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Hera Group strategy and Shared Value

A growth strategy combining low-risk activities with free competition, underpinned by a continuous search for efficiency in the three main business areas: waste services, energy and water cycle.

 

Hera pursues a multi-business growth strategy, focused on 3 core businesses: waste services, energy and water cycle. The Company shows its capability to keep a balanced portfolio, made up of low risk regulated activities and profitable liberalized ones, with a further expansion potentials. That creates a successful business model, which has inspired other utility companies in Italy and abroad.

See below a short representation of the Group strategies. Hera, since its establishment, more than doubled its size and its business results, maintaining a conservative risk profile and a good financial strength.

 
Hera Group Strategy and Shared Value Innovazione: In un contesto economico, industriale e regolamentare sempre più volatile ed esposto ad importanti cambiamenti, l'innovazione rappresenta un elemento fondamentale della strategia del GruppoRiduzione dei costi: L'attenzione al contenimento dei costi, la continua razionalizzazione e l'ottimizzazione dei processi aziendali sono i principi fondanti del modello di business di Hera.Sostenibilità: La sostenibilità è uno dei cardini della cornice di riferimento entro cui viene elaborata la strategia del GruppoAffidabilità: Hera è un'azienda affidabile e solida, consapevole dell'importanza del proprio ruolo e della fiducia che in essa gli stakeholder ripongonoTerritorialità: Hera ha tracciato, fin dalla sua nascita, un percorso di crescita sia organica che per linee esterneTraguardi di crescita: Hera ha tracciato, fin dalla sua nascita, un percorso di crescita sia organica che per linee esterne. Attenzione agli stakeholder: La strategia del Gruppo viene costruita focalizzando l'attenzione sugli interessi specifici dei diversi stakeholder di riferimentoGestione del rischio: Hera è una multiutility caratterizzata da un portafoglio di business molto ampioEccellenza: La competizione tra gli operatori dei settori energia, ambiente e reti, già ad oggi elevata, continuerà a intensificarsi nei prossimi anni


 

Targeting excellence 

The competition between operators in the energy, environment and networks sectors, which is already strong, will reach new levels of intensity in the next few years. It is therefore increasingly important to be recognised by our customers, commercial partners and suppliers as excellent players with the ability to stand out in this business.
For the Hera Group, standing out means always ensuring the highest levels of quality in the sector across all of our services. This entails a constant commitment to identifying new solutions to enhance, further and continuously, the high standards of quality already achieved .
The perception of quality on the part of our customers and unwavering attention to their needs have always been at the heart of the Group's quest for excellence. This attention is even more important in today's changing environment, where the diffusion of digitalised services has brought new opportunities for improving the relationship between company and customer, with a view to developing the customer experience.

 

Reducing costs 

A focus on cost containment, ongoing rationalisation and optimising corporate processes are the underlying principles of Hera's business model. As a result of these strategies, the cost-benefit ratio of services has improved steadily, and an excellent performance has been achieved against the national benchmarks.
Looking ahead, expectations of an increasingly challenging regulatory environment, in an economy that continues to flag and where competitive pressure is growing, makes it even more important to contain our cost base.
In its medium-term projections, Hera has already made plans to extract more efficiencies, leveraging all the benefits that the new innovative solutions will make available.
This objective will thus be achieved not only through steps to reduce internal costs, acting on energy saving, saturation of activities and optimising information flows and data bases, but also through measures to reduce the company's external costs.

 

Innovation 

In an economic, industrial and regulatory context that is increasingly volatile and exposed to major changes, innovation is a key element in the Group's strategy, as shown by our recent creation of the Innovation Department, which has a cross-cutting relationship with all the other corporate departments (link to dedicated web pages), in order to enhance their operation.
Innovation enables us to develop and accelerate opportunities to extract efficiencies and synergies: new technological applications, new operating processes, new services and new business models will represent the practical deployment of Hera's strategy in this area.
Through innovation, the Group aims to enhance its service quality and pursue growth in line with a model of excellence.
Hera will therefore continue to keep a watchful eye on the field of innovation, starting with the phase of identifying areas of strategic interest and comparison with the experiences of other national and international business entities, and going on to implement innovative solutions through interactions with the academic and industrial worlds within the region.

