corporate governance, sustainable development and value creation
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Corporate Governance, Sustainable Development and Value Creation. Alex Almici – University of Brescia (Italy). CORPORATE GOVERNANCE. SUSTAINABLE DEVELOPMENT. Corporate Governance, Sustainable Development and Value Creation. COMPANY’S VALUE CREATION (economic, social, competitive - PowerPoint PPT PresentationTRANSCRIPT
Corporate Governance, Sustainable
Development and Value Creation
Alex Almici – University of Brescia (Italy)
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
CORPORATEGOVERNANCE
SUSTAINABLEDEVELOPMENT
COMPANY’S VALUE CREATION(economic, social, competitive
and environmental success)
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
COMPANIESSELECTED
PUBLICUTILITIES
LISTED ON ITALIAN STOCKEXCHANGE BY
THE 31 JANUARY 2011(17 COMPANIES)
INFORMATIONANALYSED
SUSTAINABILITYREPORT
2007-2009
Alex Almici – University of Brescia (Italy)
Corporate Governance, Sustainable Development and Value Creation
1. DO COMPANIES IMPLEMENT CORPORATE GOVERNANCE SYSTEMS
PROMOTING SUSTAINABLE DEVELOPMENT?
CORPORATE GOVERNANCE
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 SUSTAINABILITYREPORT)?
3. WHAT DO PUBLIC UTILITIES COMMUNICATE(WHAT’S THE CONTENT OF THE SUSTAINABILITY REPORT)?
GRIguidelines
Alex Almici – University of Brescia (Italy)
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%)
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
First sustainability report and Italian Stock Exchange listing
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
No. of companies
2007
No. of companies 2008
No. of companies
2009
Reference to the
GRI Guidelines 5* 6 6
Model adopted for carrying out the sustainability report
*With regard to 2007, the number of companies considered is 5 instead of 6 because A2A was founded in 2008
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
C
C+
B
B+ 2 1 1
A
A+ 3 4 5
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)?
Alex Almici – University of Brescia (Italy)
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 directenergy, greenhouse effect gas emission,
waste material produced, total water collecting
Staff turnover rate, accidents at thework place, average training hours,
etc.
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
ECONOMIC RESPONSIBILITY
No. of companies
2007
No. of companies
2008
No. of companies
2009
Value added
distributed
5 6 6
No. of companies
2007
No. of companies
2008
No. of companies
2009
Total investments 3 3 3
Distribution of the value added to the stakeholders above 60%
Investments above € 1.000.000 for the management of climatic changes
6 COMPANIES OUT OF 6
3 PUBLIC UTILITIES OUT OF 6
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
ECONOMIC RESPONSIBILITY
No. of companies
2007
No. of companies
2008
No. of companies
2009
Expenses percentage
3 3 3
Expenses percentage above 70% referable to local suppliers
3 COMPANIES OUT OF 6
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
ENVIRONMENTAL RESPONSIBILITY
Environmental performance trend in 2007-2009
3 COMPANIES OUT OF 6
No. of companies- diminishing 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
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
SOCIAL RESPONSIBILITY
Turnover rate below 9%
5 COMPANIES OUT OF 6
No. of companies
2007
No. of companies
2008
No. of companies
2009
Employees Turnover rate
4 5 5
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
SOCIAL RESPONSIBILITY
Frequency of Accidents at work place below 10
3 COMPANIES OUT OF 6
No. of companies
2007
No. of companies
2008
No. of companies
2009
Accidents on working place
frequency indicator
3 3 3
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
SOCIAL RESPONSIBILITY
Yearly training hours above 20
4 COMPANIES OUT OF 6
No. of companies
2007
No. of companies
2008
No. of companies
2009
Avarage training
hours per year
4 4 4
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
SOCIAL RESPONSIBILITY
Discriminating practices episodes
0 COMPANIES OUT OF 6
Presence of sanctions
0 COMPANIES OUT OF 6
Corporate Governance, Sustainable Development and Value Creation
Alex Almici – University of Brescia (Italy)
SOCIAL RESPONSIBILITY
ECONOMIC RESPONSIBILITY
ENVIRONMENTAL RESPONSIBILITY
ONLY 3COMPANIES
OUT OF 6
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?
CORPORATE GOVERNANCE
SUSTAINABLE DEVELOPMENT
COMPANY’S VALUE
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 ELABORATIONOF THE ETHIC INDEX FTSE4GOOD EUROPE – SOCIALAND 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 PROMOTINGSUSTAINABLE 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’TCARRY OUT A SUSTAINABILITY REPORT(10 IN TOTAL) DON’T MEET ANY OF THE CONDITIONS REQUESTED IN ORDER TO CREATE VALUE IN MEDIUM-LONG TERM