The core elements of our identity - energy, water and the environment - are the levers through which we aim to foster real ecological transition, one that represents an opportunity for everyone.
In fact, being a Life Company means aiming at a sustainable quality of life for the territory, the environment and people, while preserving resources and fighting climate change. This is the underlying concept of our strategy and our services.
At A2A, we have the infrastructure and expertise to achieve the Ecological Transition the world urgently needs. We are taking concrete action to achieve this goal by investing heavily in renewable energy, modernizing and digitizing our infrastructure, limiting the use of landfills, using green hydrogen in the energy mix, and reducing water losses. In our strategy, approximately 75 percent of investments (on average over the plan period) are eligible for the EU taxonomy regulation.
By 2050, the ongoing process of urbanization could lead to 70% of the world's population living in urban areas, a percentage that rises to over 80% in Italy, increasing emissions by 18% and having an impact on energy consumption.At the same time, urban density makes cities particularly efficient: nationally, they consume 29% of the energy but produce 60% of GDP.
Thanks to the technological levers available today, it is possible to reduce emissions in cities by more than 50 percent. These actions require an annual investment of around 10 billion Euros, for a total of 270 billion Euros by 2050; resources that can also be activated through the presence and economic-financial capacity of industrial operators, including A2A, which can play the role of enabler and partner, thus helping to accelerate the path towards sustainability.
Sustainability and ESG issues are the foundation our Strategic Plan for 2024-2035. In fact, our investment plan is based on renewing and converting our infrastructure to accelerate the country's decarbonization journey.
On 2 March 2020, SBTi stated that A2A's direct and indirect CO2 emission reduction targets (Scope 1-2) are aligned with the reductions needed to keep global warming below 2°C. The Group has estimated that it will reach a value close to 226 gCO2/kWh by the end of the decade, which represents a 47% reduction in CO2 emissions compared to 2017 (425 gCO2/kWh). We have decided to renew this commitment by setting a 2035 target of -65% greenhouse gas emissions over 2017 in our Industrial Plan for 2024-20235.
This commitment has also been extended to the value chain, where we set emission reduction targets for suppliers and customers.
We are committed to identifying and reporting on the most significant risks and opportunities related to climate change and their economic impact on our activities
The transition to a Net Zero world requires a concrete and measurable commitment taking into account both the reduction of environmental impacts and the integration of the social dimension into our development path. Here the role of companies becomes even clearer and more relevant, since the social dimensions raised by the Just Transition theme are related to how companies work: decent work and jobs, responsible supply chain management and supporting the well-being of the communities where they operate.
We use specific tools and channels to ensure that this is done in a transparent and measurable way. The Sustainability Plan sets out our strategy and concrete short-, medium- and long-term goals. The Sustainability Report, which has been integrated into the Report on Operations this year, reports on our commitment through measurable data and results. The Territorial Reports document the impact we have on the communities where we operate. These tools enable us to engage in a transparent way with our stakeholders, monitor our progress, evaluate how effective our actions are and maintain our commitment to the goals we have set ourselves.
The aim is to create shared and lasting value for the wellbeing of communities and stakeholdersto combine the interests of the Group with those of its stakeholders.
This is why we have developed a digital platform to monitor our relationships with stakeholders and the initiatives through which we interact with them, as well as a structured program of listening, dialogue and co-design across the country to jointly build our future actions for the ecological transition.
As we make decisions today with an eye to the future, we are aware that every choice we make today will shape the world of tomorrow. This is why it is essential for us to enable all generations, especially the younger ones, to inform themselves through comprehensive and reliable tools in order to be active participants in the change we are driving and hope they will continue to carry forward.
