Poste Italiane’s strategy allows us to capture business trends and deliver growth across all our segments, as we intend to affirm our role as an omni-channel platform, serving evolving customers’ needs, adapting to a fast-changing world.
In the middle of macroeconomic and industry headwinds, we ended 2022 repositioning the business on a sustainable path.
We have more than doubled EBIT to €2.3 billion in 2022 from 2017 and the industrial transformation is showing its results.
We have a robust capital and liquidity position.
Looking ahead to 2023 we see supportive business trends and full clarity on cost inflation. Moreover, the results seen so far in the early part of 2023 increase our confidence in the targets set for 2023, which we see achievable under different macro conditions.
In particular, we are convinced that even in uncertain market scenarios, retail investors will continue to see Poste as the safe harbour, entrusting us with their savings as they’ve done over the past 150 years.
In the middle of macroeconomic and industry headwinds, we ended 2022 repositioning the business on a sustainable path.
We have more than doubled EBIT to €2.3 billion in 2022 from 2017 and the industrial transformation is showing its results.
We have a robust capital and liquidity position.
Looking ahead to 2023 we see supportive business trends and full clarity on cost inflation. Moreover, the results seen so far in the early part of 2023 increase our confidence in the targets set for 2023, which we see achievable under different macro conditions.
In particular, we are convinced that even in uncertain market scenarios, retail investors will continue to see Poste as the safe harbour, entrusting us with their savings as they’ve done over the past 150 years.
Increased longevity combined with low birth rate resulting in a negative change in the generational distribution of customers for Poste Italiane.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The process of ageing population is a phenomenon that is already clearly visible in the economies of the Eurozone and is destined to become more accentuated in the coming decades, with a reduction in the working-age population compared with the older population, which will instead tend to increase. Ageing could also significantly affect economic growth and have a negative impact on productivity. This aspect is also accentuated by the change in the balance between the active population and the retired population as well as by the irregular and low income capacity of younger people with consequent unfavourable effects on the social security system. However, the rise in life expectancy and the increase in average age could support the emergence of new markets and new businesses. Trend: Increasing Risks impacted: - Operational - Financial and Insurance SBUs impacted: - Insurance Service - Mail, Parcels and Distribution - Payments and Mobile - Financial Services |
Negative impacts: - Inadequacy of product offers (e.g., mobile phone price plans) and postal services (e.g., excessive digitisation of services) for changing consumer needs - Increase in insurance costs borne by the Group relating to care, assistance and welfare expenses for the elderly - Difficulty in developing reliable forecasting models that allow the Group to predict market developments |
Aware of the opportunities linked to the ageing of the population and considering the strong impact of demographic trends on its services, the Group has developed specific products for segments of the population with evolving needs, such as, for example, the insurance product Postaprotezione Infortuni Senior Più specifically dedicated to people aged between 59 and 79. Each product offered by the Company is accompanied by clear and usable information to all types of customers in order to allow them to always choose consciously. Poste Italiane also launched the “Silver Economy” Programme designed for senior citizens, with the aim of managing all the Group’s actions dedicated to this important segment of the population in a single synergistic framework. It is a package of financial and savings services, insurance, telephony, shipping and delivery, ideal solutions tailored to specific customers, making Poste Italiane a single point of contact able to meet different needs. The programme aims to help improve knowledge of financial and digital tools, through a training course led by Poste Italiane’s financial and digital experts. Poste Italiane promotes integrated strategies that promote dialogue and an exchange between generations within the Company, on the basis of demographic forecasts and the relative impact on turnover. In this respect, the Group promotes the contamination of different social, cultural and work experiences, as well as different skills, knowledge bases and expertise typical of each generation, encouraging discussion from a complementary perspective and open approach needed to facilitate the exchange of experiences to support inclusion and possible adoption. In particular, in the scope of the actions supporting an inter-generational exchange within the organisation, promotes the “Connected generations” survey, an initiative that continues the “FishBowl generation” project, which aims to focus on languages, work styles and the needs of the different generations in the Company in order to identify and enhance shared actions that can promote a generational alliance. Induction & Onboarding programmes have also been promoted with mentoring and knowledge transfer activities. A motivational support programme for seniors was introduced, with multi-generational team management models. Poste Italiane has started up a programmes for computer literacy and digital education, aimed at seniors, so that they can make full and conscient use of the tools at their disposal. |
| Opportunities: - Increased business opportunities due to changes in consumer needs, based on meeting the needs of the more mature population - Increased demand for life and non-life insurance products |
Increased severity in the reference legislation applicable to the business with particular reference to environmental variables
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The increase in the level of detail and complexity of the regulatory obligations required by the competent authorities in relation to the regulations issued requires a growing cultural change within companies, which are called upon to review their operational activities in order to adapt to the increasingly frequent and pervasive amendments in the applicable national and international regulations. Trend: Increasing Risks impacted: - Compliance - Operational - Reputational - ESG SBUs impacted: - Mail, Parcels and Distribution - Payments and Mobile - Financial Services - Insurance Service |
