3. Business model 20 5. Risks and opportunities 90 8. Summary of the resolutions of the ordinary and extraordinary Shareholders’ Meeting and other information 337 9. Consolidated non-financial statement 351
FINANCIAL STATEMENTS OF POSTE ITALIANE AT 31 DECEMBER 2020 374 2. Basis of preparation and significant accounting policies 380 3. Material events during the year 408 4. Poste Italiane Group Financial statements for the year ended 31 December 2020 414 5. Poste Italiane SpA Financial Statements for the year ended 31 December 2020 486 6. Risk management 564 7. Determination of fair value 606 8. Hedging transactions 611 9. Proceedings pending and principal relations with the Authorities 617 10. Material non-recurring events and/or transactions 622 11. Exceptional and/or unusual transactions 622 12. Events after the end of the reporting period 623 13. Additional information 624 14. BancoPosta RFC’s separate report for the year ended 31 December 2020 650
Performance of Poste Italiane SpA and report on operations of BancoPosta RFC 176
Indicators tables 306 8. Summary of the resolutions of the ordinary and extraordinary Shareholders’ Meeting and other information 337
Other reference standards and guidelines for the preparation of the integrated financial statements 365
Shareholders, following an intense and complex year that has affected our lives and the performance of world markets, it is a source of further pride to present to you Poste
Companies that place sustainability at the heart of their strategies will be able to emerge better and faster from the Covid-19 crisis. This is particularly true for those companies that have always sought a balance between growth and respect for social and environmental balances in the past. Those who have integrated the creation of shared value with the territory into their business models will have a greater chance of recovery and success than those who have not.
In particular, innovation and digitisation will play a decisive role in the recovery of the economy and the social fabric. The pandemic has, in fact, accelerated the ongoing changes that characterise the so-called “fourth industrial revolution” with the rapid expansion of e-commerce, online education, digital health and remote work. The effects of these changes - which will persist for a long time, even after the pandemic has ended - are bringing great benefits to companies. However, they also risk creating or worsening inequalities, especially in situations of digital divide, which today represents one of the greatest risks at global level - along with environmental ones, as also highlighted at this year’s World Economic Forum.
Italy’s sustainability and social integrity through innovation and digitisation by setting financial, operational and sustainability objectives. Among the latter, particular importance is attached to the Group’s objectives in fighting climate change in the short, medium and long term, aiming at becoming carbon neutral by 2030, thus contributing in advance to European objectives in this area.
Product, tax revenue, employment and household income, generating revenue of approximately €10.5 billion in 2020.
(SDGs). The process of value creation goes through the adoption of a sustainable business model that allows the optimisation of all the above mentioned capital, integrating in a synergistic way the Business Plan with
ESG objectives. In this way, the Company is able to be competitive in a constantly changing economic and social context.
Innovation, Decarbonisation of real estate facilities and logistics and Sustainable finance.
The numerous national and international awards are evidence of the solid path undertaken by Poste Italiane towards the achievement of the full integration of sustainability within its organisation. In continuity with 2019, in 2020, Poste Italiane confirmed its presence within the Dow Jones Sustainability World Index, the most prestigious sustainability index in which the companies considered best in the world in the sustainable management of their business are included, and within the more restrictive Europe segment. This was followed by other important confirmations in equally prestigious indices: Bloomberg Gender-Equality Index (GEI), Euronext Vigeo-Eiris World 120 and FTSE4GOOD. During the period, Poste Italiane was recognised by CDP (formerly
category with an A- rating. In addition, particular importance is attached to the Group’s positioning within the
“Silver Class” in S&P Global’s Sustainability Yearbook 2021. It is worth highlighting that Poste Italiane is the only Italian company in the finance and insurance sector to have been awarded this recognition.
The results achieved allow us to look back with satisfaction at what has been achieved so far, and constitute a solid point of Poste Italiane’s reputation in the eyes of society and markets. Our Sustainability journey continues, aware that only through a constant and concrete commitment to achieving common goals with our stakeholders, we can meet the new challenges of sustainable development and create shared value for the country.
This document, for instance, represents a fundamental tool to illustrate the interaction between the external context, the strategy, the business model and the forms of financial and non-financial capital involved in the process of creating value and to account for the performance achieved in economic, environmental and social terms.
For this reason, for the first time, the correlation between performance and capital is always represented in the document in order to clearly explain how the business model contributes to the creation of shared value. Accordingly with this aim, starting from this year, we wanted to represent the output of the shared value creation process, which made it possible to achieve many rewarding results that are illustrated in Chapter 2 “Highlights”.
Consistent with the previous year, the 2020 Integrated Report includes the Consolidated Non-Financial Statement (NFS) identified in chapter 9 of the Report on Operations. The NFS was prepared in accordance with the requirements of articles 3 and 4 of Legislative Decree 254/2016 and to the “Global Reporting Initiative Sustainability Reporting Standards” defined by GRI - Global Reporting Initiative (hereinafter “GRI Standards”) according to the “in accordance - Core” option. In chapter 9, paragraph “Reporting standards and policies”, a connecting table that indicates the information content required by the Decree and its positioning within the Integrated Report is included, with the aim of making it easier to find all non-financial information. In addition, such content is also noted, to make it easily identifiable, by this infographic: The Integrated Report has been prepared by applying the Integrated Reporting framework published by the International Integrated Reporting Council (IIRC). Also, the guidelines provided by ESMA1 and CONSOB2 on reporting for the year 2020 were fundamental to the preparation of the document, which indicated the priorities for non-financial reporting in a period characterised by a health emergency. In this regard, both institutions reiterated the need to continue actions to combat climate change and transparency on the approaches adopted on this front. In line with this, the Integrated Report, again this year, describes how risks and opportunities associated with the Group’s activities are managed in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) accounting for climate-related risks and opportunities.The reporting process therefore observes the requirements of compliance, external communication and positioning in the Sustainability Indexes in which Poste Italiane is involved.
(Sustainability Accounting Standards Board) standards. Poste Italiane is also committed to taking part in the creation of a shared and universal framework for non-financial reporting. To this end, the document also includes the indicators related to “material ESG metrics” presented at the World Economic Forum in January 2020 in the document “Towards Common Metrics and Consistent Reporting of Sustainable Value Creation” updated in September of the same year.
Moreover, in order to identify the contribution of Poste Italiane to achieving the 17 United Nations Sustainable Development Goals, a link with the targets established by the Group was made, the GRI Standards indicators and the SDGs, following the indications in the document “SDG Compass” developed by GRI, UN Global Compact and WBCSD (the World Business Council for Sustainable Development), further supplemented by an analysis of each Goal and the related 169 targets associated to them.
The current Annual Financial Report, approved by Poste Italiane SpA’s Board of Directors on March 24th 2021, will be made available to the public, within the deadlines required pursuant to current laws and regulations (i.e. by 30 April 2021), on the following website: Report on operations at 31 December 2020 1. Introduction
ISO 26000:2010 June 2020 12 million digital identities issued to allow access to PA platforms and services
12,765 Post Offices throughout the country and around 7,000 Post Offices open during lockdown
Record 210 million in parcel volume and achieving 37% of market share
Leading employer in Italy with 125 thousand people (55% of whom are women)
IV edition of the Multi-stakeholder Forum for the first time in live streaming
More than 1.5 million total doses of Covid-19 vaccines delivered >1.5 billion of PPE distributed in Italy thanks to the Group’s logistics network
More than 80 thousand people trained on anti-corruption - 4% of turnover rate
+26% of electric vehicles in the company fleet at December 2020
Adhesion to the New Green Deal to the Manifesto “Exiting the pandemic with a new Green Deal for Italy”
Consumer spending in Italy Contributions generated by businesses thanks to the Group’s spending on goods and services
Contributions due to consumer spending thanks to the income earned by the workers employed by the Group
In 2020, Poste Italiane Group generated impacts on the country in terms of Gross Domestic Product (GDP) totalling €12.2 billion and in terms of employment totalling approximately 191 thousand jobs and €2 billion in terms of tax revenue. It may also be estimated that a total of 191 thousand workers have been involved along the production chain. The use of this workforce entails the distribution of income to workers, for a total of €7.4 billion.
Every €/mln spent by Poste Italiane leads to the employment of people in the country
Every €/mln spent by Poste Italiane generates an impact of 2.49 €/million on the income of the country’s families
Impacts generated in individual Territorial Areas Considering the region of the registered office of suppliers, the indirect impacts generated by them in each Territorial Area in 2020 have been identified.
In 2020, more than 88% of the wealth produced by the Company was distributed to its stakeholders. In particular, employees and suppliers are among the stakeholder categories that benefit the most from the wealth produced by the Company, accounting respectively for 55.9% and 31.9% of the total value distributed.
Poste Italiane has issued shares listed on the Mercato Telematico Azionario (the MTA, an electronic stock exchange) organised and managed by Borsa Italiana SpA as of 27 October 2015. At 31 December 2020, the Company is 29.3% owned by the Ministry of the Economy and Finance (MEF) and 35% owned by Cassa Depositi e Prestiti SpA (CDP), also controlled by the MEF. The remaining shares are held by institutional and retail investors. As of October 2020, the proportion of institutional investors that have pursued their investment objectives by integrating ESG criteria3 was 27%.
With particular reference to the latter, the Corporate Affairs function plays a fundamental role of guidance and cohesion of the corporate structure; moreover, in May 2020, the Head of Corporate Affairs was assigned the role and office of Co-General Manager.
During the first half of the year, the new Digital, Technology & Operations function was set up bringing together Information Systems, Chief Operating Office and the Customer Experience Transformation function and centralising the IT support activities and processes carried out at regional level by the Post Office Network and Mail, Communication and Logistics functions. For further details on the objectives of this reorganisation, please refer to as described in chapter 6 “Performance”, in the “Quality and Customer Experience” section of the “Customer Experience” Sustainability Pillar.
The structure of the Mail, Communication and Logistics function has also been defined. It aims to maximise the integration between postal and express courier network, to develop partnerships for high value-added logistics and delivery services and to make operational processes more efficient by leveraging automation.
With reference to the commercial channels, in the period, the new commercial model was defined focusing the Post Office Network function on Retail customers centralising the commercial chain for the control of all Business customers as part of the Business and Public Administration function, as described in further detail in the paragraph “Commercial network - Business and Public Administration”.
Fiancial • Share capital (owned, floating) • Debt capital • Expense of the Universal Postal Service • Postal savings and deposits • Insurance premiums
Intellectual • Integrity and transparency • Corporate governance system • Intellectual property rights
Human • Talent • Specialist and managerial skills • Experience • Integrity • Health and safety
Payments and Mobile Services • Transaction Banking • Mobile telephony • Digital services for the
Key performance indicators of inputs See the table: Main KPIs for the measurement of Inputs and Outcomes on capital used by Poste Italiane
Key performance indicators of outcomes See the table: Main KPIs for the measurement of Inputs and Outcomes on capital used by Poste Italiane
Physical-structural • Territorial capillarity • Digitisation • Accessibility and availability of services
Human • Talent • Specialist and managerial skills • Experience • Intergrity • Health and safety
Main KPIs for the measurement of Inputs and Outcomes on capital used by Poste Italiane
OUTCOME: y GRI 201-1 Economic value generated, distributed and retained y FS11 Percentage of assets subject to positive and negative environmental or social screening regarding social/environmental aspects y Consolidated financial position and cash flow y Integration of ESG factors into investment policies y Integration of ESG factors into insurance policies y Indicators tables
y Structures, equipment and infrastructure that have an impact on efficiency and effectiveness
INPUT: y Corporate fleet data y Air transport fleet data y GRI 102-7 Widespread presence
INPUT: y Suppliers with an ISO 14001 or EMAS certified environmental management system y GRI 402 Labor/Management Relations y GRI 203-1 Corporate giving and/or corporate citizenship initiatives y Existing tenders which incorporate specific social criteria
OUTCOME: y Number of contacts handled y Customer satisfaction y GRI 203 Indirect economic impacts y The quality of the Universal Postal Service y Customer experience in Post Offices y Customer complaints by type y Monthly complaints y Settlements y New customers in the categories most at risk of financial exclusion as a percentage of total new acquisitions y FS14 ATMs for inclusion y FS14 Post Offices for cultural integration y Protection of human rights y Support for the socio-economic development of local communities y Dialogue and transparency in relations with the authorities y Relations with social partners y Financial inclusion y Quality and customer experience y Legality and incorporation of ESG criteria within the procurement process y Indicators tables
Protection of human rights y GRI 405 Diversity and Equal Opportunity y GRI 412 Human rights assessment Human
Financial inclusion y New customers in the categories most at risk of financial exclusion as a percentage of total new acquisitions
Quality and Customer experience y Quality of universal service y Customer experience in Post Offices y Customer complaints by type y Customer satisfaction y Settlements
Integration of ESG factors into investment policies y FS11 Percentage of assets subject to positive and negative environmental or social screening regarding social/environmental aspects
Poste Italiane’s Business Model is implemented through the Group’s organisational structure and its companies, which contribute to the creation of value over time through the activities and services they provide. At 31 December 2020, the Group held, directly and indirectly,
Poste Italiane 1. The remaining 5% of the share capital of Consorzio Logistica Pacchi ScpA is held by Poste Assicura SpA. 2. The investment in sennder GmbH fully diluted is equal to 1.31%. 3. The investment in Milkman SpA fully diluted is equal to 6.34%. 4. The investment in MLK Deliveries SpA fully diluted is equal to 68.49%. 5. The investment in Tink AB fully diluted is equal to 4.73%.
