The stakeholders and the materiality analysis

Hera’s stakeholders
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The stakeholder map has been defined starting off from an audit of the company’s stakeholders. Each category identified presents particular interests and priority topics and is listened to through dialogue and involvement initiatives. The infographic below provides a summary of the stakeholders identified and the main dialogue and consultation activities carried out during the year. For detailed information see the “Dialogue with our stakeholders” paragraph (chapter “Governance and creation of value”).

The materiality analysis and definition of the contents
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Non-financial and sustainability reporting is preceded annually by the analysis and identification of relevant topics for the stakeholders and for the Hera Group. Specifically, the relevant aspects are selected according to the size of the impacts (positive and negative) generated and the repercussion they may have on stakeholders’ decisions.

The process for defining the material topics is based on the analysis of internal and external documents which brings to light the most relevant topics related to the shared value and sustainability, which the reporting must focus on.

In order to identify the aspects linked to the activities of the Hera Group with an economic, social and environmental impact, business plans and risk analysis was looked at. Thanks to these two documents, it was possible to comprehend the strategic priorities and the main risks monitored and how these can affect the shared value and sustainability dimension.

In order to understand the relevant topics for stakeholders, the external scenario relating to the three drivers of shared value, the main regulatory changes, the press review, the issues raised, the aspects investigated by the HeraLABs and the main issues arising from other engagement activities (including the internal climate survey and the customer satisfaction survey) were taken into account.

The external context pertaining to the three drivers identified for the creation of shared value was then analysed: efficient use of resources, intelligent use of energy and innovation and contribution to development of the area. For each driver, global, European, national and local policies were analysed in-depth to define the priorities for change towards sustainability; this involved 75 policies, including the 2030 UN Agenda, in relation to which the commitments and the most significant quantitative targets for Hera’s activities were considered. This set of policies was joined by 14 new policies analysed in 2019.

The HeraLABs were then considered, encounters with stakeholders which have the purpose of proposing initiatives for involving the reference area and improving the sustainability of the services offered in the area, periodically checking the effectiveness of the same. During the various meetings of the LABs aspects of interest to the categories of stakeholders which take part in the same are proposed and analysed, and improvement initiatives are identified which are jointly planned by Hera and the LAB itself.

Regarding the press review, the presence of information regarding the Hera Group was analysed in the leading local and national newspapers by highlighting the topics that showed greater visibility (whether positive or negative) in more than one area (overall negative visibility index above one thousand points or positive visibility index above 5 thousand points).

The annual customer satisfaction survey assesses the quality of services offered and customers’ satisfaction with the Group. The survey also highlights the topics that are of particular importance in determining customers’ overall satisfaction.

The biennial employee satisfaction survey, dialogue activities with consumer associations and area managers also contributed to the definition of relevant topics.

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With respect to the issues in the 2018 Sustainability Report, there have been no significant changes, except for the integration of some information in line with the TCFD recommendations and on the prevention and management of cyber risks and those within the sphere of corruption. Information has also been added with regard to the introduction of the principles of circular economics in the management processes such as those relating to purchasing.
The 2019 Sustainability Report also contains the indicators necessary for reporting on the projects financed by the 2019-2027 Green bond.