| GOVERNANCE (organisation’s governance model in connection with the risks and opportunities associated with climate change) |
| a. Supervision of the Board of Directors on the risks and opportunities associated with climate change |
The Italgas Group has a specific governance model on sustainability topics, also with a view to monitoring the impacts of climate change on corporate operations. Thanks to the involvement of the top management in all strategic sustainability choices and the Italgas governance model, matters relating to climate change are given due consideration when defining the Group sustainability and strategic plan, in the risk management policies, in the definition of the organisation’s performance objectives and actions to monitor them, etc..
The Board of Directors, the Sustainability Committee and Control, Risk and the Related Party Transactions Committee are periodically informed as to aspects relating to climate change and the related initiatives. |
| b. Role played by the management in assessing and managing the risks and opportunities associated with climate change |
| STRATEGY (current or potential impacts of the risks and opportunities associated with climate change on the organisation’s business, strategy and financial planning) |
| a. Risks and opportunities associated with climate change that the organisation has identified in the short-, medium- and long-term |
As reported in the table of the paragraph entitled “Risk Management” in this document, Italgas considers, in connection with the risks relating to climate change, both physical risks and risks of transition, assessing the relevant impact.
Italgas puts sustainability firmly at the heart of its development model, a guiding element in defining strategic and operative choices to guarantee long-term growth. In the Strategic Plan, Italgas defines a macro-comprehensive scenario that includes contexts and trends of the Energy and Environmental Policies (decarbonisation – Paris Agreement, renewal sources, energy efficiency, sustainable mobility, power to gas and green gas) and presents its own Sustainability Plan. The Group’s strategy is developed consistently with the United Nations Sustainable Development Goals.
The definition of the Strategy is also influenced by the periodic internal information, collecting and reporting process on current and forecast GHG emissions and other aspects relating to climate change (e.g. energy consumption).
In recent years, Italgas’ corporate strategy has been increasingly influenced by climate change matters and various initiatives have been developed with a view to reducing GHG emissions (e.g. leak detection using Picarro technology, conversion of the corporate fleet to methane gas, green gas initiatives, etc.).
In the short-term, the main elements impacting Italgas’ strategy development are the regulatory aspects of climate change such as the European policy objectives, whilst in the short/medium-term, the efficient procurement of natural gas, in order to reduce impacts on climate change.
Italgas’ strategy is outlined in the 2020-2026 Strategic Plan, which also highlights and considers elements such as:
__the role of gas in the decarbonisation process;
__the digital transformation and technological innovation that allow Italgas to also play a key role in the energy transition;
__etc. |
| b. Impacts of the risks and opportunities associated with climate change on the organisation’s business, strategy and financial planning |
| c. Resilience of the strategy of the organisation, taking into account different climate-related scenarios, including a scenario of 2°C or less. |
| RISK MANAGEMENT (how the organisation identifies, assesses and manages risks associated with climate change) |
| a. Organisation’s processes to identify and assess risks associated with climate change |
The process of identifying, managing and monitoring risks and opportunities associated with climate change comes under the scope of the Enterprise Risk Management model described above.
Risk reporting is shared/discussed with top management and the Control, Risk and Related Party Transactions Committee of Italgas, the Board of Statutory Auditors and the Supervisory Body to allow for assessments of the effectiveness of the Internal Control and Risk Management System.
With reference to the risks connected with climate change and the related management methods, special reference is made to the risks of “Climate Change” and “Energy Efficiency Certificates” described in the table given in the paragraph on “Risk Management” in this document. |
| b. The organisation’s processes to manage risks associated with climate change |
| c. How the processes of identifying, assessing and managing the risks associated with climate are integrated into the organisation’s overall risk management |
| METRICS AND TARGETS (metrics and targets used by the organisation to assess and manage the relevant risks and opportunities associated with climate change) |
| a. Metrics used by the organisation to assess the risks and opportunities associated with climate change in line with its risk management process and strategy |
Italgas shows its commitment to aspects relating to climate change through the careful monitoring of its energy consumptions and emissions and the implementation of specific initiatives aimed at reducing greenhouse gas emissions and increasing its energy efficiency performance.
Italgas monitors the following GHG emissions:
__Direct emissions (Scope 1): deriving from the civil consumption of gas, from industrial consumption of gas for preheating, from fuel consumptions for vehicles and grid losses (“fugitive emissions”);
__Indirect emissions (Scope 2): deriving from the consumption of electricity purchase and district heating;
__other Indirect Emissions (Scope 3) deriving from business travel, outsourced activities (supply chain) and emissions relating to the production of energy purchased and consumed (fuel side, emissions linked to their extraction, production and transport; electricity side, emissions relating to the extraction, production and transport of the fuels used for generation and emissions relating to losses for transmission and distribution).
Italgas has set a target of -20% reduction by 2026 on 2020 for CO2eq emissions. |
| b. Scope 1, 2 and 3 greenhouse gas (GHG) emissions and related risks |
| c. Targets used by the organisation to manage the risks and opportunities associated with climate change and performance with respect to the targets |
