Corporate Governance,
Sustainable
Development and Value Creation
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
CORPORATE
GOVERNANCE
SUSTAINABLE
DEVELOPMENT
COMPANY’S VALUE CREATION
(economic, social, competitive
and environmental success)
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
COMPANIES
SELECTED
PUBLIC
UTILITIES
LISTED ON ITALIAN STOCK
EXCHANGE BY
THE 31 JANUARY 2011
(17 COMPANIES)
INFORMATION
ANALYSED
SUSTAINABILITY
REPORT
2007-2009
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
CORPORATE
GOVERNANCE
SUSTAINABLE
DEVELOPMENT
1. DO COMPANIES IMPLEMENT
CORPORATE GOVERNANCE SYSTEMS
PROMOTING SUSTAINABLE
DEVELOPMENT?
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
1. DO COMPANIES IMPLEMENT
CORPORATE GOVERNANCE SYSTEMS
PROMOTING SUSTAINABLE
DEVELOPMENT?
1. DO PUBLIC UTILITIES COMMUNICATE
(DO THEY ARRANGE A SUSTAINABILITY REPORT)?
2. HOW DO PUBLIC UTILITIES COMMUNICATE
(HOW IS THE QUALITY OF THE SUSTAINABILITY
REPORT)?
3. WHAT DO PUBLIC UTILITIES COMMUNICATE
(WHAT’S THE CONTENT OF THE SUSTAINABILITY
REPORT)?
Alex Almici – University of Brescia (Italy)
GRI
guidelines
Corporate Governance, Sustainable Development and Value Creation
1. DO PUBLIC UTILITIES COMMUNICATE
(DO THEY ARRANGE A SUSTAINABILITY REPORT)?
6 PUBLIC UTILITIES OUT OF 17 (35%)
First sustainability report and Italian Stock Exchange listing
Public utilities that draw
up the sustainability
report
Listing
First sustainability
report
A2A
2008
2008
ACEA
1999
2002
EDISON
2002
2004
ENEL
1999
2002
HERA
2003
2003
IREN - IRIDE
2000
2006
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
2. HOW DO PUBLIC UTILITIES COMMUNICATE
(HOW IS THE QUALITY OF THE
SUSTAINABILITY REPORT)?
6 PUBLIC UTILITIES OUT OF 6
Model adopted for carrying out the sustainability report
No. of companies No. of companies No. of companies
2008
2007
2009
Reference to the
GRI Guidelines
5*
6
6
*With regard to 2007, the number of companies considered is 5 instead of 6
because A2A was founded in 2008
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
2. HOW DO PUBLIC UTILITIES COMMUNICATE
(HOW IS THE QUALITY OF THE
SUSTAINABILITY REPORT)?
Compliance degree as regards the GRI Guidelines
Compliance
degree
No. of
companies
2007
No. of
companies
2008
No. of
companies
2009
2
1
1
3
4
5
C
C+
B
B+
A
A+
not declared
1
Corporate Governance, Sustainable Development and Value Creation
2. HOW DO PUBLIC UTILITIES COMMUNICATE
(HOW IS THE QUALITY OF THE
SUSTAINABILITY REPORT)?
Revision by an external subject
4 companies out of 5 in 2007
4 companies out of 6 in 2008
5 companies out of 6 in 2009
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
3. WHAT DO PUBLIC UTILITIES COMMUNICATE
(WHAT’S THE CONTENT OF THE
SUSTAINABILITY REPORT)?
ECONOMIC
RESPONSIBILITY
ENVIRONMENTAL
RESPONSIBILITY
SOCIAL
RESPONSIBILITY
Shared value added, amount of
investments aimed at fighting
the problem of climatic change,
expense percentage that can be ascribed to
local suppliers
Raw materials used, consumption of direct
energy, greenhouse effect gas emission,
waste material produced, total water
collecting
Staff turnover rate, accidents at the
work place, average training hours,
etc.
