Business model

Business model

As a company we are called upon not only to carry out our activities in the best possible way but also to create shared value for our stakeholders.

The Business Model below shows the flow by which Italgas creates value over time by transforming its input capitals (value stock), through its activities and processes, into outputs and outcomes, in order to meet its strategic goals and create value in the short-, medium- and long-term:

 

In the representation of the model, the input capitals correspond to the Group’s resources and distinguishing factors, such as the distribution network, know-how, people and stakeholder relations, which are used, transformed or enhanced in the various processes.

The Business Model of Italgas creates value over time in order to meet its strategic goals, but also to ensure lasting social and environmental benefits – shared value for stakeholders – along the entire value creation chain.

How we create value?

Accelerating digital transformation

We want to continue moving towards new horizons to improve the energy system, playing a leading role in an international scenario of innovation, energy transition and digitisation. We speed up the digital transformation through the Digital Factory and Bludigit, a new company of the Italgas Group. It is the driving force of our digital transformation, where we design and implement cutting-edge proprietary technologies that, in recent years, have helped to digitise our processes and improve operations, network management and service quality.

 

Italgas People Skill

Working with us means facing the new challenges of the energy transition on a day-to-day basis. We work with talent and  passionate peapole with high skills that wants to innovate with us and contribute to the future of energy. So we invest in the professional development of our people. By 2027, we plan to devote 600,000 hours to training, 250,000 of which will be on digitalisation topics alone.

 

Investment choices 

We are a leader in gas distribution, first in Italy and third in Europe. In order to achieve these objectives, we have defined a major investment plan for a total of 7.9 billion euros in the period 2021-2027, a commitment that aims not only to make distribution networks increasingly smart, but also to increasing efforts in the areas of energy efficiency and integrated water service.

 

Commitment to sustainability

With our investment plan and an increasingly digitalised grid, we are paving the way for the energy system of tomorrow, contributing to Europe’s ambitious decarbonisation process. We will be the first to have a digital infrastructure that will enable us to lead Europe towards full decarbonisation. Our digital network is gradually preparing to accommodate renewable sources, such as biomethane, which is already available today, and green hydrogen, the use of which is estimated to be economically viable from 2030. By 2027 we will reduce our greenhouse gas emissions by 30% and our energy consumption by 25%.

 

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In 2020, Italgas generated value for € 2,106.7mn (+3.94% compared to 2019). Of this, € 550.5mn have been kept in Italgas. The remaining €1,556.3mn were distributed to:

  • Suppliers, for products and services purchased
  • Employees, in the form of wages, charges, severance pay and personnel service costs
  • Shareholders, as dividends
  • The public administration, for direct and indirect taxes and duties
  • Lenders, for interest on debt
  • The community as contributions to the health or cultural sector

Our Target Market

We cover over 35% of the Italian natural gas distribution market, serving final customers (families and households), commercial activities and small industries (b2b), so that in our daily lives we can live with the comforts that gas offers (staying warm in winter, using hot water, cooking) and work in offices, shops and small businesses.

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