The transition towards carbon neutrality: Poste Italiane’s strategy
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requirement comes from 100% renewable sources, certified by Guarantees of Origin |
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savings were possible,equal to 44% of total emissions produced. |
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Governance on Sustainability
Environmental performance 2021
Aware of the "ecological footprint" generated by a delivery service that covers extensively the entire country, in 2019 the Group wanted to implement a Renewal Plan that provides for the replacement, by 2022, of the entire vehicle fleet.
The new vehicles will guarantee:
In order to measure the value generated by the introduction of the new vehicles in the fleet, Poste Italiane has adopted an investment assessment methodology that combines the traditional financial perspective with the perspective of sustainability, with a view to an integrated strategic planning that allows to create value shared between the Company and the territory.
The figure below represents the results of the analysis in the form of the "True Value bridge", i.e. the graphical representation of the net impacts of the green fleet compared to a traditional fleet. Positive values represent avoided costs, while negative values represent additional costs generated by the green fleet compared to the as-is fleet.
According to the model calculated, the new green fleet will generate value for the community (True Value) equal to
+ €25 mln compared to the traditional fleet, during its total period of operation.
In particular:
The new vehicles will guarantee:
- a reduction in energy consumption;
- lower emissions into the atmosphere;
- greater safety;
- greater load capacity for delivery.
In order to measure the value generated by the introduction of the new vehicles in the fleet, Poste Italiane has adopted an investment assessment methodology that combines the traditional financial perspective with the perspective of sustainability, with a view to an integrated strategic planning that allows to create value shared between the Company and the territory.
The figure below represents the results of the analysis in the form of the "True Value bridge", i.e. the graphical representation of the net impacts of the green fleet compared to a traditional fleet. Positive values represent avoided costs, while negative values represent additional costs generated by the green fleet compared to the as-is fleet.
According to the model calculated, the new green fleet will generate value for the community (True Value) equal to
+ €25 mln compared to the traditional fleet, during its total period of operation.
In particular:
- 80% is represented by damages avoided thanks to the 40% reduction in CO2 emissions compared to the as-is fleet;
- 20% is represented by the sum of costs avoided thanks to the lower road congestion and the higher safety guaranteed by the new vehicles.
Exiting the pandemic with a new Green Deal for Italy
The Group is a signatory to the Manifesto "Exit the pandemic with a new Green Deal for Italy", promoted by the Sustainable Development Foundation, which aims to relaunch the country's economy towards a green path. The Company believes that this project is the way forward for a stronger and longer-lasting recovery that enhances activities aimed at decarbonisation and circularity of production, distribution and consumption models.
Green Postal Day 2021
Poste Italiane participated in the third edition of the “Green Postal Day”, an initiative organised by the International Post Corporation to enhance the contribution of postal operators to the reduction of CO2 emissions and the global fight against climate change. In particular, together with another 15 mail companies from around the world, the Group launched a campaign to highlight the environmental and commercial benefits deriving from commitments to reduce emissions.European Alliance for a Green Recovery: Poste Italiane in the field to build green investment plans
The Group, in line with its environmental sustainability strategy, through its subsidiaries Poste Vita and BancoPosta Fondi SGR, has joined the initiative promoted by the PRI, joining the appeal made by member states, entrepreneurs, researchers and non-governmental organizations of the European Union in support of a Green Recovery Plan to promote the construction of green investment plans together with more than 50 business leaders in the financial and insurance sector and investment funds from 10 European countries.Climate Action 100+
Poste Italiane Group, through its subsidiaries Poste Vita and BancoPosta Fondi SGR, has joined Climate Action 100+, an unprecedented international collaborative engagement initiative to raise awareness on climate change issues among the world's largest emitters of greenhouse gases. The initiative focuses on the issues of climate risk and biodiversity loss for businesses and aims to mitigate the effects of climate change caused by key economic sectors.