Negative impacts: - Failure to respond in a timely manner to regulatory requests (for example, regarding governance structures, responsible finance, etc.), partly in view of the complexity and operational heterogeneity of the Poste Italiane Group - Potential penalties for non-compliance with applicable regulations. - Growing impact of non-compliance with regulations on reputational risk, also in view of Poste Italiane’s economic and social role in the local area |
In view of the complexity of Poste Italiane and the numerous business sectors in which the Group operates, as well as the legal and reputational impacts, the Company has defined an integrated compliance process at Group level, with the specific aim of monitoring - in a structured way for each level of the Company and in a manner appropriate to each business sector - the risks of non-compliance to which the Group is exposed, thus fully implementing the principles of integrity, transparency and legality. As part of the Integrated Compliance process, Poste Italiane continuously monitors the external regulations relevant to the Group and translates the set of regulatory principles into the body of rules required to ensure their application. The inventory of all regulations relevant to the Group is managed in an integrated manner on the dedicated GRC platform. Poste Italiane also takes part in technical and working groups on regulatory developments, in order to ensure analysis of changes in the regulatory framework, guaranteeing its correct implementation, and represent the Company’s position on these issues to national and international bodies, in order to support the Company’s business. In order to comply with environmental regulations and also meet the needs of consumers who are increasingly attentive to sustainability issues, Poste Italiane is gradually adapting its products to meet ESG regulatory requirements (sustainable investment products, responsible investment products, etc.). |
| Opportunities: - Launch of products that encourage prevention and responsible behaviour (e.g. ethical investment solutions) - Potential regulatory amendments to benefit the business - More timely than competitors in complying with complex regulations - Redirection/creation of new business business areas |
Negative effects for Poste Italiane’s business resulting from the global spread of the pandemic
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| In an increasingly globalised world, the emergence or mutation of viruses and bacteria can have serious impacts on the macroeconomic environment, disrupting national economies and undermining the health of the population, with consequent impacts on business operations and consumer behaviour. Trend: Stable Risks impacted: - Strategic - Operational - Compliance - Reputational - Financial and Insurance - ESG SBUs impacted: - Mail, Parcels and Distribution - Payments and Mobile - Financial Services - Insurance Service |
Negative impacts: - Possible economic repercussions from a global recession, resulting in a reduction in consumption of the products offered by Poste and difficulties in dealing with recovery - Adoption of new work models, which can create greater exposure to cyber attacks and fraudulent use of data - Difficulties in the timely management of new pandemics and inability to guarantee business continuity in the provision of its services. - Amplification and acceleration of the effects of the main existing or emerging risks (e.g., disruption of the supply chains needed to carry out Poste Italiane’s business activities and remote management of personnel) - Focusing attention on the development of the pandemic, with reputational impacts due to reduced commitment to ESG issues (e.g. reduction of environmental investments) |
The experience gained in the management of the health emergency resulting from the spread of Covid-19, has allowed the Group to develop operating methods that have significantly reduced the potential impact on business continuity (e.g. organisational measures to reshape operations for the branch network and logistics-postal activities; purchase of laptops and software to carry out activities in remote working mode; expansion and strengthening of tools for remote connection, managing travels). In particular, the Group has been actively involved in constantly monitoring the evolution of the virus, which has allowed proactive management of its effects, also in the long term, through investments in new technologies, in the security of IT infrastructures and in personnel training, making it possible to provide services in compliance with the security protocols necessary to combat the spread of Covid-19. In this respect, a Committee was established to manage the Coronavirus risk, ensuring standard and coordinated management of containment and prevention measures at national level. Furthermore, Poste Italiane opened an interactive channel with all the institutions potentially affected by the phenomenon and interacted with the government bodies in charge of crisis management, as well as implementing a platform to facilitate the vaccination campaign. These structures, which are now part of the Group’s organisation and operations, may represent useful resources for the management of any future emergency conditions. With regard to the management of a new emergency measures and/or a new pandemic, the Group can leverage its specific strengths linked to the diversification of its activities, its multichannel approach and the growth of its digital business, which ensure the service is also provided outside traditional post offices. The majority of the Group’s overall revenue will not be linked to shortterm commercial activities and the business model of BancoPosta is capital light, not assuming credit risk. In addition, the current pandemic has accelerated the Group’s digitisation path, which has therefore not only developed digital products and services, sustainable over time, in the postal, insurance, financial and payment areas, but also introduced new ways of selling and communicating with customers, improving the performance of Poste’s Digital Assistant, for example, through the introduction of the voicebot, which is able to address numerous standardised and repetitive service requests, giving valuable time to employees in the Customer Service area to manage more complex and emerging situations. While managing the health emergency, Poste Italiane focuses on pursuing sustainable development by