 

Growth 

Since it was created, Hera has pursued a path of growth, both organic and external.
The development strategy not only includes measures to support organic growth in those businesses that we already control, but also consolidation and acquisition operations to broaden the current scope of reference, while maintaining the Group's sound financial structure, in the context of a shared business vision .
Internally, Hera will take all opportunities to develop the activities in its core businesses, leveraging innovation, efficiency and excellence.
Meanwhile, the external growth strategy will be based on three pillars:

  • merger and consolidation operations with other companies in the multi utility sector, where the Group has a proven track record;
  • acquisition of assets in the individual business areas served, with the aim of accelerating growth in the customer base and adding to our plant and industrial facilities;
  • participation in tenders for the award of concessions for regulated services (e.g. gas distribution, urban sanitation, water cycle).
 

Sustainability and Shared Value 

Sustainability is one of the main supports in the framework on which the Group bases its strategy: it has therefore planned its development on a five-year time horizon, combining economic and financial targets with environmental and social objectives.
Individual actions and projects are therefore perfectly placed within a general focus on all the themes relating to relationships with key stakeholders and seeking "win-win" solutions for each one.
The close relationship between sustainability and strategy ensures that Hera achieves absolutely outstanding results, details of which are provided each year in the sustainability report.

Shared Value is our new strategic approach to CSR and sustainability, defined in 2016 to maximise joint value creation for both the company and the community in which we are active. Shared Value creation concerns all the activities and projects that generate operating profit margins and respond to the calls to action originating from the "Global Agenda", i.e. the instructions designed to introduce sustainability-oriented changes within Hera's spheres of activity, recommended by policies at global, European, national and local level.

 

Attention to stakeholders 

The Group's strategy is built with a focus on the specific interests of a range of key stakeholders .
The sustainability report contains various sections that show how Hera's financial results translate into performance that benefits a range of stakeholder categories.
To pursue this path, the Business Plan provides for the development of key sustainability indicators by category of stakeholder (customers, employees, environment, suppliers, shareholders and lenders) and continuous active monitoring of these indicators.

 

Territory 

The Group's strategy and its execution provide for further strengthening of the links with the territory it serves. Promoting local aspects has therefore become a key element in the virtuous and inclusive development of services that, by their nature, have a major impact on the quality of the territorial eco-system.
Hera has therefore undertaken to provide ongoing assistance with the development of the economy, employment and quality of life within the territories it serves, by means of a substantial and increasing distribution of economic value.
A territorial approach has therefore become a key asset in the Group's strategy.

 

Risk management 

Hera is a multi utility group with a very broad business portfolio. Some of its businesses are chiefly exposed to regulatory risk (regulated businesses), while others have levels of risk that are typical for businesses in the open market. Historically, the two types of business have shown different growth trends and margins over time, which have frequently been offset against each other.
A balanced portfolio breakdown between regulated businesses and businesses in the open market, as achieved by the Hera Group, enables some service industries to be fully covered whilst also maintaining steady development, including in situations that are turbulent for the individual businesses.

 

Accountability 

Hera is a reliable, sound business, aware of the importance of its role and the trust placed in it by its stakeholders. To further enhance its standards of reliability, the Group pursues a strategy

  • that aims to ensure 360-degree sustainability on this pathway;
  • credible, as it is based on solid foundations, built over years, and on proven experience, and is implemented at the level of individual projects and individual management responsibilities;
  • it is based on the sharing by management of the concept of full accountability: taking responsibility, transparency, dialogue and availability for discussion.
 


Page updated 11 October 2017

 
 
 
 
2016 Sustainability Report embraces shared value
 
Risultati economici 2016 - Il commento del Presidente del Gruppo Hera
 
 
2016 Economics results
 
Risultati economici 2016 - Il commento del Presidente del Gruppo Hera
 
 
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