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
ECONOMIC RESPONSIBILITY
Distribution of the value added to the stakeholders above 60%
No. of companies No. of companies No. of companies
2007
2008
2009
Value added
distributed
5
6
6
6 COMPANIES OUT OF 6
Investments above € 1.000.000 for the management of climatic changes
No. of companies No. of companies No. of companies
2007
2008
2009
Total investments
3
3
3 PUBLIC UTILITIES OUT OF 6
Alex Almici – University of Brescia (Italy)
3
Corporate Governance, Sustainable Development and Value Creation
ECONOMIC RESPONSIBILITY
Expenses percentage above 70% referable to local suppliers
No. of companies No. of companies
2007
2008
Expenses
percentage
3
No. of companies
2009
3
3 COMPANIES OUT OF 6
Alex Almici – University of Brescia (Italy)
3
Corporate Governance, Sustainable Development and Value Creation
ENVIRONMENTAL RESPONSIBILITY
Environmental performance trend in 2007-2009
No. of companiesdiminishing trend
No. of companies –
growing trend
Raw materials
consumption
3
3
Electric Energy
consumption
3
3
Total water collecting
4
2
Green house effect
Gas emission
3
3
Total waste weight
3
3
3 COMPANIES OUT OF 6
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
SOCIAL RESPONSIBILITY
Turnover rate below 9%
Employees
Turnover rate
No. of companies
2007
No. of companies
2008
No. of companies
2009
4
5
5
5 COMPANIES OUT OF 6
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
SOCIAL RESPONSIBILITY
Frequency of Accidents at work place below 10
Accidents on
working place
frequency
indicator
No. of companies
2007
No. of companies
2008
No. of companies
2009
3
3
3
3 COMPANIES OUT OF 6
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
SOCIAL RESPONSIBILITY
Yearly training hours above 20
Avarage training
hours per year
No. of companies
2007
No. of companies
2008
No. of companies
2009
4
4
4
4 COMPANIES OUT OF 6
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
SOCIAL RESPONSIBILITY
Discriminating practices episodes
0 COMPANIES OUT OF 6
Presence of sanctions
0 COMPANIES OUT OF 6
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
ECONOMIC
RESPONSIBILITY
ENVIRONMENTAL
RESPONSIBILITY
ONLY 3
COMPANIES
OUT OF 6
SOCIAL
RESPONSIBILITY
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
CORPORATE
GOVERNANCE
SUSTAINABLE
DEVELOPMENT
COMPANY’S VALUE
1. HAVE COMPANIES PROMOTING
SUSTAINABLE DEVELOPMENT
DISTINGUISHED THEMSELVES FOR THE
VALUE THEY CREATED?
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
1. HAVE COMPANIES PROMOTING
SUSTAINABLE DEVELOPMENT
DISTINGUISHED THEMSELVES FOR THE
VALUE THEY CREATED?
- AVERAGE PROCEEDS OF SALES (2007 – 2009) NON
INFERIOR TO € 1.000.000.000,00 - COMPETITIVE SUCCESS
- AVERAGE EBITDA ABOVE 200.000.000 – ECONOMIC
SUCCESS
- INCLUSION IN THE BASKET FOR THE ELABORATION
OF THE ETHIC INDEX FTSE4GOOD EUROPE – SOCIAL
AND ENVIRONMENTAL SUCCESS INDICATOR
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
1. HAVE COMPANIES PROMOTING
SUSTAINABLE DEVELOPMENT
DISTINGUISHED THEMSELVES FOR THE
VALUE THEY CREATED?
ONLY ONE COMPANY, AMONG THOSE PROMOTING
SUSTAINABLE DEVELOPMENT, SATISFIES ALL
CONDITIONS (ECONOMIC, COMPETITIVE, SOCIAL
AND EVIRONMENTAL)
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
1. DO COMPANIES PROMOTING
SUSTAINABLE DEVELOPMENT
DISTINGUISHED THEMSELVES FOR THE
VALUE THEY CREATED?
THOSE PUBLIC UTILITIES THAT DON’T
CARRY OUT A SUSTAINABILITY REPORT
(10 IN TOTAL) DON’T MEET ANY OF THE
CONDITIONS REQUESTED IN ORDER TO
CREATE VALUE IN MEDIUM-LONG TERM
Alex Almici – University of Brescia (Italy)