1. AN ENERGY COMPANY AND LOCAL COMMUNITIES:
A SHARED VALUE APPROACH
MILAN, 17th
April, 2015
FRANCESCA MAGLIULO, CSR DEPARTMENT

2. Business
Opportunities &
Challenges
Shared Value is:
Policies and practices that enhance the
competitiveness of a company while simultaneously
advancing the economic and social conditions in the
communities in which it operates
The overlap between the three circles defines the
shared value opportunity set
Shared value initiatives must be designed to:
1.Provide a business return
2.Address a specific social need
3.Efficiently and effectively leverage corporate assets
Social
Needs
Corporate
Assets and
Expertise
Shared Value: a definition

3. Seeking shared value with stakeholders
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Two challenges for the company:
1)To combine the difficult challenge of company competitiveness and reliability with its
presence in the territories
2)To reconcile the double level on which Edison operates: the Company plays the
"macro" role of a leader on a national and international market with its widespread
presence throughout Italy and abroad and the need to maintain constant and
transparent dialogue with local stakeholders in each territory.
Double dimension that combines a complex scenario at international level and
numerous specific scenarios at local level, with the relative impacts on development,
people, environment, cohesion and social inclusion.
In accordance with the principles of the Global Compact , a healthy social and territorial
context depends on the presence of companies that are able to provide employment,
pay adequate salaries, purchase quality goods and services, pay taxes, protect the
environment and use resources in a respectful and efficient manner. On the other
hand, a solid territorial context in itself creates a competitive advantage for
the company that operates within it, indirectly increasing the social legitimacy of the
organization.

4. A path to the creation of shared value
To reinforce its sustainability strategy, Edison has set
itself the ambitious goal of maximizing the positive
benefits of its presence in Italy and in local areas, and
consequently, embarking on a path to redefine and
strengthen its practices of dialogue, debate and
partnership with the stakeholders, positioning them with
an innovative approach that aims to generate shared
value.
The shared value approach aims to capitalize on positive
external effects, integrating them into Edison’s long-held
commitment to risk mitigation, protection of its reputation
and the reduction of negative external effects.

5. A path to the creation of shared value
In 2013- 2014, Edison has started a strategic reflection and an internal path to Shared Value
that, after mapping the existing, permitted to read and identify some projects that can create
social value through the exploitation of business levers.
1.Materiality analysis: during the Sustainability Report 2014 work a materiality analisys was
updated (in line with GRI G4) and identified relevant issues according to stakeholders and
corporate perspectives .
2.Mapping corporate assets: at the same time, the major corporate assets have been
mapped, to identify new opportunities for value creation consistent with the core business.
3.Corporate shared value action plan: match of business activities with materiality
issues, internal sharing and prioritization. Goal: corporate sustainable development action plan
linked to business (in progress).

6. Materiality Analysis, the results
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 Sustainable energy, protection of the environment and climate change, with the promotion of
energy efficiency, innovation in production and distribution, sustainable use of resources and
energy access.
 Local Content and responsibility towards people and regions, guaranteeing health, safety,
professional development and shared skills and involving stakeholders
 Commercial fairness, innovation and quality of customer service.

7. Mapping corporate assets
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Edison, like any company, is characterized by corporate assets that act as levers for the
creation of value.
In the preliminary phase, the analysis model has identified specific company assets and the
positioning of ongoing projects.
The path taken in 2013-14 was based on 5 modular steps:
•Understanding which characteristics of the Edison business are compatible with the Shared
Value approach;
•Tailoring a methodological approach borrowed from the theory of Porter and Kramer;
•Identifying stakeholders who benefit from this business approach;
•Selecting the existing initiatives that are to be reread with regard to the stakeholders,
identifying those that can be projected externally as levers for the creation of value for the
company and territory;
•Developing a strategic approach and an intervention model based on this model, that can be
integrated into the action plan for sustainability and allow for dialogue with the local
communities.

8. The shared value action plan
Edison is completing a sustainability action plan based on the shared value approach
Focus:
 Leveraging key tangible assets (places, technologies)
 Intangible assets (resources, company skills and relational capital)
The purpose is to grasp opportunities in priority areas identified by the management in
accordance to the following lines:
Initiate new business opportunities able to satisfy social needs, while optimizing existing
company resources
Strengthen the citizenship model of production facilities and infrastructures
Strengthen the macro role of market leader and the requirement to manage infrastructures in
the country with the relative impacts on development, people, the environment and cohesion
The action center is on the material topics of Edison, in particular access to energy, climate
change and relations with local communities.
Further initiatives envisaged by the plan are undergoing feasibility studies and will be
implemented over the next two years.

9. How we can create shared value?
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10. 10
I primi approcci al Valore Condiviso
First approaches to shared value
Access to energy in Egypt
In Egypt, where Edison operates, has been developed a partnership with American University
of Cairo and Politecnico of Milan to support a research on energy and sustainable development,
in the perspective of establishing an effective synergy with the local university sector, promoting
actions to foster local development and sustaining the empowerment of new generation of
employees. The initiative will constitute an effective beginning of collaboration between the
university and the company, which will lead Edison to have positive effects on the local context
and to strengthen its interaction with other stakeholders, as industries, municipalities, ministries
and international institutions.
Edison Pulse
Through Edison Pulse, the Company wants to find and support best solutions integrating
Edison’s competences, knowledge and assets for a more effective and shared answer to local
needs.
Two categories:
Territorial development
Researches and projects to mitigate the impact of energy activities and optimize deriving
opportunities , favoring local development.
Energy
Researches and projects to favor energy access and the management of new forms of
production, storage and consumption of energy according to a sustainable perspective in those
territories still off-grid.

11. 11
I primi approcci al Valore Condiviso
First approaches to shared value
Improving energy efficiency
Edison Energy has made its know-how available to more than 200 business customers with
specific training initiatives aimed to share technical skills designed to increase awareness on
energy consumption and energy audits.
The Vega field biodiversity laboratory
In collaboration with the Protected Marine Area of the islands of Cyclops, the project envisages
a series of activities which will make Vega a biodiversity laboratory, including a survey of the
species and algae on the jacket, the steel structure which supports the platform.