full list of the initiatives can be found on the Internet site: www.telecomprogettoitalia.it

Progetto Italia is a concrete expression of the social commitment of our business in ways that are both visible and relevant for society.

Progetto Italia has an Advisory Board made up of personalities of international standing who guarantee that all activities are in line with the objectives of our company’s Statute.

In 2006 PI started its operations in Brazil.

PROGETTO ITALIA

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EnergyOptimize energy consumption

WasteImprove waste recycling management

PaperReduce paper consumption and increase the use of recycled paper

EmissionsReduce emissions produced by vehicles and heating

Electromagnetism- Promote SAR (Specific Absorbtion Rate) certification of handsets- Optimize electromagnetic fields management of the Base Transceiver Stations

2006-2008 ENVIRONMENTAL TARGETS

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Improvement of service activation time and technical assistance level for customers (Project Evolution)

Policy concerning human rights, labour standards and environmental safeguard in the Supply Chain

Policy concerning human rights and labour standards applicable in all of the subsidiaries

“Antitrust Compliance Program“ to spread in the Group a correct approach to Antitrust matters

2006/2008 - OTHER SUSTAINABILITY TARGETS

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THE “INTANGIBLES” PROJECT

During 2004, TI Group in partnership with Bocconi University embarked on a study on the relationship between financial and non financial performance in the TLC sector

Project FocusValue of “Intangibles” not included

in the financial statement

The first phase of the project ended in 2004 and provided empirical evidence of the relationship existing between financial and non financial performance

The second phase, currently ongoing, aims at defining the model to be used to represent and evaluate some specific “intangibles”. The outcome of the study will be illustrated at the Bocconi University the 27th of April

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TI is participating in the drafting of the “Code of Conduct on Energy Consumption of BB Equipment” promoted by the Joint Research Centre (European Commission) with the aim of minimizing energy consumption of broadband communication equipment without hampering the fast technological developments and the levels of service provided

TI is taking part in the consultation launched by the EU Commission for the “European Alliance for a Competitive and Sustainable Enterprise” between the Commission and the Business Leaders, in order to make Europe a Pole of Excellence on CSR

OTHER PROJECTS (EU COMMISSION)

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Coração Amigo Program

Partnership with the local NGO “Recife Volontario” The project aims at stimulating and financially supporting the voluntary activities of employees committed in

training and in the professional qualification of children living in social situations at risk

TIM Music in the school

Partnership with the Brazilian government The project aims at socially recovering, through musical education, 12,500 children and adolescents living in

situations at risk

OTHER PROJECTS (BRASIL)

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TI Group co-operated to the definition of the “European Roadmap of Businesses towards a Sustainable and Competitive Enterprise” Our chairman has been “Sponsor Ambassador” together with other 5 business leaders

TI Group took part to the meeting “Business Contribution to the Millennium Development Goals” called by the UN. The Group’s representative in the round table on Public Governance launched 2 proposals: create an integrated Authority to define investment targets and control them evaluate the convergence between UE and US accounting principles in order to better integrate financial and non financial performance

OTHER INTERNATIONAL ACTIVITIES

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sustainability lorenzo radice. 1 nome cognome del relatore group sustainability telecom italia group...

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renewed sustainability

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environmental managers

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