continuing to invest in projects aimed at strengthening ESG initiatives, as highlighted in the Sustainability Strategy. Poste Italiane has introduced the “Smart Letter Box” project in conjunction with A2A, to renew the traditional post office boxes and equip them with IoT technologies and sensors. In addition to sensors detecting the arrival of correspondence, the new Poste Italiane Smart Letter Boxes are equipped with temperature and humidity sensors and pollution sensors, to become intelligent collection points of information on the territory and environment. This collaboration has already resulted in 50 smart boxes being installed, with a target of 11 thousand smart boxes by 2022. In addition, Poste Italiane has invested in infrastructure and innovation, focusing on technological knowledge and digitisation. In particular, Poste Italiane is one of the 10 operators engaged in Italy in providing digital identity to citizens, the so-called “SPID”, the Public Digital Identity System. This service has made it possible to bridge the gap between citizens and the Public Administration and make many claims easier and faster. Furthermore, the Group is committed to facilitating the transition from physical to digital payments by organising digital literacy programmes for citizens. |
| Opportunities: - Development of technological products corresponding to customers’ needs - Development of new technologies to strengthen Poste Italiane processes - Great ability than competitors to understand customer needs, also with reference to targets in the “digital divide” - Increased demand for the products offered by Poste Italiane, thanks to customer confidence in its handling of privacy and sustainability issues |
Adverse consequences for people, businesses and ecosystems due to the development of innovative technological solutions (e.g. digital inequalities, digital market concentration, etc.).
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| Digital transformation and technological advances have not only created a wide range of benefits for companies, but have also amplified the risks that need to be understood and managed. In particular, the development of technology is a process that generates impacts that move in a twofold direction: positive, for the innovations that allow to pursue more efficient and sustainable solutions; negative, for the consequences that robotics and data centers can have on the environment, in terms of polluting emissions and energy consumption. Moreover, in view of the activities carried out by Poste Italiane, it is necessary to consider that the e-substitution is drawing a new market perimeter, produced by the exceedance of the digital market (electronic communications) and the Parcels segment (especially due to the spread of e-commerce), as well as changes in the habits and behavioural patterns of the population. The technological evolution of the business and the use of innovative digital solutions, requires increasing attention to the aspects of cyber security. Attacks on IT systems can compromise IT infrastructure, allowing company and customer data to be stolen or used, or malware to be planted, in order to access company funds and/ or to damage the company’s reputation and brand. Trend: Increasing Risks impacted: - Operational - Strategic - Compliance - Reputational SBUs impacted: - Payments and Mobile - Financial Services - Insurance Service - Mail, Parcels and Distribution |
Negative impacts: - Inability to maintain attractiveness, due to the excessive digitisation of the products and services offered, towards part of Poste Italiane’s traditional customers and/or potential target customers not reachable due to the digital divide. - Inadequacy of standard products for changing consumer needs y Difficulty in responding in a timely manner to the digital drive in the sectors in which Poste Italiane operates y Interruption of digital services provided by Poste Italiane. - Removal of sensitive information for Poste Italiane, with economic, reputational and compliance impacts (e.g. removal of biometric data of customers acquired for the management of payment systems). |
Through a path of digitisation of services, Poste Italiane intends to make available integrated digital solutions. In particular, a “Digital Platform of Integrated Communication” will be realised to support the process of digital communication between citizens, companies and PA, safeguarding citizens in digital divide. Among the actions aimed at reducing the digital divide, in recent years, Poste Italiane has undertaken a path of digital education of citizens, carried out through the organisation of several training sessions with the aim of providing a valuable contribution to the digitisation of Italy. Through the programme, the Group has adopted a highly inclusive approach to facilitate and simplify the use of new technologies to all its customers and beyond. In addition, Poste Italiane has invested in infrastructure and innovation, focusing on technological knowledge and digitisation. In particular, Poste Italiane is one of the 10 operators engaged in Italy in providing digital identity to citizens, the so-called “SPID”, the Public Digital Identity System. This service has made it possible to bridge the gap between citizens and the Public Administration and make many claims easier and faster. Furthermore, the Group is committed to facilitating the transition from physical to digital payments by organising digital literacy programmes for citizens. In the field of Cyber Security, Poste Italiane has adopted advanced systems and technologies, developing a constant commitment to the security of digital communications and the combat against cybercrime. To ensure better management, responsibility for the Group’s IT security has been assigned to a Chief Information Security Officer (CISO). In order to ensure adequate levels of confidentiality, integrity and availability of data, information and services provided to customers, Poste Italiane has further developed and adopted a specific IT security framework. |
| Opportunities: - Great ability than competitors to understand customer needs, also with reference to targets in the “digital divide”. - Higher IT infrastructure security levels than competitors. - Increased demand for the products offered by Poste Italiane, thanks to customer confidence in its handling of privacy and sustainability issues. |
Risk of incurring economic/financial losses and/or reputational damage subsequent to accidental events or malicious actions pertaining to the information system’s security (hardware, software, data banks, sensitive data, etc.)
