“China Mission” for Italgas: Italy’s ecosystem presents itself in Beijing

At the China LNG & Gas International Summit the company organized a workshop with State Grid of China. Taking his main suppliers with him  

Mission to China for Italgas. On October 15 and 16 the company participated in the fifth edition of the China LNG & Gas International Summit, while on October 17 it organized a workshop in collaboration with State Grid Corporation of China where it presented its experience in the Italian gas market to an audience of international companies. In the words of the President of State Grid, the day is “the first concrete step of collaboration following the Memorandum of Understanding – signed on 28 April by Italgas and State Grid – and I hope it will be the first of a series of meetings”.

The workshop on October 17th

The workshop was divided into two parts. In the morning, Italgas’ managers spoke about the process of liberalisation of the gas market in Italy since the 2000s, explaining how the market has evolved, what the impact of liberalisation has been, what the current market structure is and what the possible developments are, also with reference to Italgas’ strategic plan. This issue is of particular interest in China, where the evaluation process has begun with a view to a possible liberalisation of the energy market.

The afternoon session was dedicated to an in-depth examination of the technologies. Some key suppliers among Italgas’ business partners, all Italian excellence in technological innovation, presented their value propositions and portfolio of products and services to the most important Chinese companies in the sector and to some State Grid subsidiaries abroad.

The companies that took part in the workshop with Italgas were Bitron, Cpl Concordia, Pietro Fiorentini, Regas, Sagemcom and Pellegrini. On the other side of the table Sgspaa (Australia), Ren (Portugal), SP Group (Singapore), Beijing Gas Group (China), Enn Group (China), Kunlun Gas (China): a panel of companies, the latter, which manages a total of almost 210 thousand kilometres of networks serving more than 47 million gas users.

Pier Lorenzo Dell’Orco: “Gas advocacy is among our missions.”

“The agreement of April 28th is important for several reasons. First and foremost at institutional level: Italgas is a leader in Italy and one of the largest in Europe, and we feel the responsibility and mission to be the ambassador of Italian methane technology – explains Pier Lorenzo Dell’Orco, Italgas Sales Development Director -. Secondly, it is important in terms of sustainability: our strategic plan is entirely inspired by compliance with the objectives of the sustainability plan, among which there is the issue of gas advocacy: we are convinced that methane is a useful resource for the energy transition to a decarbonized economy, whatever the landing point in 2050. Everything that can be used to promote the use of gas and make the best use of our skills, we want to do it in Italy and propose it as best practice abroad”.

Nunzio Ferrulli: “Our mantra is the combination of infrastructure and digitization.”

Nunzio Ferrulli, Head of Institutional Relations and Regulatory Affairs of Italgas, focuses on knowledge-sharing activities: “We believe we are at the forefront of gas infrastructure management because we have launched a major investment plan not only on infrastructure but also on digitisation. This is our mantra, and has allowed us to be ‘best in class’ both at European level and at the Italy-China workshop. That’s probably why State Grid asked us to explore our best practices and invited us to Beijing. We thought it would be fair to involve our business partners. It is an important operation because in the collective imagination there are Chinese companies that come to invest in Italy, in a sort of one-way street, while on this occasion it is the companies of our country that go to China to present their excellence”.

Raffaella Marcuccio: “Italian technologies as protagonists in China”

“We bring our Italian suppliers to China with the intention of enhancing and promoting their know-how of excellence – underlines Raffaella Marcuccio, Head of Procurement and Material Management at Italgas -. The prospect is to allow them to understand whether the conditions are in place to think about possible partnerships with Chinese companies in the field of gas distribution. In this context the central theme, the one in which Italy manages to express excellence, is technological innovation, with a particular focus on digitization. One of the most interesting challenges – concludes Marcuccio – is to verify in the field how and to what extent the excellence of Italian technology can interact with the world’s energy giants.

