Overview

Due to the nature of its business, the Group is potentially exposed to various types of risks, mainly from natural events, climatic changes and financial market risks (external risks) and operational and environmental risks specific to each business sector, Information Technology and Human Resources (internal risks). In order to manage these risks, analyses and monitoring are carried out by each company as part of a structured and coordinated process implemented at a Group level through the integration of two complementary approaches (Enterprise Risk Management and continuous risk management), aimed at assessing and treating the risks of the entire organisation in an integrated logic, consistent with its risk appetite, with the aim of providing management with the information needed to make the most appropriate decisions to achieve strategic and business objectives, to safeguard, grow and create value for the company.
As part of the Enterprise Risk Management Framework, Group companies, also availing themselves of the support and assistance of Acea SpA’s Risk & Compliance Department, periodically carry out risk assessment activities in a structured manner, with the aim of identifying and assessing the main risks that may significantly affect the achievement of business objectives. In this way, a representation of the evolution of the Group’s overall risk profile is achieved, through the mapping and prioritisation of the main risks to which the Group is exposed and the identification of optimal methods for managing them, by preparing a mitigation strategy and monitoring its implementation. In the monitoring phase, Group companies ensure the management of identified risk scenarios, including through the implementation of specific response actions identified to reduce their potential effects.
During the year, the Group’s Key Risk Indicators (KRI) Framework was implemented, which makes it possible to assess changes in the organisation’s exposure to “operational” risks through the identification, regular updating and integrated reading of “sentinel” metrics.
This combination is designed to ensure effective control of the entire universe of main risks the Group is exposed to, guaranteeing management of the Group’s overall exposure in line with the objectives of the Business Plan and Sustainability.
In order to contain these types of risks, the Group has implemented mitigation and monitoring as summarised below at both a corporate and business sector level.

For Risk Mitigation long ago the Acea Group introduced the development and adoption of a Group Insurance Plan based on the following pillars: 

• Third Party Liability; 
• Property Damage;
• Employee benefits.

More specifically, the first two pillars transfer the economic and/or asset risk deriving from civil liability — in all its general, professional, environmental and cyber forms — and from events (accidental, culpable or malicious) affecting the Group’s physical and production assets.
The third pillar, on the other hand, aside from transferring economic and financial risk, implements a corporate welfare measure guaranteeing and paying the employees of the Acea Group significant financial support — both to those directly concerned and to those who may be entitled — in case of serious traumatic events related to both the professional and private spheres.
Still on the subject of risk mitigation, most of the companies of the Acea Group have adopted and maintain an Integrated Quality, Environment, Safety and Energy Management System (hereinafter the “System”), which complies with UNI ISO 9001:2015 (Quality), UNI ISO 14001:2015 (Environment), UNI ISO 45001:2018 (Safety) and UNI ISO 50001:2018 (Energy), certified by an accredited external body, as a tool for the prevention of accidents, diseases and pollution, as well as a measure to promote and support the efficiency and effectiveness of the company’s processes, including energy processes, and to achieve continuous improvement in the performance of the System itself and work management.
Note that, on the date of preparation of the current Management Report, we do not expect to be exposed to further risks and uncertainties that may have a significant impact on the results of the Acea Group’s operations, equity or financial position, other than those mentioned in this document.