Edison presents 2023 Non-Financial Disclosure

Direct CO2 emissions reduced by over half a million tons and 2.2 million tons of emissions avoided thanks to renewable generation and energy efficiency solutions for customers; gender equality certification; 62 condominium energy communities ready to be set up; and over 70% of local communities involved in shared value creation projects. These are some of the results achieved by the company in 2023 and illustrated today.
The presentation of the 2023 Non Financial Disclosure to the company's stakeholders took place today in an
event entitled “The Sustainable Impact”, part of the Asvis Sustainable Development Festival. The event was
also an opportunity to discuss and engage with experts and Edison management on key sustainability issues surrounding the energy sector and the broader socio economic development of Italy and Europe.

 

Milan, 23 May 2024 – Edison, the oldest energy company in Europe with 140 years of history, today presented its 2023 Non-Financial Statement to its stakeholders. The report highlights the tangible progress that the company has made through its commitment to sustainable development, as a leader in the energy transition and a responsible operator. In 2023, Edison reduced direct CO2 emissions by over half a million tons and avoided 2.2 million tons of CO2 emissions thanks to renewable generation and energy efficiency solutions for customers. It also obtained gender equality certification, laid the foundations for the creation of 62 condominium energy communities, and increased the engagement of local communities in shared value creation projects to 72%. These were some of the main results achieved by the company along the four axes of its Sustainability Policy: Climate Action; Human Capital and Inclusion; Value for Customers, Local Areas and Sustainable Economic Development; and Natural Capital and Landscape.

“Edison is working to achieve long-term sustainability goals,” said Barbara Terenghi, EVP Sustainability at Edison. “Our commitments aim to generate positive impacts for society and the planet through tangible industrial initiatives. Through the Non-Financial Disclosure, the company monitors and reports on these impacts and provides a strategic overview of the commitments made along the four axes of its Sustainability Policy.

“Edison’s ambition is to have sustainability at the heart of its Value Creation, with at least 70% of its EBITDA coming from zero- or near-zero emission activities. To achieve this goal, our investment plan calls for 10 billion euros of investments between 2023 and 2030, 85% of which aligned with the United Nations Sustainable Development Goals. Through these objectives, Edison is demonstrating a business model oriented towards sustainability and energy transition,” said Ronan Lory, CFO Edison.

Against a complex geopolitical backdrop and a weak macroeconomic framework in Europe, Edison has achieved significant results in the creation of economic value as well as material progress on all axes of its Sustainability Policy. Edison's progress in sustainability has also had a positive reception in terms of the ESG rating assigned by Sustainalytics, which recognizes the company's strong level of control in managing ESG risks.

The medium-long term objectives – broken down into the four axes of Edison's Sustainability Policy and aligned with the United Nations Sustainable Development Goals – were updated at the beginning of 2024 in line with the development strategy to 2030 and the ambitions to 2040. The aim is to build a sustainable energy future and play a leading role in the energy transition for customers, suppliers, communities and local areas, contributing to the protection of the planet and improving people's quality of life.

Following on from the more than two-thirds reduction in direct CO2 emissions since 2006, progress on “Climate Action” activities led to a decrease of more than half a million tonnes between 2022 and 2023, falling to 6.3 million tonnes in 2023. With an installed capacity of over 2.2 GW spanning wind, photovoltaic and hydroelectric, Edison produced 4.5 TWh of renewable electricity in 2023, avoiding 2.2 million tons of CO₂ emissions (including energy efficiency solutions). Furthermore, the signing of five new Power Purchase Agreements (PPAs) will allow the development of additional renewable capacity capable of producing 500 GWh/year. The Company aims to reach 5 GW of installed renewable power by 2030 (which will account for 40% of the group's electricity generation), lower the intensity of GHG (greenhouse gas) emissions to 190 gCO2/kWh (compared to 284 in 2023, itself down on the previous year), and set up at least 10 green gas biogas/biomethane plants (currently five).

Regarding “Human capital and inclusion”, performance in 2023 on accident indices was positive and employee engagement in sustainable culture activities is growing (with an objective of reaching the entire company population by 2030). On the gender front, indicators are moving in a positive direction with regard to the balance of candidates in career advancement processes (gender pipeline). The percentage of women in management roles has also risen to 23%, in view of a new 2030 objective of 30%. Edison has also achieved gender equality certification for Edison S.p.A. and two of its subsidiaries, covering more than 3,500 employees.

All indicators on “Value for customers, local areas and sustainable economic development” were in positive territory. With regard to residential customers, the new offers in both electricity (100% green) and gas (offset using certificates of guarantee of origin) have been fully implemented. Edison reached 2 million contracts in 2023, with the number of installers as local sales agents for households and small businesses increasing to over 2,300, and over 800 physical locations. There are 62 collective condominium self-consumption schemes under development (equal to approximately 3MW of photovoltaic power) and the first non-profit REC (Renewable Energy Community) has been created. Regarding value for local areas, Edison has launched 10 public-private partnerships with the Public Administration and has consolidated its support for industrial customers by creating low-carbon self-production solutions for a total of 180 MW, against a 2030 target of 500 MW. Community engagement in shared value-creation projects continues and has reached 72%, with a goal of 100% by 2030. The commitment to the sustainable supply chain also continues through engagement initiatives, with 98% of purchases now sourced from Italian suppliers. The company is committed to completing the ESG profile of qualified suppliers by 2025 and enrolling them in the Sustainable Procurement Academy by 2026.

Finally, on the “Natural Capital and Landscape” axis, 97% of Edison sites are ISO 14001 certified. In addition, biodiversity and landscape enhancement projects have been completed and started, and 31 sites – not related to current business – corresponding to a total of 195 hectares, are now involved in environmental restoration procedures. Activities in 2023 included Wind New Life, which aims to recover raw material from wind turbines reaching the end of their life in the coming years,Rigeneriamo il territorio, a digital platform that for three years has been providing information and culture on the issues of local regeneration, and the collection of information on nature-based measures specific to asset types.

Sustainability has been a priority topic on the company’s agenda for years. In 2004, Edison was among the first companies in Italy to release a Sustainability Report, with the aim of providing a clear, complete and transparent picture of its commitment in the economic, social and environmental fields. In 2017, it was the first in Italy to publish a Non-Financial Disclosure as an integral part of its financial reporting package. In 2021, the Board of Directors approved medium-long term objectives that are deeply integrated with the company's strategic ambitions and established the EOS Foundation – Edison orizzonte Sociale to make a significant contribution to social innovation. Alongside its Sustainability Policy, in 2022 Edison created a sustainability governance procedure that defines the roles and responsibilities of the corporate and managerial bodies, as well as a structure based on synergy between the board and managerial levels that is predicated on the steering role of the Board of Directors and the focal role of the Control, Risk and Sustainability Committee. During 2023, with a view to transparency and commitment to its stakeholders, five new impact policies in the areas of Sustainability were approved and the Stakeholder Advisory Board (SAB) – the CEO’s advisory committee on sustainability issues – was reappointed for the 2023-2025 cycle. The company has begun work on structuring its sustainability reporting process and ensuring compliance with the new directive on Corporate Sustainability Reporting.

https://dnf.edison.it/it