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Sustainability report 2021 Figures allow us to better analyse processes and impacts, to activate improvement actions and to transparently report the results achieved. These are the objectives of our Sustainability Report, published online and focused on the year 2020 just ended. A document that represents the value horizon we operate in and that aims to combine industrial growth and sustainable development while striking a balance between three dimensions represented by as many keywords: planet, people and prosperity. Creating value together with the communities served: over two billion EUR distributed locally Sustainable growth also involves the economic and social fabric of the territories served. Here are some figures: the economic value distributed to workers, shareholders, suppliers, public administration and local community in 2020 was 2,118 million, of which 740 million to local suppliers (+6% compared to the previous year, 65% of the total value of supplies), generating an employment impact of over 8,800 workers and allowing the inclusion of 864 disadvantaged people through social cooperatives; 584 people were hired during the year and 96.6% of employees have permanent contracts. The gross operating margin (EBITDA) from our activities that address the priorities of the Global Agenda, in particular the sustainable development objectives of the United Nations, rose to 420 million EUR in 2020, 37% of the total (it will be 50% in 2024), divided into three areas: energy, environment, territory (and business). Energy: pursuing carbon neutrality Working on energy for us means first and foremost pursuing carbon neutrality, with actions that involve both the company and all social players, in the interest of a planet that is increasingly exposed to climate change and whose natural resources are compromised. An example is the goal of reducing greenhouse gas emissions that we set ourselves, among the most ambitious for a company in Italy: 37% less by 2030 compared to 2019, validated according to the strictest scientific criteria by the prestigious international network Science Based Target initiative (SBTi). Overall, the actions we have taken range from promoting energy efficiency to energy transition and renewables. Internally, in 2020 energy consumption fell by 6.2% over 2013 (equal to 13,800 tons of oil equivalent) and 83% of the electricity used is derived from renewable sources. In addition, 7.8 million cubic metres of biomethane were produced through the transformation of organic waste in the plant in S. Agata Bolognese (Bo), 20% more than the previous year. Through the construction of new plants, the goal is to produce up to over 30 million cubic meters in 2030. As far as customer involvement is concerned, also in 2020 we purchased electricity from renewable sources in such a quantity as to fully cover the consumption of all household customers in the free market, and in 2030 we aim to reach 45% of subscriptions to offers that include energy efficiency services, thus supporting them in adopting virtuous behaviours with 100% green offers and consumption containment tools. Sustainability report 2021 2019-07-18 Sustainability report 2021 The creation of shared value and the benefits for the territories served are at the heart of our 2020 Sustainability Report: results achieved and future commitments to respond specifically to environmental and climate change challenges /group_eng/sustainability/sustainability-report/sr View the 2020 Sustainability report bs2020 eng.png

President_and_CEO_110 Hera’s Ordinary and Extraordinary Shareholders Meeting was held this morning in Bologna. The 2020 financial statements were approved, as was payment of a dividend rising to 11 cents per share (+10% compared to the last dividend paid), providing further confirmation of value creation for stakeholders and local areas. Among the various resolutions passed, the Meeting approved a number of amendments to the company’s Articles of Association, in particular introducing the concept of corporate purpose. The 2020 Sustainability Report was also presented at the Meeting. Approval of the 2020 financial statements and growth in results During the ordinary session, the Shareholders Meeting approved the 2020 financial statements, which showed improvement in the main operating and financial indicators, thanks to a solid, efficient and sustainable multi-business model and good operational, financial and fiscal management. Despite the health emergency that struck the world, Hera managed to close the year positively, guaranteeing quality and continuity in services and, at the same time, protecting its stakeholders with concrete actions, first and foremost employees, customers and suppliers. Dividend increasing to 11 cents per share approved The Shareholders Meeting then approved the Board of Directors’ proposal to pay a dividend coming to 11 cents per share, up 10% over the last dividend paid and higher than the amount foreseen by the Business Plan for the current year. The coupon date has been set at 5 July 2021, with payment starting on 7 July 2021. The Sustainability Report: shared value Ebitda rises to 420.0 million euro The Sustainability 2020 Report was also presented during the Shareholders Meeting, showing how improvement in operating and financial indicators goes hand in hand with the creation of shared value and positive effects for local areas, in the interest of the communities served. In 2020, shared value Ebitda – i.e., results