Community initiatives

in

EC1In harmony with the willingness to contribute toward the country’s civil growth even beyond its own infrastructural role, in 2011 Terna confirmed its support in favor of social, cultural and environmental initiatives.

Terna’s corporate givingactivities mainly consist in financial support to charity initiatives. To these the resources are added dedicated to organizing initiatives in favor of the community, the free-of-charge transfer of corporate property no longer useful in the production cycle and the support provided in the form of work time dedicated by Terna’s employees to different initiatives, particularly remunerated hours for volunteering activities.

SO6It should be stressed that contributions are never granted in favor of political parties or of their representatives, as established in Terna’s Code of Ethics. 

For preparing accurate reporting on these themes, aimed at monitoring for internal uses and for external comparison, in 2011 Terna joined the London Benchmarking Group (LBG), an international group of companies active with regard to charity initiatives that also developed the classification and measuring standard, by the same name, of the initiatives in the community and the related input (donations in cash, in kind, in employee time) and output(benefits actually generated by the initiatives, both for recipients and for the company). The LBG model represents a conceptual reference framework for defining, classifying and accounting corporate charitable initiatives. Accounting contributions often requires using other accounting criteria (for example, the fair value of property transferred or the amount of a sponsorship that becomes an actual charity activity) and is therefore influenced by interpretational aspects, however, it has the quality of creating a coherent relation among costs and benefits of charity initiatives, allowing for strategic planning and a rational management of corporate giving.

During 2011 Terna defined its monitoring systems as described in the dedicated box that follows.

The LBG model for strategically managing corporate giving

In 2011 Terna joined the LBG – The London Benchmarking Group, a British organization that, together with the operational coordination of Corporate Citizenship, joins over 120 companies on the theme of the impacts of Corporate Community Investments for which an accurate measuring method has been defined.

For the first time, the 2010 Sustainability Report classified the initiatives implemented by Terna in the community during the year, according to the LBG Model, highlighting the three possible contribution modalities (cash, in kind, or in employee time), the types of initiatives (donations, investments in the community or commercial initiatives in the community) and their objectives (Education and youth, Health, Economic development, Environment, Art and culture, Social welfare, Support for emergencies and Other).

Not having the necessary data available for this first model application, it was not possible to measure the outputs of charitable initiatives, i.e. the impacts on the beneficiary organization, the end beneficiaries and the company. For this reason, during 2011, monitoring tools were defined, consistent with the LBG model and adapted to the Italian context and Terna’s peculiarities.

The tools defined by Terna include drafting a project-chart, filling in a questionnaire for collecting information on the allocation of donations and sponsorships and the initiative’s visibility and a final chart for assessing the effects on the Company.

This monitoring set was applied for a first data collection at the end of 2011 and as of 2012 it accompanies from the very beginning each individual initiative also for supporting the effectiveness and efficiency assessment of the initiative itself.

In Italy, despite the LBG method is referred to in many sustainability reports, only two companies have officially joined it: Terna and Telecom Italia.

In parallel to this activity, new Operational Instructions were drafted and published for “Management of requests for the free-of-charge transfer of corporate property” which regulates one of the three inputs measured by the LBG method.

 

EC8The following table shows the aggregate community initiatives, classified for the first time according to the LBG model, carried out by Terna in 2011:

COMMUNITY INITIATIVES
Values in euro 2011 2010
Total value of contributions (excluding internal overhead costs) 1,923,500 1,558,825
Composition by type of contribution    
- In money 1,833,550 1,436,743
- In kind (free-of-charge transfer of corporate property) 42,414 34,547
- Employee time 47,536 87,535
Composition by type of initiative    
- Donations  1,338,914 808,085
- Investments in the community 244,336 114,283
- Commercial initiatives in the community 340,250 636,457
Composition by purpose    
- Education and youth 498,936 81,297
- Health 22,404 35,086
- Economic Development 479,000 171,575
- Environment 21,000 32,240
- Art and culture 545,900 751,644
- Social welfare 30,000 66,250
- Support to emergencies 61,850 5,000
- Other 264,410 415,733

 

(*) Donations: episodic contributions, typically in response to requests for funds from charitable organizations deemed deserving. Investments in the community: expenses for coordinated/organized initiatives by the Company according to a medium-long term plan, often in partnership with NGOs. Commercial initiatives in the community: marketing initiatives with charitable consequences (only the part of the expense is calculated representing a charitable contribution).

Despite a one year pause of the Terna Prize for contemporary art, artistic and cultural initiatives are confirmed as being the area of major concentration of Company’s initiatives. Significant activities were also carried out in 2011 for youth training through collaboration programs with Universities and Master’s programs. Supporting environmental causes was not included into this table since it is usually linked to building new electricity lines and was therefore reported as environmental expenses.

Nearly 40% of the organizations that received a donation in 2011 returned to Terna the LBG questionnaire on the external effects of corporate giving that allowed a first evaluation of the effects on the community. Among these the following are listed:

Art and culture

  • Spazio Teatro NO’HMA “Teresa Pomodoro”: Terna supported the 2010-2011 theater season focused on the theme “Man and the sense of things” and the second edition of the International Prize for Theater of Inclusion. For the themes addressed and the-free-of charge use, the Spazio NO’HMA represents an element of value in the current contemporary cultural scenario.

    The LBG survey registered an important cultural enrichment for a public of approximately 24,000 people that would have otherwise been excluded from using the regular theater circuits.

Social welfare

  • Province of Ravenna for the Tuzla Orphanage: Terna supported building an electricity production plant from photovoltaic panels for supplying hot water to minors living in the Tuzla orphanage (Bosnia-Herzegovina).