This is the Group’s operational company. It mainly carries out activities to serve the logistics processes. It also operates on the Express Courier market, providing customised solutions to handle any type of transport.
This company provides commercial air transport, cargo courier transport and insures, as the Group’s sole provider, the air logistics in support of mail and parcel delivery.
This is a non-profit consortium that manages and reports on the payment of prices due by users for the proceedings for which the Transport Department of the Ministry of Infrastructure and Transport is competent (e.g. issue of “pink sheets”, issue and renewal of copies of driving licences, registrations, MOTs, etc.).
Non-profit consortium that provides centralised printing services, the dispatch and delivery of new licences and copies of log books.
ItaliaCamp Srl Organisation that develops social innovation processes with a positive impact for the country, creating connections between institutions, companies, associations and universities.
Kipoint SpA Through a network of franchise stores, this company sells national and international deliveries, products and services. Following the stipulation of the contract with Grandi Stazioni, it also manages luggage deposits at major railway stations
This US company based in San Francisco, California creates and offers innovative services in digital currencies. It controls 100% of Conio Srl, which is involved in the research, development and testing of results consisting of innovative electronic payment technological solutions (cryptocurrencies, bitcoins).
The Company carries out national and international long-distance road transport activities. The business model is based on highly digitised processes and proprietary IT platforms, creating optimised management of processes and distances covered.
Digital asset management company, specialised in ETF (Exchange Traded Funds) portfolios.
Poste Vita SpA Insurance company that provides insurance and reinsurance in Life classes.
In January 2021, Poste Italiane took part in a new capital increase promoted by sennder GmbH, investing €7.5 million and increasing its holding in the German company to 2.0% (1.8% on a fully diluted basis).
Finally, it should be noted that, following the achievement by sennder Italia of all the financial and operating KPIs established in the agreements between Poste Italiane and sennder GmbH, following approval of the financial statements for the year ended 31 December 2020 by the Shareholders’ Meeting, a capital increase will be carried out at nominal value reserved for sennder GmbH, which will increase the interest held in sennder Italia by 5% (from the current 25% to 30%). Following this increase, Poste Italiane’s direct stake in sennder Italia will go from 75% to 70%.
MLK Deliveries is responsible for providing Same Day and Scheduled Delivery services6 for the Poste Italiane Group through the exclusive use of Milkman technology, which in turn repositioned itself as a pure technology provider. At the same time, Poste Italiane acquired about 7% in the share capital of Milkman by participating in a capital increase with an investment of €5 million. Finally, there are purchase and sale options that will allow Poste Italiane, starting from the second quarter of 2023, to purchase 100% of MLK and ownership of the Milkman technology for e-commerce applications.
This operation is in line with the objectives of the Strategic Plan and is aimed at strengthening national e-commerce.
On 26 June 2020, PostePay signed the agreements for the establishment of a strategic partnership with Volante Technologies Inc. (“Volante”), a US company specialising in the development of technological solutions underlying payment processes. In addition to the provision to Poste Italiane under perpetual license of the Volpay payment platform for enabling instant bank transfers (SEPA Credit Transfer Instant) and support services for the development of advanced payment systems based on QR Code technology, these agreements also provide for the launch of a long-term strategic collaboration aimed at developing new solutions in the world of payments to enrich the Poste Italiane Group offer to customers.
As part of these agreements, PostePay also adhered, with other investors, to a capital increase in Volante with an investment of approximately $5 million. The operation will take effect on 2 July 2020.
Conio Inc. On 7 December 2020, the Board of Directors of Conio Inc. approved a capital increase of approximately $13.8 million aimed at supporting business growth and further technological developments. Following the subscription of the capital increase by a third party, Poste Italiane’s investment at 31 December 2020 went from 19.7% to 17.6%, as it did not subscribe to the above capital increase.
Under the terms of the transaction, Poste Italiane will acquire a stake in the capital of BNL Finance following the demerger by the same in favour of its parent, BNL SpA, of its non-perimeter assets, primarily consisting of around €2 billion in loans compared with a total loan portfolio of over €2.8 billion at the end of 2020.
The transaction is part of the development of the international B2C parcels business, a key element of the transformation strategy within Poste Italiane’s Mail, Parcels and Distribution division, which exploits the exponential growth opportunities of e-commerce.
Sengi Express first foreign consolidated company in the Poste Italiane Group
In addition, on 15 November 2020, Nexi announced that it had entered into a binding agreement with Nets to merge the two groups. Upon completion of the two transactions, the new group formed by the combination of Nexi and Nets will be one of Europe’s leading companies.
At 31 December 2020, Poste Italiane holds an indirect interest of 17.22% in SIA through its 30% interest in FSIA, the latter valued at equity in the Group’s consolidated financial statements and recognised at approximately €402 million.
The agreements between the parties envisage that, prior to completion of the merger of SIA into Nexi, the demerger of the FSIA vehicle will be carried out, following which Poste Italiane will directly hold the investment in SIA.
Therefore, on completion of the demerger of FSIA and the above-mentioned mergers, Poste Italiane will hold a direct stake of 3.6% in the new group (5.2% in the case of completion of the merger of SIA into Nexi alone).
Overview The Group’s business, in line with the strategic guidelines outlined in the “2024 Sustain & Innovate” Business Plan approved by the BoD on 18 March 2021 and presented to the financial community on 19 March 2021, is represented by four Strategic Business Units (SBUs - defined also operating segments within the financial statements of the Poste Italiane Group): Mail, Parcels and Distribution; Payments and Mobile; Financial Services; Insurance Services.
The SBU is engaged in the placement and distribution of financial and insurance services such as current accounts, postal savings products (on behalf of Cassa Depositi e Prestiti), mutual funds, loans provided by partner banks and policies.
The SBU refers to activities involving the issuance of life and non-life insurance products and Welfare services.
The customer physical contact channels are managed by two Poste Italiane functions dedicated to the sale of products and services and specialised by type of customer: Post Office Network and Business and Public Administration. Additional organisational guidance is provided by Group companies to support commercial development.
The number of resources (permanent and flexible) is expressed as full time equivalent employees.
In the course of 2020, the new commercial model was developed. It saw the overcoming of the organisation by channel/product in favour of a model that strengthens the presence on the territory and simplifies dialogue with the territorial structures. With the new structure, the geographical responsibilities of the commercial functions of the Macro Territorial areas, have been redefined, from 6 to 12.
In order to best exploit the potential of the territory, a new organisational model of the post office network that maximises operating efficiency and further strengthens the monitoring of commercial, operational and management indicators. This new model is based on a “Hub & Spoke7” logic , which guarantees, especially for smaller post offices, efficiency and operational continuity in the event of a lack of resources, thanks to the creation of post office areas.
In order to generate greater value in customer relations, understanding their needs and improving the customer experience at post offices, during the last quarter of the year, a study was launched of architectural solutions that will make it possible to transform the current workstations into relational counters for a new service model that will involve around 500 post offices by 2021 with a high level of walkability. In addition, again with a view to enhancing customer relations by using new methods of interaction thanks to new technologies, an experiment has been launched that will give sales personnel the opportunity to interact with customers both in person and remotely, with expected benefits both in terms of customer experience and lower environmental impact.
7. Network management and development system in which connections are made, using by analogy an expression referring to the bicycle wheel, from the spoke to the hub and vice versa. In this specific case, the Hub Office Manager is responsible for coordinating resources in terms of planning personnel attendance and managing replacements in the event of sudden absences, as well as providing commercial support, especially for products sold at the counter.
New model Hub & Spoke to support smaller Post Offices 12,765 Post Offices 132 Branches
As of June 2020, commercial oversight of the entire business customer base was unified in the function called Business and Public Administration.
The reorganisation also marks a change in the model of market control, which moves to a substantial specialisation of the sales force by type of product and customer segment. The control is guaranteed by: z 3 Sales Macro Areas (Lombardy North West, Central North and North East, Central South), with exclusive commercial responsibility for mail and communication revenue and commercial support for the specialist sales force; z 2 Sales areas dedicated to the commercial management of products/services of logistics and parcels and specialised by industry (1. Health&Beauty, Electronics and Informatics, Other Sectors; 2. Food&Grocery&Pet, Homeliving&Fashion, Platform&Solution Players); z 1 Commercial area specialising in the offer of financial and insurance products for large business customers and public administration; z 1 Commercial area for Central and Local Public Administration related to Metropolitan Regions and Cities; z 1 Commercial area POE (Small Business) that will ensure the integration of the sales force dedicated to the Small Business segment to enable the development of a new service model.
For more details on 2020 performance, please refer to the section “Digital Properties, Third-Party Networks and Main KPIs”, in Chapter 6 “Performance”.
Third-party Networks A crucial role in the Group’s omni-channel strategy is played by third-party networks and the development recorded in the year 2020. In the context of healthcare emergency, third-party networks have been a viable alternative to own networks for accessing transactional services.
Poste Italiane has signed agreements with a large network of retail outlets (over 37 thousand at 31 December 2020). The main types of agreements entered into are listed below.: z Proximity networks: partners that enable their local points of presence to offer Poste Italiane services to consumers (e.g.: tobacconists to pay slips, top up Postepay cards, accept/deliver parcels), ENI to pay slips, API to accept/deliver parcels, DO (organised distribution) and GDO (large organised distribution) to pay slips; z Placement Agents: partners, authorised by the Bank of Italy, which sell Poste Italiane’s financial products (e.g.: Lottomatica, which sells Poste Italiane’s full acquiring to the tobacconist network); z Technology Enablers: partners that enable Poste Italiane to sell its products to “third-party” customers via its own service platforms (iPratico, Team System for the sale of acquiring); z Partners: legal entities that offer their associates/stores the purchase of products directly from Poste Italiane, through the stipulation of “framework agreements” (e.g.: ENI and its distributors for the purchase of acquiring).
Below are the products distributed through the third-party network: z Phone top-ups z Postepay top-ups z Payment slips z Acquiring z Acceptance, delivery and return of parcels
In addition, during 2020, the start-up of MLK Deliveries activities enabled the activation of a third “last mile” network, specialised in parcel delivery with value-added services (“Same Day” and “Scheduled Delivery”).
Postal Logistics Network Activities The postal logistics network accepts, sorts and delivers mail products and small parcels. The following chart provides an overview of the postal logistics network value chain and the main quantitative drivers.
The evolution of the workforce in 2020, shown in the table below, reflects a decrease in all organisational areas, with the exception of deliveries, due to both the optimisation of processes and the exits favoured by the so-called “redundancy” legislation Quota 1008. There is a twofold effect on delivery, whereby the efficiencies are offset by an increased effort in handling parcel business.
** Delivery staff include 32,966 postmen and women and delivery supervisors (31,376 at 31 December 2019).
8. Economic measures pursuant to Law Decree no. 4 of 28 January 2019, to support the pre-retirement of employees and self-employed workers who possess, in the period between 2019 and 2021, an age of not less than 62 years and a contribution period of not less than 38 years.
Parcel Logistics Network Activities Large parcels and express courier products are delivered via the network of the subsidiaries, SDA Express Courier and sennder.
Market context The postal services market is going through a phase of radical change, primarily linked to the digital transformation, which has influenced the volume of letters and parcels in circulation. The ongoing structural decline in traditional mail, replaced with digital forms of communication (e-mail, instant messaging, etc.) is accompanied by a significant increase in the volume of parcels delivered.
E-Commerce confirmed as the key driver of growth in the parcels segment, mainly for light and low-value items9. Specifically, in Italy, there was a volume of parcels per capita of 6 units10 in the year 2020 compared to 4 units in 2019.
Moreover, the percentage of retail purchases made online went from 4% in 2015 to over 7% in 2019, reaching about 9%11 in 2020), and growth remains compared with the double-digit growth rates registered in the main European countries. Poste Italiane is confirmed as one of the leading operators in the sector with a market share in the B2C segment from 30% in 2017 to 37%12 in 2020.
On 30 December 2019, the Parties signed the new Contratto di Programma (Service Contract ) for the years 2020-2024, effective from 1 January 2020 to 31 December 2024.
The 2020 Budget Law (Law no. 160 of 27 December 2019) redefined the appropriations for the reimbursement, providing for a value of €53.1 million for 2020, €53.2 million for 2021 and €52.5 million for 2022.
The 2021 Budget Law (Law no. 178 of 30 December 2020) provided an appropriation of €52.5 million for 2023.
Law Decree no. 162 of 30 December 2019 – as converted by Law no. 8 of 28 February 2020 – ordered that reimbursements of publisher tariff subsidies to Poste Italiane continue “for a duration equal to that of the universal postal service” (i.e. until April 2026). The application of the regulation is subject to approval by the European Commission.
In August 2020, the procedure was initiated for pre-notification of the Service of General Economic Interest (SGEI) to the Commission for the period 2020-2026..
Resolution AGCom 212/20/CONS of 1 July 2020: the Authority identifies the relevant markets for parcel delivery services and assesses the level of competitiveness in each of them. The resolution highlights a predominant role for Poste Italiane in the C2X* market, which nevertheless has a marginal impact on the overall parcel market. The analysis represents an intermediate step in the procedure, the final deadline of which, previously set at 31 December 2020, was extended with Resolution 703/20/CONS to 31 March 2021. In the next phase, further investigation will be carried out and possible regulatory remedies will be identified for operators with significant market power in one or more of the relevant markets identified.
