Objectives, performance and targets

• +125% recycled plastic from Aliplast by 2025 and +150% by 2030 (compared to 2017)
• + 30% of plastic collected in the municipalities served as part of the commitments made in the "New Plastics Economy Global Commitment" by the Ellen MacArthur Foundation to combat plastic waste pollution.

• 202 upgraded agglomerations out of 202 managed with a size of between 200 and 2,000 p.e. in Emilia-Romagna (58 still remain to be upgraded);
• 37 agglomerations out of 37 managed with size of between 200 and 2,000 p.e. in Triveneto (1 still remains to be upgraded).

• 158 upgraded agglomerations out of 202 managed with a size of between 200 and 2,000 p.e. in Emilia-Romagna;
• 36 agglomerations upgraded out of 37 managed with a consistency between 200 and 2,000 p.e. in Triveneto (1 which will be upgraded by 2026);
• 27 remaining interventions in agglomerations of between 2,000 and 10,000 and more than 10,000 p.e. (in Emilia-Romagna) in relation to the requirements laid down in resolutions 201/2016, 569/2019 and 2153/2021 of the Emilia-Romagna Region regarding the upgrading of urban wastewater treatment by 2022.

11% increase in the volume served by district heating in 2025 compared to 2020 for the benefit of the air quality in the cities served.In Bologna, continue the designing of the CAAB/Pilastro and S. Giacomo headquarters interconnection project aimed at obtaining a substantial reduction in CO₂ and NO_X emissions.

• 44 to be upgraded out of 202 agglomerations managed with a size of between 200 and 2,000 p.e. in Emilia-Romagna;
• 1 to be upgrade out of 37 agglomerations managed with a size of between 200 and 2,000 p.e. in Triveneto.

Continue to apply the social clause to protect employment in the contracts for emergency services on networks and services relating to customer management (except for insourcing situations).

• Electricity service resilience: 36.8 km of network made compliant in 2022, 54.5% of the overall electricity resilience plan.
• Resilience of the aqueduct service: development of predictive algorithms to intercept the risk of drought and adoption of new technologies to support the search for leaks.

• Electricity service resilience: 38.3 km of network made compliant, equal to 56.7% of the overall electricity resilience plan.
• Resilience of the aqueduct service: further consolidation and inclusion in corporate systems of the project for monitoring water sources. Leak detection was consolidated with predictive algorithms.

• Electricity service resilience: 54.8 km of network made compliant in 2023, equal to 81% of the overall electricity resilience plan (57% by 2022).
• Water service resilience: numerous interventions set out in the 2026 business plan in the Triveneto and Emilia-Romagna areas to mitigate the risk of drought (aqueduct interconnections, upgrading of catchments and supply lines, new wells and tanks). 70% of district-based network by 2026 and predictive algorithms to reduce dispersions.

Purpose-driven Code of Ethics: update the Code of Ethics (fifth update) based on the corporate purpose included in the Articles of Association with the participation of all employees.

The Code of Ethics was updated, following a participatory review process involving workers in various forms. The corporate purpose was included.

Approximately 2 bilion euro: added value to stakeholders by 2025 (+13% compared to 2021).

In 2022, added value for stakeholders came to 1,674 million euro (-5.4% compared to 2021).

3.8 billion euro. Investments made in the period 2021-2025

709.5 million euro. Investments made in 2022 (+21% compared to 2021).

Increase ESG debt instruments.

At 2022, the share of sustainable bonds issued by Hera Spa out of the total is 49% (40% in 2021). The 2022 share is increasing due to the issuance of the Green Bond in line with the European Taxonomy set up in May 2022.

Continue to listen to and involve the local area's stakeholders through the launch of the new HeraLAB model for two areas beginning in June 2022. Complete the three local HeraLAB initiatives in the Rimini area and the three initiatives in the Bologna area.

Engagement activities launched in 2022 for the two new HeraLABs in Modena and Imola, whose discussion activities will focus on the topic of carbon neutrality. Two projects currently being implemented in the Rimini and Bologna areas.
Work begun on seven of the eight initiatives proposed by the Modena and Forlì-Cesena Labs.

Organise initiatives to distribute the new purpose-driven Code of Ethics, update and continue training on the Code of Ethics for new employees.

2.1 billion euro: added value for stakeholders by 2026 (+25% compared to 2022).

4 billion euro: investments made between 2022 and 2026 (54% by 2022).

60% of 2022-2026 investments in activities aligned with the EU Taxonomy.

Complete the 4 local HeraLAB initiatives: 2 in the Modena area and 2 in the Forlì-Cesena area.
Launch the third edition of HeraLAB in the Imola and Modena areas (6 meetings planned for 2023). Define the local areas and the topic on which to focus the 2024 HeraLABs.

98% second generation electricity meters (420 thousand meters), 50% of which in recycled plastic, and 98% gas meters installed by end 2025.

At the end of 2022, 6% of electricity meters are second generation (28 thousand, a slight increase due to supply problems), 4% of which in recycled plastic. Around 87% of gas meters are eletronic (78% in 2021).

More than 300 thousand NexMeter meters installed by the end of 2025 (18.2 % of the total), 200 thousand of which in recycled plastic.

More than 180 thousand NexMeter gas meters were installed at the end of 2022 (approximately 11% of the total, in 2021 the number totalled 80 thousand). First installation of NexMeter Green, the gas meter made of recycled plastic, begun.

Ensure compliance with commercial quality standards for gas, electricity, water and district heating services, in line with 2021.

99.6% of cases were compliant with commercial quality standards in 2022, in line with 2021.

Emergency gas services: maintain a much higher level than ARERA requirements for the percentage of calls with arrival at call location within 60 minutes.