The risk management model adopted by the Group considers both the possible impacts that phenomena related to climate change (e.g. extreme climate events, temperature increases, rising sea levels, etc.) may have on Poste Italiane's business (indirect impact), and those that Poste Italiane's activities may have on climate (direct impact). The process of identifying and assessing risks and environmental management methods also extends to counterparties (suppliers, business partners, other companies), impacting procurement processes and any extraordinary financial transactions, providing, among other things, for the identification of suppliers and partners that may present risks related to environmental protection, including through a multidimensional analysis that takes into account parameters such as
The correct identification and assessment of climate-related risks and opportunities is also ensured by listening to stakeholders. Stakeholders are periodically involved in the Multistakeholder Forums organized by Poste Italiane and have at their disposal a reporting system that allows them to bring any perceived risks to the attention of the Company.
- possession of environmental, quality and energy performance certifications;
- adoption of environmental management systems
- ethical standards of behavior;
- Minimum Environmental Criteria (CAM).
The correct identification and assessment of climate-related risks and opportunities is also ensured by listening to stakeholders. Stakeholders are periodically involved in the Multistakeholder Forums organized by Poste Italiane and have at their disposal a reporting system that allows them to bring any perceived risks to the attention of the Company.
Given the pervasiveness of emerging risks, Poste Italiane considered it necessary to incorporate and manage them within its risk management processes. Emerging risks considered are exogenous, disruptive events that can threaten the business model over a long-term horizon (10-20 years) and are potential game changers for the industry and the context in which organisations operate. They are usually characterised by elements, such as:
- uncertainty and visibility: lack of data to analyse the phenomenon and difficulty in finding skills, knowledge and awareness of the potential effects that emerging risks have on a business model;
- timing of changes: changes derive from radical changes in the external context of reference (socio-environmental, legislative, technological, habits, etc.) altering routines in a destructive way on different fronts and with unpredictable time escalations;
- management complexity: increasing complexity of management methods. There are no immediate response actions as the events are derived from highly interconnected exogenous factors with strong systemic dependencies and time accelerations.
- Ageing population
- Increased longevity combined with low birth rate resulting in a negative change in the generational distribution of customers for Poste Italiane
- Regulatory Amendments
- Increased severity in the reference legislation applicable to the business with particular reference to environmental variables
- Pandemic Risk
- Negative effects for Poste Italiane’s business resulting from the global spread of the pandemic
- Technological innovations:
- Adverse consequences for people, businesses and ecosystems due to the development of innovative technological solutions (e.g. digital inequalities, digital market concentration, etc.)
- Cyber risk
- 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.)
- Climate change
- Possible negative impacts of climate change phenomena on Poste Italiane’s business and on its reputation
- Evolution of the payment system
- 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.
- Mobility revolution
- Need to review business models and delivery operations due to the introduction of new mobility models,technological evolution of vehicles, sharing mobility.
- Evolution in consumer behaviour
- 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.
- Geopolitical instability
- Possible negative impacts on Poste Italiane business due to geopolitical tensions and international conflicts.
Established in 2015 by the Financial Stability Board (FSB), the Task Force on Climate-related Financial Disclosures (TCFD) defined a set of recommendations with the goal of guiding companies in reporting information in a transparent and comprehensive manner on the risks and opportunities that climate change may pose to business performance. In line with key regulatory trends and in response to growing demands from the financial community and key stakeholders.
2. MARKET DEVELOPMENTS
3. TECHNOLOGICAL DEVELOPMENTS AND INNOVATION
4. REPUTATION
With regard to the physical risk assessment, Poste Italiane Governance focusing on risks and sustainability, in line with IPCC developments on a world scale relating to climate projections, recently updated its climate and water risk assessment methodology so as to better understand not only the risks, but also assess potential physical risks and opportunities. The Group conducted a thorough assessment from this perspective, including In the analysis all Group production and disposal sites located throughout Italy. Specifically, after a broad-based analysis process assessing the primary greenhouse gas Representative Concentration Pathways (RCP), and how these pathways correspond with expected life of goods and assets.
