Bilancio di Sostenibilità 2020 - versione inglese

Registered Office 25124 Brescia - via Cefalonia, 70

Head Office 25038 Rovato (Bs) - via XXV Aprile, 18

Executive Offices 25019 Sirmione (Bs) - piazza Virgilio, 20 25080 Padenghe sul Garda (Bs) - via Barbieri, 20

www.acquebresciane.it

Sustainability report 2020 summary

Sustainability report 2020 Summary

Water is life’s matter and matrix, mother and medium.

There is no life without water.

Albert Szent-Gyorgyi

Letter to the stakeholders For the third year after its establishment, Acque Bresciane has issued its Sustainability Report to illustrate its main activities, the most significant data, and achievements. We believe that the commitment to environmental and social sustainability is the best and only response to the recent Covid-19 emergency in order to reprise all business activities.

The Report describes our contribution to the achievement of the Sustainable Development Goals through the positive results we have achieved: concrete reactions to the important challenges that our territory is facing. We believe the Sustainability Report is an on-going work-in-progress, not a simple document which is updated every year.

We owe our greatest commitment to all of you who read this Report, to your partners who live and work with you, to the future generations and, ultimately, to ourselves.

As ever, we are staking our reputation on it. Happy reading!

Gianluca Delbarba The President of Acque Bresciane

4|5

Acque Bresciane Report 2020

Acque Bresciane in summary The main figures of 2020

94

216

85,700,000 cu.m.

MUNICIPALITIES SUPPLIED

WELLS

DRINKING WATER COLLECTED YEARLY FOR ADDUCTION

560,000

190

PEOPLE SUPPLIED

SPRINGS

2,000

15

CHILDREN INVOLVED IN ENVIRONMENTAL EDUCATION

SURFACE WATER SOURCES

4,077 km LENGTH OF DRINKING WATER SUPPLY NETWORK

2,663 km LENGTH OF SEWER NETWORK

7,150 DRINKING WATER SAMPLES

The Sustainability Report concerns the Year 2020 and has been prepared in accordance with the methods and principles set out in the GRI Sustainability Reporting Standards (option “in accordance-core”).

The Sustainability Report was approved by the Acque Bresciane Board of Directors on 27th April 2020 and was voluntarily submitted to independent auditing.

15,994 tonnes

30 million

4,276 hours

SLUDGE PRODUCED BY PLANTS

INVESTMENTS [€]

TRAINING HOURS

270,473 GJ

62%

93.8%

ENERGY CONSUMED

LOCAL SUPPLIERS*

83 million

278

OVERALL CUSTOMER SATISFACTION

ECONOMIC VALUE GENERATED [€]

EMPLOYEES

3,492 CUSTOMERS WHO BENEFITTED FROM THE SOCIAL WATER BONUS

65,7 million ECONOMIC VALUE DISTRIBUTED [€]

* Regione Lombardia

6|7

Acque Bresciane Report 2020

EDOLO

The profile and local development

As of 31st December 2020 Acque Bresciane operates in

SONICO

MALONNO BERZO DEMO

PAISCO LOVENO

Acque Bresciane collects water, makes it drinkable, and distributes it to all household and non-household customers. Acque Bresciane’s service continues even after the water has been delivered to customers. Once the water reaches the sewer system pipes, Acque Bresciane treats it in the appropriate wastewater treatment plants and, lastly, safely puts it back into the environment.

TOSCOLANO MADERNO GARDONE RIVIERA

MONTICELLI BRUSATI

PROVAGLIO D’ISEO

OME

È VO

SAN FELICE DEL BENACO

NU VO O LENT

CHIARI

PREVALLE

TRAVAGLIATO TORBOLE CASAGLIA LOGRATO

BRANDICO

ROCCAFRANCA

CORZANO

POMPIANO

RDA MANERBA L GA SUL GARDA ZE DE ENAZ CA POLP SOIANO DELL LVAG DEL LAGO MONIGA A RI ESE DEL GARDA VIER A PADENGHE SUL GARDA

REZZATO

Drinking water system, sewage system and wastewater treatment

FLERO

MAIRANO

AZZANO MELLA

ODIO MACL

TRENZANO

CASTELMELL A

CASTREZZATO CASTEL COVATI

SALÒ

MUSCOLINE

ROVATO

COMEZZANO CIZZAGO

O IAN

PUEGNAGO DEL GARDA

CAST EGNA TO

COCCAGLIO

URAGO D’OGLIO

LC

RO

RODENGO SAIANO

PADERNO F.C.

CAZZAGO SAN MARTINO

I ECCH ORZIV

CALCINATO PONCARALE

SIRMIONE LONATO DEL GARDA

Sewage system and wastewater treatment

DESENZANO DEL GARDA

LON GHENA

DELLO

GHEDI

BARBARIGA

POZZOLENGO

Drinking water system VILLACHIARA

LENO

CARPENEDOLO

BORGO SAN GIACOMO

QUINZANO D’OGLIO

A VECCHI VEROLA

86

SULZANO

As of 31st December 2019 Acque Bresciane operated in

92 municipalities

TIGNALE

GARGNANO

SALE MARASINO

MONTISOLA

PONTOGLIO

VALVESTINO

ZONE MARONE

INGO BERL

Water supply areas

MAGASA

PASSIRANO

RUDIANO

82

TREMOSINE PISOGNE

ERBUSCO COLOGNE

Since 1 January 2020, the Company has taken over the entire water service in the municipality of Ghedi, while from 1st September 2020 it has also acquired management of the integrated water service of the municipality of Berzo Demo, thus increasing the supplied municipalities to 94 for a total of 257 segments: st

LIMONE SUL GARDA

CA

ADRO

FRAN RTE

CAPRIOLO

PALAZZOLO SULL’OGLIO

94 municipalities

ANGOLO TERME

CO

The map shows the supply areas as of 31st December 2020, which have increased to 94 municipalities, compared to 92 in 2019:

CEDEGOLO

LOZIO

ISEO

PARATICO

SELLERO

Sewage system management

Acquedotto, Fognatura, Depurazione

Wastewater treatment

Fognatura e Depurazione REMEDELLO

Acquedotto

Depurazione

89

Wastewater treatment service areas

Acque Bresciane builds its activities on the following values:

Purpose EVERY DROP COUNTS Innovation experts and at the forefront of Sustainability Sustainability and innovation are Acque Bresciane’s keywords. Managing one of the most precious resources on the planet is a mission that requires passion and expertise, combined with the will to improve and the awareness of the importance of sustainability.

Acque Bresciane manages the water cycle with the aim of focusing on innovation and the future in order to provide customers with high-quality water, return clean water to the environment, and reduce waste.

Acque Bresciane provides important primary services to the supplied areas through an operational model focused on the population and the development of activities and environmentally friendly processes, in full respect of health and safety.