The Djsi index: a “green thermometer” for industry giants

Italgas joins the elite of large companies committed to environmental sustainability. Katia Corvino: “We’ve brought out the values we have in our DNA.”

The Dow Jones Sustainability Index is an authoritative global “thermometer” that certifies how committed large listed companies are to sustainability. Its birth dates back exactly 20 years ago, to 1999, and is the result of the collaboration between Standard&Poors Dow Jones indices and Robeco Sustainable Asset Management, two of the major international reference points in the sector. In addition to the global index, the Djsi World, of the same “stable” also includes other geo-referenced sustainability indexes on smaller areas: North America, Europe, Asia Pacific, Emerging Markets, Korea, Australia, Chile and Mila Pacific Alliance.

Italgas enters the Dow Jones Sustainability Index

Italgas joined Djsi World for the first time this year: “It has been a great challenge for us – comments Katia Corvino, Head of Corporate Social Responsibility – but we have not finalized our activities to the goal of entering the index: we have put our beliefs into practice, and the entry into Djsi World is a reflection of our efforts, as well as a stimulus”. “We have brought out values that are in our DNA – continues Corvino – but we are also aware that this is only a first step, however important. Now we will have to deal with our peers in the Djsi World arena, and we are confident that we have the strength to support this commitment, also thanks to the great endorsement on corporate sustainability issues that comes from top management and CEO Paolo Gallo himself”.

Evaluation criteria

But what are the evaluation criteria for entering the Djsi sustainability index ? The analysis of economic indicators and performance from a social and environmental point of view makes a decisive contribution. But also factors such as corporate governance, risk management strategies, brand consideration, climate change decisions, supplier chain standards and employee policies. With the consequence that companies that do not move ethically cannot join the Djsj. The assessment criteria include both general and specific requirements for more than 601 industrial sectors that are included in the so-called “Industry classification benchmark”. The characteristics evolve every year, putting the Djsi companies in the need to continue to implement their long-term strategies. The selection is made through a transparent process, based on the classification of companies in the Corporate Sustainability Assessment which is published annually by Sustainable Asset Management.

Italgas’ commitment

The company led by Paolo Gallo entered the Djsi thanks to a business model inspired by criteria of environmental, social and economic sustainability, and based on a constant interaction with the territories in which it operates. “The company,” Corvino points out, “aims for growth that is consistent with respect for the environment, the development of people and positive interaction with territories and communities. It was on this basis that the Sustainability Committee and the Department for Corporate Social Responsibilitywere born . Alongside the business plan, the company is also carrying out a sustainability plan based on five pillars, which today consists of 14 objectives and 45 short and medium-term actions.

Commitment to the environment and care for people

“The cornerstones of our commitment are the culture of sustainability within the company, along the entire value chain, together with the increase in employee well-being and the improvement of accident indices – adds Corvino – Fundamental is the contribution to the efficiency and safety of the energy system, which passes through the reduction of the carbon footprint, the development of gas advocacy and the enabling of circular economic processes”. Italgas also aims to improve the Group’s sustainability positioning by joining the Global Compact and four other sector networks, and a series of concrete activities such as the conversion of the entire company fleet with methane powered vehicles. In addition, to improve energy efficiency in the thermal power plants of the Reduction and Measurement Withdrawal and Measurement plants, Iprm, in 2018 28 microcontroller devices were installed that allow a significant reduction in preheating consumption and limit the possibility of condensation in the summer months.

“But corporate social responsibility – concludes Corvino – is not only attention to the environment, on which we also constantly raise awareness among all our employees: it also means intervening on the social and inclusiveness axis. We are also engaged in a massive effort of digitization, which will soon affect our great archival heritage, a precious testimony of the history of Italy since the first decades of 1800: we intend, thanks to digital, to make it available and accessible to all”.