Poste Italiane selected two scenarios: RCP 2.6 and RCP 8.5. Poste Italiane selected RCP 2.6 as the reference scenario, due to its ambitious targets of mitigating the risks envisaged in the Business Plan in relation to the panorama identified by the IPCC. The RCP 2.6 scenario envisages a peak in emissions during an initial phase, which will then come down due to the active removal of carbon dioxide from the atmosphere. RCP 2.6 is also referred to as RCP 3PD, with regard to the half-century peak of ~3W/ m² that will be followed by a consistent reduction. In terms of zero greenhouse gas emissions by 2100, this scenario is based on concerted intervention on the regulations and policies front, resulting in an almost immediate reduction in greenhouse gas emissions (GHG). The Group has also considered the IPCC "RCP 8.5" scenario, as this is an example of the worst-case scenario, namely conditions with continually increasing emissions during the XXI century. The RCP 8.5 pathway is the outcome of little effort to reduce emissions and represents a failure in cutting back warming by 2100. With regard to climate projections for the two scenarios, in terms of RCP 8.5, the areas around the Mediterranean will experience increased temperatures and reduced rainfall, which will be come more intense in the second half of the century, with the trend rising up until 2100. Based on the RCP 2.6 scenario on the other hand, there will be similar effects that will be less intense during the first half of the century, with the trend coming down in the second half. This will result in a significant difference between the two scenarios by 2100.
The Group has conducted a risk assessment so as to assess the potential impact of physical events related to climate change developments in relation to its business. The risk assessment considered the extent of the existing risk at sites and the future risk up until 2024 (medium-term scenario), from a RCP 2.6 and RCP 8.5 scenario perspective. In addition to the base assumptions for the selected models, the Company also conducted a study relating to data extracted from the main rainfall and temperature parameters for these scenarios, comparing them with current data, so as to determine the importance of the change compared to the existing risk at the sites examined, in line with the RCP 2.6 scenario and taking into consideration the implications of the worst-case RCP 8.5 scenario. Future projections for changes to the physical risk levels associated with natural disasters are significant in strategic terms, even though in most cases, there still remains some uncertainty. On the other hand, we must also avoid placing too much trust in what is already apparent from climate science. The Poste Italiane risk assessment is therefore sufficient in relation to the increasing level of risk for its business and operations. The physical risk assessment covered all revenue generated by the Group, equalling € 11.2 billion in 2021 referring to existing operations, mainly Post Offices and hubs, which are potentially the sites that will be most impacted by extreme climatic conditions. Furthermore, from a long-term perspective, in line with the Business Plan and Carbon Neutrality target for 2030, all new operations undergo a risk assessment that also takes into consideration physical climate risks.
The product result of the risk assessment is then translated into the potential days of interruption to operations and then multiplied by the value of lost revenue (euro) for one day of interrupted operations. The main risks emerging from the scenario analysis are therefore extreme weather events and changes in rainfall trends. The more serious extreme weather events like rain, storms, snowstorms and possible floods or frost, with the resulting landslides and flooding, could cause interruptions to production, sorting and also logistics activities, with damage to sites and higher logistics costs. This serious physical damage and the interruption to the electricity supply would result in a negative impact on the Company’s financial performance, and therefore on the results and cash flow, as well as damage the corporate reputation with a consequent loss in customer confidence. An example of this are the floods experienced in Genoa in 2016, 2019 and 2020, when the Group worked in conjunction with local and national authorities. Flooding was caused by the excessive rain that peaked well above 500 mm in just a few hours in different areas of the city of Genoa and province, causing floods and swollen rivers. The violent storm resulted in rivers overflowing, generating a huge wave of muddy water mixed with detritus, which swept through half the city causing fatalities and injuries, and considerable damage to infrastructure. The Poste Italiane Post Offices were among the buildings damaged, with services consequently suspended. A similar natural disaster also occurred in Sicily, with a series of floods in 2018, 2020 and 2021. In particular, in October 2021, when the equivalent of 6-months of rainfall fell in 48 hours, causing significant damage in the Catania region, many Post Offices had to suspend their services.
As noted above, Poste Italiane conducted an analysis based on its production and sorting facilities in different areas of Italy, in consideration of a possible interruption to services. The Group was thus able to assess the potential financial impact of climate events in relation to 2024. The sites with the highest potential financial impact due to flooding in 2024 are located in the northern Italian regions. More specifically, the new hubs in Bologna and Landriano were identified as high-risk sites and which could cause significant losses in revenue,
due to interruptions in the significant service levels they provide. The Group has put in place specific mitigation measures in relation to the physical risks caused by extreme climate conditions (e.g. landslides, avalanches, flooding, etc.), which are set out in the table below.