Sustainability

Protection of natural resources

Universality

Passion for the local territory

Transparency

Listening

Involvement of people

Excellence and innovation

8|9

Acque Bresciane Report 2020

Sustainability and tools The United Nations’ 2030 Agenda clearly states the fundamental role played by companies. For Acque Bresciane this represents a further stimulus to contribute to sustainable development, as well as to the expansion of technical and economic capacity, which is indispensable to respond to the climate change challenge and to the availability and responsible use of water.

Acque Bresciane has decided to use the United Nations’ Sustainable Development Goals as a tool to support the elaboration of sustainability plans and to understand the contribution of its activity in addressing major global challenges.

In this regard, individual goals and related targets have been identified and will be associated to each of the 9 macro sustainability goals included in the 2045 business plan.

Acque Bresciane’s priorities are associated with 11 SDGs (3, 4, 6, 7, 8, 9, 10, 11, 13, 15 e 16) and 14 specific targets.

The choice of the main objectives, which are listed on the next page as 9 macro-objectives, is oriented towards fulfilling Acque Bresciane’s commitment.

The 9 macro objectives of sustainable development: Objectives

Summary of 2045 plan

1

Reduction of network leakage

-50% network losses

2

Improvement of water quality

Eliminate non-drinking water

3

Improvement of wastewater quality

No EU violations

4

Emission reduction

100% green energy and vehicles

5

Improvement of customer relationship

No automatic refunds

6

Improvement of workplace safety

-25% workplace accidents compared to sector average

7

Improvement of welfare

At least 80% employees involved in welfare plan

8

Economic and financial sustainability

Follow the Business Plan

9

Promotion of sustainability

100% sustainability integrated in business activities

Data referred to the figure as of 31.12.2019

10 | 11

Acque Bresciane Report 2020

Key Performance Indicators (KPIs) have been identified for each macro-objective and new specific goals are established every year.

KPI 1

M1 Arera - % of water losses

2

% of supply network renovation (km of network replaced)

3

Per capita investments*

4

% of meter replacements

5

% people involved in Water Safety Plan

6

M3 Arera - quality of drinking water

7

Elimination of EU violations

8

M5 Arera - Sludge

9

KPI 12

MC1 (Regularity of contracts) Start and termination of contractual relations

13

MC2 (Regularity of contracts) Management of contractual relations and service accessibility

14

% of digital billing

15

% of accident severity index (commuting accidents excluded)

16

Per capita training hours for workplace safety

17

% of employees participating in welfare conversion of performance bonus

M6 Arera - quality of treated wastewater Rate of non-compliance of discharged wastewater samples

18

Indicators of financial sustainability DSCR (EBDTA and FREE CASH FLOW)

10

% of green vehicles

19

% of tenders with Minimum Environmental Criteria

11

% self-produced green electricity

20

Number of students involved in “School Help Desk”

(analogous supply area) * Some indicators go well beyond the scope of the individual sustainability objectives

Our stakeholders

3,80

Drinking water quality 3,60

Over the last three years, shareholders, employees, customers, suppliers, local communities, and environmental associations have been involved in our activities and they have communicated to us their priorities:

3,40 IMPORTANCE FOR THE STAKEHOLDERS

In order to pursue corporate objectives from a sustainability perspective, it is essential to implement forms of constant dialogue and interaction with our stakeholders in order to understand and take into account their needs, interests, and expectations.

Sustainable management of water resource

3,20 Climate change

3,00

Ethics and integrity

Workplace safety

Relations with local communities

Biodiversity

Relationship with customers

Value of human resources 2,80

Investments and innovation Economic performance

Supply chain 2,60

2,40

2,40

2,60

2,80

3,00

3,20

IMPORTANCE FOR ACQUE BRESCIANE

3,40

3,60

3,80

Governance Acque Bresciane operates under a 30-year service concession. The corporate governance of Acque Bresciane is modelled so that the shareholders can have a concrete impact on corporate decisions and the supply areas can be placed at the center stage in light of the constant meeting opportunities and initiatives set up with local administrations.

The Board of Directors is responsible for the management of the company and consists of five members, the President acting as Legal Representative and four Directors.

President Gianluca Delbarba Directors Mario Bocchio, Teresa Federici, Marco Franzelli, Roberta Sisti

The Board of Statutory Auditors, monitors the correct administration and adequacy of the administrative and accounting organisation.

President Massimo Celestino Botti Statutory Auditors Leonardo Sardini, Paola Bulferetti

The company is managed by the General Manager, Paolo Saurgnani

14 | 15

Acque Bresciane Report 2020

Control and risk management tools The control model of Acque Bresciane includes the following main tools:  The organizational, management and control Model pursuant to Legislative Decree n° 231  The Code of Ethics  The Corruption Prevention Plan The organizational, management and control Model was created on the basis of the provisions of Legislative Decree n° 231/2001, which regulates the “administrative liability” of legal entities and companies and which must also provide for a suitable control system. Acque Bresciane has therefore set up an independent Supervisory Body (Organo di Vigilanza - ODV) with autonomous powers of initiative and control.

The ODV is currently composed of the following members: President: Pier Simone Ghislieri Members: Pietro Moro, Josehf Facchini

The Code of Ethics contains rules of conduct, relations with third parties (shareholders, customers, suppliers, authorities, etc.), indications of conduct to be observed in various sectors (IT tools, data processing, accounting operations, etc.).

The three-year corruption prevention Plan is a plan provided for by Law n° 190/2012, which defines the strategy for the prevention of corruption within the individual administration. It is based on a preliminary analysis of the organisation, rules, and operating practices of the company in terms of possible exposure to corruption.

Communication

Definition of the context i n which the company operates

Risk identification

Risk analysis

Monitoring and review

Risk assessment

Risk treatment

AATO Local Authority Water Board

Control bodies

ARERA

In addition to the three control assessment tools described above, there are many control bodies whose activity, in compliance with responsibilities and skills, is aimed at ensuring the monitoring and management of the company business processes.

On the right is a list of all the control bodies to which Acque Bresciane is subject:

Italian Regulatory Authority for Energy, Networks and Environment

RPCT Supervisor of anti-corruption and transparency activities

RSPP/QSA Health and Safety Officer UNI EN ISO 9001 Quality management systems

OHSAS 18001 Occupational Health and Safety Assessment Series

UNI EN ISO 14001 Environmental management systems

Internal Audit OdV Supervisory Body

Independent auditing company Board of Statutory Auditors Monitoring Board Limited Committee DPO Data Protection Officer

Auditing company for sustainability report

16 | 17

Acque Bresciane Report 2020

The drinking water supply system The abstraction of water from the environment in order to guarantee a sufficient supply to the customers, the reduction of water losses, the care for water quality, the collection and removal of urban wastewater, the treatment of wastewater and its re-introduction into the environment are all activities that Acque Bresciane carries out daily in full awareness of being the manager of such a precious resource for human life.

The water supply department deals with the distribution of water: from the water source to the end customers, through abstraction, water treatment plants, and distribution systems.