from business activities that, in addition to generating margins, meet the goals for sustainable growth defined by the UN Agenda and, more generally, national and international policies – rose to € 420.0 million euro (+7.2%), equivalent to 37.4% of total Ebitda. Creating shared value now part of the Articles of Association Another important step approved by the Shareholders Meeting concerns the introduction into the Articles of Association of Hera, one of the first companies in Italy to do so, of the concept of “Purpose”, with a focus on creating shared value. In particular, an additional paragraph was included in Article 3 to explain the Group’s corporate purpose, i.e. the goals it aims to achieve in carrying out its business activities. This emphasises Hera’s commitment to sustainability, which has characterized it since its establishment. President and CEO Hera 2020-04-29 Further Information President and CEO Hera Growth in results, thanks to good operating, financial and fiscal management. Focus on creating shared value for stakeholders and local areas confirmed, reinforced by the concept of corporate purpose introduced in the Articles of Association /-/hera-shareholders-meeting-2020-financial-statements-approved-dividend-rises-to-11-cents /group_eng/corporate-governance/shareholders-meetings /group_eng/investor-relations/results-and-presentations/y2020 /group_eng/sustainability/sustainability-report/sr Press release Shareholders' Meeting Documents Find out Online Report Y2020 Find out Sustainability Report 2020 President_and_CEO_110

SBTi 2021 We can now boast one of the most ambitious targets for reducing greenhouse gas emissions certified on a scientific basis for a company in Italy: down 37% by 2030 compared to 2019. This has been certified by the prestigious international network Science Based Targets initiative (SBTi), born out of a collaboration between CDP, the United Nations Global Compact, the World Resources Institute and the WWF, which today – World Earth Day – formalized its validation of our greenhouse gas reduction targets. We are committed in particular to the “Well below 2°C” goal, aimed at limiting the increase in global temperature to considerably below 2°C compared to pre-industrial levels, in line with the path set out by the Paris Climate Agreement. At the forefront in the energy transition and the fight against climate change Our focus on sustainability is fully integrated in the business strategies and goes hand in hand with creation of increasing shared value, with stakeholders and the areas in which we operate. We have long been at the forefront in the fight against climate change, taking action and making investments for the energy transition towards carbon neutrality and the transition to a circular economy, as reiterated in the 2024 Business Plan. And in order to focus our objectives even more concretely, we extend our outlook to 2030, also including the targets validated by SBTi, following the most rigorous scientific criteria. Our objective of a 37% reduction in carbon dioxide emissions is all the more ambitious considering that it is not limited to the emissions produced by the Group’s own activities but also covers those of our customers, in electricity and gas sales, and our suppliers. In fact, we have introduced numerous solutions for individuals and companies to promote energy efficiency, accompanied by broader initiatives intended to increase involvement and awareness, aimed at encouraging reduced consumption. img_canvas_interna.jpg Our objective in reducing greenhouse gas emissions is among the most ambitious for an Italian company, as officially communicated today, World Earth Day, by the international network Science Based Targets initiative /-/hera-to-reduce-emissions-by-37-within-2030 /documents/1514726/4185885/HERA-ITA-002-OFF+Certificate.pdf/58bf5219-2e44-4571-fc1d-4db76a3d7d0c?t=1619018057136 https://sciencebasedtargets.org/ https://eng.gruppohera.it/group_eng/sustainability/sustainability-report Press release read the SBTi certificate Visit SBTi website Read the chapter of the sustainability report dedicated to climate change mitigation centrata SBTi 2021

Tomaso Tommasi di Vignano e Stefano Venier The Hera Group closed the 2020 financial year positively, as well as in all quarters, even during a particularly difficult year on account of the Coronavirus emergency. The Group’s Board of Directors unanimously approved the consolidated economic results along with the Sustainability report. Thanks to its solid and efficient multi-business model, and good operating, financial and fiscal management, Hera succeeded in maintaining growth in its results while at the same time supporting its stakeholders. Even during the lockdown, indeed, Hera guaranteed continuity, safety, quality and efficiency in all services and also provided help not only for its own employees but also its customers, suppliers and local communities. This consisted first in allowing customers to pay with delays or by instalments and offering reverse factoring to small and medium businesses, and later participating in specific solidarity initiatives across the areas served. These initiatives were appreciated by customers, as appears in the recent customer satisfaction poll which, despite the difficult external context, confirmed a high customer satisfaction rate (73/100), with approval of the management and services provided during the emergency coming to 85/100. The Hera Group succeeded in continuing along the path of uninterrupted growth