Poste Italiane identifies and analyzes the risks related to climate change taking into account different drivers - attributable to two macro-environments (transition risks and physical risks) – reported below. Against these identified risks and associated with each driver, Poste Italiane, in addition to defining the related opportunities, provides specific mitigation actions. In fact, in the coming decades, a rise in average temperatures of 3 degrees Celsius compared to the pre-industrial era could trigger disastrous chain effects. The fight against climate change, therefore, is not an option but a must. Thus, it is necessary to consider these aspects in the definition of strategies and operational activities of companies.
Taking as reference the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) organizations and comparing the various scenarios proposed, the Group decided to adopt the IEA 2DS scenario (2°C Scenario) as it was found to be the most suitable for the business. In addition to considering the basic assumptions of the model, the trends in the transport sector and estimated forecasts and development over the next few years were taken into account. Afterwards, the Group carried out business projections identifying the related risks and opportunities. Following the analysis, the transition risks identified by Poste Italiane are as follows: emerging regulation, market evolution, technological developments and reputation. It should be noted that the analysis comprehends logistics operations, including transportation, buildings and facilities, which represent key assets for the Company's business.
1. REGULATORY DEVELOPMENTS
Taking as reference the International Energy Agency (IEA) and Intergovernmental Panel on Climate Change (IPCC) organizations and comparing the various scenarios proposed, the Group decided to adopt the IEA 2DS scenario (2°C Scenario) as it was found to be the most suitable for the business. In addition to considering the basic assumptions of the model, the trends in the transport sector and estimated forecasts and development over the next few years were taken into account. Afterwards, the Group carried out business projections identifying the related risks and opportunities. Following the analysis, the transition risks identified by Poste Italiane are as follows: emerging regulation, market evolution, technological developments and reputation. It should be noted that the analysis comprehends logistics operations, including transportation, buildings and facilities, which represent key assets for the Company's business.
1. REGULATORY DEVELOPMENTS
| RISK | RISK POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT ACTIONS AND TOOLS | ||
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| Increased severity in legislation in consideration of climate change related targets Time frame: Medium term |
Negative impacts:
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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 Group’s business. |
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Integrity and transparency Working with integrity and transparency. |
Integrity and transparency Working with integrity and transparency. |
Opportunities:
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2. MARKET DEVELOPMENTS
| RISK | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT ACTIONS AND TOOLS | |
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| Developments in market demand, focusing increasingly on environmental issues, which require substantial adjustments to the services and products offered by the Group Time frame: Long term Pillars impacted |
Negative impacts:
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Poste Italiane is actively engaged in developing existing products/services with alternatives that take ESG criteria into account (e.g., investments, insurance) in order to ensure an increasingly wide range of products and services that integrate high ethical standards and environmental criteria. 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. An example can be seen in the development of insurance solutions that, on the one hand, encourage the adoption of sustainable and responsible behaviour by its policyholders and, on the other, contribute to mitigating ESG risks. The results obtained both for BancoPosta Fondi SGR and Poste Vita, are higher than the ESG performance of reference benchmarks. 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). |
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Sustainable Finance Integration of ESG factors into investment policies; Integration of ESG factors into insurance policies. |
Opportunities:
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3. TECHNOLOGICAL DEVELOPMENTS AND INNOVATION
| RISK | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE |
MAIN RISK MANAGEMENT ACTIONS AND TOOLS | |
|---|---|---|---|
| Failure to adjust its business model in line with the technological developments needed to contain climate change related phenomena Time frame: Long term |
Negative impacts:
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Poste Italiane’s support in the transition to a low carbon emission economy is guided by the commitment of setting emission reducing targets for its commercial operations in line with the Industrial Plan, reaching carbon neutrality by 2030 and in this way supporting the ambitious Paris Agreement targets of limiting global warming to 1.5°C. From this perspective, the Group has implemented a Renewal Plan since 2019, which envisages the total replacement of the entire vehicle fleet with new generation models with electric, hybrid and endothermic propulsion with low emissions by 2022, thus ensuring a reduction in energy consumption. Among companies in the utility sector, Poste Italiane has one of the largest fleets of 100% electric commercial vehicles in the country. 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. The Group is also introducing the use of new threewheeled electric motorcycles in several cities, 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 environmental sustainability in territories and allow its electric fleet to spread increasingly throughout all Italian regions. |