* The C2X market identifies Consumer-to-Consumer/Business parcels i.e. parcels sent by consumers both to other consumers and to businesses.
AGCom Resolution no. 330/20/CONS of 28 July 2020: AGCom launched a first phase of public consultation with particular regard to the identification of the relevant markets and in particular the following aspects: i) identification of the subjects active on the mail market on the demand and offer side; ii) analysis of the effects produced by the e-substitution on the mail market iii) identification of the relevant markets.
AGCom Resolution 589/20/CONS of 25 November 2020: the first phase of market analysis was concluded, AGCom approved the definition of the relevant markets for mail delivery services. In the subsequent procedural phase, the Authority, after further public consultation, will assess the degree of competitiveness of the identified markets and will define, if necessary, the appropriate regulatory interventions, including a possible reshaping of the maximum tariffs for universal services.
Resolution AGCom 294/20/CONS of 10 July 2020: simultaneously with the updating of the EU2 areas, it made transitional changes to the structure of the replicability test. With a notice dated 20 July 2020, the procedure was started for the revision of the criteria for defining the EU2 areas, in order to arrive at a more objective method of identifying these areas.
With a request dated 18 January 2021, the Authority expressed the need to acquire some useful elements to define new criteria and parameters for identifying the EU2 areas and asked Poste Italiane to send a series of information. Poste Italiane sent the requested information, where available. In this context, Poste Italiane has requested that the principles already established by the regulations in force remain valid with specific reference to the definition of the EU1/EU2 areas, to be integrated through objective criteria suitable for assessing whether the areas currently not covered can still be considered replicable.
In view of the developments in the e-commerce segment caused by the health emergency, AGCom has also initiated proceedings to promote the use of “Lockers” (automated lockers for parcel collection and delivery) by online shoppers and to promote their dissemination. On 14 December 2020, with Resolution 629/20/CONS, AGCom started the public consultation, which ended on 28 January 2021; the Authority’s decisions are pending.
Law Decree no. 76 of 16 July 2020 (Simplifications), converted into Law no. 120 of 11 September 2020, by means of article 26 regulates the implementation of the platform for the digital notification of public administration acts. The operator of the platform will be the company PagoPA, which may entrust its implementation, in whole or in part, to Poste Italiane as Universal Service Provider. Subsequent implementing measures will define the technical and operational modes of operation of the platform.
Introduction of new aircraft and intensification of air connections to southern Italy
Start of operations of new parcel sorting centres in central and northern Italy
Additions made to the Poste Delivery service: the parcel delivery service for private individuals and businesses
Acquisition of an investment in MLK Deliveries in order to provide customers with advanced delivery services (e.g. agreed-upon hours)
Innovative digital platform for an integrated payment, telephony and energy offering
Market context The latest figures available13 on the Italian payment card market reflect the strong reduction in economic activity and consumption on physical channels resulting from the lockdown due to the global health emergency and show overall transactions of around €186 billion in September 2020 (-1.1% compared to September 2019).
Payment Services Directive (PSD2) On 22 January 2020, the European Banking Authority (EBA) published the document amending the guidelines of September 2018 on the obligation to report fraud for Payment Service Providers. This issue also has an impact on the activities of BancoPosta, to which reference should be made for further details.
** Only 4 Member States (Denmark, Finland, Greece and Hungary), in addition to UK, have implemented (by the date set by the European Directive: 21 December 2020) with national law, the European Code of Electronic Communications.
With Resolution 335/20/CIR of 19 November 2020, AGCom defined the regulatory provisions and the ST 770 technical specifications that operators (including Full MVNOs) must comply with for migration to the IP interconnection. The deadline for completing the migration is 31 December 2022.
The marketing of Postepay Connect, the offer that combines the Postepay Evolution prepaid card and the PosteMobile SIM card in a single app, has continued
The new Postepay Digital offer has been developed: a digital prepaid card that can be requested in the app and activated immediately
The marketing of PosteMobile Casa Internet, the voice and internet offer for the home, continued
Most trusted financial institution in Italy, benefiting from an omni-channel approach
Overnight Indexed Average) set daily during the reference period. The LIBOR-OIS differential (i.e. the spread between the two values) is an important market indicator, as it measures the risk and liquidity of the money market. If the spread is high (when LIBOR is high) it is an indication of little inclination to lend money, while a low spread indicates a high level of market liquidity.
The year 2020 was characterised by an almost general weakening of the dollar with the Euro-Dollar exchange rate pushing up to above 1.23 on the last trading day of the year from 1.11 at the end of 2019. The euro appreciated almost across the board, supported by the immediate response to the crisis by the EU (Recovery Plan) and the ECB.
Banking system The banking sector recorded a positive performance overall in 2020. According to preliminary estimates from the Italian banking association (ABI22), in December 2020, lending to the private sector, adjusted to take into account off-balance sheet securitised loans, was up 3.9% year on year (-0.4% compared to the previous year) at €1,721 billion. In December 2020, loans to households and businesses increased by 5.5% compared to a year ago. Credit flows, which mainly concerned medium and long-term maturities, reflect the greater demand associated with the increase in liquidity requirements; demand for mortgages by households in December 2020 was in line with the previous month (+2.3% the year-on-year change) while consumer credit showed a slight decline (-1.1% the year-on-year change). In December 2020, deposits of resident customers (current accounts, deposits redeemable with notice, deposits with agreed maturity and repurchase agreements) increased by 10.3% year-on-year (+€162 billion ); bond deposits continued to decline, recording a drop of 8.6% in December 2020 (-1.9% in December 2019). Interest rates on the various forms of customer deposit were broadly unchanged. The overall average rate on deposits stabilised in December 2020 at around 0.33%, in line with the values of the previous months.
On 8 May 2020, CONSOB published a Recommendation on ex post reporting of costs and charges related to the provision of investment and ancillary services addressed to intermediaries. This recommendation provides for specific indications: i) on the reorganisation of the sections of the current report; ii) on the representation of the client’s portfolio broken down according to the type of investment service provided; iii) on the ease of reconciliation of the items set out in the analytical report and in the aggregate report; iv) on the timing of sending the Annual Report. These indications were promptly acknowledged by BancoPosta.
On 21 April 2020, the Bank of Italy published the 32nd update of Circular Letter no. 285 of 17/12/2013, which amends the interest rate risk (IRRBB - Interest rate risk in the banking book) and stress test of institutions. In this regard, Poste Italiane has defined an internal IRRBB model, which was approved by the Board of Directors on 5 March 2020.
On 24 December 2020, the National Authority published a consultation document regarding a proposal to revise the provisions on corporate governance with a view to strengthening, in line with Directive (EU) 2019/878, the existing rules on organisation and corporate governance. The Company is evaluating the regulatory impacts for any actions to be taken.
In light of the severe turbulence triggered by the health emergency, CONSOB has temporarily introduced a ban on short selling and other bearish operations on all shares traded on the Italian regulated market, including through derivatives or other financial instruments. Said ban, subject to continuous monitoring by the Authority, was lifted in the second half of May 2020.
The deadline for sending the “Report on the methods of carrying out investment services”, initially scheduled for 31 March 2020, has been extended by 60 days. The Company submitted the Report on 24 April 2020.
Taking into account the volatility of the markets resulting from the health emergency, and the consequent increase in market, credit and liquidity risks, ESMA issued a Notice of Attention on the importance of complying with the conduct obligations under MiFID II. In particular, the Notice focuses on: i) compliance with Product Governance requirements; ii) information obligations towards customers; iii) the assessment of the adequacy of the products offered.
ESMA has clarified the application of certain aspects relating to the organisational, ownership and specific skill requirements of the Compliance function. In detail, with the update of 5 June 2020 “Guidelines on certain aspects of the MiFID II compliance function requirements”, ESMA aligned the 2012 Guidelines to the renewed regulatory framework dictated by the MiFID II Directive, without however modifying its substance.
On 3 September 2020 was the entry into force of the Regulation that introduces the obligation for BancoPosta (as intermediary offering custody and administration services for shares or holding securities accounts on behalf of shareholders) to inform customers/shareholders of particular corporate events and to provide, at the request of the issuing company, specific information regarding the identification of customers/shareholders. The Company has defined the methods for managing the communications of meetings and other corporate events, as well as the methods for acquiring customer adhesions.
On 24 September 2020, the European Commission published the new digital finance package, containing a set of legislative proposals aimed at promoting the digital transformation of the financial sector by 2024. The Company will evaluate the legislative proposals in question to identify business obligations or opportunities.
In the first half of 2021, the update will come into force of EU Regulation 2017/565 and EU Delegated Directive 2017/593 in order to implement the provisions on ESG issues in the ESMA Guidelines of February and November 2018 regarding Product Oversight Governance (POG) obligations and adequacy. The main changes will concern, with reference to ESG issues, the obligations of: i) updating policies and procedures; ii) evaluation of customer preferences in the assessment of adequacy and advice in the field of investment services; iii) information to the customer both in the consultancy report and in the annual report. In this regard, work tables have been launched to carry out the appropriate analyses and assessments on the activities to be carried out within the foreseen timeframes.
Evolution of Poste Italiane’s offer to cope with the Covid-19 pandemic
Implementation of the product for the advance redundancy payments and special arrangements for BancoPosta and Postepay Evolution customers
Developed a new model of remote consulting for the placement of investment products
Bank of Italy On 26 February 2020, the Bank of Italy launched an ordinary and general inspection of BancoPosta Fondi SpA SGR, in accordance with article 6-ter of Legislative Decree no. 58 of 24 February 1998. Subsequently, on 22 May 2020, the Authority communicated the interruption of the inspection, in relation to the impossibility – due to the health emergency in progress – to remotely complete some verification activities and that for the above reasons, the delivery of an ordinary inspection report is not expected.
On 5 May 2020, a communication from the Bank of Italy was received containing the results of the transparency audits it carried out from 22 May to 19 July 2019 at 24 Post Offices and headquarters, which concerned, among other things: the organisational structure of BancoPosta, the Group and the territorial network, the management of relations with external partners, and the management of payment not approved. In response to the feedback of the Bank of Italy, the Company has prepared a plan containing the corrective measures to be put in place with an indication of the implementation methods and timing, which was communicated to the Bank of Italy on 3 July 2020.
In December 2020, CONSOB launched a thematic survey concerning the actions taken on Environmental, Social and Governance (ESG) issues. The relevant feedback was provided on 15 February 2021.
Single premiums continued to be the preferred form of payment for policyholders, representing 94.8% of total premiums written and 61.9% of policies by number.
With regard, finally, to distribution channel, around 64.7% of new business was obtained through banks and post offices, with premium revenue of €54.5 billion, down (-9%) compared to 2019. On the other hand, with regard to the entire agency channel, the volume of new business distributed reached €17 billion at the end of December 2020, substantially in line (+0.8%) compared to the figure for 2019 and with an incidence on total intermediated business of 20.1%.
Finally, the broker and distance sales channel recorded growth at the end of 2020 of 20.3% compared to 2019, with a volume of premiums placed of €1.4 billion (or 1.7% of the total brokered)
P&C business Total direct Italian premiums in the P&C insurance market, thus including policies sold by Italian and overseas undertakings, based on the available official data (source: ANIA) at the end of the third quarter of 2020, amounted to €26.5 billion, slightly down (-2.8%) compared to the same period in 2019, confirming the downward trend that began in March and attributable exclusively to the emergency situation linked to the spread of the Covid-19 virus that has heavily impacted the sales processes and operations of insurance companies.
On the other hand, a positive change was recorded by the Fire and Other damage to property (+1.3% and +2.1% respectively) and Legal protection (+7.7) classes.
In terms of distribution channels, agents continue to lead the way with a market share of 74.3%, slightly up on the figure for previous years (74.1 % in the third quarter of 2019). Brokers represent the second largest P&C premium distribution channel with a market share of 8.7% (8.3% in the same period of 2019), while bank and post offices recorded a market share of 7.3% (7.9% at the end of September 2019).
With regard to direct sales as a whole (including distance, telephone and internet sales), at the end of September 2020, it recorded an incidence of 9.4% (in line with the figure for the end of September 2019). The remaining 0.3% refers to premiums brokered by qualified financial consultants.
Source: ANIA. * Italian insurers and non-EU insurer representatives operating as an establishment.
IVASS Regulation no. 45 of 4 August 2020, which will enter into force on 31 March 2021: • identifies the tasks and responsibilities of the corporate bodies involved in the process of approval and distribution of insurance products; • identifies the rules and elements to be taken into account for the identification of the reference market and the negative reference market; • defines the information flows between producer insurance companies and distributors by means of an agreement to be signed on a mandatory basis and subject to periodic review; • regulates the distribution mechanisms for insurance products; • prescribes specific control obligations on the part of the unit or structure responsible for insurance distribution for distributors of insurance products registered in sections A, B and F of the Single Register of Intermediaries and regulates free collaboration relations between intermediaries involved in the distribution of such products in order to ensure full compliance with the obligations set out in the Regulation.
