Sustainability Report

This year, the TIM Group Sustainability Report follows the model adopted in 2017 when Legislative Decree 254 came into effect in Italy, transposing EU Directive 2014/95/EU on disclosure of non-financial information.

In accordance with the new regulation, TIM is therefore obliged to produce a non-financial consolidated statement that contains all the elements set out in the Decree. The company does so through its Sustainability Report, which it has been using for over 20 years to inform its stakeholders about its sustainability performance and results.

In addition to the issues raised in the materiality analysis, the report addresses the 5 topics set out in the Decree: environmental protection, social issues, labour standards, respect for human rights and the fight against active and passive corruption.

Based on the Decree, each topic outlined in the non-financial reporting contains a minimum set of information:

Since 2016, we have been carrying out a detailed analysis, comparing the 17 Sustainable Development Goals (SDGs) and 169 detailed targets with the material issues, activities and services developed across the Group. The SDGs are common goals in key areas to ensure sustainable development of the planet. The diffusion of information and communication technologies and digital solutions can have an exponential and measurable positive impact that directly and indirectly affects all three dimensions of sustainable development covered by the SDGs, which are closely linked: improving people's quality of life, fostering equitable growth and protecting the environment. This is what was highlighted in the '#SystemTransformation' study, published in 2016 by the Global e-Sustainability Initiative (GeSI) in partnership with Accenture. The study also pointed out that the potential can only be fully expressed if the ICT sector works in partnership with the institutions and other sectors of the economy.

A more recent study, also published by GeSi on digital sustainability “Digital with Purpose: Delivering a SMARTer 2030”, shows that 103 of the 169 Targets are directly influenced by technology and there is already evidence of its potential positive impact. In particular, an analysis of 20 Targets and their indicators shows that the implementation of existing digital technologies will, on average, lead to a 22% acceleration in the path to sustainability and a 23% negative trend mitigation.

There were ten Sustainable Development Goals that were the most relevant for TIM in 2019. The company believes it can make a greater contribution to achieving these ten goals by, for example, developing digital infrastructures with networks and innovative services, reducing the environmental impact of its activities, supporting development of digital skills in the communities and promoting equal opportunities within the company.

The 2019 Sustainability Report was drawn up according to the process recommended by the AA1000APS principles (inclusivity, materiality and responsiveness) and the guidelines in the Global Reporting Initiative (GRI) Standards, under the 'comprehensive' option. To achieve this substantial result, TIM put together around 500 Key Performance Indicators (KPIs), both quantitative and qualitative, to measure and report risks and company performance.

The KPIs are defined on the basis of:

• the analysis of the GRI, an international organisation which develops universally applicable guidelines for the drafting of sustainability reports;
• the demands received from stakeholders;
• the questionnaires sent out by the leading rating agencies for the purpose of admission to the stock market sustainability indexes;
• the experience the company has gained in the sustainability field over more than 20 years.