Hera Group ranks 2nd in the ESG Identity Corporate Index 2025 (ex IGI)
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Hera Group ranks 2nd in the ESG Identity Corporate Index 2025 (ex IGI)
For the fifth consecutive year, the Group has been included among the top positions in the overall ranking of the index that rewards Italian companies that stand out for integrating ESG factors into their governance. On the tenth anniversary of the ESG Identity Corporate Index, Hera also received recognition for performance and continuity as Strongest Performer, Best Finance Identity and Best Transition Identity among Large Cap companies.
At the ESG Business Conference 2025, the Hera Group ranked second among Italian companies for its integration of sustainability policies into its business strategies and corporate governance. This year as well, and for the fifth consecutive time, Hera is among the leaders of the ESG Identity Corporate Index (formerly the Integrated Governance Index) managed by ETicaNews.
Hera thus celebrates ten years in the Top 10 of the Index, launched in 2016. And precisely one decade after the ESG Identity Corporate Index project was created, the Group was also awarded three multi-year performance and continuity awards, aimed at companies that participated in all of the last six editions (2020-2025) of ESG.ICI. More specifically, in the Large Cap category, Hera won the awards: Strongest Performer, Best Finance Identity and Best Transition Identity.
Sustainable growth and communication with local areas at the centre of strategies
The integration of ESG targets into business strategies and strong local roots are distinctive features of the Hera Group. Today, more than 7.5 million citizens have at least one service provided by the Group in the waste management, energy and water sectors, contributing to the Group doubling its operational size over the last decade. Its business model bases growth and value creation on sustainability, promoting innovation and an inclusive dialogue with all stakeholders. This ongoing dialogue enables Hera to face the challenges raised by the ecological transition, energy security and climate change. The close interconnection between corporate strategy and a focus on sustainable development is also demonstrated by the timely sustainability reporting with ESG targets implemented since its inception by the multi-utility, on a voluntary basis, which goes beyond the mandatory reporting required by the CSRD. Furthermore, the Climate Transition Plan approved in July 2024, outlines the Group's strategy and commitment to achieving Net Zero by 2050, addressing both direct and indirect greenhouse gas emissions, with an overall reduction of approximately 90% by 2050 (compared to 2019) and the removal of all residual emissions by the end of the decarbonization process.
The ESG Identity Corporate Index
The ESG.ICI is Italy’s only quantitative index that measures the integration of ESG principles into corporate strategies, assessing companies’ commitment to sustainability, social responsibility, the environment and governance. It is unique for its scientific and quantitative approach and aims at measuring the degree of integration of ESG factors in corporate processes, outlining trends, identifying best cases and stimulating debate.
The 2025 survey involved 98 companies, 72 of which were listed.
The Hera Group’s main awards
Listed on the FTSE MIB since 2003 and included in the FTSE MIB since 2019, the Hera stock has been part of the Dow Jones Sustainability Index Europe & World since 2020 and has ranked first worldwide in the Multiutility & Water sector since 2020, as well as being included since 2021 in the first blue-chip index for Italy dedicated to ESG best practices, launched that year by Euronext and Borsa Italiana. The Hera Group has also been included for nine consecutive years in the FTSE Diversity & Inclusion Index “Top 100”, the international index devised by FTSE Russell, for its commitment to promoting diversity, inclusion and people development.
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The integration further strengthens the multi-utility’s position in both municipal and industrial water treatment, while activating strong commercial synergies with its subsidiary Herambiente. The transaction, with a total value of €138 million, is expected to contribute more than €20 million to the growth of the Hera Group’s EBITDA.
A group rooted across Northern Italy
Today the Hera Group has finalised the acquisition of 100% of STA Società Trattamento Acque S.p.A., based in Mantua, together with its subsidiaries: NTW (Cornuda – Treviso), CID (Colloredo di Monte Albano – Udine), NPC (Marene – Cuneo), Trentino Acque (Lavis – Trento), COMS (Talmassons – Udine) and Acque della Concordia (Mantua).
Taken together, these companies form the Sostelia Group, which, thanks to the distinctive expertise of its entities, ranks among Italy’s leading private players in the water treatment sector, offering advanced technologies, research and development capabilities, and high-level technical know-how. The sale was carried out for 65% by Xenon Fidec, an impact private equity fund managed by Xenon AIFM, and for the remaining 35% by entrepreneurs, minority shareholders of STA who, starting in August 2023, had transferred the entire share capital of the individual companies to the fund.
Signing completed following the successful verification of the conditions precedent
Today’s closing follows the successful verification of all conditions precedent set out in the binding agreement signed on 19 January and announced on the same date. These included, among other things, the prior divestment of 100% of Smart SEA, a company excluded from the scope of the transaction.
The Sostelia Group’s key figures
The Sostelia Group manages more than 1,200 treatment plants, serves over 1,200 active clients, employs around 350 people and has a turnover of approximately €100 million. Around 70% of its activities are focused on industrial clients.
A leading player in water treatment is born
Through this acquisition, the Hera Group further strengthens its positioning both the Water and Waste sectors, in the treatment of municipal and industrial water – an area that is highly synergistic with its activities.
As outlined in greater detail in the press release issued when the binding agreement was signed, with this acquisition the Hera Group becomes the reference player in Italy in water treatment, with an integrated offer across the entire supply chain.: from design and construction to operation and maintenance, through to the treatment and disposal of liquid waste and sludge associated with purification processes.
Economic rationale: enterprise value of €138 million and more than €20 million contribution to EBITDA
The transaction has an enterprise value of €138 million and is expected to generate a contribution of more than €20 million to the growth of the Hera Group’s consolidated EBITDA, in addition to the value of the expected integration synergies.
Advisors involved in the transaction
In the transaction, Hera was advised by PwC as strategic advisor and by GA-Alliance for legal matters, while Xenon was advised by Rothschild & Co. as financial advisor, by LCA for legal matters, and by Deloitte Financial Advisory and Fortlane Partners.
The Hera Group is one of Italy’s largest multi-utilities and operates in the environmental, energy and water sectors, with more than 10,500 employees. Over 7.5 million citizens receive at least one service provided by the Group. Listed since 2003, Hera ranks among the top 40 Italian companies by market capitalisation (it is part of the FTSE MIB index) and since 2020 has been included in the Dow Jones Sustainability Index (recently renamed the Dow Jones Best-in-Class Index). https://eng.gruppohera.it
Xenon FIDEC is one of the first Italian sustainable private equity funds, in compliance with Article 9 of the SFDR Regulation. It supports entrepreneurs and companies in building Italian leaders active in the energy and ecological transition, and is managed by Xenon AIFM S.A., an alternative investment fund manager authorised by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg. For thirty years, Xenon has worked alongside family-owned businesses to manage transformation projects aimed at driving growth, mainly through buy-and-build strategies.
The Sostelia Group was created through an aggregation strategy promoted by the Xenon FIDEC fund, launched in 2023, bringing together companies that provide design, construction and maintenance solutions for water treatment plants. The minority stake is held by the entrepreneurs representing the various companies acquired during the build-up process. Today, the Group represents an important Italian private player in the sector, capable of offering biological and physico-chemical treatment plants, zero-discharge systems, and technologies for the treatment of primary and process water as well as liquid waste.