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| Pillars impacted | Opportunities:
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Green transition Environmental impacts of logistics |
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Value for local communities Support for the socio economic development of local communities |
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Innovation Innovation and digitisation of products, services and processes. |
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Customer experience Quality and Customer experience. Cybersecurity, IT Security and Privacy |
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4. REPUTATION
| RISK | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT ACTIONS AND TOOLS | |
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| Activities carried out by the Company or counterparties that could impact negatively on climate, with consequent damage to its reputation Time frame: Long term |
Negative impacts:
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The risk management model adopted by the Group considers both the possible impacts that climate changerelated 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 (suppliers, business partners, other companies), 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). The correct identification and assessment of climaterelated risks and opportunities is also ensured by listening to stakeholders who are periodically involved in the Multi-stakeholder Forums organised by Poste Italiane. A reporting system has also been set up, making it possible to bring any perceived risks to the Company’s attention. 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. While managing the health emergency, Poste Italiane is focused on pursuing sustainable development by continuing to invest in projects aimed at strengthening ESG initiatives. In order to reduce the direct impact that the Company’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. Among other things, Poste Italiane, in line with its adhesion to the Paris Agreement and the New Green Deal, has set itself the ambitious goal of making its contribution to the achievement of international carbon neutrality objectives by 2030, well ahead of the timeframe defined by the European Union. |
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Integrity and transparency Working with integrity and transparency Legality and ESG integration in the procurement process |
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Value for local communities Support for the socio economic development of local communities Dialogue and transparency with the authorities |
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Green transition Environmental impacts of real estate facilities. |
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Intellectual | ||
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Physical-structural | ||
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Social-relational | ||
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Natural | ||
With regard to the physical risk assessment, Poste Italiane Governance focusing on risks and sustainability, in line with IPCC developments on a world scale relating to climate projections, recently updated its climate and water risk assessment methodology so as to better understand not only the risks, but also assess potential physical risks and opportunities. The Group conducted a thorough assessment from this perspective, including In the analysis all Group production and disposal sites located throughout Italy. Specifically, after a broad-based analysis process assessing the primary greenhouse gas Representative Concentration Pathways (RCP), and how these pathways correspond with expected life of goods and assets.
Poste Italiane selected two scenarios: RCP 2.6 and RCP 8.5. Poste Italiane selected RCP 2.6 as the reference scenario, due to its ambitious targets of mitigating the risks envisaged in the Business Plan in relation to the panorama identified by the IPCC. The RCP 2.6 scenario envisages a peak in emissions during an initial phase, which will then come down due to the active removal of carbon dioxide from the atmosphere. RCP 2.6 is also referred to as RCP 3PD, with regard to the half-century peak of ~3W/ m² that will be followed by a consistent reduction. In terms of zero greenhouse gas emissions by 2100, this scenario is based on concerted intervention on the regulations and policies front, resulting in an almost immediate reduction in greenhouse gas emissions (GHG). The Group has also considered the IPCC "RCP 8.5" scenario, as this is an example of the worst-case scenario, namely conditions with continually increasing emissions during the XXI century. The RCP 8.5 pathway is the outcome of little effort to reduce emissions and represents a failure in cutting back warming by 2100. With regard to climate projections for the two scenarios, in terms of RCP 8.5, the areas around the Mediterranean will experience increased temperatures and reduced rainfall, which will be come more intense in the second half of the century, with the trend rising up until 2100. Based on the RCP 2.6 scenario on the other hand, there will be similar effects that will be less intense during the first half of the century, with the trend coming down in the second half. This will result in a significant difference between the two scenarios by 2100.