seen since its establishment in 2002, once again leveraging its own strategy: a balanced mix of internal and external growth, with significant economies of scale and higher synergies than expected. All of this while continuously striving to create value for its stakeholders, respecting the directions set out by the new Business Plan to 2024, which aims at accompanying all areas served in a recovery that respects European strategies and the goals on the UN’s 2030 Agenda. “These results indeed reflect our uninterrupted activities, in spite of the pandemic, supporting the economic fabric in which we operate. Quarter after quarter, we succeeded in meeting the challenges posed by the emergency, reacting quickly to reorganise our work and find solutions to protect our assets on the one hand, and customers on the other. In a complex context, we defined new projects and signed agreements with outstanding partners, and in the second half of 2020, gaining speed in particular towards the end of the year, we benefitted from the overall recovery seen in economic activities in the areas we serve. These positive results were reflected in all main indicators and are all the more significant in light of the difficulties caused by the health emergency: we thus confirmed our track record of 18 years of growth and further improved our financial solidity, with positive consequences for our public and private shareholders, to whom we have decided to pay, already this year, an increased dividend coming to 11 cents per share”. Executive President, Tomaso Tommasi, di Vignano went on to say at the end of the Board of Directors meeting of 24 March. Chief Executive Officer, Stefano Venier, added: “The growth achieved by the Hera Group was strongly supported by its partnership with Ascopiave, which enabled the Group to expand further in the Triveneto region. Despite the complex context, we were able to immediately extract a significant part of the expected synergies, thus giving a crucial contribution to the increase in our cash flows in 2020. The year was also dedicated to further progress in fully integrating sustainability into our business strategies: we are committed to promoting further development in this direction, with projects for circularity, carbon neutrality and technological innovation, respecting European policies and the goals on the UN’s 2030 Agenda. This also includes a few collaborations recently launched, such as the one with Snam for developing hydrogen”. 2019-07-18 News_BS_870px_eng.jpg The year ended positively, despite the nationwide impact coming from the Coronavirus emergency, during which Hera stood by its stakeholders and provided support. Thanks to its solid, efficient and sustainable multi-business strategy, Hera thus continued to grow and create value for shareholders and local communities /group_eng/investor-relations/results-and-presentations/y2020 https://eng.gruppohera.it/group_eng/sustainability/sustainability-report/sr /-/hera-bod-approves-y2020-results /documents/1514726/7351398/Bilancio+di+sostenibilit%C3%A0+2020+Highlight.pdf/773fb31e-68a1-a8b4-b487-435b139c741b?t=1618991300290 /group_eng/investors See the interactive 2020 annual report See the sustainability report 2020 Read the press release on Y2020 results 2020 Sustainability Report Highlights Find out the Investor Relations area Tomaso Tommasi di Vignano e Stefano Venier

World Water Day World Water Day celebrates water and raises awareness. On World Water Day 2021, dedicated to the theme 'The role of water in our society and how to defend it’, we renew our commitment to encouraging the responsible use of water. Protecting water and reducing consumption have always been of paramount importance for us, and the service we manage, according to a circular economy approach, has specific and challenging goals. Investments of more than 1 Billion Euro have been allocated to the Water Cycle in the 2024 Business Plan Our strategies to ensure quality, efficiency and resilience require major investments, in order to upgrade infrastructures, even with the use of innovative technologies. That is why, we have allocated investments of over 1 billion Euro to the water cycle in our 2024 Business Plan. Many projects are planned such as the partitioning of the networks into districts, strengthening interconnections, to reduce water loss and guarantee water supplies even in critical situations, as well as water reuse projects. Reducing consumption and efficient use of water One of the goals of the 2030 UN Agenda for Sustainable Development is to substantially increase water-use efficiency across all sectors within 2030. We have set our internal water saving goal by 2030 as 25%, and have already reduced consumption by 5% in 2019 (with respect to consumption in 2017). Monitoring consumption to promote a conscious use of water We have provided numerous free tools to our customers to make them aware of the properties of the water they use every day. The water bill, for example, shows the water label with details (territory by territory) of the main benchmarks. This data is also provided by the report “In Good Waters”, which is published online, and contains, amongst other things, information about the quality of the water managed, which is monitored with almost 3,000 tests a day. The Acquologo (the Water Expert), on the other hand, is a free App for tablets and smartphones that is yet another communications channel with the citizens we serve. Its functions include self-reading of your own water meter or access to data