Italgas S p A : Sustainable Value Creation Plan 2024-2030

Manufactured

Naturalcapital capital

Financial

Intellectualcapital capital

Relationship

Sustainable Value

Creation Plan

2024-2030

Builders of

Human capital

capital

the future

The journey continues

Contents

1. Our Commitment	3
1.1 The values that drive us	4
1.2 The Group presence	5
1.3 The value chain	6
1.4 The paths of the Strategic Plan	7
1.5 Our view on sustainability	8
1.6 The right direction	9
1.7 Benefits for the future generations	10

2. The context we work in	11
2.1 A responsible use of resources	12
2.2 The factors of change	13
2.3 Today's challenges	15
3. The Sustainable Value Creation Plan	16
(2024-2030)
3.1 Italgas for the future of the planet	17
3.2 Italgas for the future of people	21
3.3 Italgas for a sustainable future together	26
4. Impact on the capitals	30
4.1 A forward-looking model	31
4.2 Awareness of value	32
4.3 A concrete promise	34

1. Our Commitment

Thinking sustainability means taking action now to build the future. At Italgas we are persuaded that this can be achieved by generating positive impacts on the planet, the people and the economic system.

The processes of an economic activity are truly sustainable only if they are able to preserve, increase or, where appropriate, minimize the use of the capitals that are used for value production.

To meet this challenge, we have developed an innovative model that, starting from an analysis of the challenges posed by a constantly evolving external context, identifies actions that will have a positive impact on the capitals we draw upon. This is where we started from to define the goals and the structure of our Sustainable Value Creation Plan.

The goal of this document is to present the evolution of the Group sustainability strategy and ambition.

The steps achieved along the path already traced have been presented in the 2023 Integrated Annual Report.1

1. Our Commitment | 3

1 https://www.italgas.it/wp-content/uploads/sites/2/2024/04/Integrated-Annual-Report-2023.pdf

1.1 The values that drive us

Vision

Mission

To be a leading player in the energy world, driving

its evolution with continuous and sustainable innovation to improve people's quality of life.

We have provided energy services to the community with efficiency, safety and excellence for over 180 years. Advancing the energy transition by creating the networks of the future and promoting innovative and sustainable solutions. We care for local communities. We nurture positive and generative relationships with everyone we meet: individuals, companies, suppliers and shareholders. We are open to

new markets where we can apply our distinctive skills.

We promote people's growth and develop talent by building inclusive and stimulating working environments.

Purpose	Pioneers by passion and builders by vocation,
	we put all our energy into accelerating genuine ecological
	transition. We do it for us. We do it for everyone.

1. Our Commitment | 4

The future has ancient roots. Italgas was established in 1837, with a long history, is founded on strong, stable values, but able to adapt to our times

1.2 The Group presence

Gas distribution, consolidated companies

Gas distribution, affiliated companies

Energy service, headquarter

Innovative services, headquarter

Water, headquarter

1. Our Commitment | 5

1.3 The value chain

DEVELOPMENT ACTIVITIES OPERATIONAL ACTIVITIESCOMMERCIAL ACTIVITIES

Business process - Gas distribution and metering

	Management of concessions and			Management of relations
Acquisition of Licence Portfolio	Metering	Ancillary Services	with Sales Companies and
construction of networks
			ARERA

Business Process - Water Service

Development of services	Collection and filtering	Management and	Management of metering
offered and territories served	construction of networks

Business Process - Energy efficiency

Management of the contract with the end customer

Design of energy efficiency

services for companies/buildings Development of services and digital services

Business Process - IT Services

Design and management	Project implementation Development
of innovative IT services and	of IT services and products Implementation
products for businesses	and delivery of services

Analysis of results obtained also shared with the customer

Analysis of results obtained involving customers and continuous improvement of product and service catalogue

Offer and sale of services to the customer

Lead generation, sales and after-sales of projects, products and services to customers

1. Our Commitment | 6

Decarbonisation

of the Group's operational activities and development of energy efficiency initiatives, also through the Group's ESCo, Geoside

Emissions' reduction

1.4 The paths of the Strategic Plan

The Italgas Strategic Plan aims at defining a medium and long-term perspective of value creation for the Group,

in order to maximize the impact of its sustainability goals. Business prospects and sustainability

are fully integrated.

	Transforming the
	gas distribution
	network into a digital
	network to enhance
Acceleration of	its efficiency and
resilience and permit
transition processes
the distribution
and improved
of green gases
safety of supplies.
Development and	Digital
large-scale use
of green gases	transformation
in the networks
Energy
transition

Business expansion through acquisitions, network development, tenders to expand the service. Growth

in the energy efficiency, water and digital service sectors

New opportunities

1. Our Commitment | 7

1.5 Our view on sustainability

Value

increase

Strategic		Sustainable
	Value Creation
Plan
	Plan

Factors	capitals
of change

The results

of our actions

Medium- long-term impacts

The factors of change and the external context affect the capitals that every company uses to create value. Our aim is to ensure that besides creating economic value, the activities addressed by the Strategic Plan and the Sustainable Value Creation Plan can regenerate the capitals used in the production processes. For us sustainability is this virtuous circularity: working, together with our stakeholders, to generate positive impacts on the capitals that constitute the wealth of the communities where we operate

1. Our Commitment | 8

1.6 The right direction

The results

of our actions

• Promotion of innovation and digital transition
• Reduction of energy consumption of the Group and of third parties
• Extensiveness and digitalisation of the distribution network
• Reduced leakage from the networks
• Distribution of renewable gases and GHG emissions' reduction
• Waste reduction

• Growth of skills within and outside the company
• Better results through the inclusion of diversity in terms of gender, age, abilities and education
• Employee satisfaction and engagement
• Respect for human rights
• Reduced work-related accidents
• Dissemination of good sustainability practices along the entire supply chain
• Support for the communities and the territory
• Financial solidity

Our every action produces results. Our commitment is to maximise positive results and minimise potential adverse effects by generating virtuous impacts

on the tangible and intangible capitals we use in our processes

1. Our Commitment | 9

1.7 Benefits for the future generations

Medium- long-term impacts

• Increased supply chain resilience through the dissemination of the best sustainability practices
• Mitigation of environmental impacts, protection of the ecosystems, support for the circularity EU goals
• Economic development of the Country
• Energy security of the Country
• Decarbonisation of the Country in keeping with EU goals

• Development of a culture orientated
  to the promotion of equal opportunities and women's empowerment
• Energy and digital literacy of the citizens in the service of the energy transition
• Generation of shared value
  for the stakeholders in the territory
• Development of a corporate culture that is healthy and inclusive, based on respect for human rights and designed to ensure the wellbeing of the workers
• Digitalisation, innovation, efficiency, safety and sustainability of
  gas distribution & water infrastructure
• Safe and efficient access to energy for all
• Promotion of innovation in the service of energy transition

1. Our Commitment | 10

The commitment we undertake is to ensure that our actions have positive impacts on a wide range of issues that contribute to define a sustainable society