CSR Management

OUR POLICIES

Managing our business sustainably and responsibly means not only creating value and complying with laws and regulations, but also developing constructive relations with anyone who is directly or indirectly affected by our initiatives: our "stakeholders".

The Code of Ethics, first adopted in 2004 and now in its fifth edition (approved by ERG's Board of Directors) is the vehicle we use to express our principles and represent our wish to invest in transparent dialogue.

This is the cornerstone of our approach to business, which guides, evolves and supports the development of our business initiatives. This important document is accompanied by the Sustainability Policy and the Human Rights Policy approved by the Sustainability Committee.

GOVERNANCE 
Our Sustainability Committee guides and monitors all of our sustainability activities and aims to:

• define the Group's sustainability orientations and promote corporate social responsibility (CSR) projects;

• approve, monitor and evaluate sustainabilityrelated objectives and priority areas for actions related to CSR;

• approve the materiality analysis, timing and media for the Non-financial statement and for CSR initiatives.

The Sustainability Committee includes the Chairman, the CEO, the Executive Deputy Chairman and all primary reporting lines to the CEO.

In 2019 the Sustainability Committee met twice to approve the updates to the Sustainability Policy, the materiality analysis and the sustainability strategies, as well as the associated objectives. Furthermore, the results of the ratings received during the year and the selection of certain significant stakeholder engagement initiatives in our business development countries were discussed (including the educational Kinderwind project, the ERG Plastic Free project and our commitment to the I4C Italy for Climate initiative).

Considering its duties on the subject of ESG, the Sustainability Committee has also acted as a "Green Bond Committee", choosing projects to be funded with the revenues generated through the allocation of the Green Bond, with reference to the Green Bond Framework. In addition to this activity, the Committee also provided guidelines for sustainability reporting and for the preparation of the Non-Financial Statement (NFS).

The Committee receives support from the Sustainability department, which is tasked with:

• collecting all the inputs coming from the lines, representing them in the Sustainability Report laid out according to international benchmark standards;

• supporting the Committee in carrying out its tasks, in particular in monitoring, reporting and operationally implementing the goals, via the CSR Working Groups;

• operationally implementing the CSR-related orientations identified by the Sustainability Committee within the Group. The management and promotion of sustainability activities are supported by our CSR Working Groups. These groups involve crosswise all of the organisational units and are tasked with:

• identifying the reporting areas of the report;

• defining the Key Performance Indicators (KPIs) to represent the Group's activities and identifying new ones, if necessary;

• identifying initiatives and collecting requests from the main stakeholders in order to give them appropriate consideration in the Sustainability Report. 

The Sustainability management system is further supported by:

• the Supervisory Committee, established pursuant to the 231 Model. This Committee is set up in all of the Group's Italian companies and acts as an Ethic Committee;

• the Human Capital Committee which, as well as overseeing the growth and development of ERG's employees, verifies any reports of possible violations of the Human Rights Policy.