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The technological evolution of the business and the use of innovative digital solutions, requires increasing attention to the aspects of cyber security . Attacks on IT systems can compromise IT infrastructure, allowing company and customer data to be stolen or used, or malware to be planted, in order to access company funds and/ or to damage the company’s reputation and brand. The increasing demand for personal authentication identification, also using biometric identifiers could increase the risk of identity fraud and theft. Trend: Increasing Risks impacted: - Operational - Strategic - Compliance - Reputational SBUs impacted: - Payments and Mobile - Financial Services - Insurance Service - Mail, Parcels and Distribution |
Negative impacts: - Removal of sensitive information for Poste Italiane, with economic, reputational and compliance impacts (e.g. removal of biometric data of customers acquired for the management of payment systems) - Service disruptions caused by attacks on information systems and/or communication networks - Cancellation or deterioration of data |
Poste Italiane is committed to protecting company data with the aim of safeguarding its customers and all its stakeholders through technologically advanced protection systems and in accordance with the measures set out in the relevant regulations. The function responsible for IT security assesses the cyber risk on a monthly basis, based on technical security checks conducted on three applications: - Vulnerability Assessment: process identifying, measuring and prioritising the vulnerabilities of a system, carried out twice a year on each application using appropriate tools; - Code Review (Static and Dynamic): process of checking the source code of an application to verify that the correct security controls are in place and that they are working as intended. Through specialised tools, both the source code is reviewed ( “Static Code Review”) as well as the production code ( “Dynamic Code Review”); - Penetration Test: the process of evaluating the security of a system or a network through the simulation of attacks that aim to gain undue access to the system, carried out on a specific perimeter of applications. These precautionary measures combine with another two essential parameters to ensure effective and efficient management of potential IT risks in the Company: patching and hardening. Poste Italiane has also undertaken a series of additional initiatives: - developed Security Planning, defining and implementing a methodology for planning technical security audits deriving from regulatory/contractual requirements and from the Security By Design process; - extended the scope of Cyber Risk analysis to include BancoPosta, PostePay, PosteVita, Poste Assicura, Poste Welfare Servizi and other compliance/security areas; - set up the Information Security Committee – DTO, a periodic working table between the Information Security and Digital, Technology & Operations functions with the aim of jointly planning and directing security activities and identifying areas for improvement. Poste Italiane has obtained the following cybersecurity related certifications: - ISO/IEC 27001/2013, standard for establishing and managing an information security management system. The standard also includes the requirements for assessing and dealing with IT security risks, which are customised according to the needs of each organisation. - ISO 2000-1/2018, the international standard for the management of IT services (IT Service Management), focusing on the quality of these services. This is based on risk management, with the aim of reconciling the risks associated with increasingly tough reactions by customers to “discrepancy” situations to a minimum with the expectations, needs and requirements, including the management of incidents, requests, continuity, accessibility, service levels, the catalogue of services and service capacity. In order to guarantee Group-wide supervision of cybersecurity and data protection activities, and to actively combat cybercrime, in 2021, Poste Italiane set up CERT (Computer Emergency Response Team). The team includes a number of IT security experts that carry out their functions in real time, 24 hours a day, for risk prevention, the management of IT incidents affecting company systems and the development of actions in response to cyber events, thus strengthening the defence capacity of the entire Company. Furthermore, Poste Italiane collaborates with CNAIPIC (National Centre Against Cybercrime for the Protection of Critical Infrastructure) of the Postal Police. In order to ensure adequate levels of confidentiality, integrity and availability of data, information and services provided to customers, Poste Italiane has further developed and adopted a specific Privacy framework. The Privacy Function provides a single point of control on regulatory compliance at Group level for all issues in relation to privacy and steers the development of the abovementioned framework. Poste Italiane has set up the figure of the Data Protection Officer, as a privacy expert who assumes responsibility for observing, evaluating and directing the management of personal data processing, as required by the GDPR. The Privacy Service Centre operates within the function, representing a single point of reference for customers in matters of privacy and to efficiently and centrally collect and manage all requests received from customers. |
| Opportunities: - Higher IT infrastructure security levels than competitors - Increased customer confidence in the solidity of the Poste Italiane IT structure in protecting sensitive data - Increased efficiency and productivity due to the adoption of tools monitoring cyber attacks |
