1. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy)

2. Corporate Governance, Sustainable Development and Value Creation CORPORATE GOVERNANCE SUSTAINABLE DEVELOPMENT COMPANY’S VALUE CREATION (economic, social, competitive and environmental success)

3. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation COMPANIES SELECTED PUBLIC UTILITIES LISTED ON ITALIAN STOCK EXCHANGE BY THE 31 JANUARY 2011 (17 COMPANIES) INFORMATION ANALYSED SUSTAINABILITY REPORT 2007-2009

4. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1. DO COMPANIES IMPLEMENT CORPORATE GOVERNANCE SYSTEMS PROMOTING SUSTAINABLE DEVELOPMENT? CORPORATE GOVERNANCE SUSTAINABLE DEVELOPMENT

5. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1. DO COMPANIES IMPLEMENT CORPORATE GOVERNANCE SYSTEMS PROMOTING SUSTAINABLE DEVELOPMENT? 1.DO PUBLIC UTILITIES COMMUNICATE (DO THEY ARRANGE A SUSTAINABILITY REPORT)? 2. HOW DO PUBLIC UTILITIES COMMUNICATE (HOW IS THE QUALITY OF THE SUSTAINABILITY REPORT)? 3. WHAT DO PUBLIC UTILITIES COMMUNICATE (WHAT’S THE CONTENT OF THE SUSTAINABILITY REPORT)? GRI guidelines

6. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1.DO PUBLIC UTILITIES COMMUNICATE (DO THEY ARRANGE A SUSTAINABILITY REPORT)? 6 PUBLIC UTILITIES OUT OF 17 (35%) Public utilities that draw up the sustainability report ListingFirst sustainability report A2A2008 ACEA19992002 EDISON20022004 ENEL19992002 HERA2003 IREN - IRIDE20002006 First sustainability report and Italian Stock Exchange listing

7. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 2. HOW DO PUBLIC UTILITIES COMMUNICATE (HOW IS THE QUALITY OF THE SUSTAINABILITY REPORT)? 6 PUBLIC UTILITIES OUT OF 6 No. of companies 2007 No. of companies 2008 No. of companies 2009 Reference to the GRI Guidelines5*66 Model adopted for carrying out the sustainability report *With regard to 2007, the number of companies considered is 5 instead of 6 because A2A was founded in 2008

8. Corporate Governance, Sustainable Development and Value Creation 2. HOW DO PUBLIC UTILITIES COMMUNICATE (HOW IS THE QUALITY OF THE SUSTAINABILITY REPORT)? Compliance degree as regards the GRI Guidelines Compliance degree No. of companies 2007 No. of companies 2008 No. of companies 2009 C C+ B B+211 A A+345 not declared1

9. Corporate Governance, Sustainable Development and Value Creation 2. HOW DO PUBLIC UTILITIES COMMUNICATE (HOW IS THE QUALITY OF THE SUSTAINABILITY REPORT)? Revision by an external subject 4 companies out of 5 in 2007 4 companies out of 6 in 2008 5 companies out of 6 in 2009 Alex Almici – University of Brescia (Italy)

10. Corporate Governance, Sustainable Development and Value Creation 3. WHAT DO PUBLIC UTILITIES COMMUNICATE (WHAT’S THE CONTENT OF THE SUSTAINABILITY REPORT)? Alex Almici – University of Brescia (Italy) ECONOMIC RESPONSIBILITY ENVIRONMENTAL RESPONSIBILITY SOCIAL RESPONSIBILITY Shared value added, amount of investments aimed at fighting the problem of climatic change, expense percentage that can be ascribed to local suppliers Raw materials used, consumption of direct energy, greenhouse effect gas emission, waste material produced, total water collecting Staff turnover rate, accidents at the work place, average training hours, etc.

11. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) ECONOMIC RESPONSIBILITY No. of companies 2007 No. of companies 2008 No. of companies 2009 Value added distributed 566 No. of companies 2007 No. of companies 2008 No. of companies 2009 Total investments333 Distribution of the value added to the stakeholders above 60% Investments above € 1.000.000 for the management of climatic changes 6 COMPANIES OUT OF 6 3 PUBLIC UTILITIES OUT OF 6

12. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) ECONOMIC RESPONSIBILITY No. of companies 2007 No. of companies 2008 No. of companies 2009 Expenses percentage 333 Expenses percentage above 70% referable to local suppliers 3 COMPANIES OUT OF 6

13. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) ENVIRONMENTAL RESPONSIBILITY Environmental performance trend in 2007-2009 3 COMPANIES OUT OF 6 No. of companies- diminishing trend No. of companies – growing trend Raw materials consumption 33 Electric Energy consumption 33 Total water collecting42 Green house effect Gas emission 33 Total waste weight33

14. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) SOCIAL RESPONSIBILITY Turnover rate below 9% 5 COMPANIES OUT OF 6 No. of companies 2007 No. of companies 2008 No. of companies 2009 Employees Turnover rate 455

15. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) SOCIAL RESPONSIBILITY Frequency of Accidents at work place below 10 3 COMPANIES OUT OF 6 No. of companies 2007 No. of companies 2008 No. of companies 2009 Accidents on working place frequency indicator 333

16. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) SOCIAL RESPONSIBILITY Yearly training hours above 20 4 COMPANIES OUT OF 6 No. of companies 2007 No. of companies 2008 No. of companies 2009 Avarage training hours per year 444

17. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) SOCIAL RESPONSIBILITY Discriminating practices episodes 0 COMPANIES OUT OF 6 Presence of sanctions 0 COMPANIES OUT OF 6

18. Corporate Governance, Sustainable Development and Value Creation Alex Almici – University of Brescia (Italy) SOCIAL RESPONSIBILITY ECONOMIC RESPONSIBILITY ENVIRONMENTAL RESPONSIBILITY ONLY 3 COMPANIES OUT OF 6

19. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1. HAVE COMPANIES PROMOTING SUSTAINABLE DEVELOPMENT DISTINGUISHED THEMSELVES FOR THE VALUE THEY CREATED? CORPORATE GOVERNANCE SUSTAINABLE DEVELOPMENT COMPANY’S VALUE

20. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1. HAVE COMPANIES PROMOTING SUSTAINABLE DEVELOPMENT DISTINGUISHED THEMSELVES FOR THE VALUE THEY CREATED? - AVERAGE PROCEEDS OF SALES (2007 – 2009) NON INFERIOR TO € 1.000.000.000,00 - COMPETITIVE SUCCESS - AVERAGE EBITDA ABOVE 200.000.000 – ECONOMIC SUCCESS - INCLUSION IN THE BASKET FOR THE ELABORATION OF THE ETHIC INDEX FTSE4GOOD EUROPE – SOCIAL AND ENVIRONMENTAL SUCCESS INDICATOR

21. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1. HAVE COMPANIES PROMOTING SUSTAINABLE DEVELOPMENT DISTINGUISHED THEMSELVES FOR THE VALUE THEY CREATED? ONLY ONE COMPANY, AMONG THOSE PROMOTING SUSTAINABLE DEVELOPMENT, SATISFIES ALL CONDITIONS (ECONOMIC, COMPETITIVE, SOCIAL AND EVIRONMENTAL)

22. Alex Almici – University of Brescia (Italy) Corporate Governance, Sustainable Development and Value Creation 1. DO COMPANIES PROMOTING SUSTAINABLE DEVELOPMENT DISTINGUISHED THEMSELVES FOR THE VALUE THEY CREATED? THOSE PUBLIC UTILITIES THAT DON’T CARRY OUT A SUSTAINABILITY REPORT (10 IN TOTAL) DON’T MEET ANY OF THE CONDITIONS REQUESTED IN ORDER TO CREATE VALUE IN MEDIUM-LONG TERM