The Group has conducted a risk assessment so as to assess the potential impact of physical events related to climate change developments in relation to its business. The risk assessment considered the extent of the existing risk at sites and the future risk up until 2024 (medium-term scenario), from a RCP 2.6 and RCP 8.5 scenario perspective. In addition to the base assumptions for the selected models, the Company also conducted a study relating to data extracted from the main rainfall and temperature parameters for these scenarios, comparing them with current data, so as to determine the importance of the change compared to the existing risk at the sites examined, in line with the RCP 2.6 scenario and taking into consideration the implications of the worst-case RCP 8.5 scenario. Future projections for changes to the physical risk levels associated with natural disasters are significant in strategic terms, even though in most cases, there still remains some uncertainty. On the other hand, we must also avoid placing too much trust in what is already apparent from climate science. The Poste Italiane risk assessment is therefore sufficient in relation to the increasing level of risk for its business and operations. The physical risk assessment covered all revenue generated by the Group, equalling € 11.2 billion in 2021 referring to existing operations, mainly Post Offices and hubs, which are potentially the sites that will be most impacted by extreme climatic conditions. Furthermore, from a long-term perspective, in line with the Business Plan and Carbon Neutrality target for 2030, all new operations undergo a risk assessment that also takes into consideration physical climate risks.
The product result of the risk assessment is then translated into the potential days of interruption to operations and then multiplied by the value of lost revenue (euro) for one day of interrupted operations. The main risks emerging from the scenario analysis are therefore extreme weather events and changes in rainfall trends. The more serious extreme weather events like rain, storms, snowstorms and possible floods or frost, with the resulting landslides and flooding, could cause interruptions to production, sorting and also logistics activities, with damage to sites and higher logistics costs. This serious physical damage and the interruption to the electricity supply would result in a negative impact on the Company’s financial performance, and therefore on the results and cash flow, as well as damage the corporate reputation with a consequent loss in customer confidence. An example of this are the floods experienced in Genoa in 2016, 2019 and 2020, when the Group worked in conjunction with local and national authorities. Flooding was caused by the excessive rain that peaked well above 500 mm in just a few hours in different areas of the city of Genoa and province, causing floods and swollen rivers. The violent storm resulted in rivers overflowing, generating a huge wave of muddy water mixed with detritus, which swept through half the city causing fatalities and injuries, and considerable damage to infrastructure. The Poste Italiane Post Offices were among the buildings damaged, with services consequently suspended. A similar natural disaster also occurred in Sicily, with a series of floods in 2018, 2020 and 2021. In particular, in October 2021, when the equivalent of 6-months of rainfall fell in 48 hours, causing significant damage in the Catania region, many Post Offices had to suspend their services.
As noted above, Poste Italiane conducted an analysis based on its production and sorting facilities in different areas of Italy, in consideration of a possible interruption to services. The Group was thus able to assess the potential financial impact of climate events in relation to 2024. The sites with the highest potential financial impact due to flooding in 2024 are located in the northern Italian regions. More specifically, the new hubs in Bologna and Landriano were identified as high-risk sites and which could cause significant losses in revenue,
due to interruptions in the significant service levels they provide. The Group has put in place specific mitigation measures in relation to the physical risks caused by extreme climate conditions (e.g. landslides, avalanches, flooding, etc.), which are set out in the table below.
| RISK | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE |
MAIN RISK MANAGEMENT ACTIONS AND TOOLS | |
|---|---|---|---|
| Limited production, sorting and logistics, damage to sites and higher logistic costs due to extreme weather events such as rain, storms, snowfalls and possible floods or frost, with consequent mudslides and flooding Time frame: Medium term |
Negative impacts:
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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, and identifies the main methods for managing these. In order to guarantee business operations even in the event of extreme weather conditions, Poste Italiane has adopted business continuity and disaster recovery plans as well as actions aimed at preventing physical damage to structures. UNI EN ISO 14001 certification was maintained, providing for the systematic management of environmental aspects inherent to processes, from the perspective of improving environmental performance and making it more efficient, thus gaining significant benefits, also in terms of sustainability. Furthermore, to prevent additional possible damage caused by extreme weather conditions, the Group has identified the regulatory perimeter for activating an environmental monitoring system, to determine the average annual concentration of radon gas in the air, based on assessing the risk of exposure to ionising radiation. Finally, for the coordination of emergency and recovery activities, Poste Italiane maintains 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.). |
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Integrity and transparency Working with integrity and transparency |
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Value for local communities Dialogue and transparency with the authorities |
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People development Occupational health and safety |
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