the induced employment generated
by Hera in 2018
million euro
for innovation and digitalisation,
22 projects in smart city, circular
economy and data analytics
reused soil
in projects implemented in 2018

In 2018, the value of supplies by types of work or services requested by the Hera Group to social cooperatives remained over Euro 62 million.

Over Euro 61 million was assigned for waste management services, amounting to 27.4% of the Group’s total awards for these services. Supplies involved 49 cooperatives or consortia of social cooperatives, hiring 816 persons facing hardship (pursuant to Article 4 of Italian Law 381/91), slightly up compared to 2017: 558 under open-ended employment agreements and 392 under full-time contracts. At geographic level, 348 individuals found jobs in the Emilia area, 335 in Romagna, 84 in Triveneto and 49 in Marche.

Supplies from social cooperatives
  2016 2017 2018
Social cooperatives or consortia (number) 50 48 49
Value of supplied goods/serv. (in thousands of Euro) 57,180 62,654 62,158
Persons facing hardship hired (number) 748 807 816

Workers employed for less than one year were also counted among the hired persons facing hardship.

The Valoris economic evaluation model developed by the University of Brescia in 2013 provides a measurement of the value created by social entrepreneurship of job placement, based on the results of empirical research. In particular, the model makes it possible to quantify the economic impact for the Public Administration of the social integration of type B social cooperatives. The research showed that the benefits essentially are a result of lower welfare costs and greater tax revenues due to the payment of income tax on the employment of disadvantaged persons. The lower revenues for the Government deriving from tax and contribution exemptions which type B social cooperative benefit from have been deducted from the benefits. All of this ends up being a benefit for the Public Administration equal, on average, to Euro 4,209 in the year for each able-bodied individual facing hardship. The economic benefit for Public Administrations deriving from Hera Group awarding contracts to social cooperatives can therefore be considered around Euro 3.4 million for 2018.

Hera contributed to the inclusion in the national collective agreement for waste management services (renewed in July 2016) of a specific protection clause for outsourcing in favour of social cooperation. This clause sets forth that a portion of outsourcing for the sweeping, collection, waste transportation activities, cleaning of septic tanks and cleaning of bins, is excluded from the requirement to apply the waste management services Italian collective labour agreement, via the definition of socially inclusive projects. This portion is 5% and can be raised to 15% at company level. Hera applies 15% on the basis of an agreement entered into in March 2012 with the trade union organizations and with the Group’s union co-ordination.