In view of the changed economic and financial situation caused by the spread of the health emergency, on 30 March 2020, IVASS sent a letter to insurance and reinsurance companies based in Italy asking to adopt, at individual and group level, extreme prudence in the distribution of dividends and in the payment of the variable component of remuneration to company representatives. With a press release dated 29 December 2020, the Institute, following the recommendations of the European Systemic Risk Board (ESRB) of 15 December 2020, renewed the invitation to insurance companies to use extreme prudence in the distribution of dividends, in the repurchase of shares, and in recognising variable components of remuneration, at least until September 2021.
Operating review The table below lists the main activities carried out by the SBU during the period and indicates the main Pillar of the Group’s Sustainability strategy, which is discussed in Chapter 6 “Performance”. Please refer to the corresponding paragraph for further details.
The Company’s new product, Poste Nuovi Progetti Futuri, has been developed: a multi-class policy that provides access to the opportunities offered by financial markets through a gradual approach
Extended to all subscribers of a health policy the per diem and reimbursement of medical expenses for hospitalisation for Covid-19
Other information On 14 December 2020, IVASS launched an ordinary inspection of Poste Vita to assess the governance, management and control of investments and financial risks, which is still ongoing.
In 2020, the international business cycle was dominated by the evolution of the pandemic from Covid-19. The virus has obliged many governments to implement restrictive measures to contain the spread of contagion (e.g.: lockdown), which have led to a rapid and sharp decline in economic activity. The recession was unprecedented in its geographical scope, affecting all continents, albeit with varying intensity. The OECD December 2020 forecasts show global 2020 GDP down by 4.2%25.
Faced with this scenario, the reaction of governments, central banks and supervisory authorities has been swift and exceptional: large public transfers and tax cuts have been decided in almost all economies, while at the same time, central banks and supervisory authorities have introduced a wide range of measures to counter financial market tensions and support lending to households and businesses. After the collapse of economic activity in the first half of the year, the improvement in the contagion situation allowed for a gradual easing of restrictive measures and a significant recovery in production rates, with global GDP rebounding in the third quarter of 2020. The economic recovery, especially among advanced economies, was mainly driven by private consumption, aided by the generous support measures put in place at the height of the crisis. In view of the recovery in foreign demand, net exports from emerging economies also made a positive contribution. In the fourth quarter of 2020, the global recovery looked set to be confirmed, partly in the wake of China’s rapid recovery. However, the worsening of the infection roster in most countries during the final weeks of 2020 necessitated new containment measures that put the brakes on the ongoing economic recovery. The lockdown has been partial in many cases, leading to heterogeneous effects across productive sectors. The start of vaccination campaigns and the persistence of several signs of recovery define a moderately favourable scenario. In November 2020, the volume of goods in world trade recovered to pre-Covid-19 levels, accelerating sharply compared to the previous month (+0.7%). The situation, however, remains dominated by great uncertainty, as signalled by the global Purchasing Managers’ Index (PMI) on new export orders, which in December 2020, after three months of expansion, returned below the 50 mark.
Improving the Eurozone’s economic outlook was the agreement reached at the end of 2020 between the EU and the UK that will ensure duty-free trade in goods between the two areas to their mutual benefit, while negotiations are ongoing on some aspects of services, particularly financial services.
Italy was hit by the Covid-19 pandemic at the end of February 2020 in an overall stagnant cyclical phase that deteriorated rapidly. The measures introduced, which were essential to contain the contagion, limited economic activities and the freedom of movement of people and produced economic declines in both the first quarter of 2020 (-5.5%) and the second quarter (-13%)32.
Since May 2020, the easing of the Covid-19 pandemic has allowed economic activities to gradually reopen. The exceptional recovery in production rates in the third quarter of 2020 generated GDP growth of 15.9% on a cyclical basis33; much of the decline in the first half of 2020 was recovered and there was an increase in household consumption expenditure of 12.1%. As a result, the propensity to save stood at 14.6%, down 4.4 percentage points from the previous quarter but up 6.5 percentage points from the corresponding quarter of 201934.
In this difficult context, the effects of the pandemic on the economy and public finances have marked a break in the improvement of public accounts, strongly affecting their performance. According to official estimates, the General Government deficit, after being 1.6% of GDP in 2019, is expected to be around 10.8% in 2020, while debt is expected to be 158% of 2020 GDP, up from 134.7% in 2019. Since March 2020, there has been a series of anti-crisis legislative measures and revisions in the estimates of public finance aggregates; most of these have been of an emergency nature, offering temporary support to various economic subjects (workers, households and businesses), thanks to the implementation of a wide range of instruments, such as the creation of new funds and the availability of non-repayable contributions, tax credits, tax breaks and support to business liquidity. These measures were made possible by the application, at European level, of the general safeguard clause provided 29. Purchasing Managers Index: macroeconomic indicator used in the analysis of the manufacturing, services and construction sectors and is the result of a survey conducted among the Purchasing Managers of the companies sampled through surveys on the various aspects that characterise the performance of the company (number of employees, production trends, orders received, prices, distribution and future expectations). The figure is used to check the economic condition of the industry and provides a forecast of future growth or decline in the industry.
30. Mglobale.it – PMI Index Eurozone December 2020. 31. European Central Bank – Pandemic Emergency Purchase Programme.
The Payments and Mobile area aims to establish itself as a complete and omni-channel platform for its customers, flanking the traditional business lines of payments and telecommunications with an offer dedicated to Energy from 2022, a market which the company will enter by taking advantage of its liberalisation. The expansion of products, together with the ability to exploit physical and digital channels and third-party networks, will make it possible to fully exploit cross-selling opportunities for customers, thereby increasing value for Poste Italiane as a whole.
39. The financial and operating objectives shown in the tables refer to 2024.
Financial Services aims to further evolve its service model by combining the traditional physical model with the opportunities provided by technological innovation. The priorities of the Strategic Plan include growth in wealth management, thanks to the diversification of customer portfolios to optimise their risk-return profile, the integration of non-life policies within the advisory model and a renewed focus on loans, with particular emphasis on the CQS segment, also thanks to partnerships signed with leading operators in the sector.
y Total financial assets: a rise to €615 billion from €569 billion in 2020, with increased penetration of life products.
In Insurance Services, Poste Italiane aims to establish itself as an insurance operator capable of serving all customers’ investment and protection needs. Poste Vita aims to confirm its position as leader in the life insurance sector, continuing to offer customers safe products that are both more profitable and more capital efficient. Lastly, the non-life insurance strategy envisages an increase in profitability thanks to the modular offer, supplemented by car insurance, provided to customers without assuming risk thanks to distribution agreements signed with leading Italian insurance companies.
y 8.000 post offices enabled to sell car policies by 2024.
The Group’s Sustainability Policies The incorporation of sustainability within the Company’s regulatory system has led to the definition of the following policies.
Policy on Community initiatives The Policy contains a commitment to respond to the social needs of local communities and the country as a whole with integrity and transparency, in accordance with procedures that aim to ensure the effectiveness of supported initiatives, while avoiding any potential conflict of interest.
Policy on Personal Data Protection Poste Italiane Group Policy shows that personal data protection is a fundamental value that every Group Company must adhere to in its daily activities. The Group protects and promotes the protection of personal data and the rights of data subjects through information and awareness campaigns and policies for data protection.
In its responsible investment Policy, Poste Vita sets out principles that enable inclusion of ESG elements in the management of its investment activities, making a positive contribution to the impact issuers in its financial portfolios have on the community, and concrete adherence to principles and guidelines recognised at national and international level regarding the incorporation of sustainability criteria within traditional investment processes.
The Guideline for investment in sensitive sectors of BancoPosta Fondi SGR defines measures to identify, assess and monitor exposure to activities that present a relevant intrinsic risk from an ESG point of view, thus enabling environmental, social and governance aspects to be incorporated into the investment process.
Guideline on the exercise of voting rights and engagement activities of BancoPosta Fondi SGR
Policy Guideline for Managing Dialogue with Poste Italiane SpA shareholders – Engagement Policy
Guideline for investment in sensitive sectors of the Poste Vita Group
The Group’s Environmental, Social and Governance (ESG) Strategic Plan Poste Italiane’s ESG Strategic Plan is based on 8 Pillars in the ESG areas relevant for the Group. Thanks to the materiality analysis carried out during the Multi-stakeholder Forum, it was possible to identify the issues that are relevant for management and stakeholders to include in the Group Sustainability Strategy. Each Pillar has specific objectives and targets that contribute to the achievement of the United Nations Sustainable Development Goals (SDGs). Reference should be made to the section on “Performance” in which the objectives, management methods and key performances achieved in the Pillars of the Group’s ESG Strategic Plan are dealt with.
4. SUPPORT FOR LOCAL COMMUNITIES AND THE COUNTRY AS A WHOLE
• Commitment and engagement at the heart of the human capital strategy
• Fair and equitable pay as an engine to attract and retain talent and support innovation
• Key ESG priorities for STI and LTI plans • 40% of the 2021 STI plan • 20% of the 2021-2023 LTI plan
Poste Italiane is part of a network of national and international associations that aims to seek stimuli and opportunities for discussion on issues related to sustainability. In this way, the Group is able to propose a strategy that is consistent with the evolution of the global ESG context.
UN Global Compact: the largest corporate sustainability initiative in the world. An appeal to companies to align their strategies and operations with universal principles in the areas of human rights, labour, environment and anti-corruption and to take actions that promote society’s objectives. It is a voluntary initiative to implement the principles of universal sustainability and adopt measures to support the objectives of the United Nations.
Principles for Sustainable Insurance: the PSIs are a voluntary initiative, supported by the United Nations, aimed at addressing risks and opportunities relating to ESG issues in the insurance sector. Launched in 2012, the PSIs are aligned with and complement the principles of the UN Global Compact.
For Poste Italiane, sustainability is an integral component of its activities, processes and strategy and represents a fundamental driver in the Group’s strategic and financial decisions.
In this regard, over the years, Poste Italiane has embarked on an important process of consolidating its sustainability strategy aimed at creating shared value for its stakeholders and developing its reputation.
At the same time, the Group is committed to disseminating a corporate culture oriented towards sustainability issues, which are put into practice through the implementation of three main guidelines - Reporting, Strategy and Governance. All this has allowed in a short time to lead to important evolutionary transformations and the achievement of numerous national and international goals and awards.
Guideline on the exercise of voting rights and engagement activities of BancoPosta Fondi
Class for Communi cation Covid-19 Oct ’20 2020 Report Oscar Nov’20
Top Manager Reputation In 2020, the CEO of Poste Italiane, Matteo Del Fante, was confirmed in the “Top 15” of the Top Manager Reputation ranking, drawn up by the Reputation Science Permanent Observatory on the online reputation of the top management of companies operating in Italy. The CEO took seventh place in the ranking.
Poste Italiane is ranked 39th in the Global 500, advancing 12 places on the previous year. The analysis, conducted by Brand Finance, identifies the strongest brands in influencing consumer choices and also takes into account marketing management and returns in business performance.
In 2020, Poste Italiane ranked first in the world ranking for brand reputation drawn up by Brand Finance for the insurance sector. The Brand Strength Index (BSI) indicator – which measures the effectiveness of image and reputation, analyses management and investments that influence the brand, customer proximity, employee satisfaction and economic return – assigns Poste Italiane the overall top spot, with a score of 85.5 and a corresponding rating of AAA.
4th position As part of the 19th Italian edition of the “Webranking” research, conducted by Lundquist in collaboration with Comprend, on the quality and transparency of companies’ digital communication activities, Poste Italiane is placed in fourth position, advancing five steps compared to the 2019 ranking for the insurance sector, obtaining the “5 stars”. In particular, the 2020 edition assessed the reaction of companies to the crisis, the importance of direct dialogue with stakeholders and the analysis of the impact on business and the future of the company.
Poste Italiane at the top for young people Poste Italiane ranked first in the “Logistic & Supply Chain” sector and among the top 10 in the “Business ” segment, within the classical Most Attractive Employers Italy, drawn up annually by Universum Global, a Swedish company leader in employer branding, which took into consideration the assessments of 11,736 young professionals and saw the participation of 145 companies. With reference to professional figures, Poste Italiane ranked third for “Law Young Professional” and 21st for “Professional Stem”.
Certificate of Excellence In 2020, Poste Italiane received the Certificate of Excellence from Universal Postal Union (UPU) for the results achieved in the sustainable development strategy and the reduction of polluting emissions. In particular, the UPU certification was given to reward Poste Italiane’s ability to provide complete and accurate data regarding the Company’s direct emissions.
In 2021, the Poste Vivere Protetti product of the Poste Assicura Group company was recognised with the “2021 Celent Model Insurer Award for Customer Experience Transformation” for its ability to offer customers a multi-channel offer that bundles all coverages in a single policy.
The company was placed in the “Leadership” band with an A- rating in the annual classification drawn up by CDP (formerly Carbon Disclosure Project), distinguishing itself for its ability to report on emissions and initiatives introduced to reduce its environmental impact and to adopt appropriate strategic planning and management solutions for climate-related risks and opportunities, with reference to the entire value chain.
Poste Italiane is confirmed in third place at European level in the assessment of its ESG performance in the “Transports and Logistics” sector and ranks 47th worldwide. The valuation reaffirms Poste Italiane’s positioning in the Euronext Vigeo-Eiris World 120 index and the Euronext Vigeo Eurozone 120 and Europe 120 regional indices.