Water source

2018

2019

2020

Number*

Cu.m. supplied

Number*

Cu.m. supplied

Number*

Groundwater wells

178

54,411,721

190

60,751,637

216

63,921,313

Surface waters springs

145

7,193,422

152

14,440,497

190

10,931,956

Surface waters lakes

8

9,440,554

8

12,429,180

15**

10,877,049

331

74,049,679

350

87,621,313

421

85,730,318

Total

* Water sources arranged in groups according to ISTAT (Italian National Institute of Statistics) / ** The calculation method was modified

Cu.m. supplied

Water collected from wells and springs is normally of excellent quality. In some cases, water is treated to improve its quality in order to comply with the strict requirements of our national regulation.

Total number/year

2018

2019

2020

Distribution network [km]

3,790

4,044

4,077

302

320

327

77

83

83

Tanks Pumping stations

Drinking water supply plants

2108

33

2019

35

2020

33

18 | 19

Acque Bresciane Report 2020

Wastewater treatment Before being returned to the environment, wastewater must necessarily be monitored and treated so as not to compromise the equilibrium of the ecosystem. The treatment cycle consists of chemical, physical, and biological treatments in addition to all other necessary processes for the achievement or maintenance of good quality of surface or ground waters and for preventing them from becoming polluted.

Acque Bresciane manages and monitors 2,663 km of sewage network.

2018

2019

2020

Km

%

Km

%

Km

%

Blackwater sewage

1,071

45%

1,267

48%

1,267

48%

Combined sewage

1,330

55%

1,375

52%

1,395

52%

Total

2,401

100%

2,642

100%

2,663

100%

In its supply areas, Acque Bresciane manages a total of 101 water treatment plants for a total of 37,821,190 cu.m. of treated water.

Below are the main 5 plants per number of population equivalent (PE) treated in 2020:

Paratico

Lake Iseo collector wastewater treatment plant

Rovato

Franciacorta collector wastewater treatment plant

Palazzolo sull’Oglio

Chiari

Tremosine

90,921 70,814 31,461 19,215 17,831

20 | 21

Acque Bresciane Report 2020

Water quality The quality of both surface and ground water is constantly tested and monitored with great care and at a higher frequency than the regulations require.

Drinking water supply system During 2020, intensive water network mapping activity was carried out and 7,150 samples were collected (5,368 in 2019) for a total of 142,240 parameters tested (118,469 in 2019).

Samples Parameters

2018

2019

2020

5,306

5,368

7,150

107,505

118,469

142,240

With regard to non-compliance, data are reported according to the 2019 regulation limits:

Total samples according to ARERA aggregation Non-compliance % compliance

2018

2019

2020

4,495

4,666

4,489

299

314

278

93.3%

93.2%

93.8%

In 2020, the valuable collaboration with Politecnico di Milano continued in order to study an optimization plan for the water system which also takes into account the ability to cope with climate change and guarantee the continuity of service for customers.

Wastewater treatment The quality of the water returned to the environment is guaranteed by the constant monitoring of the main parameters as set out in Legislative Decree n° 152/06. Wastewater analysis is the last link in the chain of the water cycle which certifies the quality of the commitment made to preserving the environment.

During 2020, 1,012 samples were analyzed (918 in 2019) for a total of 5,069 parameters (4,404 in 2019). The parameters mainly concerned the pollution load (pH, conductivity, BOD, COD, nitrogen compounds, phosphorus, total suspended solids).

2018

2019

2020

Samples

1,036

918

1,012

Parameters

8,195

*4,404

*5,069

* Parameter count modified compared to 2018 according to ARERA standard (e.g., temperature on entrance, and conductivity are parameters that were entered in Sire and counted in 2018, while they were not included in the 2019 ARERA calculation.

Only the parameters of Tab 1 and 2 of Legislative Decree n° 152/06 are included in the 2019 ARERA calculation).

Regarding non-compliances, ARERA's M6 macro-indicator for 2019 is reported:

Total samples according to Arera aggregation Non-compliances % compliance * Treatment plants with a potential of more than 2,000 PE

2019

2020

*830

*786

27

20

96.8%

97.5%

In 2021 Acque Bresciane will commit to launching a study as part of the application of EU Regulation 2020/741 on the reuse of municipal wastewater for agricultural purposes. The Regulation establishes the minimum requirements for water quality and its monitoring, as well as provisions on risk management and safe use of wastewater as part of the integrated water resources management. The Regulation will be applied from 26/06/2023, whenever treated municipal wastewater is reused for irrigation purposes in agriculture. However, given Acque Bresciane's focus on sustainability, an assessment on its implementation will be launched as early as 2021.

22 | 23

Acque Bresciane Report 2020

Economic sustainability The report of value added better represents how the economic wealth produced by Acque Bresciane is distributed to stakeholders. In 2020, Acque Bresciane achieved revenues of € 83,036,000, generating a total net value added of € 67,897,000.

2018 Revenues from sales Revenues/charges from financial assets Other revenues and charges

% VA

2019

% VA

2020

75,504,064

81,761,735

83,036,910

322,269

288,373

121,246

% VA

42,453

153,462

36,095

Amortization, depreciation, and provisions

13,360,431

15,093,324

15,225,375

Overall net value added

62,423,448

100%

67,110,246

100%

67,896,685

100%

Distribution of value added to suppliers

38,083,031

61.0%

42,638,523

63.5%

42,699,041

62.9%

Distribution of value added to employees

12,428,308

19.9%

13,711,390

20.4%

14,412,145

21.2%

Distribution of value added to investors

1,848,698

3.0%

1,865,860

2.8%

2,061,703

3.0%

Taxes and contributions to public administration

2,278,555

3.7%

1,144,550

1.7%

1,942,431

2.9%

Contributions to the territory

2,436,234

3.9%

2,365,435

3.5%

2,341,287

3.4%

Local fees and charges

3,036,021

4.9%

3,240,431

4.8%

2,203,697

3.2%

60,110,847

96.3%

64,996,189

96.8%

65,660,304

96.7%

Economic value distributed Financial year result

2,312,601

Economic value to be allocated to investments

2,312,601

2,144,057 3.7%

2,144,057

2,236,382 3.2%

2,236,382

3.3%

In order to support the major investment program envisaged by the Financial Plan of the concession, the company has not distributed dividends since its early establishment. The table shows the distribution of Acque Bresciane's value added.

The value distributed, especially in the case of suppliers and employees, significantly affects the supply areas and the communities in which Acque Bresciane operates, thus helping to ensure a positive impact on the economy and local operators.

