The Climate Transition Plan: Our compass for decarbonization

  • Why a Climate Transition Plan
  • Targets
  • Decarbonization levers
  • Resources for the transition
  • Just Transition
  • Useful resources

Why a Climate Transition Plan

Climate change mitigation is no longer an option

In recent years, global attention has focused on complex dynamics that are reshaping the priorities of governments, businesses and citizens. In this constantly evolving geopolitical context, the climate crisis continues to progress, requiring consistent, responsible and long-term action. In light of this, climate change mitigation is no longer an option, but an essential condition for the stability of economic, social and environmental systems.

The targets we set are clear and measurable

50%

% reduction in direct and indirect emissions (Scope 1 and 2) by 2035 compared to 2017

80%

emission reduction by 2040

2050

Achieving net zero emissions by 2050

Target

Our objectives for the future

We have updated our targets related to the reduction of direct and indirect emissions (Scope 1 and Scope 2), which are monitored and externally validated. We have also defined new targets to reduce emissions across the value chain (Scope 3) and to support the decarbonization of local areas by providing low-emission solutions for our customers and citizens (Scope 4).

Beyond 2035: achieving Net Zero by 2050 across all emission scopes.

The Group’s transition strategy is completed by 2050 with its most ambitious objective: achieving net-zero emissions across the entire carbon footprint, reaching a 90% reduction compared to 2023 levels, prior to the use of carbon removal credits.

Total carbon footprint

MtonCO2e

In particular, for energy generation and waste-to-energy plants (Scope 1), a structural reduction is envisaged as a result of the continued implementation of the Group’s strategy to expand renewable generation, alongside optimization and increased flexibility in the management of production volumes from fossil-fuel plants. This is complemented by the capture of CO2 emissions at stack level where no alternative solutions are available, as well as the use of biomethane and hydrogen in combustion processes for the generation of electricity and heat.

With regard to Scope 3 emissions, the Net Zero target is pursued through the commitment to supply 100% renewable-certified electricity and 100% green gas to all customers in the liberalized market, as well as by supporting suppliers in their decarbonization pathways. Any residual emissions will be neutralized through the purchase of certified carbon removal credits, thereby enabling the Group to achieve Net Zero across all emission scopes, in line with EU targets.

Avoided emissions are associated with CO2 savings that are not included in the carbon footprint of the A2A Group but contribute to the decarbonization of the national system, citizens, and local areas. Within our targets, avoided emissions are calculated by comparison with a no-intervention scenario and are measured cumulatively over the 2024–2035 Strategic Plan horizon.

Decarbonization levers

Planning transition levers to enhance business resilience

In continuity with the actions already implemented in recent years, we will activate transition levers to strengthen the resilience of the business against the risks to which it is exposed, to capture identified opportunities, and to contribute to the achievement of the targets set by the Paris Agreement.

Direct levers

Direct levers are actions that A2A can implement directly and that result in a reduction of the Group’s emissions.

Indirect levers

Indirect levers depend on external stakeholders but nonetheless lead to a reduction of emissions within A2A’s operational boundary.

Enabling levers

Enabling levers consist of activities or services that A2A provides to customers and communities, generating emission reductions outside its own operational perimeter.

  • Within the Circular Economy pillar, specific decarbonization levers have been identified that involve the following Group businesses: waste collection and treatment, water cycle, and heat and district heating.

    The direct levers involve concrete interventions across all businesses under the Circular Economy Pillar, specifically:

    • Waste collection: decarbonization of the collection fleet (Scope 1)
    • Waste treatment: increased bioenergy production, plant efficiency improvements, and installation of carbon capture and storage technologies at waste-to-energy plants (Scope 1)
    • Water cycle: actions to reduce network losses and improve the efficiency of wastewater treatment plants (Scope 1)
    • Heat and district heating: replacement of natural gas with biomethane and use of heat from waste heat/waste heat or renewable sources (Scope 1).

    The most significant indirect lever is the reduction of the emissions factor of Italian electricity. This lever impacts all emissions scopes.

