The strength of connections represents our vision: having the courage to create value by leading change.
The digital sector is the engine of economic and social growth, but it risks being just a slogan if we do not create the conditions for its development.
The evolution of the competitive scenario has made the rules system obsolete and the uncertainty of the macroeconomic scenario has accentuated the difficulties of our sector. This drives me to be determined in seeking solutions to the key problemsof the Group and promoting change. Inaction is not an option!
It is necessary to enable the industry consolidation, incentivize the leap towards new technologies, and introduce new mechanisms for a more equitable redistribution of costs related to the growth of data traffic, such as the “fair share” approach. The renewal of the regulatory framework for telecommunications is a fundamental piece of the puzzle to be put together to achieve a more balanced digital ecosystem.
With the Industrial Plan plan presented in July 2022, we have outlined the path towards the transformation of our Company and the entire sector.
We have chosen to move beyond the vertically integrated model, as it no longer meets the needs of a market as the Italian one. Infrastructure and services are two worlds that can perform better if managed separately, to focus on their respective strengths and potential growth, and to ensure better capital allocation. And I don't believe this necessarily applies to Italy only.
Companies and Public Administration look for digital solutions that help them to transform and offer their customers accessible and reliable services with a lower environmental impact. Solutions must be simple and secure, which is why we have brought all cloud, IoT, and security activities and services under a single business unit: TIM Enterprise, which uses the largest network of designers, sellers, and customer care in the ICT market.
In 2022, its revenues grew more than those of the market and we expect further growth, thanks to greater efficiency resulting from organizational integration and the increasing customization of our products and services.
With more than 90 million mobile lines and about 16 million fixed lines, our products and services can help promote sustainable lifestyles. Our TIM Green line is useful in concretely stimulating a change in the behavior of our customers because it includes products and accessories with low environmental impact and services to extend the useful life of devices, through regeneration, recycling, and recovery of materials.
Infrastructure requires significant investments to ensure technological evolution, but when the cost of capital increases and the return on investment is uncertain, we must overcome the constraints determined by vertical integration of the business and seek economies of scale through market consolidation. The value of this model is supported by the interest of investors, both national and international, who want to focus on infrastructure business. However, we have implemented specific actions on all Group infrastructure including data centers, to contain energy, water and cooling consumption, and to reduce CO2 emissions by making increasing use of renewable energy, in terms of efficiency and environmental impact.
The evolution of the technological and economic scenario also requires to operate on our organization. With approximately 50,000 colleagues and an average age of 49 years, we need a deep transformation. First of all, we have decided to protect jobs by continually improving and redeveloping skills. And this is not just a slogan, think about other companies in better financial condition, that plan to substantially reduce their workforce. We have adopted flexible working models and we have made our workplaces increasingly sustainable. Each year, we significantly invest in welfare to support the well-being of our employees and their families through initiatives that promote, for example, work-life balance, family care, education, health, and financial support.
Inclusion and talent enhancement are important ethical values, but also a point of contact with the new generations. We are taking actions to eliminate the gender gap and ensure equal opportunities and professional growth. Gender equality is indeed a resource on which to build a more solid world of work and a more equal society. In 2022, we reached 43% of women on the Group's board of directors and over 28% of women's presence in managerial roles, in addition to carrying out development and empowerment projects. To this is added the 4Weeks4Inclusion initiative, the marathon that we carry out together with our partners to promote the values of inclusion also outside the company.
The projects and actions we have put in place run through our entire business because they intercept what is relevant for the sector and the Group in the medium/long-term and what can determine significant changes both in terms of opportunities and risks. For example, the increasing purchase of renewable energy has partially protected our income statement from sudden increases in fossil fuel prices. Through network and data center efficiency, we have contained the consumption resulting from data growth. With the circular economy we have transformed waste reduction and recovery into an economic resource. Our green data centers allowed us to win the tender for the establishment of the National Strategic Hub will provide cloud services based on our infrastructure to the entire Public Administration.
These facts show that we are moving in the right direction, carrying out actions that benefit both our Group and the community. We are experiencing that sustainability does not represent a trade-off between the costs to support it and the environmental and social impact. And we are convinced that our change will concretely contribute to the objectives of the 2030 Agenda and the guidelines of the United Nations Global Compact to which we have long adhered.
A year ago, few people believed that we would achieve the ambitious goals we set for ourselves. The first results are now evident to everyone, even though the road is still long. We will continue to walk it with determination and courage, committing ourselves everyday because sustainability for us is a lifestyle. We are part of an ecosystem that goes beyond competition, regulation and proﬁts.
Everyone must do their part.
Pietro Labriola, Chief Executive Officer