Financial year / values in € Lombardy Rest of Italy Other geographical areas Total

Investments / values in € Lombardy Rest of Italy Other geographical areas Total

2018

2019

2020

34,605,329

40,999,016

40,693,456

3,478,718

5,924,125

5,736,498

-

73,621

45,926

38,083,357

46,996,763

46,502,880

2018

2019

2020

15,187,745

16,353,369

22,348,684

5,378,718

7,179,497

5,704,476

-

3,063

11,305

20,566,463

23,535,930

28,064,464

24 | 25

Acque Bresciane Report 2020

The investments Investing means believing in the future and improving so as to be more sustainable. In 2020, investments amounted to € 30,155,651. The recorded investments have increased by 24.3% compared to 2019, which is an indication of significant growth in the Company’s ability to invest.

Service / values in €

2018

2019

2020

Water supply system

8,181,000

10,402,640

13,522,961

Sewer system

4,878,000

6,084,018

8,801,849

Wastewater treatment

4,926,000

6,968,603

5,767,399

Other

1,143,000

797,329

2,063,441

Total

19,128,000

24,252,590

30,155,651

The average value of investments per inhabitant in the areas supplied by Acque Bresciane is € 60.17 per inhabitant served by the drinking water supply system compared to € 50.56 per inhabitant in 2019.

The investments accounted for are lower than those planned in the 2020 Budget (€ 32,523,900 which was approved on 18/12/2020 before the lockdown) due to the effects of the pandemic. However, they are significantly higher than those planned and restated during the ongoing pandemic in the summer of 2020 as a result of the extraordinary project called "Archimede" (the name deliberately hints at "Archimedes’ upthrust” and is aimed at reviving an area which was hit harshly

by Covid). The investments are reported for the purpose of identifying the number of investments to be included for the year 2020 in the Program of Interventions 2020/23 which was approved on 2nd March 2021 by Resolution of the Provincial Council n° 1 (€ 23,692,557).

Values in € per inhabitant

2018

2019

42.80

50.56

2020

Italian average

60.17

44.60

The following table summarizes the investments made in 2020 by ARERA macro indicator (values in €).

Macro indicator ARERA / values in €

Ratio of total investments made to the resident population supplied by the water supply system.

2019-2020 increase

2020 investments compared to 2019 Italian average

+24%

+35%

2020

M1 - Water losses

8,669,227

M2 - Service disruptions

2,108,917

M3 - Quality of supplied water

1,220,948

M4 - Level of criticality of sewer system

5,799,789

M5 - Management of sludges M6 - Quality of treated wastewater

0 6,934,353

Other

5,422,416

Total

30,155,651

The wastewater treatment of Lake Garda With regard to the important project of collecting and treating wastewater on the Brescia side of Lake Garda, no significant progress was made in 2020.

On 23.07.2019, Acque Bresciane delivered to the Local Authority Water Board the technical Feasibility Project which outlined the Alto Garda lake wastewater collection system and the new wastewater treatment plant located in Gavardo with a potential of 100,000 PE. The authorization process, which provided for the summoning of the Preliminary Services Conference called by the Local Authority Board (as governed by R.R. 6/19) for the assessment of the conditions for obtaining the acts of consent, was never initiated due to reasons not depending on the will of the proponent Acque Bresciane.

During 2020, the Steering Committee coordinated by the Ministry of the Environment set up a technical panel to assess the environmental compatibility of the Chiese River as a receptor for the discharge of the planned plants. The technical panel confirmed the validity of Acque Bresciane's project proposal with Report MATTM Prot. 77376 of 02.10. 2020. A brief excerpt of the letter is reported as follows: «on the basis of the documentation on file and provided in the work of the Technical Table, and at the state of knowledge, it is believed that, since no new technical and scientific aspects have emerged, the adopted solution of the wastewater treatment plants in Gavardo and Montichiari for the Lombardia side of the lake, is "environmentally" compatible with the water body receptor of the Chiese».

At a later date, on December 17, 2020, the Brescia Local Authority Board requested Acque Bresciane to proceed with the necessary evaluations regarding the identification of a possible new location for wastewater treatment, in light of what is expressly contained in motion n° 8/2020 approved by the Provincial Council on November 30, 2020.

Since April 13, 2021 a webpage on the new system of wastewater collection and treatment of the Brescia side of Lake Garda is online. Acque Bresciane has initiated a phase of information collection from the stakeholders of the local communities in order to illustrate the contents of the identified solutions and gather any doubts and questions. These will be then transmitted to the bodies called to evaluate the project in the Services Conference: https://www.acquebresciane.it/public/acquebrescianeportal/home/documenti/depuratore-garda Without entering into the merits of the legal legitimacy of the Provincial Council's motion, Acque Bresciane, as requested by the Local Authority Board, immediately began a further in-depth study regarding new scenarios for the location of the treatment plant serving the Brescia side of Lake Garda. The company has identified the Municipality of Lonato as an alternative location in May 2021.

Acque Bresciane confirms the technical sustainability of the Lonato location, as an alternative solution to the project, and refers to the local authority the continuation of the authorization process. The company will of course ensure the best available plant technologies and the best sustainable and environmental care.

28 | 29

Acque Bresciane Report 2020

Innovation and Digital Transformation Acque Bresciane invests daily in technological development and in the research of tools that allow us to manage the Integrated Water Service in a more efficient and sustainable way. In addition to the modernization of networks, plants and laboratories, the company invests in experimenting and applying cutting-edge technologies in innovative sectors.

2. Detection of pollutant discharges into the sewer network - Wastewater monitoring with Kando - IoT technology | We completed experiments on polluting discharges in the sewer network in the Municipality of Palazzolo sull'Oglio.

The new system can detect pollutants thanks to the use of big data and IoT technology.

Below are the main projects developed during the year 2020:

3. WebGis - integration with Water Alliance | WebGis is a software which visualizes geo-referenced cartographic data related to networks and plants contained in the Cartographic Database. In 2020, Acque Bresciane joined the Water Alliance GIS (network of companies that gathers almost all the managers of the integrated water service in Lombardy).

The following table presents a summary of the elements included for some of the major sectors:

1. Smart metering: installation of smart meters - IoT | We began experimenting a brand-new type of smart meters in two supplied municipalities (Torbole Casaglia and Puegnago del Garda). The new meters can detect consumption automatically.

Elements included

2018

2019

2020

Drinking water supply network (km)

3,300

4,044

4,077

Sewer network (km) Schede camerette

2,155

*3,800

*3,810

26,020

26,600

31,507

* Among the elements included in GIS there are also sections of storm sewer that are not managed by Acque Bresciane.

4. Telecontrol and SCADA (Supervisory Control and Data Acquisition) | During 2020 the new SCADA system for both the East and West areas and the installation of new peripheral remote-control systems for the managed plants were completed. The following table summarizes the remote-control peripheral systems installed: Devices installed by the end of year

5. Partition of networks - Partition into districts with DDD (Demand Driven Distribution) software | Acque Bresciane continues its partition of networks (physical subdivision of the networks into districts smaller than the municipal network) with the installation of devices to monitor system pressure and losses which may increase energy consumption.

