Supporting the economy wherever we operate
In 2021, the economic value generated amounted to 11,582 million euros, a 68.6% increase on the previous year.
Of this amount, 10,732 million euros were distributed to stakeholders: suppliers of goods and services (87%), employees (7%), venture capital providers (1%), public institutions and communities (2%), shareholders (3%). Approximately 7% of the economic value generated was retained by the Group as profit, reserves and amortisation.
In 2021, investments made in Group activities totalled 1,074 million euros (+46% compared to 2020). These investments were made in line with the business plan and based on the two main pillars of the circular economy and energy transition.
We also have a solid and long-standing relationship with the European Investment Bank (EIB) in support of the Group’s investment programme. The EIB funds specific investment projects that comply with particular requirements of sustainability, applying economic conditions that are generally more favourable than those of more common forms of financing. At 31 December 2021, the value of this financing stood at around 758.5 million euros.
Investments by Business unit
| BU | % |
|---|---|
| Generazione and Trading | 13 |
| Corporate | 7 |
| Market | 7 |
| Environment | 25 |
| Smart Infrastructures | 48 |
Some 2021 numbers
11,582€M
Economic value generated
758.5€M
EIB financing
500€M
Sustainability-Linked Bond
Sustainable finance
In May 2021, after the first Green Financing Framework of July 2019, we set up a new Sustainable Financing Framework in line with ICMA and LMA principles, combining two approaches: Green/Use of Proceeds and Sustainability-Linked.
The Framework identifies and inserts a set of KPIs, reflecting the two mainstays of A2A’s strategic plan: the energy transition and the circular economy. In fact, the KPIs selected (Scope 1 CO2 emissions reduction; renewable sources installed capacity increase; material recovery from waste) relate to the ESG targets which contribute to achievement of the United Nations SDGs 7, 11, 12 and 13.
In July 2021, we placed our first sustainability-linked bond (500 million euros; 10-year). The bond is linked to the achievement of a sustainability target for the reduction of direct emissions (Scope 1) of greenhouse gases per kilowatt hour of energy produced. The sustainability-linked bond combines objectives set out in the Business Plan and sustainability targets, confirming our commitment in the fight against climate change. Moreover, the operation falls within the Group’s plans to increase the share of ESG debt, with a target of over 70% by 2030.
In October 2021, we then issued a new 500-million euro 12-year Green Bond, which will fund green projects in line with EU taxonomy, defined within the Sustainable Finance Framework, and thanks to which A2A will contribute to Italy’s ecological transition. The Group verified, prior to issue, compliance of the green projects with EU taxonomy and, in the reporting of the allocation of returns on the Green Bond, undertakes to indicate the effective total of investments aligned to EU taxonomy that will be financed.
We believe that the issue of sustainable financial instruments can contribute positively to the advancement of the transition towards a low-carbon economy by means of (i) direct financing of enabling projects for this transition and (ii) a long-term commitment to the achievement of ambitious sustainability targets.
A2A included in the new MIB ESG
In its first year, A2A has been included in the new MIB ESG Index launched by Euronext and Borsa Italiana. The Group has thus become part, from the very beginning, of an index that includes the best 40 companies selected on the basis of criteria of sustainability, corporate social responsibility and liquidity. In line with the principals of the United Nations’ Global Compact, the MIB ESG Index of Euronext and Borsa Italiana combines assessment of economic performance with ESG-related impacts. The index is the first in Italy dedicated to listed blue-chip companies and aims to identify best practices at an ESG level.