Possible negative impacts of climate change phenomena on Poste Italiane’s business and on its reputation.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| In the coming decades, a rise in average temperatures of 3 degrees Celsius compared to preindustrial levels could trigger disastrous chain effects. The combat against climate change, therefore, is not an option but a must. It is therefore necessary to consider these aspects when defining the strategies and operational activities of companies. Trend: Increasing Risks impacted: - Reputational - Operationel - Strategic - Compliance SBUs impacted: - Mail, Parcels and Distribution - Payments and Mobile - Financial Services - Insurance Service |
Negative impacts: - Restrictions on Poste Italiane’s business operations due to extreme weather conditions - Inadequacy of the products and services offered with respect to the demands of consumers increasingly driven by sustainability issues |
Poste Italiane analyses, among others, the risks related to climate change also in relation to the long term. Specifically, the risk management model adopted by the Group considers both the possible impacts that climate change-related phenomena may have on the business of Poste Italiane (indirect impact) and those that Company’s activities may have on climate (direct impact). The process of identifying and assessing risks and environmental management methods also extends to counterparties, impacting the procurement processes and any extraordinary finance transactions, providing, among other things, for the identification of suppliers and partners that may present risks related to environmental protection, also through a multi-dimensional analysis that takes into account parameters such as: possession of environmental, quality and energy performance certifications and adoption of environmental management systems, ethical standards of conduct and Minimum Environmental Criteria (MEC). In order to classify climate-related risks and opportunities, Poste Italiane takes different drivers into consideration referring to two macro-areas (transition and physical risks). The Group defines the related opportunities and specific mitigation measures in respect of the risks identified and associated with each driver. Poste Italiane defined a perimeter in the risk assessment process that takes into consideration not only direct activities, but also downstream and upstream operations, including customers in the final analysis, given that they are the main beneficiaries of Group products. The correct identification and assessment of climaterelated risks and opportunities is also ensured by listening to stakeholders. They are periodically involved in the Multi-stakeholder Forums organised by Poste Italiane and have a reporting system that allows them to bring any perceived risks to the attention of the Company. With reference to physical risks, such as extreme weather events and changes in rainfall trends, Poste Italiane has adopted a continuity business plan and measures aimed at preventing physical damage to structures, to ensure business continuity. In addition, for the coordination of emergency and recovery activities, the Group maintains a dialogue with institutions (e.g. Civil Protection, Civil Defence) as well as interfacing with relevant bodies and international protection and defence organisations (e.g. participation in drills or other initiatives, etc.). Furthermore, with regard to the direct impacts for Poste Italiane, and considerings its widespread presence within the country and consequent environmental impact resulting from carrying out its normal activities, Poste Italiane adopts a responsible approach aimed at reducing its environmental footprint and contributing to the country and economy’s lowcarbon transition. In line with its decarbonisation strategy and in implementing the guidelines to exercise voting rights and engagement activities and for investment in sensitive sectors, Poste Italiane, through its subsidiaries Poste Vita and BancoPosta Fondi SGR, has joined Climate Action 100+, an international collaborative engagement initiative to raise awareness on climate change issues among the world’s largest greenhouse gas emitters. The portfolios of BancoPosta Fondi SGR and Poste Vita are periodically subjected to ESG analysis to assess their degree of social responsibility, and carbon footprint, with the aim of mitigating any risks. The results obtained both for BancoPosta Fondi SGR and Poste Vita, are higher than the ESG performance of these reference benchmark. As part of the Poste Italiane Group’s strategy for pursuing its sustainability objectives, the integration of ESG principles into its investment processes is also of particular importance, with investments in sectors that contribute to the Sustainable Development Goals (“SDGs”) (e.g. investments in bonds in the “Green”, “Social” and “Sustainable” categories in line with the standards and principles defined by the International Capital Market Association). In line with the main regulatory trends and in response to growing demands from the financial community and key stakeholders, Poste Italiane reports climate change information according to the areas defined by the TCFD: Governance, Strategy, Risk Management, Metrics and Objectives. For further details, please refer to the paragraph “Managing climate change related risks and opportunities”. In order to reduce the direct impact that the Group’s activities may have on climate, Poste Italiane is making constant progress in using energy sources that do not use fossil fuels (e.g. solar energy from photovoltaic panels on buildings) and in reducing energy consumption (e.g. replacing neon lights and using LEDs), partly in order to deal with potential sudden changes in energy prices (currently, 95% of the Poste Italiane Group’s electricity requirement comes from renewable sources). Among other things, in line with having subscribed to the Paris Agreement and the New Green Deal, Poste Italiane has committed tor educing its emissions by 30% by 2025 and has set itself the ambitious goal of making its contribution to achieving the international carbon neutrality objectives by 2030, well ahead of the timeframe defined by the European Union. |