2018

2019

2020

Drinking water supply plants

308

343

373

Sewage pumping stations

205

228

231

-

14

14

Industrial wastewater

13

15

15

Wastewater treatment plants

41

41

42

Combined sewage overflows

Remote alarm * Total * The remote alarms are being replaced by more advanced telecontrol systems.

97

86

86

664

727

761

30 | 31

Acque Bresciane Report 2020

The local communities In Acque Bresciane's sustainability strategy, local communities and the territory play a key role.

By adopting a policy of constant and accurate communication, we have been able to consolidate the trust of stakeholders, such as municipalities, citizens, customers, schools, public bodies, universities, research centers, other water companies, associations and third sector organizations or suppliers.

The customers

Valley

Acque Bresciane continues its path of aggregation by acquiring, during 2020, the management of the integrated water service in the municipalities of Ghedi and Berzo Demo for a total of 6,164 new customers. The breakdown of the total number of customers, 233,174, is as displayed in the graph below.

West

8,762

140,218

East

Overall total

84,194

233,174

2018

2019

During the three-year period 2018-2020, growth in supplied customers was steady and continuous at 10.70% over 2018 with 94 municipalities served.

The households supplied have increased from 264,964 in 2018 to 296,965 in 2020.

264,964

235.000 230.000 225.000 220.000

2020

215.000

296,965

210.000 205.000 200.000 195.000 2018

2019

2020

289,688

32 | 33

Acque Bresciane Report 2020

Commitment to customers

Online help desk

The constantly evolving regulatory framework, the social and economic context, and the policy of integration of new territories require the adoption and extension of new tools for the communication with the citizens supplied by our services.

Following the closure of local branches due to the pandemic, the availability of the customer care number for contracts enquiries was increased and contractual services were integrated through the online help desk and dedicated email service.

The communication channels for customers  Local customer service help desks

 Customer care number for contracts enquiries

 Company’s website

 Online help desk

 Customer care number for disruptions and emergencies

 Linkedin

Website The website is an important communication and interaction tool between the operator and the customers. In 2020, the website improved on its previous results. *2018

2019

2020

21,000

71,550

102,891

Average number of visitors per day

149

200

337

Maximum number of visitors per day

722

595

1,224

Online help desk

Online help desk

Online help desk

3.30

2.51

2.31

26

32

30

Overall number of visitors

Most visited page Average browsing time Number of published news Number of notified disruptions % of mobile accesses * Online since 1st August

13

149

184

25%

25%

31%

34 | 35

Acque Bresciane Report 2020

Customer care number The customers can request and process contract requests and access all the information about their utility by calling the customer care number.

Disruptions and emergencies customer care number In addition to the customer care number for contracts enquiries, the 24-hour disruption and emergency service has remained active at all times in order to handle any emergency calls as provided for in the service charter.

2018

2019

90,542

99,295

2020

Difference

111,926

+12.7%

2018

2019

55.9

2020

56.61

55.04

Number of followers Published posts Maximum views per post % of type of most frequent visitors Visitors in the province of Brescia

Linkedin Acque Bresciane's Linkedin profile was opened in April 2019 and had 1,403 followers at the end of 2020, with a steady increase in the number of visitors.

App After registering with the Online Help Desk, the app allows customers to access all contract information of their utility.

Archimede Project In order to cope with the economic and social consequences caused by Covid-19 and with the collaboration of the

2019 (launched in April)

2020

429

1,403

14

55

1,848

1,449

25% Engineers

19.93% Business Development

65%

52.98%

municipalities, Acque Bresciane wished to help struggling customers by allocating a fund of € 300,000 that will provide support to about 890 families and 280 local businesses.

36 | 37

Acque Bresciane Report 2020

Social water bonus

Data processing

The social water bonus, established by ARERA with resolution 897/2017/R/IDR and granted to customers in conditions of economic hardship, as of January 1, 2020, has been listed in the value distributed in proportional shares according to the services (water supply, sewer and wastewater treatment).

Acque Bresciane implements all necessary measures to ensure compliance with the provisions of EU Regulation 2016/679 of the European Parliament and of the Council of 27th April 2016 on the protection of individuals with regard to the processing of personal data ("GDPR") and Legislative Decree 196/2003, as amended

by Legislative Decree 101/2018.

Type of service Individual Centralized Total

Requests

Components

3,203

10,626

289

1,023

3,492

11,649

Disbursements as a result of requests are:

2018

1,820

2019

3,206

2020

3,492

Bonus requests were taken into consideration with reference to the date of availability of the Granted/Confirmed status and were not equated to the cash basis.

38 | 39

Acque Bresciane Report 2020

Education to Sustainability The health emergency forced the suspension of on-site activities from February 21 onward, which led to the cancellation of dozens of already scheduled appointments.

Smart water The suspension of on-site visits and lessons prompted the staff of the Communication and Schools Office to come up with new tools to keep in touch with the students and teachers.

The staff was able to send them educational material in digital format which was then used in distance learning. During the same period, our human resources worked on preparing new videos, which were made available to the schools in 2021:

Lectures Lectures cancelled because of Covid

 a virtual visit to the Rovato wastewater treatment plant;  an original short film produced by documentary filmmaker Pierandrea Brichetti for Acque Bresciane;  an exhibition, Pianeta Blu (Blue Planet), created in collaboration with Pinacoteca dell'età evolutiva di Rezzato (Pinac) on water, which was illustrated with drawings made by children from all over the world..

Each student and teacher who joined the School Help Desk received the Acque Bresciane educational kit, which contains a book for the teacher, posters to display in the classroom and, for each student, a comic book and a water bottle to endorse the use of tap water.

2018 (solar year)

2019 (solar year)

2020 (Lectures)

32

85

68

-

-

35

Practical sessions

16

25

12

Visits to the plants

11

17

5

1,200

3,500

2,000 (on-site)

10

15

20

Students involved Municipalities

The Cesare Trebeschi Award The year 2020 was marked by the passing of a very significant person for Brescia and its territory, the former mayor Cesare Trebeschi. Trebeschi was a forerunner of sustainability not only from an environmental, but also from a social point of view. Acque Bresciane has chosen to commemorate him by launching the first edition of the competition "Cesare Trebeschi, l'arte del bene comune" (Cesare Trebeschi, the art of the common good), together with Fondazione Cogeme, Fondazione ASM, Fondazione AIB and Fondazione Sipec, with the technical partners Fondazione Brescia Musei, Laba, Associazione Artisti Bresciani (AAB), and in collaboration with the Provincial School Office, with the patronage of the Province of Brescia and the Municipalities of Brescia and Cellatica.

The theme of the first edition is "Sustainability as seen by young people", with the intent to convey and actualize the values that guided the life of Cesare Trebeschi. Trebeschi was a politician and administrator and firmly believed in social responsibility understood as education to the community, environmental and social sustainability. In 2021, distance learning interventions on request were also carried out in high schools.

