Materiality Analysis

Our 2017 Non-Financial Reporting was drawn up in compliance with the "G4 Sustainability Reporting Guidelines" published in by the GRI (Global Reporting Initiative) in 2013 according to the «Core» option, and includes the information required by the GRI-G4 "Electric Utilities Sector Disclosures", specifically for companies in the utilities sector. The list of GRI-G4 indicators is available in the paragraph "GRI G4 content index" of this document.

In drawing up the NFR, reference was also made to the European Commission's "Guidelines for the communication of non-financial information".

The need to respond to legal requirements and the awareness that the document would receive greater attention by financial analysts, required a new assessment of the materiality matrix used until the 2016 Sustainability Report: we focused on issues of greater importance for "Shareholders" and "Financial Community" stakeholders and we integrated the "relevant topics" with the minimum requirements referred to in Decree 254.

This assessment allowed us to develop a new materiality matrix containing the relevant topics reported in this document, and to assess them according to the principles set out in the "G4 Sustainability Reporting Guidelines": stakeholder involvement, context of operations, materiality and completeness of data.

In this respect, the NFR was drawn up to the extent necessary to ensure the understanding of the Group's business, its performance, its results and of the impact it generates, covering the relevant topics referred to in art. 3 of Decree 254 (concerning the fight against active and passive corruption, the environment, personnel management, social aspects and the respect for human rights).

Discover our 2016 Materiality analysis

Discover our 2016 Materiality analysis
The Sustainability Department has managed the process to identify material topics: an initial documentary analysis phase mapped the aspects that were considered relevant for the Group's sustainable development, on the basis of the Company Management's sensitivity, of the instructions provided by the GRI (both in the general principles and in industry specifi c documents), of questions collected during ESG ratings received during the year, and of benchmarking against other companies in our field.

The topics identified by that process (about 60) were then grouped into 23 "relevant topics": of these, 19 were assessed by internal and external stakeholders while 4 were considered prerequisites to properly portray the ERG Group and therefore were not subject to assessment. especially the "ERG Group profile and its activities", "The Group's Governance", the "Respect for diversity and equal opportunities", the "Protection of the health and safety of employees" as well as all issues concerning "regulatory compliance" were considered "material topics regardless".

The relevant topics were then assessed by the Group's top management by interviewing 12 managers (including the Chairman, the Vice Chairman and the Executive Deputy Chairman, the CEO and all his direct reports) and by direct interviews or questionnaires distributed at public events, by 12 categories of stakeholders (shareholders, suppliers, fi nancial community, local community, faculty members, third sector representatives, students, public institutions, press and bloggers, organizations and associations, companies, other), who were asked to state the 5 subjects that they considered to be a priority. the fi nal relevance scores were calculated as the arithmetic mean of the assessments expressed by the stakeholders (number of times each issue was assessed as relevant) weighted in relation to the number of members in each category of stakeholders.

The joint evaluation of two relevance ratings (that of top management and that of the stakeholders) produced the materiality analysis, i.e. the identifi cation of the topics considered relevant. These topics were discussed at Group level in the sustainability report except for specific cases of irrelevance (e.g. the emission topic does not concern the production of renewable energy).