For the second year running, Poste Italiane is included in the Bloomberg Gender Equality Index (GEI), the world’s leading gender equality index. The Company entered the top five by scoring significantly higher than the average score of companies evaluated in the GEI, which considers 380 companies in 11 manufacturing sectors with a combined market capitalisation of $14 trillion based in 44 countries and regions.
In 2020 Poste Italiane entered the top five of the gender equality ranking of companies belonging to the FTSE MIB index of the Milan Stock Exchange, drawn up by Equileap. The Group was particularly recognised for its commitment to supporting paternity and maternity aspects and was rewarded for the transparency and quality of the information made public.
Also in 2020, Poste Italiane entered the Integrated Governance Index, ranking first in the general top ten and in the top five in ESG matters.
Poste Italiane Group confirmed its rating of 1, considered to be the highest possible, in the Environment and Social areas, assigned by Institutional Shareholder Services Inc. (ISS).
Poste Italiane has been awarded an “A” rating by MSCI, one of the leading agencies assessing performance related to ESG sustainability. The Group was awarded for its progress in the area of labour management, responsible management of its investments, its policies on privacy and information security and its climate strategy.
2. Committee members were appointed by the Board of Directors’ meeting of 15 May 2020. 3. The Board of Statutory Auditors was elected by the Ordinary General Meeting of 28 May 2019 to serve for a period of three years and will remain in office until the General
Meeting’s approval of the financial statements for the year ended 31 December 2021.
Poste Italiane has adopted a traditional governance model, separating the roles of the Board of Directors and the Board of Statutory Auditors. The Company’s accounts are audited by an independent auditing firm.
The Board of Directors and Board of Statutory Auditors are elected and dismissed by the Shareholders’ Meeting, which is also responsible for engaging the independent auditor and determining the related fees. The Shareholders’ Meeting also approves the annual financial statements, amendments to the Company’s By-laws and transactions of a non-recurring nature, such as rights issues, mergers and demergers in cases where the law does not grant the relevant authority to the Board of Directors.
The Board of Directors consists of nine members (eight non-executives and one executive) and normally meets once a month to examine and resolve regarding the operating performance and vote on resolutions regarding the results of operations, proposals relating to the organisational structure and transactions of strategic importance. The Board met 15 times in 2020. Of the nine members of the Board, six meet the independence requirements of the TUF, the By-laws and the new Corporate Governance Code.
In accordance with the provisions of the Italian Civil Code, the Board of Directors has delegated part of its management responsibilities to the Chief and has appointed from among its members, in line with the indications of the Corporate Governance Code (as well as the new Corporate Governance Code) and the Bank of Italy’s supervisory provisions, five Committees (four until May 2020) with propositional and advisory functions: the Appointments and Corporate Governance Committee, the Remuneration Committee, the Control and Risk Committee (until May 2020 called the Control, Risk and Sustainability Committee), the Sustainability Committee (set up in May 2020) and the Related and Connected Parties Committee. In particular, the Sustainability Committee is tasked with assisting the Board of Directors with investigative, propositional and advisory functions, in pursuing sustainable success. The Committee provides input during all assessments and decisions relating to environmental, social, and governance issues, and strives to continually integrate national and international best practices into the company’s sustainability strategy.
The role of the Chairwoman of the Board of Directors is to lead and oversee the Board of Directors. She is the Company’s legal representative and exercises the powers provided for by law and the Company’s By-laws, and those assigned by the Board of Directors’ meeting of 15 May 2020.
The Chief Executive Officer and General Manager, to whom all first-level departments report (except for the Internal Audit function, which reports directly to the Board of Directors under the supervision – designed to act as a link with the Board of Directors – of the Chairwoman), has powers for the administration of the Company, unless otherwise provided for by law and the Company’s By-laws and with the exception of the powers reserved to the Board of Directors. The Chief Executive Officer is also the Company’s legal representative within the scope of the powers delegated to him.
On 15 May 2020, the Board of Directors establishes a Sustainability Committee within the Board of Directors
Poste Italiane adheres to the new Corporate Governance Code and adopts a Policy Guideline for Managing Dialogue with Poste Italiane SpA shareholders. – Engagement Policy
The Supervisory Board has three members. It is endowed with autonomous powers of initiative and control, supervises the functioning of and compliance with the Organisational Model pursuant to Legislative Decree 231/2001 and updates it in line with changes in the organisational structure and the relevant regulatory framework, by making justified proposals to the Chief Executive Officer, who submits them to the Board of Directors.
Governance aspects The action of the Internal Audit function for the year 2020 continued in line with the approach adopted in the last two years and was inspired by the following strategic lines: z support Group Governance; z promote value creation and efficiency; z safeguard the achievement of the objectives of the Business Plan and Sustainability.
At its meeting of 5 March 2020, Poste Italiane’s Board of Directors, having received the prior opinion of the Control, Risk and Sustainability Committee and the Board of Statutory Auditors, approved the 2020 Audit Plan of the Internal Audit function, which was prepared, on the basis of a consolidated methodological approach, according to a systemic assessment of the level of potential risk of the main processes (including risks pursuant to Legislative Decree no. 231/01) and in line with corporate objectives.
In addition, the activities of the function, which is geared towards supporting Governance throughout the entire organisational structure of the company and the Group, ensure an integrated independent assessment of processes characterised by significant regulatory restrictions (Legislative Decree no. 231/01, Law no. 262/05) and/or specific supervisory requirements (Bank of Italy, CONSOB, IVASS, COVIP, AGCom).
The audit focused on the provision of insurance, financial and transactional products/services (involving around 1,350 POs), as well as postal and logistics processes. In addition, coverage of the main corporate resource management processes such as IT (with audits of 12 processes/applications), real estate and purchasing (7 structures), human resources (over 40 structures), administrative -accounting processes (17 structures) and various compliance areas (21 structures) was planned and implemented.
The Internal Audit function and third-level controls During 2020, the function’s activities were carried out while balancing the limitations imposed by the Covid-19 health emergency. In spite of this, by leveraging the supporting IT tools, the many audit activities envisaged in the Plan were almost completely carried out, favouring, where possible, the remote execution of a significant part of the checks and preliminary analyses and safeguarding operational continuity.
In order to ensure more effective monitoring of the Group’s control system, Poste Italiane’s Internal Audit function has planned and implemented an increase in the activities carried out in 2020 at Group companies that do not have an internal audit function.
In line with the previous year, for the most significant Group companies that do not have their own internal audit function, these activities are regulated by specific agreements with SDA Express Courier, Poste Air Cargo Srl and Postel SpA.
With regard to Postel SpA and Poste Air Cargo Srl, the activities carried out by the Internal Audit function were aimed at assessing the design and functioning of the auditing system in certain areas of the processes being audited. As regards the agreement with SDA, in addition to the above activities, checks on logistics processes at local offices and compliance activities pursuant to Law 262/05 were also carried out in 2020.
Within the scope of the operating guidelines between BancoPosta and Poste Italiane’s Internal Audit function (2019 - 2020 twoyear period), audits were carried out at local network structures (with the exception of Territorial Service Centres), Poste Italiane’s sales channels linked to financial and insurance areas, as well as specific IT audits relating to IT systems and processes supporting the provision of BancoPosta services and products. Also in relation to the above-mentioned Executive Regulations, periodic information flows were generated to the BancoPosta Internal Audit function regarding the progress of the planned activities and the related outcomes, as well as the monitoring of service levels (KPIs).
In a context characterised by a high level of operational and regulatory complexity and the need to compete more and more efficiently in the reference markets, risk management and the related control systems take on a central role in the decision-making processes, with a view to creating long-term value to the benefit not only of the shareholders, but also in consideration of the interests of the other stakeholders of relevance to the Company.
Operational risks refer to the risk of losses resulting from inadequate or failed internal processes, people and systems at Group level, or from external events. Management of operational risk takes place at both the level of specialist units within the Group (BancoPosta Risk Management, Poste Vita Group Risk Office and PostePay Risk Management and Compliance), in compliance with the respective supervisory standards, and at an integrated level, involving the SSRCG function. The following risks, among others, are closely monitored: i) IT risk, above all the risk that malfunctions and/or shortcomings in information systems could result in the loss of data integrity, leaks of personal data or breaches of confidentiality, potentially causing disruption to the services provided to customers; ii) health and safety risk, with specific regard to the risk of workplace injury to employees or contractors as a result of operations (e.g. the collection, transport and sorting of parcels and letter post, and the delivery of postal products using motor vehicles); iii) physical security risk, relating to access to the headquarters premises of Group companies, to Post Offices or other private areas by unauthorised or unidentified persons, and the limited protection of Poste Italiane’s assets and property against criminal behaviour (robberies, losses resulting from fraud, theft, ATM attacks, vandalism, etc.). Operational risk also includes disruption and/or obstacles to entry to the Group’s operating facilities (mail sorting centres and delivery offices, etc.) due to industrial action or strikes.
This refers to risks of breaches of existing laws and regulations, such as the risks connected with Legislative Decree no. 231/01, Law 262/05, Data Protection and Market Abuse regulations or the introduction of new legislation or regulations (or new interpretations legislation and regulations) of either general importance (e.g. regarding administrative, accounting, tax matters, etc.) or specific to the sectors in which Poste Italiane Group operates. This risk category includes the risks linked to the introduction of new regulations governing the management and development of Universal Postal Services and the related rates providing a return for Poste Italiane, and the risk of the failure to meet the service quality standards set by the regulator (the Autorità per le Garanzie nelle Comunicazioni or AGCom).
This category regards the risks connected with a negative perception among the Group’s stakeholders, in response to which the Group has adopted a stakeholder engagement framework in order to identify and assess this type of risk at source. The main element of reputational risk to which the Group is, by its nature, exposed is linked to market performance and primarily associated with the placement of postal savings products and investment products issued by third-party entities (bonds, certificates and real estate funds) or by Group companies (insurance policies issued by the subsidiaries, Poste Vita and Poste Assicura, and mutual funds managed by BancoPosta Fondi SGR), and those linked to the perceived and effective quality of the services related to letter post and parcel delivery.
Material topics sustainability issues of importance to Poste Italiane through the materiality analysis process, as well as specific in-depth analyses of issues relating to the protection of human rights and climate change (ref. Material issues, risks and management methods)
The initiatives implemented by the Group to mitigate the effects of the Covid-19 pandemic, mentioned below, are discussed in more detail within the relevant Pillars indicated and are marked by this infographic: 41. «Shared Responsibility, Global Solidarity: responding to the socio-economic impacts of Covid-19”, March 2020.
Introduction of measures to reduce the level of potential contagion (remote working, travel management, provision of training initiatives exclusively online)
Constant distribution of PPEs to exposed personnel and cleaning and sanitising of workplaces and company fleet 26 March 2020 | Extension of employee Illness insurance policy 23 July 2020 | Signing of an annual agreement with the Labour Unions that calls for the payment of a performance bonus
Multi-channel approach, digital growth and adoption of tools to discourage cash use
Opening of an interactive channel with all the institutions potentially affected by the phenomenon and interaction with the government bodies in charge of crisis management. Constant monitoring of regulatory provisions relating to measures adopted by the authorities
Participation in the second edition of the IPC (International Post Corporation) initiative “Green Postal Day”
Signing of a Memorandum of Understanding between Poste Italiane and ACI on safe driving and sustainable mobility
Agreement between Poste Italiane and Carabinieri for the payment and home delivery of pensions to citizens and the identification of a method of paying pensions in staggered form; synergies for the management of possible crowds outside Post Offices
Agreements with Local Administrations for the delivery of masks to the population and listening and proximity to institutions to offer solutions to emerging criticalities
Implementation of TG Poste information channel with the aim of continuing the mission of presence and proximity to its employees
Adherence to the initiatives “UNPRI engagement on Covid-19 response” and “European alliance for a green recovery”
Positioning of Poste Italiane Group as one of the best employers for women in Italy, according to the research “Italy’s Best Employers for Women 2021” carried out by the Istituto Tedesco Qualità (ITQF)
Creation of a new logistics, ad hoc, supply network to import all the necessary safety devices
Purchase and installation in every logistics site of chemical toilets for exclusive use of external couriers
In accordance with the indications of the International AA1000-Stakeholder Engagement Standard (SES), the Company has carried out an accurate analysis of the categories of stakeholders with whom it relates in the course of its activities, in particular identifying those who most influence or are in turn influenced by the process of achieving the Group’s strategic objectives.
As a result of the above analysis, it was possible to identify seven macro-categories of stakeholders: Shareholders and Investors, Local communities (trade associations, media, academia), Customers (consumer associations), Entities and Institutions (regulators, Fondimpresa), Suppliers (Business partners), Personnel (Poste Italiane people, Labour Unions) and the Environment.
Shareholders and Investors z Shareholders’ meetings; Corporate Governance Report; financial relations and periodic presentations; road shows and dedicated meetings; the Company’s corporate website; press releases.
Personnel z Internal communication tools (intranet, newsletters, mailshots, Postenews, etc.); internal and external events for personnel; periodic meetings; first- and second-level bargaining; periodic personnel satisfaction surveys.
Entities and Institutions z Conferences; dedicated meetings; corporate communication; periodic communications; organisation of events.
Local communities z Community projects; partnerships; press releases; sponsorships; donations; dialogue with local authorities; contacts during the launch of relevant projects, publication of documents, interviews, events.