40 | 41

Acque Bresciane Report 2020

Energy consumption Energy consumption is one of the most impacting aspects on the management of the water cycle; the consumption in the water supply department, in particular, is the most significant.

Electricity consumption 2018-2020 Total energy consumption for services (electricity), offices (electrical and thermal energy), and vehicles (fuel) in GigaJoules (GJ).

Overall consumption (GJoule)

2018

2019

2020

151,249

162,392

159,705

Sewer network

43,170

50,299

53,239

Wastewater treatment plants

47,063

47,812

48,697

12

104

2,154

241,494

260,607

263,795

-

-

65,949

6,044

4,426

6,677

247,538

265,033

270,473

-

-

65,949

Electricity Drinking water supply network

Offices (buildings) Total from renewable resources Fuel Vehicles Total from renewable resources (electricity)

The energy consumption in 2020 increased by about 2% compared to 2019. The increase is mainly due to the expansion of the company’s managed areas (2 municipalities) and the improvement in of the calculations of the offices’ consumption. Since 1st October 2020, Acque Bresciane Electricity for services and offices

has been using 100% of electricity from renewable resources, as certified by the Guarantee of Origin (GO) qualification, for a total of 65,949 GJ of electricity. A breakdown of electricity consumption is reported below in its own unit of measurement:

2018

2019

2020

Consumption (MWh)

Consumption (GJ)*

Consumption (MWh)

Consumption (GJ)*

Consumption (MWh)

Consumption (GJ)*

1. Water supply network

42,014

151,249

45,109

162,392

44,362

159,705

2. Sewer network

11,992

43,170

13,972

50,299

14,789

53,239

3. Wastewater treatment plants

13,073

47,063

13,281

47,812

13,527

48,697

4. Offices (buildings) Total

-

12

29

104

598

2,154

67,079

241,494

72,391

260,607

73,277

263,795

* 1 MWh = 3,6 GJ (international system of measurement units)

Electricity consumption by sectors

19%

 Wastewater treatment plants

63%

 Water supply network

18%

 Sewer network

42 | 43

Acque Bresciane Report 2020

Fuel consumption The Acque Bresciane fleet as of December 31, 2020 includes 191 company vehicles. Fuel quantities were calculated based on the actual consumption of each vehicle: Fleet/Year Vehicles Consumption [GJ]

Fleet by type of fuel

2019

2020

167

191

4,426

6,677

N° vehicles

Consumption [litres]

Km

Estimated consumption [KWh]

Energy* [GJ]

141

173,239

-

-

5,044*

Petrol**

13

38,136

-

-

1,357*

LPG (Bi-fuel petrol)

34

11,514

-

-

271*

3

-

11,200

1,456

5

191

-

-

-

6,677*

Diesel

Electric and Full hybrid Total

* Energy is calculated by multiplying consumption expressed in tons by the calorific value of each type of fuel (lower heating value) extracted from the table of national standard coefficients (MISE, 2021). ** Petrol consumption includes both consumption for cars running on petrol and bi-fuel petrol engines, and consumption for the full hybrid car (the Toyota RAV4 car was included in the electricity consumption value).

Emission Starting from 2020, with the collaboration of a specialized consulting company, Acque Bresciane has been calculating its carbon footprint. The company has then been offsetting 100% of the carbon produced by purchasing certified credits from the voluntary market in order to balance its impact. In addition, from 2021 the company intends to reduce its emissions by at least 50% compared to 2020, mainly through the purchase of 100% green energy with the Guarantee of Origin certification.

Emissions [ton CO2eq] Direct emissions - SCOPE 1 Indirect emissions - SCOPE 2 (location-based) Other indirect emissions - SCOPE 3 Total emissions

Emission [ton CO2eq] Direct emissions - SCOPE 1 Indirect emissions - SCOPE 2 (location-based) Other indirect emissions - SCOPE 3 Total emissions

2018

2019

2020

442

320

1,120

20,641

22,275

20,621

Not available

Not available

9,861

21,083

22,595

31,603

2018

2019

2020

442

320

1,120

32,683

33,726

25,607

Not available

Not available

9,861

33,125

34,046

36,588

44 | 45

Acque Bresciane Report 2020

Emission intensity With regard to emission intensity, the figures are calculated separately in relation to:  Drinking water supply system.

Emissions produced to inject drinking water into the pipelines for the customers’ supply.

The emission intensity index for the water supply network improved by 9% compared to 2019.  Wastewater treatment plants.

Emissions produced for wastewater treatment (sewer system and wastewater treatment plants energy consumption).

Emissions have dropped primarily due to the procurement from October 1, 2020 of 100% renewable electricity with a Guarantee of Origin certification.

2018

Index of emission intensity for water supply system (gCO2/mc)

175

2019

2020

158

145

Index of emission intensity for wastewater treatment (gCO2/mc)

2018

2019

231

/

2020

211

Biodiversity In 2020, Acque Bresciane continued its research project in collaboration with the University of Brescia and the University of Parma “Torbiere sostenibili” (Sustainable wetland). The company is committed to improving the criticality of the surface combined sewer overflows in the Municipality of Provaglio d'Iseo and in the Natural Reserve of the Torbiere del Sebino.

46 | 47

Acque Bresciane Report 2020

Waste management During its activity in 2020, Acque Bresciane set itself the goal of the “0% landfill”, compatibly with the stringent industry regulations that often require the use of the landfills for particular types of waste that find no other outlets.

In 2019 a Waste Management Office was established. It is an indication of the great care Acque Bresciane has for the environment.

Most of the waste produced in the wastewater treatment process is mainly non-hazardous waste and, in particular, it is dewatered sludge. This is usually employed in recovery activities along with screening residues from the wastewater screening phase. The sludge produced in 2020 amounted to approximately 15,994 tons (14,458 in 2019), 12,614 of which were recycled, 3,361 were sent for composting, and 19 were delivered to the landfill.

Plastic Free, together against plastic use Since 2019, Culligan water dispensers have been installed in the various locations available to staff, independent consultants, suppliers and customers; from September 2020, the beverage vending machines in the Rovato offices now only display and sell water in aluminium cans. Plastic water bottles have been eliminated in an attempt to quietly "educate" and set a positive Plastic Free example.

The Water Points Since 2009, Acque Bresciane has activated special drinking water dispensers in the entire Province of Brescia. They are more commonly called “Water Points” and they help reduce the consumption of plastic water bottles.

The Covid-19 emergency also affected the free supply of drinking water and in March Acque Bresciane was forced to interrupt the service. We were only able to resume it (partially) from July 2020.

The company manages 41 water points in its territory, with a total supply of 475,252 litres, thus helping to save more than 316,000 (316,835) plastic bottles, the equivalent of about 11,406 kg of plastic eliminated from the environment.