| Opportunities: - Increased business opportunities due to changes in consumer needs (e.g. development of low-emission services; development of investment and insurance products for climate adaptation) - Possible access to new markets and new customer segments requiring insurance coverage - Advantages deriving from the greater reliability of the supply chain and Poste Italiane’s improved ability to operate in various conditions compared to its competitors |
Negative change in consumer purchasing behaviour for Poste Italiane in relation to the payment instruments to be used (e.g. cryptocurrencies, fintech, etc.) also due to the introduction of new payment methods
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| Internet access and the use of electronic payments is spreading worldwide. Consumers who shop online are also looking across borders for the products and services they want, and are developing new habits and needs geared towards the use of electronic payment solutions. Trend: Increasing Risks impacted: - Operational - Strategic - Reputational - Compliance SBUs impacted: - Payments and Mobile |
Negative impacts: - Poste Italiane’s untimely response to emerging payment trends resulting in loss of market share - Inability to maintain attractiveness to traditional customers, potentially more averse to digital channels, for Poste Italiane’s electronic payment services - Increase in Poste Italiane’s competitors in the payments sector (e.g. organisations introducing new payment systems) |
In order to provide new payment solutions and respond to the changing needs of its customers, Poste Italiane is developing new digital payment services, intercepting and driving customer habits in the context of digital transformation, through the creation of innovative products and services that simplify everyday life, such as: - Postepay Connect, first integrated payment and mobile product that allows managing, through a single app, telephony and payment services in an intuitive and secure way; - Postepay app, the e-wallet that allows paying for purchases directly with a smartphone in all stores that accept contactless payments, thanks to the recent introduction of the Google Pay service in the app; - Codice Postepay, an app that allows buying in stores using a qr code and getting discounts and benefits at affiliated partners. The proposal of a fully digital acquiring offer, using qr codes, will help accelerate Italy’s transformation from using cash in payments to digital solutions, using a technology well known in major Asian markets; - Collaboration agreements with start-ups for the development of innovative solutions in the financial services and payments area. - From the perspective of extending its services, Poste Italiane has made it possible to make contactless payments for customers using iPhones, Apple Watch, iPads and Mac via Apple Pay, with the possibility of adding their prepaid or debit Postepay card associated with their BancoPosta current account, in the Apple wallet. |
| Opportunities: - Adoption of strategies to increasingly personalise the offer of payment services - Adoption of new technologies that can be extended to the current customer target of Poste Italiane - Segmentation and differentiation of the offer, through the expansion of Poste Italiane’s customer target (e.g. young people) - Creation of a specific offer for Poste Italiane’s digitally evolved customers - Launch of new products (e.g. platforms and instruments for cryptocurrency payments) |
Need to review business models and delivery operations due to the introduction of new mobility models, technological evolution of vehicles, sharing mobility.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The transport sector is undergoing significant transformation, driver primarily by technological innovations and the impact from digital on the habits, needs and preferences in terms of mobility from passengers and companies. In addition, the shift towards more sustainable modes of transport, the control of polluting emissions, the environmental sustainability of major works are issues that increasingly guide the preferences of citizens and the choices of transport operators. Trend: Increasing Risks impacted: - Operational - Reputational - Compliance SBUs impacted: - Mail, Parcels and Distribution |
Negative impacts: - Restrictions on Poste Italiane’s operations, with particular reference to deliveries, due to traffic restrictions (e.g. restrictions on polluting vehicles) - Limited availability of “green” vehicles suitable for carrying out Poste Italiane’s logistics and delivery activities - Negative impacts on the environment and on Poste Italiane’s reputation due to the use of polluting vehicles |