Italgas for a better service to end customers: the link with Consumer Associations is strengthened

A year and a half after the signing of the Memorandum of Understanding, a new meeting with the Consumer Associations of the CNCU was organised

The relationship of collaboration between Italgas and the Consumer Associations recognized by the CNCU (National Council of Consumers and Users) is strengthened. A meeting was held today between Italgas and the associations that signed the Memorandum of Understanding with Italgas in March 2018 to take stock of the situation regarding the commitments undertaken and discuss future programmes.

Among the topics addressed this morning, the operational management of contacts between the company and associations to manage reports and complaints from end users, made more streamlined and direct. The morning was also an opportunity to point out how the process of replacing traditional meters in favor of Smart Meters, now more than 70%, in addition to exceeding well in advance the obligations imposed by Arera, improves the relationship with users due to the reduction induced in the number of reports regarding the detection of consumption.

Part of the morning was dedicated to the description of the new MyItalgas portal and, in particular, to the possibility of directly managing the Associations’ reports through a dedicated access to the portal’s functionalities. Thanks to MyItalgas, in fact, already today all users can access a real dedicated area of the Italgas website to enter, monitor and manage service requests concerning their own users and enter any documents necessary to complete the paperwork. In this context, access to the Portal by the associations will allow a “tailor made” management of requests concerning their members.

The year since the signing of the Protocol, on the other hand, has been fruitful in terms of collaboration between Italgas and the associations, which have found themselves on the same line with regard to the methanization of Sardinia, sharing the opportunity to build and convert to methane the local networks currently powered by LPG. The company and associations think to push further on the mutual collaboration, going so far as to jointly define a transparent contractual scheme to be used as a basis for the marketing of natural gas in the Region.

In conclusion, Italgas Consumer Associations have promised to continue to dialogue constantly with each other in order to increase, day after day, the relationship of trust and collaboration for the benefit of users and the efficiency of the service offered, in the spirit of the Memorandum of Understanding signed in 2018.

Italgas: finalised the acquisition of the majority of Toscana Energia shares

Milan, 1 October 2019 – Italgas informs that following the authorization by the Antitrust Authority, today was finalised the transfer of 2,897,778 shares, corresponding to 1.98% of the share capital of Toscana Energia, for which the municipalities of Bientina, Buti, Calcinaia, Casciana Terme Lari and Palaia had at the time exercised their right of withdrawal. As a result, the share capital held by Italgas increased from 48.68% to 50.66%.

Subsequently, with the entry into force of the new by-laws of Toscana Energia, resulting from  the agreement between Italgas and the Public Shareholders and approved by the Extraordinary Shareholders’ Meeting of June 28, 2018, Italgas will fully consolidate the financial results of its subsidiary Toscana Energia.

Toscana Energia is leader in the natural gas distribution sector in Tuscany, with an estimated RAB at 31.12.2018 of approximately €833 million. It holds 102 gas concessions, manages approximately 8,000 kilometres of the network with almost 800,000 users and in the last year distributed over 1.1 billion cubic metres of natural gas.
The 2018 consolidated financial results of Toscana Energia, in accordance with the Italian accounting principles, show total revenues of €148 million, an EBITDA of €104 million, an EBIT of €58 million and a net profit (after tax) of €41 million. At the end of 2018, net financial debt amounted to approximately €398 million.

Italgas awarded the gas distribution service in Castel San Giorgio (Salerno)

Milan, 1 October 2019 – Italgas has been awarded a concession for the natural gas distribution service in the municipality of Castel San Giorgio (Salerno) for the next 12 years.

Castel San Giorgio’s current gas network extends for about 40 kilometres and serves about 1,300 users. With this award Italgas strengthens its presence in ATEM Salerno 3, as well as its role in Campania where its historic presence will allow important synergies with new assets.

The main elements of the offer, which rewarded the proposal of Italgas, consist of new investments for about 4 million euro aimed at extending the network to areas not yet reached by the service, the strengthening and digitization of infrastructure, improving quality and safety. The award of the tender to Italgas represents recognition of the quality of the digital transformation plan that the company is implementing on the networks managed and on the business processes.

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