about the water quality in your municipality. The App, which in 2020 alone was downloaded almost 12,000 times, sends warnings to users about the interruption to the water supply for routine maintenance and water leakages or burst pipes on land in the public domain. Our website also has a web area dedicated to water (eng.gruppohera.it/acqua), with useful information and insights. Finally, to encourage a conscious use of water, we were the first to create in Italy, a free tool called, the Consumption Diary, in which users may monitor their water consumption in order to modify the way they use water, giving a saving on water bills while ensuring positive impact on the environment. The project, in collaboration with Milan Polytechnic University, has to date involved over 145,000 domestic users and will gradually be extended to all customers who provide an email address to the company. World Water Day Sede Hera 2013-08-28 For further information World Water Day On World Water Day 2021, we renew our commitment to protecting this precious natural resource. Investments of over one billion Euro have been allocated to the water cycle in our 2024 Business Plan. Our priorities are an efficient use of water and reducing consumption. World Water Day

S&P Global's Sustainability Award The Hera Group has received a worldwide gold medal for social responsibility. S&P Global, indeed, has awarded the company its Gold Class 2021, the highest recognition reserved for companies included in the Dow Jones Sustainability Index (DJSI), the authoritative international stock market index assessing the ESG factors of roughly 3,500 listed companied with the highest capitalisation globally. This prestigious result was released with the publication of the Sustainability Yearbook 2021, a report that contains the results of analyses carried out for gaining access to the index last year, and the names of companies that achieved the highest sustainability scores. Following its inclusion in the FTSE MIB in 2019, Hera participated in the selection process for the DJSI and, in only 2 years, rapidly rose in the classification, being included in the World and European indices at the same time and ranking as “Industry leader”, i.e. the best “Multi-utility and Water” in the world, with a score of 87/100, compared to a sector average coming to 45/100. Compared to the other companies assessed by the DJSI, Hera stood out in particular for its environmental and economic sustainability, and its governance. The Sustainability Yearbook 2021 gives particular emphasis to the significant results achieved by Hera in the areas identified as most challenging for its sector, such as resource management and protection, the ability to grasp market opportunities and relations with stakeholders. In addition to Gold Class status, Hera also received special mention as “Industry mover”, that is, the company that recorded the most significant improvement, rising by no less than 19 points compared to the score of 68/100 in 2019. S&P Global's Sustainability Award 2013-08-28 For further information S&P Global's Sustainability Award The Group has received Gold Class status for ranking as “Industry leader” in the Dow Jones Sustainability Index. Hera also given special mention as “Industry mover” /group_eng/sustainability /group_eng/investors /-/hera-2021-gold-medal-in-s-p-global-s-sustainability-award null Visit "Social Reponsibility" website area Visit "Investors" website area Press release null S&P Global's Sustainability Award

The Hera Group pays close attention to gender equality and to promoting diversity and inclusion, and stands out in particular for its transparency in providing information on these issues and its harassment prevention and sanctioning policies. The Group has indeed been included this year as well – after becoming part of it for the first time in 2020 – in the Bloomberg Gender-Equality Index, which evaluates 11,700 companies worldwide committed to promoting and creating equal and inclusive workplaces. Diversity awareness is indeed an increasingly important issue for the international financial community, with investors showing growing interest towards listed companies with outstanding policies in this area. Hera’s confirmation within the Bloomberg Gender-Equality Index – achieving significant results, even compared to the average in the utility sector – bears witness to the quality of the path chosen by the Group, which over time has been enriched with new content and increased dimensions, involving a growing number of employees. Today, diversity valorisation policies are an integral part of the Group’s strategy, and are also defined in its Business Plan to 2024. Promoting diversity, inclusion and people development is central in human resource management. At Hera, equality in access to development and professional growth is reached through meritocratic systems designed and calibrated to guarantee their own concrete application. The tools used include compensation and benefits focused on performance, the complexity of one’s role and market comparisons, regardless of gender or generation, and career paths that see an increasing percentage of women with roles of responsibility, now coming to roughly 30%. Bloomberg 2021 Sede Hera 2013-08-28 For further information Bloomberg 2021 /group_eng/investor-relations/hera-overview/creation-of-shared-value /-/hera-group-part-of-the-2021-bloomberg-gender-equality-index Hera Group's Diversity & Inclusion Main Parameters Press release bloomberg_2021_110.1611654387.png