Poste Italiane, aware that the vehicles used to carry out its logistics and delivery activities do not lend themselves to any type of optimisation, has been replacing them with equivalent electric-powered vehicles in recent years, improving its fleet in order to reduce atmospheric pollution. Among companies in the utility sector, Poste Italiane has one of the largest fleets of 100% electric commercial vehicles in the country. In addition, the Group is introducing in several cities the use of new three-wheeled electric motorcycles, to make the delivery of parcels and correspondence by Poste Italiane environmentally friendly, easy and safe. The new tricycles are completely electric-powered, with a capacity of 4 kW that guarantees a maximum speed of 45 km/h in line with the limits imposed by the Highway Code in towns and cities, and energy self-sufficiency of about 60 km that enables postmen to complete their daily delivery round with a single charge. For each new vehicle, Poste Italiane will also install a new electric recharging station, confirming its desire to ensure greater environmental sustainability throughout the country and allow its electric fleet to spread throughout all Italian regions. A pilot project has been implemented in certain cities, which involves the delivery of vehicles and packages using fully electric vehicles, namely with zero emissions. The zero-emissions delivery project has also been completed in 15 city centres. There are more than 8,000 ecological vehicles or low emission vehicles currently being used by Poste Italiane. In the scope of the objectives set in the “2024 Sustain & Innovate Plus” Strategic Plan, Poste Italiane aims to replace the entire vehicle fleet in coming years with 27,800 new generation green vehicles, with electric, hybrid and endothermic propulsion with low emissions, thus reducing polluting emissions by 40%. With regard to purchasing logistics services, Poste Italiane adopts behaviour that is consistent with sustainability issues, selecting and rewarding suppliers in line with the environmental, social and governance issues that the Poste Italiane Group promotes. In particular, for transport services there is a score that rewards eco-sustainability for suppliers who provide vehicles with lower CO2 emission classes. |
| Opportunities: - Reduce the Group’s total energy consumption from non-renewable sources (e.g. fossil fuels) - Reduction of emissions related to the use of the vehicles that make up the company fleet - Leaner and more efficient management of operations - Cost reduction. |
Changes in customer needs and expectations not corresponding to the products and services offered by the Poste Italiane Group, which need to incorporate these changes over the short term, and respond with significant operational and production adjustments
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| Purchasing logic and habits are continually changing and so too are consumers’ needs and requirements: extending the range of product and service offerings to the market and making these immediately accessible thanks to technological innovation, requires companies to make a greater effort in securing customer loyalty and responding to their changing needs in terms of preferences and product experiences. In particular, there is a radical change emerging where a purchase is no longer limited to an assessment, choice and eventual acquisition of a product or service based on its characteristic and price, but rather an actual experience, where the consumer is personally involved. In addition, consumers are paying increasing attention to social and environmental issues in their purchasing decisions and are prepared to pay a premium to ensure the products and services they buy are sustainable. In a constantly evolving scenario, permeated by mobile devices, social networking platforms, e-commerce and multi-channel, it is necessary for companies to establish relationships of trust and complicity with their customers, in order to intercept any change in their needs and behaviours. Trend: Increasing Risks impacted: - Strategic - Operational SBUs impacted: - Insurance Service - Mail, Parcels and Distribution - Payments and Mobile - Financial Services |
Negative impacts: - Loss of customers due to Poste Italiane products and services failing to meet customer requirements - Difficulty in developing reliable forecasting models that allow the Group to predict market developments |
Poste Italiane focuses special attention on the quality of the products and services it offers from the perspective of constantly improving customer satisfaction levels, undertaking to comply with the execution times and procedures for its activities (service and performance levels). In this sense, it guarantees the confidentiality of the data it holds, the protection of intellectual property and effective management system for IT security and cybersecurity. The Company conducts dual-level monitoring, considering both the quality provided and the quality perceived. Specifically, there is a system of KPIs, based on individual business units, which constantly monitors the objectives and service performance provided, and furnishes management with improvements and trends in periodic reports. Thanks to the evolution of the target setting methodology, Poste Italiane identifies important aspects for each macro-area of the Group which are to be considered for Customer Experience measurements, in order to include all important interactions with customers. To simplify processes, streamline administrative workflows and improve submission times of administrative documents to Public Administration, Poste Italiane has developed a new “Poste in Pratica” service aimed at Public Administration bodies and citizens for submitting, checking, digitalising and sending administrative documents. In addition, to improve