Among the stakeholder dialogue tools implemented by Poste Italiane, one of the most useful in terms of communication and strategic discussion of sustainability issues relevant to the sector is the Multi-stakeholder Forum, which is held annually.
Despite the limitations dictated by the Covid-19 pandemic, the fourth edition of the Forum, held in digital mode, involved more than 400 participants and created an opportunity for reflection and the sharing of ideas and projects useful for the creation of shared value with the main stakeholders with whom Poste Italiane interacts in carrying out its activities, enabling the achievement of the Group’s strategic objectives. As part of the initiative, stakeholders according to the material issues of their interest, identified by the fundamental Sustainability Pillars defined in previous years, took part in three different Focus Groups. Specifically, the first two sessions focused on material issues related to the Integrity and transparency, Decarbonisation of real estate facilities and logistics, Customer experience, Innovation, People development, Support for local communities and the Country as a whole and Diversity and inclusion Pillars. The third Focus Group was entirely dedicated to the Sustainable finance Pillar with the aim of sharing with stakeholders the theme of integrating environmental, social and governance factors within the Group’s investment and insurance policies.
Following the process of involving the Group’s main social stakeholders, it was possible to detect, compared to 2019, an increasing importance attributed to issues relating to the health and safety of employees in the workplace, equal opportunities in career paths and the need to pursue an increasingly consistent integration of ESG issues within Poste Italiane’s investment and insurance policies.
Materiality matrix The materiality matrix below summarises the priorities of Poste Italiane’s management, its personnel and all the categories of stakeholders with whom the Group interacts in the conduct of its business. It identifies the eighteen most relevant and necessary issues to ensure an understanding of the company’s activities, their performance and their economic, social and environmental impacts. The order of priority of the issues has been defined taking into account the strategic relevance of each issue for the Company and the perceived importance for stakeholders.
Prepare appropriate internal control measures and spread a corporate culture within the organisation based on integrity, professional ethics and honesty in order to build trusting relationships with its stakeholders and conduct its activities correctly and transparently in every single operation, especially in combating active and passive corruption.
Safeguard people’s health, safety and psychophysical integrity, also in terms of workplace quality, and foster the development of a robust in-company culture in compliance with the highest national and international standards in this regard.
Respect implementation deadlines and procedures for activities (level of service and performance) and provide customers with a quality experience that goes beyond making use of a traditional product or service. In addition, build a relationship of trust by activating customer engagement channels to be always informed on customers’ expectations, needs and satisfaction regarding products and services offered, and the correct management of complaints.
Guarantee the protection of human rights and the promotion of non-discriminatory behaviours within the Group, including through compliance with recognised standards, incorporation of the risk of violation within the Group’s risk assessment model, and valorisation of diversity elements (in terms of differences in age, gender, knowledge and experience) which foster the development of a “corporate culture” and a response to new challenges and market opportunities.
Contribute to Italy’s socio-economic well-being through direct, indirect and induced impacts in local areas (e.g. in terms of GDP and employment), and initiate or support social activities that respond to the needs expressed by society, including those identified through dialogue and collaboration with the third sector.
Provide employees with modern, flexible working tools and models that respond to specific personal needs and ensure work-life balance (e.g. agile working initiatives, improved maternity and paternity arrangements, the provision of benefits in the field of healthcare, etc.).
In order to provide a representation of the material issues in accordance with the indications of the International <IR> Framework, they were assessed not only with a view to their relevance in terms of impact on strategy, governance, performance and future prospects, but also in terms of the likelihood of such an impact occurring. The matrix below illustrates the relevance of the material issues in terms of the intensity and likelihood of occurrence of the related impacts.
Personnel; Suppliers and Business partners; Financial community; Customers; Independent Regulatory and/or Supervisory Authorities y Strategic y Reputational y Compliance y Economic y Reinforcement of corporate controls on specific issues (e.g. integrated risk management model, corporate reliability model, anti-corruption, environment, etc.)
Customers; Poste Italiane people y Strategic y Human rights y Strengthening of annual training plan y Promotion of communication, training and information initiatives to increase engagement
y Improvement of products and services y Development of customer assistance model y Complaints management y Implementation of the Quality Management System
Behaviour of suppliers not in line with Poste Italiane's sustainability policies
y Health and safety y Human rights y “Open and transparent contracts” portal y Centralisation of Group companies’ procurement activities within a corporate function y Supplier qualification system
Increased emissions from real estate management (e.g. energy management, waste management, etc.)
Environment; Poste Italiane people y Economic y Strategic y Reputational y ESG
y Economic y Constant structured dialogue with bodies and authorities and agreed local community engagement initiatives y Digital and postal financial education programme
Labour Union disputes Labour Unions; nonrecognised workers' organisations; Financial Community y Economic y Strategic y Operational y Reputational y Economic y Health and safety y Human rights y Quality of life, well-being y Constant dialogue with labour union representatives y Implementation of restructuring projects in compliance with the regulatory framework (National Collective Labour Contract and laws), which is characterised by governable social impacts y Management of resources in line with legal requirements, policies and Company procedures
• GRI 302 Energy • GRI 303 Water and Effluents • GRI 306 Waste • GRI 305 Emissions
Interconnection between material issues and metrics Poste Italiane Group adopts an integrated decision-making process, providing for specific actions aimed at creating value in the short, medium and long term and taking into consideration the connections and interdependencies among the many factors affecting the Company’s ability to create lasting value over time. This approach involves understanding the degree of combination, correlation and interdependence between issues that have a significant impact on economic, social and environmental performance. To this end, in accordance with the indications of the International <IR> Framework, the interconnections between the material issues for Poste Italiane and the main measurement metrics adopted are shown below.
New customers in the categories most at • risk of financial exclusion as a percentage of total new acquisitions
PROTECTION OF HUMAN RIGHTS GRI 405 Diversity and Equal Opportunity •
• FS11 Percentage of assets subject to positive and negative environmental or social screening regarding social/environmental aspects
Poste Italiane’s commitment to managing human rights risks Poste Italiane’s commitment to ensuring respect for human rights - promoted in the context of its own activities as well as in the context of activities entrusted to third parties or conducted with partners - is enshrined in the “Group Policy for the protection of Human Rights”, which illustrates the Group-wide structured approach in the protection of human rights. In addition to defining the monitoring and management principles of risks and opportunities relating to all forms of human rights through systematic application at every organisational and functional level within the Company, the Policy also includes Poste Italiane’s commitment to pursuing socially responsible investment and management activities.
5. Salary conditions and working hours z Signing of new employment contract which provides for remuneration negotiated with the Labour Unions and uniform conditions for all workers z Supplementary pension schemes z Welfare platform z Group Code of Ethics z Incentive and reward schemes z Due diligence regarding suppliers z Social policies z In addition to the ethical and social principles set out in the Code of Ethics, formal acceptance of anti-corruption and human rights principles by the Group’s suppliers, subcontractors and partners z Whistleblowing Guidelines z Whistleblowing Portal 6. Training z Training initiatives and individual training plans for Poste Italiane employees, regarding both processes and products z Training and skills development courses, processes and services z Gathering feedback from training sessions to optimise the offering z Promotion of communication, training and information initiatives to increase engagement 7. Occupational health and safety z Occupational health and safety and environmental competence and responsibility plans z Communication plan and actions z Dissemination and updating of knowledge/techniques and regulations as well as behavioural standards z Monitoring of accidents and analysis of their causes z Specific audits at suppliers’ premises to verify the conditions declared in the contract z Development of occupational health and safety supervision (achievement of 18001 certification, implementation of the “Integrated Management System”, etc.)
z Health and Safety portal for the management of occupational health and safety issues, as well as references to the main new legislation and case law regarding this matter 8. Data protection z Consent management z Compliance relating to application of the General Data Protection Regulation (GDPR) and personal data protection legislation z Actions in the area of personal data protection (e.g. personal data protection assessment, adaptation plan for European Privacy Seal certification, etc.)
z Communication with the Italian Data Protection Authority in order to provide information and clarifications z Definition and standardisation of contractual requirements for compliance with data protection regulations
The extensive presence of Poste Italiane on the territory and the related environmental impact of its activities, require the Company to adopt a responsible approach in order to reduce its environmental footprint and contribute to the low-carbon transition of the economy and the entire country.
The Company is aware of the risks that climate change may pose to its business activities and it therefore considers important to identify the potential economic impacts of climate change. This importance was reaffirmed by the World Economic Forum in the Global Risk Report 2020, which identifies climate risks among the top five risks at global level.
Established in 2015 by the Financial Stability Board (FSB), the Task Force on Climate-related Financial Disclosures (TCFD) has defined a set of recommendations with the objective of guiding companies in reporting information in a transparent and comprehensive manner on the risks and opportunities that climate change may bring to corporate performance. In line with the main regulatory trends and in response to growing demands from the financial community and key stakeholders, Poste Italiane reports climate change information according to the areas defined by the TCFD: Governance, Strategy, Risk Management, Metrics and Objectives.
z The Sustainability Committee (CSost) has the task of supporting, through investigative, propositional and advisory functions, the evaluations and decisions of the Board of Directors on the Company’s internal control and risk management system, also related to climate change.
Report on operations at 31 December 2020 5. Risks and opportunities
Failure to adapt to these trends will result in missed business opportunities, reduced revenue, qualitative and quantitative repercussions in terms of the mix of its employees, and sanctions by regulatory and supervisory authorities. The tables below summarise, for each emerging risk, the trends arising from exogenous factors, the potential significant impact on Poste Italiane, the opportunities and the main ways of managing them.
However, the rise in life expectancy and the increase in average age could support the emergence of new markets and new businesses.
Negative impacts: y Inadequacy of product offers (e.g., mobile phone price plans) and postal services (e.g., excessive digitisation of services) for changing consumer needs y Increase in insurance costs borne by the Group relating to care, assistance and welfare expenses for the elderly y Difficulty in developing reliable forecasting models that allow the Group to predict market developments
Moreover, Poste Italiane launched the “Silver Economy” Programme designed for senior citizens, with the aim of managing all the Group’s actions dedicated to this important segment of the population in a single synergistic framework. It is a package of financial and savings services, insurance, telephony, shipping and delivery, ideal solutions tailored to specific customers, making Poste Italiane a single point of contact able to meet different needs. In addition, the programme aims to help improve knowledge of financial and digital tools, through a training course led by Poste Italiane’s financial and digital experts.
A pilot project, “Maestri di Mestiere” (Masters of Trades), has also been developed to enhance the skills of senior resources to encourage the transfer of skills to junior professionals.
The Group has also created a prototype of a device that responds immediately to the needs of this specific customer target, equipped with a simple interface that can connect the user immediately to dedicated services (recurring purchases of basic necessities and medicines; simplified communication with family members and the community; postal services; emergency notifications).
The increase in the level of detail and complexity of the regulatory obligations required by the competent authorities in relation to the regulations issued requires a growing cultural change within companies, which are called upon to review their operational activities in order to adapt to the increasingly frequent and pervasive amendments in the applicable national and international regulations.
Negative impacts: y Failure to respond in a timely manner to regulatory requests (for example, regarding governance structures, responsible finance, etc.), partly in view of the complexity and operational heterogeneity of the Poste Italiane Group y Potential penalties for non-compliance with applicable regulations y Growing impact of non-compliance with regulations on reputational risk, also in view of Poste Italiane’s economic and social role in the local area
Poste Italiane also takes part in technical and working groups on regulatory developments, in order to ensure analysis of changes in the regulatory framework, guaranteeing its correct implementation, and represent the Company’s position on these issues to national and international bodies, in order to support the Company’s business.
In addition, in order to comply with environmental regulations and meet the needs of consumers who are increasingly attentive to sustainability issues, Poste Italiane is gradually adapting its products to meet ESG regulatory requirements (sustainable investment products, responsible investment products, ecc.).
Opportunities: y Launch of products that encourage prevention and responsible behaviour (e.g. ethical investment solutions)
y Potential regulatory amendments to benefit the business y More timely than competitors in complying with complex regulations y Redirection/creation of new business business areas
Negative impacts: y Possible economic repercussions from a global recession, resulting in a reduction in consumption of the products offered by Poste Italiane and difficulties in dealing with recovery y Adoption of new work models, which can create greater exposure to cyber attacks and fraudulent use of data y Difficulties in the timely management of new pandemics and inability to guarantee business continuity in the provision of its services y Amplification and acceleration of the effects of the main existing or emerging risks (e.g., disruption of the supply chains needed to carry out Poste Italiane’s business activities and remote management of personnel)
y Focusing attention on the development of the pandemic, with reputational impacts due to reduced commitment to ESG issues (e.g. reduction of environmental investments)
The experience gained over the last year in the management of the health emergency resulting from the spread of Covid-19, has allowed the Group to develop operating methods that have significantly reduced the potential impact on business continuity (e.g. organisational measures to reshape operations for the branch network and logistics-postal activities; purchase of laptops and software to carry out activities in remote working mode; expansion and strengthening of tools for remote connection, suspension of travel). In particular, the Group has been actively involved in constantly monitoring the evolution of the virus, which has allowed proactive management of its effects, also in the long term, through investments in new technologies, in the security of IT infrastructures and in personnel training, making it possible to provide services in compliance with the security protocols necessary to combat the spread of Covid-19. To this end, committees and coordination structures have also been set up to analyse the evolution of the contingent situation and to take and implement decisions on informative, organisational and preventive measures for the Health and Safety of Workers.
