Analysis of materiality
SNAM following the principles of the GRI's G4 guidelines in force since May 2013
Materiality is the key element that reinforces Snam’s sustainability strategy by generating environmental, economic and social value for the company and stakeholders
Materiality is the principle according to which businesses must prepare their reports by including information on aspects that significantly impact their capacity to create value over time.
By following the principles of the GRI's G4 guidelines in force since May 2013, which place particular emphasis on the principle of materiality, Snam immediately took advantage of the opportunity to lend greater focus to its reporting by updating the topics that have traditionally been part of its sustainability efforts. A focus on material aspects is key to the reinforcement of the corporate social responsibility strategy.
The materiality analysis, which involved the company management and was strengthened in 2015 via direct communication with stakeholders outside the Group, was updated in 2016 in the light of distribution activities. The analysis confirmed the materiality issues identified last year with some of them in a different position within the matrix.
The materiality analysis is conducted to identify the most significant topics for the Company and Stakeholders
The analysis started with an identification of the topics.
The analysis started with an identification of the topics noted in the main sustainability guidelines (ISO 26000 and GRI-G4), which are considered to be representative of the perspective external to the company, as they were identified as a result of multi-stakeholder dialogue at international level. These topics were then contextualised with respect to Snam’s main business sector, Utilities, through benchmarking carried out with the sustainability reports of the main sector companies at international level, as well as questionnaires of the most important rating agencies. The following were analysed to define the materiality of the relevant topics highlighted:
- The sector environment, public opinion and the pressures on the company, which make it possible to evaluate the evolution of political, economic and social phenomena at global and local level that could influence Snam’s strategies in the short and long term, as well as identify new topics and strengthen those already identified by analysing press reviews, media and the web;
- The perception of topics from the point of view of external stakeholders using engagement instruments that bring to light the doubts, tips and observations of key stakeholders with respect to sustainability and governance;
- The Code of Ethics and policies adopted by Snam;
- Topics from the internal point of view through interviews with function managers.
Jointly considering internal and external significance made it possible to identify areas of higher priority and greater materiality for the company.
Climate Change: The greenhouse gas emissions are considerated the main responsible for climate change to be in progress. An appropriate strategy to decrease GHG is needed.
Protection of land and biodiversity: The infrastructural initiatives that accompany network development may generate local conflicts. In order to avoid these phenomena, the procedures of engagement of the local communities concerned should accompany the various phases of the initiative, from planning and definition of layouts, to restoration works and re-establishment of habitats.
Protection of the air: Air protection through efficient and responsible environmental management, by mitigating the impacts and external effects generated, particularly during the construction of infrastructures.
Health and safety: The subject of workplace health and safety is among the rights more aknowledged and accepted in every business sector. This issue is generally considered material by definition, in particular for the industrial sector. Employement and safeguarding jobs: It is perhaps the most important "social" theme, given the ongoing negative effects the crisis is having on the country's economy, especially as regards youth employment prospects.
Development of human capital: The development of professional expertise and managerial skills, as well as the management of human capital, assume relevance in relation to the higher degree of complexity deriving from the evolution of the markets, both nationally and internationally.
Quality and development of services: The increase in competition and flexibility of the sector in favour of end customers (service quality and lower costs) calls for constant updates to a company’s commercial offer, keeping the level of service quality always high.
Supply Chain Management: The transparency and correctness of supplier management and the circulation to the suppliers of an ethos and good practice in terms of workplace safety and protection of the environment are essential. In many sectors of the global economy, they guarantee greater reliability and competition.
Creation of sustainable value: Promotion of sustainable development along the entire value chain.
Risk and crisis management: Risk management in the company is a crucial factor in reaching company objectives. For this reason, a company needs a management model that measures, manages and monitors the main risks that could impact the achievement of the strategic objectives.
Fight against corruption: Combating corruption is one of the major global challenges. In fact, corruption represents a major obstacle to sustainable development and democracy and has a devastating effect, not only at financial level but social level, and impacts the confidence of all stakeholders.
Transparency in management: This is an important issue as regards safeguarding the legitimate interests of stakeholders, all the more so if operating in regulated markets.
Management of Corporate Governance: Corporate governance is now considered one of the key variables in the investment decision phase. The existing link between good governance, the creation and distribution of value is actually evident.
Technological innovation: Technological innovation has a strategic role in the achievement of the environmental objectives of increasing energy efficiency and reducing the emissions of greenhouse cases, in line with the Europe 2020 Strategy.
Relations with Regulatory Authority: The quality and regularity of relations with the Regulatory Authorities hold a fundamental role in the choice of infrastructural investments.
The relevant issues are issues less meaningful than material issues. These themes are nontheless managed and accounted by the Company.
- Diversity and equal opportunities
- Healthy work/life balance
- Reputation and brand
- Soil, subsoil and stratum protection
- Water management
- Waste management
- Sound emissions
24 April 2017 - 11:47 CEST