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Energy

The impact of energy use on the environment is twofold:  the production of energy by burning fossil fuels is causing depletion of natural resources such as coal, oil and gas, and generates emissions of greenhouse gases such as carbon dioxide and other pollutants. In order to reduce the impact to a minimum, Telecom Italia puts in place a number of initiatives aiming at:

  • reducing its own energy consumption in spite of the increasing demand for services from our customers, that would instead require more energy to be used to operate the telecommunications infrastructure;
  • developing and adopting new and advanced technological solutions that would enable the reduction of the energy consumption of networks and business processes, as well as of the products that are made available to our customers.


Eco-efficiency indicator


The Group measures its energy efficiency by using an eco-efficiency indicator that establishes a relationship between the service offered to the customer (bits transmitted) and the company’s impact on the environment (joules of energy consumed). The factors taken into consideration are the amounts of data and voice traffic of the fixed and mobile networks, and energy consumption for industrial purposes (transmission and climate control in exchanges), domestic purposes (electricity for office use, air conditioning and office heating) and vehicles.

In 2019, the value of the indicator calculated for the Domestic BU was 13.531 bit/joule, up 21.67% compared to 2018 and 52.43% compared to 2017[1] . This is the result of a substantial increase in data traffic, which, thanks to the efficiency of the network, has not led to a corresponding increase in electricity consumption. The commitment continues with the establishment for 2020 of a target of 14,200 bit/Joule (see 2019 objectives at the end of this Chapter), equal to an increase of 4.94% on the figure for 2019.
The eco-efficiency index calculated for Brazil shows a continuous improvement too: in 2019 it grew significantly by 58% compared to 2018 and by over 438% compared to 2017[1]

The values of the indicators calculated respectively for Italy and Brazil are not directly comparable because the two organisations are very different in operational and environmental terms: e.g. in Brazil the traffic is primarily mobile and, as previously mentioned, no heating fuels are used in view of the particular climate conditions.

The Company always undertakes to implement energy efficiency programs and a rational use of resources: the Energy Management Procurement function operates within the Procurement department, focusing on energy issues with the mandate to identify and finalize appropriate energy efficiency measures in Italy. In addition, together and in coordination with the competent units of the Chief Technology Office, it ensures that the planning and implementation of the adopted solutions is consistent with the Company’s efficiency plans. The short-term variable remuneration policy (MBO) provides that department heads are assigned objectives in line with the Group's business plan and focused on environmental protection issues and the rational use of resources. In recognition of its efforts on the energy front, in 2019 TIM was given "Italy in Class A" certification for its projects .This initiative was promoted by MiSE (Italian Ministry of Economic Grow) and carried out by ENEA (Italian National Agency for New Technologies, Energy and Sustainable Economic Development) to show companies and individuals how to use energy more consciously and sensibly.
In Brazil, energy is a material topic given the continued network expansion. TIM Participações has a centralised management area for all electricity, which reports to the Business Support Officer. The Energy and Efficiency area includes professionals responsible for controlling and planning electricity consumption, monitoring energy efficiency projects and monitoring the development of regulatory and energy procurement issues. In Brazil, since 2018 TIM has entered into agreements (Power Purchase Agreements) with specialised companies that implement hydroelectric power plants connected to the distribution grid. TIM Participações leases the power plants on 15-year contracts with the consequent supply of renewable energy. In 2019, over 350 GWh consumed came from renewable energy sources, around 50% of consumption. The forecast for 2020 is for an increase in the share of renewable sources to 60% of total consumption for TIM Partecipações.
TIM measures Data Center efficency. In 2019 the average value of TIM Group PUE is 1.46. Data are based on measurements carried out applying a methodology developed internally. PUE values are not certificated. The percentage of renewable energy incorporated into the electricity supply of TIM's data centers is 65% of total energy consumed by DC.

[1] The comparison was made with a 2017 data updated with respect to that reported in the last Sustainability Report, as the result of a review subsequent to the publication of the 2017 Report. The data of the 2017 eco-efficiency index of the upgraded Domestic BU is equal to 8,877 bit/joule.

 
 

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