These structures, which are now part of the Group’s organisation and operations, may represent useful resources for the management of any future emergency conditions.
With regard to the management of a new pandemic, the Group can also leverage some specific strengths linked to the diversification of its activities, its multichannel approach and the growth of its digital business, which ensure the service is also provided outside traditional post offices. The majority of the Group’s overall revenue will not be linked to shortterm commercial activities and the business model of BancoPosta is capital light, not assuming credit risk. In addition, the current pandemic has accelerated the Group’s digitisation path, which has therefore not only developed digital products and services, sustainable over time, in the postal, insurance, financial and payment areas, but also introduced new ways of selling and communicating with customers, improving the performance of Poste’s Digital Assistant, for example, through the introduction of the voicebot, which is able to address numerous standardised and repetitive service requests, giving valuable time to employees in the Customer Service area to manage more complex and emerging situations.
Digital transformation and technological advances have not only created a wide range of benefits for companies, but have also amplified the risks that need to be understood and managed. In particular, the development of technology is a process that generates impacts that move in a twofold direction: positive, for the innovations that allow to pursue more efficient and sustainable solutions; negative, for the consequences that robotics and data centers can have on the environment, in terms of polluting emissions and energy consumption.
The technological evolution of the business and the use of innovative digital solutions, requires increasing attention to the aspects of cyber security. Attacks on IT systems can compromise IT infrastructure, allowing company and customer data to be stolen or used, or malware to be planted, in order to access company funds and/ or to damage the company’s reputation and brand.
SBUs impacted: y Payments and Mobile y Financial Services y Insurance Service y Mail, Parcels and Distribution
In addition, Poste Italiane has invested in infrastructure and innovation, focusing on technological knowledge and digitisation. In particular, Poste Italiane is one of the 10 operators engaged in Italy in providing digital identity to citizens, the so-called “SPID”, the Public Digital Identity System. This service has made it possible to bridge the gap between citizens and the Public Administration and make many claims easier and faster. Furthermore, the Group is committed to facilitating the transition from physical to digital payments by organising digital literacy programmes for citizens.
Opportunities: y Great ability than competitors to understand customer needs, also with reference to targets in the “digital divide”
CLIMATE CHANGE: Possible impacts of climate change phenomena on Poste Italiane’s business
In the coming decades, a rise in average temperatures of 3 degrees Celsius compared to preindustrial levels could trigger disastrous chain effects. The combat against climate change, therefore, is not an option but a must. It is therefore necessary to consider these aspects when defining the strategies and operational activities of companies.
Negative impacts: y Restrictions on Poste Italiane’s business operations due to extreme weather conditions y Inadequacy of the products and services offered with respect to the demands of consumers increasingly driven by sustainability issues
In particular, the risk management model adopted by the Group considers both the possible impacts that climate change-related phenomena (e.g. extreme climate events, temperature rise, rising sea levels, etc.) may have on the business of Poste Italiane (indirect impact) and those that Poste Italiane’s activities may have on the climate (direct impact). The process of identifying and assessing risks and environmental management methods also extends to counterparties (suppliers, business partners, other companies), impacting the procurement processes and any extraordinary finance transactions, providing, among other things, for the identification of suppliers and partners that may present risks related to environmental protection, also through a multi-dimensional analysis that takes into account parameters such as: possession of environmental, quality and energy performance certifications and adoption of environmental management systems, ethical standards of conduct and Minimum Environmental Criteria (MEC). The correct identification and assessment of climate-related risks and opportunities is also ensured by listening to stakeholders. They are periodically involved in the Multi-stakeholder Forums organised by Poste Italiane and have a reporting system that allows them to bring any perceived risks to the attention of the Company.
Poste Italiane is actively engaged in developing existing products/services with alternatives that take ESG criteria into account (e.g., investments, insurance) in order to ensure an increasingly wide range of products and services that integrate high ethical standards and environmental criteria (e.g., the development of insurance solutions that both encourage the adoption of sustainable and responsible behaviour by their policyholders and mitigate ESG risks). As part of the Poste Italiane Group’s strategy for pursuing its sustainability objectives, the integration of ESG principles into its investment processes is also of particular importance, with investments in sectors that contribute to the Sustainable Development Goals (“SDGs”) (e.g. investments in bonds in the “Green”, “Social” and “Sustainable” categories in line with the standards and principles defined by the International Capital Market Association).
In order to guarantee business operations even in the event of extreme weather conditions, Poste Italiane has adopted business continuity plans and actions aimed at preventing physical damage to structures. In addition, for the coordination of emergency and recovery activities, the Group maintains a dialogue with institutions (e.g. Civil Protection, Civil Defence) as well as interfacing with relevant bodies and international protection and defence organisations (e.g. participation in drills or other initiatives, etc.).
Opportunities: y Increased business opportunities due to changes in consumer needs (e.g. development of low-emission services; development of investment and insurance products for climate adaptation)
y Possible access to new markets and new customer segments requiring insurance coverage y Advantages deriving from the greater reliability of the supply chain and Poste Italiane’s improved ability to operate in various conditions compared to its competitors
Opportunities: y Adoption of strategies to increasingly personalise the offer of payment services y Adoption of new technologies that can be extended to the current customer target of Poste Italiane y Segmentation and differentiation of the offer, through the expansion of Poste Italiane’s customer target (e.g. young people)
The transport sector is undergoing a profound transformation, driven primarily by technological innovations and by the impact that digital is bringing to habits, needs and mobility preferences of passengers and businesses. In addition, the shift towards more sustainable modes of transport, the control of polluting emissions, the environmental sustainability of major works are issues that increasingly guide the preferences of citizens and the choices of transport operators.
y Limited availability of “green” vehicles suitable for carrying out Poste Italiane’s logistics and delivery activities y Negative impacts on the environment and on Poste Italiane’s reputation due to the use of polluting vehicles
Poste Italiane, aware that the vehicles used to carry out its logistics and delivery activities do not lend themselves to any type of optimisation, has been replacing them with equivalent electric-powered vehicles in recent years, improving its fleet in order to reduce atmospheric pollution. Among companies in the utility sector, Poste Italiane has one of the largest fleets of 100% electric commercial vehicles in the country.
The Group has entered into a partnership with Nissan for the supply of a new fleet of 70 full electric vans to add to the 1,000 Free Duck electric vehicles that have been delivering mail in city centres every day for years, covering more than 2 million kilometres and avoiding the emission of over 300 tonnes of CO2 compared to the use of a traditional motorcycle.
In conclusion, the Group is introducing in several cities the use of new three-wheeled electric motorcycles, to make the delivery of parcels and correspondence by Poste Italiane environmentally friendly, easy and safe. The new tricycles are completely electric-powered, with a capacity of 4 kW that guarantees a maximum speed of 45km/h in line with the limits imposed by the Highway Code in towns and cities, and energy self-sufficiency of about 60 km that enables postmen to complete their daily delivery round with a single charge. For each new vehicle, Poste Italiane will also install a new electric recharging station, confirming its desire to ensure greater environmental sustainability throughout the country and allow its electric fleet to spread throughout all Italian regions.
Opportunities: y Reduce the Group’s total energy consumption from non-renewable sources (e.g. fossil fuels)
Role of the company in promoting economic, technological and social progress for the community
A company’s responsibility to the community and its employees in creating diverse, safe products and inclusive workplaces
Based on the number of shares outstanding at 11 November 2020, which amounted to 1,300,852,035, the total amount of the interim dividend was €211 million.
Following the recommendations issued by ESMA in 202042 on the economic effects of the current pandemic, this paragraph is intended to represent in a single note the aforementioned effects on the Group’s economic performance, including through a comparison with the final figures for the comparison period.
In particular, the Group’s operating result and net result for the year showed a negative variance, not foreseeable in the 2020 Budget approved in March 2020, compared to the previous year, of 14.1% (-€250 million) and 10.2% (-€136 million) respectively. These results were significantly affected by the phenomena described above and their impact on revenue and costs for the period.
Specifically, the following impacts were recorded on the statement of profit or loss: z decline in revenue compared to 2019 (-4% or -€434 million), mainly attributable to the significant drop in operations in the second quarter of the year (-13.1% or -352 million compared to the same period in 2019), due to the strict restrictive measures imposed to contain the extension of contagions (lockdown). Information about the changes in the performance of the individual Strategic Business Units is provided in the paragraphs that follow; z in terms of operating expenses, in the midst of the health emergency, the Group’s priority has been to protect the health of its employees and customers and support institutions in managing the crisis. To this end, extraordinary expenses of approximately €106 million were incurred during the year, mainly relating to: a. the purchase of personal protective equipment; b. the cost of sanitation of premises, vehicles, sorting equipment and the purchase of plexiglass; c. expenses incurred by the Digital, Technology & Operations function to manage the massive adoption of smart working by employees; d. communication and safety awareness costs (#iorestoacasa publicity and Re-entry in safety communication campaign); e. higher security costs at Post Offices for splitting pension payment days.
In order to take account of the different macroeconomic scenarios characterised by higher risk and uncertainty profiles, due to the current pandemic, the models used to assess the expected losses on the Group’s financial assets include impairment losses of €14 million on securities held and approximately €11 million on trade receivables.
There were also clear savings in personnel expenses compared to 2019, partly attributable to the health emergency. Specifically, during the period, costs of €57 million were recovered through recourse to the Solidarity Fund (Cassa Integrazione Guadagni - redundancy payments), as well as the decisive reduction in certain elements of personnel costs, primarily the voluntary 50% reduction in MBO managerial incentives and the use of unnecessary overtime due to reduced activity during the lockdown.
Report on operations at 31 December 2020 6. Performance which were repaid early in November and December for a total of €500 million and the remaining €250 million repaid in January 2021). In addition, it has used uncommitted credit lines for short-term financing for a total of €660 million, of which €250 million outstanding at 31 December 2020. Finally, in December 2020, as part of the EMTN - Euro Medium Term Note programme, the Parent Company placed a senior unsecured loan with a total nominal value of €1 billion on the Luxembourg Stock Exchange.
The Group confirmed its capital strength during the year, reflected in the value of BancoPosta’s CET1 ratio and the Insurance Group’s Solvency Ratio indicators, which at 31 December 2020 stood at 18.1% (18.3% at 31 December 2019) and 267%43 (276% at 31 December 2019), respectively.
As regards developments in the current year, the reference context is still characterised by a high degree of uncertainty. The nature and timing of the recovery will depend on developments in the spread of the virus and related restrictive measures by governments to contain contagions, as well as the speed and effectiveness of the vaccination campaign.
43. Value includes the payment of dividends to the Parent Company amounting to €429 million (Board of Directors’ meeting to approve the draft financial statements of Poste Vita on 23 March 2021, Shareholders’ meeting to approve the distribution of profit scheduled for 28 April 2021). The value of the Solvency Ratio subject to the annual review process, will be communicated to IVASS by 20 May 2021.
Group operating results In a market environment characterised by the persistently low rates of return on government securities (see the section on Financial Services - Market Context), the Group has adjusted its strategy for managing BancoPosta’s securities portfolio, including the proactive management of significant unrealised gains. In order to correctly reflect these changes, the method of presenting the statement of profit or loss components of the Financial Services business unit has been revised, by classifying the charges deriving from financial transactions previously shown under costs in profit or loss. In order to allow for a consistent comparison, the 2019 revenue figure has been adjusted to reflect the new exposure.
The first part of the year was in fact the one most affected by the severe restrictive measures imposed to cope with the emergency; in the second half of the year, each business segment showed tangible signs of recovery that led the Group to achieve an operating profit of €1.5 billion and a net profit of €1.2 billion for the year.
The Group’s external revenue of €10.5 billion is down €434 million compared to 2019 (-4.0%). The overall change in revenue was significantly affected by the lockdown effect, which led to a significant drop in operations in the first part of the year.
In particular, over the 12-month period, there was a positive change in revenue from the Payments and Mobile Strategic Business Unit alone, amounting to €74 million (+11.1%) compared to 2019, thanks to the significant growth of the Telecommunications segment and the good performance of the Electronic money segment. The other Strategic Business Units recorded revenue down compared to the previous year and in particular: the Mail, Parcels and Distribution Strategic Business Unit showed a decline of 8.3%, or -€292 million; the Financial Services and Insurance Strategic Business Units recorded a decline in revenue of €190 million (-3.7%) and €26 million (-1.6%) respectively compared to 2019.
+ 235 €569 bn Total financial Assets €15 bn retail net inflows
Consolidated EBIT of €1,524 million is down €250 million (-14.1%) compared with the previous year (€1,774 million). The combined effect of the decline in revenue related to the restrictive measures due to the pandemic, and the higher costs incurred to safeguard employees and customers, significantly penalised the results of the first part of the year. The reversal of the negative trend, which started in the third quarter, with growth in both revenue and EBIT, continued in the fourth quarter, which was the best quarter of the year (+€46 million EBIT or +19.6% compared to 2019).
In addition to the dynamics of revenue (+€40 million), the growth in operating income in the fourth quarter was boosted by the decline in costs (-€6 million compared to the same period in 2019), confirming the effectiveness of the management initiatives implemented by the Group, despite the costs incurred for the management of the Covid-19 pandemic (€25 million ) and the higher costs for early retirement incentives to accelerate the Group’s organisational efficiency (+€94 million).