    The enabling levers, on the other hand, concern the waste and heat and district heating businesses. These are, respectively, the progressive increase in separate waste collection, material and energy recovery, and increased heat recovery from third parties (Scope 1).

     

  • In the context of the Energy Transition, specific decarbonization levers have been identified that involve the Group's following businesses: power generation, distribution, and sales of electricity and gas, as well as SEA energy efficiency solutions.

    The direct levers involve concrete interventions across all businesses within the Energy Transition Pillar, specifically:

    • Power generation: increased production from renewable sources, modulation of thermoelectric production in favor of renewable energy sources, use of carbon capture and storage technologies, and use of green gas instead of fossil fuels (Scope 1)
    • Electricity and gas distribution: reduction of preheating of distributed gas (Scope 1) and reduction of fugitive emissions (Scope 2)
    • Electricity and gas sales: increase in the share of renewable electricity sold on the free market, increase biomethane and introduction of hydrogen in the gas mix sold, and progressive electrification of gas customers (Scope 3)

    The most significant indirect lever is the reduction of the emissions factor of Italian electricity. This action has a transversal impact on all company businesses and represents a shared opportunity for all operators in the sector in the coming years, as the decarbonization of the national electricity system will bring widespread benefits. This lever impacts all emissions scopes.

    The enabling levers are primarily applicable to the generation and VAS (Value-Added Services) businesses. These include research and development (R&D) activities and the growth of HVAC (Heating, Ventilation, and Air Conditioning) installation services. These initiatives enable emissions reductions even outside the Group's direct operating perimeter, contributing to the achievement of sustainability objectives through customer and community engagement (Scope 3).

Resources for the transition

A2A Momentum: Ready to Power

As a Life Company, we hold a strategic position in the country’s transition, leveraging an integrated business model that combines the two pillars guiding our strategy: the energy transition and the circular economy. The update of the Strategic Plan to 2035 further strengthens this trajectory, with infrastructure investments amounting to €23 billion, of which more than one third has already been completed or is underway.

The charts show the investment strategy and construction progress (2024-35).

Total Capex for 2024-35 is €23 billion.
 

CAPEX by strategic pillar

€B

~70% CapEx eligible under the European Taxonomy Regulation

Of the €19 billion in investments planned for the 2026–2035 period, approximately €7 billion relate to initiatives and projects with a significant impact on decarbonization over the 2026–2035 timeframe, in line with the strategy of A2A Group.

Of the €2 billion allocated to the Circular Economy, 15% is for direct levers and 13% for enabling levers.

While the €5 billion for the Energy Transition is 60% for direct levers and 12% for enabling levers.

CAPEX for initiatives and projects with a significant impact on decarbonization

€B

To assess the sustainability impact of future initiatives, we are conducting an eligibility screening of the projects planned over the strategic plan horizon, in accordance with the requirements of the EU Taxonomy Regulation.

Investment eligibility developments in the 2026-35 Plan

Expected growth of 14 percentage points

Sector Breakdown of Average Eligibility

~75% average eligibility in the 26-35 period

Just Transition

Beyond climate: our social commitment

The social dimension of A2A Group’s Climate Transition Plan represents the human and relational pillar of the corporate strategy. We have introduced concrete actions targeting people, territories, and stakeholders, promoting transformative governance and a corporate culture grounded in social responsibility.

The social and innovation priorities supporting the Just Transition are as follows:

Supply chain

decarbonization of the value chain and mitigation of operational risks linked to procurement through active supply chain engagement.

Order assigned to suppliers

%

Human capital development

Upskilling and reskilling of employees, primarily in areas most affected by the transition, through internal Technical Academies aimed at supporting the shift toward new business models.

Reskilling and upskilling of employees

%

Talent attraction

Corporate culture as a driver of attractiveness and employer branding. Engagement with schools and universities to develop and acquire the skills required for the transition.

Territorial engagement

Active involvement of local stakeholders to guide the ecological transition of territories, through the identification of specific projects for climate change mitigation and adaptation.

Internal and external education

Advocacy and scientific outreach programmes for both employees and external stakeholders, including through visits to the Group’s operational facilities.

Useful resources