the Customer Experience and quality of the service provided, Poste Italiane uses listening methods to identify the most important actions to be implemented. Specifically, Poste Italiane analyses verbatim accounts – spontaneous feedback from customers regarding critical areas collected during the customer journey with Poste Italiane’s products and services, which are then translated into a Net Promoter Score, a measurement of satisfaction that asks customers whether they would recommend the product or services of the Company to somebody else. The continuous listening process is based on a Customer Feedback Management tool that allows surveys to be sent to customers regarding perceived quality, making the responses obtained quickly available to the relevant departments and highlighting the most recurrent issues pointed out by customers. During the year, Poste Italiane acquired a Web Opinion Monitoring (WOM) service, which allows users to collect and analyse data from specific sources, such as social networks, app stores, Google Maps reviews of Post Offices, online public information websites, blogs and forums, with the aim of achieving real-time reporting of all the concerned topics. The areas of improvement identified during the customer listening process are an important stimulus for assessment activities and process reviews, together with support activities aimed at maintaining quality certifications and certifications identified by the “interfunctional communities”. Poste Italiane also attaches fundamental importance to interaction with Consumer Associations, adopting an approach aimed at constructive and transparent discussions. The “Cantiere Consumatori” (Construction site for consumers) was set up in this regard (a permanent working and consultation group made up of a single representative from each Association and Group representatives). In the course of the experience with Cantiere, many successful initiatives have been created, such as the newsletter “Dialogando con i consumatori”, providing information on new features in the Poste Italiane world, and serving to collect new ideas and reporting. The offering of investment products from BancoPosta and Poste Vita has been increased to respond to consumers’ growing sensitivity to environmental issues, with investments focusing on assets with significant sustainability characteristics. The objective of BancoPosta Fondi SGR in terms of developing the range, is to progressively transform existing funds from an ESG perspective, integrating environmental, social and governance criteria in each of their investment policies. At an organisational level and referring specifically to investments, BancoPosta Fondi SGR and Poste Vita have set up committees that are responsible for periodically reviewing and assessing the ESG risk of portfolios and the criteria for assessing the ESG profiles of issuers. With regard to the insurance segment on the other hand, the Risk Office function of Poste Vita is tasked with identifying, analysing and assessing the signs of change from the different aspects of the external environment. The identification of these signals takes place in conjunction with the “Product Committee – ESG Assessments” which is responsible for periodically reviewing and evaluating the criteria for the definition of ESG profiles and the Company’s product catalogue. |
| Opportunities: - Adoption of new technologies to speed up and simplify access to Poste Italiane products/services - Increasing business opportunities due to changes in consumer needs, also by adopting a strategy with more personalised offerings - Greater ability than competitors to understand customer needs - Developing products and services focusing on social and environmental issues |
Possible negative impacts on Poste Italiane business due to geopolitical tensions and international conflicts
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The geopolitical context, characterised by phenomena such as the revival in protectionism, military conflicts, large-scale migration, the increased perception of social inequality and populism, are causing the development of extremist movements, and potentially putting at risk international cooperation, which in the most extreme scenarios, could result in military (also in light of the recent conflict in Ukraine) biological, chemical, cyber and/or physical attacks. Trend: Increasing Risks impacted: - Strategic - Operational SBUs impacted: - Insurance Service - Payments and Mobile - Financial Services |
Negative impacts: - Difficulty in developing reliable forecasting models that allow the Group to predict market developments - Increased raw material costs and procurement difficulties (e.g. oil, gas) - Business activities being suspended in areas involved in the conflict (e.g. international shipments stopped) - Substantial changes to aggregated market demand due to possible price inflation, making forecasts in company strategic plans less remunerative - Poor company cash flows due to difficulties in securing credit lines or it becoming impossible to utilise existing loans |
Poste Italiane continually monitors the political, social and macro-economic context and regulatory aspects that could impact on its business, so as to identify and prioritise the response measures to be undertaken based on the different macro-economic scenarios and geopolitical projections. Poste Italiane checks on counterparties, in order to assess their financial stability and identify the variables that could impact on revenue and costs, also from the perspective of the geopolitical scenarios. |
| Opportunities: - Acceleration in the energy transition |