41

water points

475,000

litres of dispensed water in 2020

316,000 saved plastic water bottles

-51 t

tons of CO2 emitted

48 | 49

Acque Bresciane Report 2020

Acque Bresciane’s human resources At Acque Bresciane, the contribution and energy of the people who are part of the company are fundamental. Never as in this period of emergency has it been so clear that the contribution of all our people is essential to ensure continuity in the services of the water cycle in the province of Brescia.

Acque Bresciane successfully managed the emergency by adopting numerous safety and health protection measures: 62,717 face masks and 451 sanitization interventions are just some of the efforts we have made.

We have defined our People strategy: Every person counts!, which recalls our 2045 Sustainability Plan. We aim to acquire the best skills, to motivate, involve and enhance all our people, by investing in human capital and sustainability.

We have also accelerated the digitalization of all HR processes, we have introduced Yammer, a new social network which allows us stay connected remotely, and several surveys to gauge our colleagues’ opinions.

For this reason, in 2020 Acque Bresciane has continued to invest in its people and in their training. The members of staff have now increased from 263 to 278.

Total n° employees as of end of year

2019

263

2018

242

2020

278

Employees by location

2018

2%

 Toscolano

Maderno (4)

2%

 Sirmione (4)

2019

62%

 Rovato (151)

2%

 Toscolano

Maderno (4)

34%

 Padenghe

sul Garda (83)

1%

 Sirmione (3)

0%

 Torbole

Casaglia (1)

2020

64%

 Rovato (169)

33%

 Padenghe

sul Garda (86)

2%

 Toscolano

Maderno (4)

0%

 Sirmione (1)

0%

 Torbole

Casaglia (1)

64%

 Rovato (178)

32%

 Padenghe

sul Garda (90)

2%

 V. Camonica Sonico (4)

50 | 51

Acque Bresciane Report 2020

Employees by age and gender 2018

2019

2020

Women

Men

Total

Women

Men

Total

Women

Men

Total

3

11

14

8

12

20

7

9

16

30-50

59

87

146

65

95

160

67

101

168

Over 50

13

69

82

14

69

83

19

75

94

Total

75

167

242

87

176

263

93

185

278

Women

Men

Women

Men

Women

Men

Under 30

%

Under 30

2018 Total

2019

2020

Total

Total

1%

4%

5%

3%

5%

8%

3%

3%

6%

24.5%

36%

60%

25%

36%

61%

24%

36%

60%

Over 50

5.5%

29%

34%

5%

26%

31%

7%

27%

34%

Total

31%

69%

100%

33%

67%

100%

34%

66%

100%

Women

Men

Senior managers

-

1.2%

Managerial staff

1.2%

3%

29.7%

30.2%

59.9%

-

34.7%

30.9%

69.1%

30-50

Employees by qualification and gender %

Clerks Workers Total

2018 Total

2019 Women

Men

Total

1,2%

-

1.9%

4.2%

1.5%

2.7%

31.5%

34.7% 100%

2020 Women

Men

Total

1.9%

-

1.8%

1.8%

4.2%

1.8%

2.9%

4.7%

28.9%

60.4%

31.6%

28.8%

60.4%

-

33.5%

33.5%

-

33.1%

33.1%

33%

67%

100%

33.4%

66.6%

100%

Employees by degree (office workers and managerial staff)

2018

24%

 Graduates (37)

2020

2019

76%

26%

 Non-

 Graduates

graduates (118)

(45)

31%

74%

69%

 Graduates

 Non-

 Non-

(56)

graduates (125)

graduates (125)

Employees by permanent / fixed term contract 2018 Women

2019 Men

Total

Women

2020 Men

Total

Women

Men

Total

Fixed term contract

7

8

15

3

6

9

-

-

-

Permanent contract

68

159

227

84

170

254

93

185

278

Total

75

167

242

87

176

263

93

185

278

During 2020, the company has upgraded 9 employees to a permanent contract.

52 | 53

Acque Bresciane Report 2020

Turnover 2018

2019

2020

Senior managers

0

1

0

Managerial staff

0

2

2

Clerks

7

16

11

Workers

3

6

10

10

25

23

Total

Upon completion of selection procedures in accordance with the relevant company regulations, 23 employees were hired in 2020: 2 managerial staff resources and 11 clerks, 7 of which were women.

Any form of discrimination is at odds with the founding values of the company. Acque Bresciane considers diversity a strength to be safeguarded and a stimulus for the improvement of the company.

Men and women in Acque Bresciane - Employees by gender

2020

67%  Men

(185)

33%

 Women (93)

In 2020, the percentage of men and women remained unchanged compared to 2019. In comparison to 2018, the percentage of women has increased by 2% (31% women and 69% men).

With a view to diversity and inclusion, the gender pay gap is also monitored and shown in the table below:

Employees by working hours

Average female clerk/male clerk salary ratio 2020

9%

 Part-time (25)

91%

 Full-time (253)

Level according to trade union CCNL Gas and Water sector

2018

2019

2020

Level 2 - 3 - 4

0.06%

-2.05%

-1.99%

Level 5 - 6

1.87%

0.5%

-1.17%

-14.65%

-7.16%

-2.8%

Level 7 - 8 - Q

In 2020, the percentage of part-time contracts decreased by 1% compared to 2019 (10%) and 2% compared to 2018 (11%). There are 25 part-time employees, 19 of whom are women, 4 of these with children under the age of six. This data is evidence of a constant attention to the issues of reconciliation between personal life and work.

The company is also particularly attentive to the dynamics of inclusion and is committed to promoting opportunities for employment and personal motivation for members of staff with disabilities.

As of 31st December 2020, there were 12 people with disabilities in the company, more specifically: 3 workers (1 parttime), and 9 office workers (4 part-time).

54 | 55

Acque Bresciane Report 2020

Training Acque Bresciane, even during such a complex year, has paid particular attention to technical and regulatory novelties and to the professional development of employees. For this rea-

Training 2018 - 2,651 overall hours

31%

 Mandatory safety training (814)

69%

 Technical and

regulatory training, personal skills, and transversal skills (1837)

son, the company has guaranteed the careful planning of annual staff training which has also been taking place via a distance learning platform.

Training 2019 - 3,025 overall hours

48%

 Mandatory safety training (1450)

52%

 Technical and

regulatory training, personal skills, and transversal skills (1575)

Training 2020 - 4,276.5 overall hours

21%

 Mandatory safety training (895)

79%

 Technical and

regulatory training, personal skills, and transversal skills (3381,5)

The number of training hours per capita increased by more than 33%, the training activity was therefore particularly intense in 2020 despite the Covid-19 Emergency.

Per capita training hours

11.2

2018

12.00

2019

16.00

2020 6

9

12

15

18

Over the three-year period 2018-2020, there has been a steady narrowing of the gap between men and women with respect to per capita training hours for non-managerial staff (in 2019 men trained 13.54 hours and women 10.94. In 2018 men trained 15.12 hours and women 9.65).