    Upon completion, LBG registered an immediate benefit in terms of greater personal hygiene and improved quality of life for the 130 children living in the orphanage.
  • Popica Onlus, “StradAlternativa” Project:Terna participated in this social inclusion and health project addressed to approximately 120 children and youth living in extreme poverty conditions along the roads of Satu Mare in Romania.

    The LBG survey underlined that in 25% of cases, an important behavioral change occurred and a cultural and professional enrichment that determined more generally a significant improvement in the quality of life. For an additional 30%, this change had only begun or was in progress for being consolidated.

Health

  • Fondazione Onlus Marina Minnaja:Terna supports this three-year project that began in 2011 for educating and training patients on a waiting list and after organ transplant by providing assistance during the transplant process and the production of educational and informative materials. 

    The LBG survey, conducted a few months after the project began, registered benefits for the organization in this first phase, that focused on training volunteers.

Education and youth

  • Fondazione Ugo Bordoni: Terna supports the activities of the Fondazione Ugo Bordoni, the high cultural institute that conducts research, scientific and applied studies in electronic communication, information technology, electronics, network public services, radio and TV and audio-visual and multi-media services in general for promoting scientific progress and technologic innovation.

    The LBG survey registered, as the output of Terna’s contribution, a broadened offer of the foundation’s new services in favor of scientific research through co-funding of scholarships, grants and research contracts for activities concurred with the Universities of Rome “La Sapienza”, Tor Vergata and Roma Tre, Politecnico di Milano, Università di Milano Bicocca, Università dell’Aquila and Università di Bergamo. The foundation, in turn, was able to increase its professional know-how on themes of Urban Energy Network, referred to Smart Grids and Smart Cities and produce two original research studies.

In 2011, during the Christmas holidays, a new solidarity project was implemented described in the following box.

With “A better future for all” 2011 Christmas by Terna creates solidarity

The 2011 Christmas holidays were for Terna the occasion for launching the solidarity initiative “A better future for all” that supported three projects aimed at the welfare of future generations and of health. 

Preserving a forest, providing a better future to children with a difficult present situation and supporting Italian excellence in medical-scientific research on hopeless diseases are respectively the objects of the projects of WWF Italia, Associazione Ai.Bi. – Amici dei bambini and “Adotta una cellula” of the Casa Sollievo della Sofferenza in San Giovanni Rotondo and of the Associazione “Neurothon Onlus” that Terna has supported and promoted also through its Christmas cards and its website www.terna.it.

These projects, promoted by organizations that successfully passed transparency and reliability criteria, were selected for all having the objective of guaranteeing a better future.

During the International Year of Forests, the initiative undertaken by WWF Italia promotes, the protection of the humid forest of the Foce dell’Arrone along Lazio’s coastal area, a small pocket of biodiversity along the Tyrrhenian Sea characterized by a growing urbanization. The coastal forest with its sandy dunes and Mediterranean Maquis containing animal and plant species living in this particular habitat represent the most significant characteristics of the Foce dell’Arrone which, together with the nearby Oasi di Macchiagrande, are also a precious example of environmental protection and conservation of its history and culture.

Minors living in difficult family situations are the object of Terna’s second solidarity project: a foster home near Milan founded by Ai.Bi. - Associazione Amici dei bambini. Creating a serene and constructive environment for a child that is temporarily away from his family of origin through the support of foster parents providing love, safety and protection and promoting a healthy growth and development of a child’s social and individual identity, represents the objective of the foster homes, a solution that is not yet widespread but that focuses on children.

A better future also passes through the support provided to scientific research and to its constant commitment toward expanding human knowledge for increasing the quality of all: defeating neurodegenerative diseases such as the ALS, multiple sclerosis, Alzheimer’s disease is the primary objective of the project “Adotta una cellula” by Prof. Angelo Vescovi, Scientific Director of the Casa Sollievo della Sofferenza whose studies on cerebral stem cell transplants are finding effective treatment against these diseases. The experimenting protocol defined by Prof. Vescovi succeeded in obtaining in March 2011 the authorization from the Istituto Superiore della Sanità for proceeding with human experimenting on patients affected by ALS.

To complete the initiative, Terna was also the promoter of three projects with its suppliers requesting them to contribute with a donation rather than sending Christmas gifts.

 

Sponsorships, divided according to areas, included:

Economic development

  • 2011 Cigré International Symposium dedicated to “The electric power system of the future – Integrating supergrids and microgrids” (Bologna, September 13-15). Terna supported this international initiative hosted by the Department of Engineering at the University “Alma Maudiorum” in Bologna, regarding integrating complex grids.

Environment

  • IVth Energy Festival (Florence, June 23-25). Terna supported this national event entirely dedicated to energy that promotes an exchange between the public and representatives of the scientific, cultural, artistic and economic and institutional worlds as well as of associations. 
  • Vth the Pimby - Please in My Backyard Prize: conceived by the association by the same name, this is an award given to the bodies that promote a culture of sustainably getting things done on their territory, by constructing works with the agreement of the inhabitants and in compliance with the relevant regulations. Terna supports the prize to foster a sustainable approach based on consultation with local communities.

Art and Culture

  • Year of Russian language and culture in Italy and of Italian language and culture in Russia: Terna supported cultural initiatives organized by the Italian Cultural Institute in Moscow promoted by the joint Committee established by the two governments for organizing events in Rome, Milan, Moscow and St. Petersburg.
  • "Gli occhi di Caravaggio. Gli anni della formazione tra Venezia e Milano" (The eyes of Caravaggio. The training years in Venice and Milan): Terna supported the exhibit hosted in Milan by the Museo Diocesano of the Ambrosian Dioceses, from March 11 to July 3, 2011.
  • XLIXth Campiello Prize: Terna supported the 2011 edition of the Campiello Literature Prize, which is organized and promoted by the Veneto Confindustria.