Edison: BOD confirms Marc Benayoun as CEO and shares 9 sustainable development targets, in line with UN and energy and climate plan goals

Specific CO2 emissions reduced to 0.26 kg/kWh by the end of 2030, renewable energy making up 40% of the production mix by the end of 2030, at least 30 smart building initiatives and involving 70% of employees in the use of social collaboration tools: these are some of the targets the company has identified to build a sustainable energy future.

Milan, April 2, 2019 - Today, the Edison Board of Directors, elected by the Shareholders’ Meeting, confirmed Marc Benayoun as CEO with the required delegated powers.

The Board of Directors also re-elected the Board Committees, appointing: i) for the Control and Risk Committee: Fabio Gallia (Chairperson), Paolo Di Benedetto, Xavier Girre; ii) for the Compensation Committee: Paolo di Benedetto (Chairman), Nathalie Tocci, Nicole Verdier-Naves; iii) for the Related Parties transactions Committee: Paolo Di Benedetto (Chairman), Fabio Gallia and Nathalie Tocci. Paolo Di Benedetto was nominated as Lead Independent Director.

All directors declared that they did not hold Edison shares at the date of appointment.

On the basis of the statements provided upon appointment by the three directors Fabio Gallia, Paolo Di Benedetto and Nathalie Tocci, the Board of Directors confirmed that they met the independence requirements pursuant to Legislative Decree 58/1998 (TUF) and the Corporate Governance Code of Borsa Italiana Spa, adopted by the Company. These checks and their outcomes were verified by the Board of Statutory Auditors.

The Board of Directors also shared 9 development targets aligned with the objectives promoted by the United Nations (Sustainable Development Goal SDGs) and the pillars of the National Integrated Energy and Climate Plan. This commitment, formalised in the 2018 Consolidated Non-Financial Statement (NFS) takes shape in the Sustainability Policy which identifies the following medium- and long-term targets:

• Reduce specific CO2 emissions from electric power generation facilities to 0.26 kg/kWh from the current 0.29 kg/kWh by 2030;
• Increase the production of electricity from renewable sources, reaching 40% by 2030;
• Start at least 30 digital transformation projects by 2021;
• Launch, by 2021, at least 30 design initiatives through the innovative BIM system;
• Spread the use of social collaboration tools among roughly 70% of employees;
• Involve at least 2,000 employees in inclusion projects by 2021;
• Keep customer satisfaction high over time and consolidate the nationwide network by 2021, reaching 400 contact points;
• Institute a balanced selection and growth process that reinforces the presence of women in management roles;
• Arrange at least two meetings of the SDGs@Edison stakeholder panel per year, of which at least one dedicated to relevant areas.

“Edison is Europe’s oldest energy provider, with more than 135 years of history. It has always been inspired by the principles of sustainability and innovation, which have made it a pioneer in Italy’s electrification, accompanying the economic development of households and businesses”, declared Marc Benayoun, CEO of Edison. “Today, we are moving forward in the same vein as that tradition covering all areas of the sustainability policy”.

The Sustainability Policy includes 9 targets broken down into 6 areas: business process sustainability, combatting climate change, closeness to customers and markets, enhancement of employees, interaction with stakeholders and shared planning, sustainable production and the protection of biodiversity. For each of these targets, Edison has defined an action plan and key performance indicators (KPI) to monitor performance.

Sustainability Policy’s Summary

Business process sustainability is the prerequisite underlying the new Sustainability Policy and involves the application of the principles of integrity, respect for human rights and the activation of digitalisation processes, to support transformation inside the company (SDGs 8, 11 and 12). For Edison, combatting climate change means developing renewable sources by leveraging its considerable experience in this sector (the company built its first hydroelectric facility in 1898) and accompanying the energy transition through the use of gas and by fostering energy efficiency. Edison is aiming to have 40% of its production mix come from renewable sources and reduce specific CO2 emissions from electric power generation facilities to 0.26 kg/kWh by 2030 (SDGs 7 and 13). These objectives work alongside the sustainability of production and the protection of biodiversity: the company is committed to mitigating the environmental impact of its activities and for some time now has promoted awareness-raising projects and activities on these matters in the communities and regions in which it operates (SDGs 14 and 15).

The other strategic development pillar is represented by closeness to customers and markets. To reach this objective, Edison is strengthening its tools for dialogue, control procedures and settlement processes; it designs new customer services with a view to innovation and digitalisation; it offers an increasingly complete range of services, encouraging sustainable consumption choices; it interacts with local communities and consumers’ associations through ad hoc panels (SDGs 7 and 12). The enabling factor for every action across all targets is shared planning: for Edison, local stakeholder dialogue and listening are essential to contribute to the development of the economic and social ecosystem (SDGs 4, 12 and 15).

These targets are also pursued thanks to the enhancement of the people working at Edison and through the promotion of an inclusive context that favours diversity, the expression of talent and the sharing of knowledge. The company has also committed to improving worker health and safety, activating employability (human capital development) initiatives and promoting the presence of women and gender equality (SDGs 4, 5 and 8).

Edison has defined and formalised these targets based on discussions with both internal and external stakeholders. Challenges linked to the future of the world of energy are discussed during meetings with the Stakeholder Panel SDGs@Edison - the community consisting of representatives of institutions, the academic and cultural world, the third sector and millennial students. The new Sustainability Policy, arising from these activities, outlines the Company’s intention to act as a positive force, offering proposals with respect to the ecosystem in which it operates, capable of creating new relations with all stakeholders at international, national and local level, and strengthening its commitment, understood as a lever for business competitiveness and the creation of value. The targets, formalised in the 2018 NFS, will be monitored over time based on key performance indicators (KPIs) to verify progress and correct any critical issues.

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Public disclosure requirements under CONSOB Resolution no. 11971 of May 14, 1999, as amended.