97.3% arrival rate at the call location within 60 minutes (against a service requirement of 90%).

10 minutes average waiting time at the branch offices and 30 seconds average waiting time for the call center.

8.9 minutes average waiting time at the branch offices and 93 seconds average waiting time for the call centre in 2022 (up from 5.7 minutes and 32 seconds in 2021, as a result of the significant increase in contacts due to energy cost developments).

81% second-generation smart electricity meters (6% by 2022), of which 50% made of recycled plastic (4% by 2022), and 86% electronic gas metres installed and remotely read by the end of 2026 (77% in 2022).
Roughly 100 thousand smart water meters installed by 2026.

Roughly 300 thousand evolved NexMeter gas meters installed by the end of 2026 (18.3% of total meters), of which 100 thousand made of recycled plastic.

Guarantee respect for commercial/contractual quality standards concerning the gas, electricity, water and district heating services, in line with 2022.

Emergency gas interventions: maintain a level significantly higher that ARERA's requirements for the percentage of calls with arrival within 60 minutes.

10 minutes, average waiting time at help desks, and 80 seconds, average waiting time at the call center.

Strengthen the new online training platform MyAcademy, a single digital environment with continuously updated content and the option to customise the learning experience according to roles and training needs. Continue with the initiative, launched in 2020, that allows all workers to devote a working day (full or two half days) to their professional development with remote learning courses.
25 hours per capita of training in 2022.

Expansion of the MyAcademy online training platform. We continued the initiative, launched in 2020, which allows all workers to devote a working day (full or two half days) to their professional development with remote learning courses.
30.8 hours per capita of training in 2022.

Continue developing a corporate culture aimed at further reinforcing the concept of individual well-being (physical, mental and financial) as an element in which to invest so that everyone can realise their full potential and consequently contribute to their professional growth as well as that of the company. Expand the range of wellness services offered.

Free on-demand initiatives were offered, linked to the concept of all-around individual well-being: mental, physical and financial. Free sessions with psychologists, nutritionists, weekly online yoga and Pilates classesoffered, availability of a 24/7 platform to work out from home with a wellness professional or discounts for gym sessions with a trainer.

Further reduction in the lost time injury frequency rate (10.2 by 2025). Continue with -raising initiatives. Gradually extend the use of the Man Down app in business units with lone worker hazards.

The accident frequency index in 2022 was 10.5 (vs 10.3 in 2021).
The Culture of Safety initiative was continued and expanded with the Safety Leadership project for managers. Adopted the use of the Man Down app at HeraTech laboratories, currently studying the extension at the Water Department for those with lone worker hazards.

Continue the initiative, launched in 2020, which allows all workers to devote a working day (one full or two half days) to their professional development with distance learning courses.
25 hours per capita of training in 2023.

Continue covering at least 50% of requirements through internal mobility.

Continue developing a corporate culture aimed at further strengthening the concept of individual wellbeing (physical, psychological and financial) as an element in which to invest in order to allow all people to express their full potential across the board and consequently contribute to their professional growth as well as that of the company. Broaden the range of services offered in the field of wellbeing.

Launch the fifth edition of HeraSolidale (2023-2025), involving employees in identifying non-profit organisations and supporting the implementation of solidarity projects.

Further reduce the accident frequency rate (10.5 by 2026 and <10 by 2030); (10.5 by 2022)
Continue with training and awareness-raising initiatives on the "Culture of Safety" and "Safety Leadership" for managers. Installation of the "Variable Message Panel" on 400 vehicles of the Central Network Department to improve safety on the road during the initial fault detection and settlement phases. Gradually extend the use of the "Man on the ground" app in business units with lone worker risk.

Monitor supply companies’ social responsibility towards their workers: carry out more than 30 audits of suppliers (locations and construction sites) in 2022.

Monitor supply companies’ social responsibility towards their workers: more than 90 evaluation questionnaires were collected and 47 audits carried out at suppliers' locations and construction sites in 2022.

Continue to assign a significant score for aspects of environmental and social sustainability in tenders using the most economically advantageous bid criterion.

39/100 Average score for aspects of sustainability in tenders carried out in 2022 with the most economically advantageous bid criterion.

Continue to give value to quality, safety, environmental and social responsibility management systems when selecting suppliers.

Value given to certified management systems continued in 2022: the value of suppliers with ISO 9001 came to 86.3%; 67.7% with ISO 14001 / Emas; 60.7% with ISO 45001; 32.9% with SA 8000.

10% of the value of tenders awarded in 2022 related to circularity criteria through the application of the new Circular Procurement Guidelines and the related Operational Instruction defined in 2020.

The value of tenders with ‘circularity’ criteria reached 10.4% of the total value of new tenders assigned in 2022.

Analyse all accidents reported by companies providing services and works to the Hera Group and reporting their rates.

All accidents reported by companies providing services and works to the Hera Group were analysed: 284 accidents reported (as against 313 in 2021) and the frequency rate was 22.8 (as against 22.4 in 2021).

Supplier monitoring with multifunctional teams (corporate social responsibility and safety): in 2023, carry out more than 30 audits at suppliers’ facilities (offices and construction sites); (47 in 2022)

Continue to assign a significant score to environmental and social sustainability factors in tenders using the economically most advantageous bid.

Begin monitoring suppliers’ “EGS maturity” index, launching a new eProcurement portal, through a dedicated questionnaire at the supplier qualification stage

More than 10.5% of the value of procurements in 2023 with circularity criteria (10.4% in 2022), through the application of the circular procurement Guidelines and the related Operational instruction defined in 2020

Analise all accident events communicated by the Hera Group’s suppliers of services and works and record the related rates.