N° training hours / Average n° employees

Hours of training per capita of non-worker personnel by gender

15.12

2018

9.65 Acque Bresciane and Digital Transformation: a great opportunity

13.54

2019

10.94 20.23 19.56

2020

5

7

9

11

13

15

N° training hours by gender / N° employees by gender as of December 31st

17

19

21

Acque Bresciane has outlined a path of transformation of its IT infrastructure (including the Data Center) and of the IT applications in use in the various business sectors, which will see us committed for the next three years. Alongside a “control room” (Digital Committee) with the responsibility of launching and monitoring Digital Transformation projects and with the task of promoting a new digital culture, we have also set up a Digital Team. At the moment, the Digital Team comprises around 15 people from various sectors, they have all completed a training course of 35.5 hours.

56 | 57

Acque Bresciane Report 2020

The employees’ welfare The health and safety of employees are priority issues for Acque Bresciane: prevention and training are promoted for all employees with special attention to those who perform operational tasks. The focus is not only on employees, but also suppliers.

The company carefully monitors every accident dynamic with the forms and procedures envisaged by the integrated Quality, Safety and Environment certified system adopted

by Acque Bresciane.

Workplace safety: the numbers In 2020, despite the increase in total work hours, the number of accidents and the frequency index decreased. There were 3 accidents (not commuting ones), 1 of which in the West Area and 2 in the East Area, compared to 7 accidents in 2019 of which 3 were commuting ones. The company also promoted a workplace safety campaign for employees with posters and messages posted on the company’s social network Yammer.

Workplace Health Promotion Acque Bresciane has maintained accreditation to the program of Regione Lombardia for the promotion of health in the workplace (WHP-Workplace Health Promotion).

In 2020 Acque Bresciane launched a free Listening Help Desk with the collaboration of a psychologist. The service is open to all those who wish to benefit from mental health support in order to deal with personal suffering related to the Covid-19 pandemic. The company then launched an important intervention of sensibilization on the risks related to road accidents by the Provincial Association "Sharing the road of life".

Company welfare During 2020, the employees of Acque Bresciane once again had the chance to experience the opportunity to manage the company’s performance related pay, with the possible conversion into the company welfare plan.

Refunding services:  school fees (from nursery to university), school canteens, textbooks, summer camps;  individual and family members’ health expenses: this includes specialist referrals and purchase of medicines;  additional payments to supplementary pension funds and health assistance funds;  other services under partnerships.

In 2020, 58 clerks/managerial staff and 9 workers participated in the conversion plan of the 2019 performance bonus. This equals to 25.76% of the possible beneficiaries and 33.33% of all clerks/managerial staff. The increase in participations compared to the previous year was significant at + 71.8%.

In addition to these initiatives, Acque Bresciane promotes and manages other welfare activities for the benefit of employees:  all employees, managerial staff and senior managers enjoy flexible working hours  part-time contract are available especially for employees with children or health issues  employees and their families can stipulate forms of integrated health care  availability to join the complementary pension fund with a share paid by the employee and a corresponding share paid by the company  for employees over the age of 40, possibility of new free medical check-ups

58 | 59

Acque Bresciane Report 2020

Relations with suppliers Acque Bresciane has adopted a “Regulation of Contracts” in compliance with the provisions of current legislation and the principles of free competition, equal treatment, non-discrimination, proportionality. The company carries out its negotiating activity in accordance with the principles set out in the Corruption Prevention Plan adopted and pursuant to Law n° 190/2012. Furthermore, the company resorts to:  negotiated procedures, for all contracts below the EU threshold value;  public notice procedure for all contracts above the EU threshold value.

In 2020 the incidence of Framework Agreements on total contracts is 35%.

Number of signed contracts

773 827 788

Service contracts

470 503 398

Goods/ supplies contracts

Number of signed contracts 2018-2020 2018

2019

2020

Work contracts

234

244

163

Goods/supplies contracts

398

503

470

Service contracts

788

827

773

1,420

1,574

1,406

Total

163 244 234

Work contracts

0

100

200

 2018

300

400

500

600

 2019

700

 2020

800

900

Procurement value (*) 2018-2020

Works (Incidence %) Goods/supplies (Incidence %) Services (Incidence %) Total

2018

2019

2020

€ 16,226,968

€ 31,216,971

€ 33,173,335

35%

53%

48%

€ 16,184,951

€ 12,932,240

€ 17,724,127

34%

22%

26%

€ 14,573,363

€ 15,004,694

€ 18,296,405

31%

25%

26%

€ 46,985,282

€ 59,153,905

€ 69,193,867

* Value of contracts drawn up in the reference period

Procurement value € 80,000,000 € 70,000,000 € 60,000,000 € 50,000,000 € 40,000,000 € 30,000,000 € 20,000,000 € 10,000,000 0

2018

2019

2020

60 | 61

Acque Bresciane Report 2020

Supplier qualification Acque Bresciane also employes the e-procurement platform (or Suppliers’ Portal) available at https://acquebresciane.acquistitelematici.it/.

All supply contracts drawn up by Acque Bresciane contain termination clauses in the event of suppliers’ failure to comply with the code of ethics and in the event of the application of sanctions pursuant to Legislative Decree 231/2001 against them. The supplier qualification system makes it possible to assess and monitor the company's suppliers on an annual basis.

Number of qualified suppliers

2018

2019

2020

Works

155

201

236

Goods and services

197

303

306

73

86

67

425

590

609

Technicians and project managers Total

Suppliers by areas / Create value across the local areas

2018

2019

2020

Lombardy

267

383

378

Other regions

158

207

231

Total

425

590

609

Suppliers and certifications

Quality

81%

Environment

33%

The supply chain is becoming increasingly important for companies operating on the market, as this attests both the quality of services provided and the company’s image.

Due to the Covid-19 emergency and in order to protect its own employees and those of supplying companies, Acque Bresciane, for the very first time, has carried out online audits for all second-party for the very first time. The verification of Covid-19 protocols adopted by suppliers was also

OHSAS/UNI ISO 450001:18

28%

Social certifications and others

13%

an integral part of the audit. During 2020, Acque Bresciane conducted five audits at key service providers.

Acque Bresciane S.r.l. evaluates the performance of suppliers during the contract term. In 2020, 170 suppliers were evaluated; 99% of them obtained an “acceptable/compliant” evaluation.

62 | 63

Acque Bresciane Report 2020

Notes

Sede Legale 25124 Brescia - via Cefalonia, 70

Sede Amministrativa 25038 Rovato (Bs) - via XXV Aprile, 18

Sedi operative 25019 Sirmione (Bs) - piazza Virgilio, 20 25080 Padenghe sul Garda (Bs) - via Barbieri, 20

Registered Office 25124 Brescia - via Cefalonia, 70

Head Office 25038 Rovato (Bs) - via XXV Aprile, 18

Executive Offices 25019 Sirmione (Bs) - piazza Virgilio, 20 25080 Padenghe sul Garda (Bs) - via Barbieri, 20

www.acquebresciane.it

Sustainability report 2020 summary