45. The ACE (Aid to Economic Growth) scheme consists in the possibility of deducting from the company’s income each year an imputed charge equal to the return related to the increase in capital compared to that existing at the end of the financial year in progress at 31 December 2010.
Over the 12-month period, there was a positive change in revenue from the Payments and Mobile Strategic Business Unit alone, amounting to €74 million (+11.1%) compared to 2019, thanks to the significant growth of the Telecommunications segment and the good performance of the Electronic money segment. The other Strategic Business Units, although progressively recovering in the second half of the year thanks to effective commercial activities, recorded revenue for the year that was down on the previous year.
External revenue of the Mail, Parcels and Distribution Strategic Business Unit went from €3,492 million in 2019 to €3,201 million in 2020 (-8.3%) and showed lower revenue from traditional mail (-€558 million, or -22.7%), only partly mitigated by the growth in parcels (+€307 million, or +36.1%), thanks to the positive performance of the B2C segment, driven by the development of e-commerce.
Mail, Parcels and Distribution Strategic Business Unit The Strategic Business Unit ‘s performance for the year reflects the acceleration of the decline in traditional mail affected by the effects of the lockdown and whose results are only partly offset by the sustained growth in parcels.
Parcels that can be delivered as standard mail (volumes in m) 51.6 74.0 22 43.6%
The decline in revenue in the sector recorded in the first months of 2020 was exacerbated as of March due to the lockdown imposed to deal with the pandemic and the significant drop in operations that followed in the second quarter with the sector performance gradually deteriorating. The third quarter of 2020 saw a recovery despite the fact that the change in revenue continued
Annual Report 2020 Poste Italiane Group to have a negative sign when compared with the same period of the previous year; the reversal of the negative trend occurred in the last quarter of the year in which the segment’s External revenue recorded growth compared with the fourth quarter of 2019 (+€13 million, +1.4%). This performance is the result of the combined effect of the particularly positive performance recorded in the parcels segment (+€141 million in revenue or +55.8% compared to the fourth quarter of 2019), mainly attributable to the growth of the Group’s activities in the B2C segment (+76.8% in volumes compared to the fourth quarter of 2019), and the confirmation of the decline in traditional mail with revenue down in the last quarter of the year by €103 million (-16.5%).
The performance of the Group’s Mail services saw volumes and revenue decrease in 2020 by 16.7% (-456 million fewer items) and 22.7% (-€558 million), respectively, compared with previous year. The aforementioned reduction in business, which followed the severe restrictive measures imposed by the lockdown in the first part of the year, accelerated the process of e-substitution of traditional mail. This decrease is distributed indiscriminately over all product families. Also in the fourth quarter, overall volumes decreased (-13.2%), although at a slower pace than in the third quarter of the year.
In detail, Unrecorded and Recorded Mail showed a reduction in volumes of 13% and 28.2%, respectively, and a decrease in revenue of 16.4% and 29.8% compared to 2019; Recorded Mail in the fourth quarter of 2020, showed an improvement in the trend compared to the first part of the year thanks to the recovery of shipments from a portion of business customers. Unrecorded mail also improved in the fourth quarter of 2020 compared with the performance recorded in previous quarters of the year.
During the year, Direct Marketing recorded a 37.8% decrease in volumes (-170 million items) and a related 34.7% fall in revenue (-€40 million). This decrease is linked to the drop in commercial mailings from customers.
During the year, volumes of Integrated services fell by 60.2% compared with 2019 (around 17 million fewer items) and revenue fell by 55.9% (-€94 million) due to the interruption in the mailing of tax collection notices, the decrease in fines due to limited circulation, as well as the suspension of the payment of local taxes.
Other revenue that also includes revenue from the commercial printing and envelop filling services provided by Postel, is down 6.4% in volume terms (-54 million fewer items) compared with 2019, due to a decline in the market for printing services determined by the slowdown of the Italian economy and publishing volumes. Corresponding revenue also includes publisher tariff subsidies (-€5 million compared to 2019), down due to a fall in mailings linked to publishing. The compensation covering the cost of the Universal Service for 2020 amounted to €262 million, in line with the revenue recorded in 2019.
The parcels business grew significantly during the year, with positive changes in both volumes and revenue of +41.7% (+62 million items) and +36.1% (+€307 million) compared with the previous year.
The excellent performance of the parcels segment’s revenue over the year was helped by the order awarded to Poste Italiane by the Ministry of the Interior to deliver personal protection equipment to schools (more than 1.5 billion masks distributed in 2020).
Costs, including amortisation, depreciation and impairments, amounted to €8,422 million, down €141 million (-1.6%) compared with the previous year, essentially due to the reduction in personnel expenses. The latter amounted to €5,539 million with a reduction of €242 million (-4.2% compared to 2019), mainly attributable to the reduction in average headcount (approximately 4,400 FTEs less) as well as the use of the Solidarity Fund (CIG redundancy payments) to deal with the healthcare emergency. These changes in ordinary costs were partly offset by higher costs for early retirement incentives in order to accelerate the Group’s industrial restructuring process.
In light of as represented, the Mail, Parcels and Distribution Strategic Business Unit reported negative EBIT of €588 million for 2020, €241 million worse compared to 2019 (-€347 million). The fourth quarter of 2020 showed EBIT which, although negative (-€344 million), recorded a positive change (+€7 million) compared to the same period of the previous year (-€351 million).
Quality of the universal postal service The quality results achieved for the Universal Service, whose objectives are defined by AGCom, are shown below. The regulator verifies compliance with the objectives and publishes the results annually. Quality trends for 2020 compared to targets and the previous year were clearly impacted by the effects caused by the health emergency. Nonetheless, the reference targets for the year were reached and exceeded for almost all products.
Payments and Mobile Strategic Business Unit The performance of the SBU was positive both in terms of revenue, which grew in the electronic money and telecommunications segments, and in terms of EBIT. Net result decreased due to non-recurring financial income recorded in 2019. Increased operations of payment cards, also thanks to the use of online channels, and the growth of the customer base in telephony have mitigated the negative effects of the health emergency.
Total value of card transactions ("on us" and "off us") (€m)* 41,944 48,761 6,817 16.3%
Total value of card transactions ("off us") (€m)** 33,062 38,563 5,501 16.6%
of which number of e-commerce transactions (m) 250 397 147.1 58.9%
SIM PosteMobile landlines and mobile telephones (stock in thousand) 4,416 4,623 207 4.7%
MNP (Mobile Number Portability) - terminations (thousand) 587 528 (59) -10.1%
* Transactions relating to payments made with Postamat and Postepay on internal and external payment circuits (“on us” and “off us”). ** Transactions relating to payments made with Postamat and Postepay on external payment circuits (“off us”). *** Includes Postepay cards and debit cards. **** Including business customers.
E-Money: prepaid cards (top-ups, payments, withdrawals, fees, issuance), debit cards (postamat interchange fees on card transactions); acquiring services (fees on transactions, fees and services) related to the provision of POS (mobile, physical, virtual) for the acceptance of card payments (debit, credit, prepaid).
Total revenue in 2020 amounted to €1,079 million and showed growth of €40 million compared to 2019 (+3.8%) attributable to the positive contribution of the Telecommunications segment as well as the performance of the Electronic money segment partly limited by the decline in revenue from Collection and Payment services.
In Telecommunications, the customer base related to mobile services, at 31 December 2020, is represented by approximately 4.4 million lines, up 3.9% compared to 2019. With reference to fixed telephony services, the “PosteMobile Casa” offer shows growth of 21.1% compared with last year (243 thousand lines at the end of December 2020 compared with 200 thousand lines at the end of 2019).
Other expenses increased by €8 million mainly due to one-off 2019 releases of provisions for risks and charges.
In light of the results described, the Payments and Mobile Strategic Business Unit reported EBIT for the year of €259 million, an increase of 7.3% compared with the previous year.
The sector ended with a net profit of €194 million, a decrease of 28.6% (-€78 million) compared to 2019. Restated net of the above-mentioned non-recurring item of €88 million, the SBU’s net profit increased by €10 million compared with the previous year.
The CET 1 ratio at December 2020 stood at 18.1%, confirming BancoPosta’s capital strength.
Distribution of third-party products: Distribution of products disbursed/issued by third-party partners (financing, mortgages, loans, credit cards, etc.).
Asset management: Collective asset management through mutual investment funds and management of individual portfolios relating to institutional mandates attributable to the Group.
Revenue from postal savings collection services amounted to €1,851 million, up 2.9% (+€51 million) on 2019, in relation to the higher collection of campaign Interest-bearing Postal Certificates, while revenue from collection and payment services amounted to €904 million, down 9.4% (-€94 million), primarily due to lower volumes on postal slips. This item also includes, on a residual basis, income from the definitive discharge of items previously recognised as liabilities, following an overall review of estimates.
Revenue from distribution of third-party products totalled €191 million, down €122 million compared to €313 million in 2019, due mainly to a decrease in volumes of personal loans distributed during the period and to the reduction of the unit distribution commissions.
At 31 December 2020, the average current account balance increased from €61.9 billion to €67.4 billion. This increase, amounting to €5.5 billion, was mainly attributable to the positive contribution from retail customers and Postepay (+€5.4 billion) and Corporate customers (+€0.4 billion). On the other hand, less use was made of RE.PO49 (-€0.3 billion).
The securities portfolio, in which deposits from private customers on postal current accounts with a nominal value of about €59.7 billion are used, consists of about €56.7 billion of Italian fixed-income government securities and about €3 billion of debt securities issued by Cassa Depositi e Prestiti (guaranteed by the Italian government).
The year 2020 was characterised by high market volatility, as a result of which investment and risk hedging strategies were promptly adjusted.
In particular, the first few months of the year were characterised by fairly stable markets, in line with the end of the 2019 financial year. Against this backdrop, the bulk of the capital gains realisation programme planned for the year 2020 was implemented and the implementation of the portfolio efficiency strategy in asset swaps already started at the end of 2019 continued, improving the interest income profile envisaged in the previous Strategic Plan (Deliver 2022). Starting in March 2020, due to the health emergency, there was a progressive increase in volatility on all world markets with an increase in government spreads; during this period, the investment programme presented very significant volumes, both in view of the high level of yields and the exceptional increase in current account deposits compared to expectations. In view of the gradual narrowing of the spread in the second half of 2020, the programme to restructure the portion of the securities portfolio in asset swaps was resumed and management focused on completing the programme to realise the capital gains expected in 2020 and starting the programme for next year by executing forward sales with 2021 value date.
Moreover, the market context characterised by interest rates at historic lows has had the effect of reducing the average yield of portfolio securities and marginally increasing their Duration. The impact in absolute terms of the reduction in returns on the portfolio interest income was, however, partially offset by the increase in average deposits during the period considered. Lending from public customers (“Deposits with the MEF”) tended to be in line with last year, but were characterised by lower profitability due to the decline in market rates.
* Average value excluding both the capitalisation of interest for the period and interest accrued, but not yet due, on Interest-Bearing Postal Certificates that have not expired at the reporting date.
At 31 December 2020, net deposits of postal savings amounted to -€572 million, up €2,882 million compared to the previous year. This increase was due to the increased net inflows in books due to the health emergency and the market context, which have influenced patterns of customers, making them more orientated to the use of liquidity products.
* This itemes includes costs for goods and services, impairment losses/reversals of impairment losses and other costs and expenses.
Total segment Costs amounted to €4,745 million, down from €4,951 million in 2019 (-€207 million, -4.2%), mainly due to lower costs related to Operating Guidelines referable to the commercial network, against the reduction in activities. Other costs record a decrease, primarily due to releases to BancoPosta’s provisions for risks following a revision of the estimate of certain risks associated with the distribution of postal savings products issued in previous years, as well as the conclusion of voluntary customer protection initiatives linked to the “Europa Immobiliare I” and “Obelisco” funds.
The SBU’s performance proved to be resilient, with EBIT amounting to €866 million at the end of 2020, down slightly (-1%) compared with the previous year, despite a market scenario characterised by declining interest rates and the restrictions put in place to address the health emergency, which resulted in a reduction in operations.
Consequently, the leverage ratio fell during the year to 2.65% in December 2020.
The CET 1 ratio at December 2020 stood at 18.1%, confirming the capital solidity and recording a slight decline compared to 2019 mainly related to the fall in interest rates, which led to an increase in collateral paid to counterparties in hedging derivative transactions.
* Includes gross premium revenue before the premium reserve, outward reinsurance premiums and intra-group portions. ** Corresponds to the ratio of the expenses from claim liquidation and gross premiums. *** Corresponds to the ratio of operating costs + commission and gross premium revenue. **** Equal to the sum of the Loss and Expenses ratio.
50. Poste Welfare Servizi is Poste Italiane Group company that offers health care services. Poste Welfare Servizi activities are focused on the management and administrative outsourcing of Healthcare Funds, management of a Healthcare Network of affiliated structures, and ICT services for public and private institutions. As of November 2015, it joined the Poste Vita Group as a strategic complement to the health welfare insurance offering.
The Insurance Services Strategic Business Unit generated EBIT of €988 million in 2020, down 1.8% on 2019 (€1,006 million).
External revenue went from €1,669 million in 2019 to €1,643 million in 2020 (-1.6%), essentially due to the performance of the Life business, which contributed €1,500 million, whilst the P&C business contributed €132 million, net of Poste Welfare Servizi50 revenue and other revenue.
The financial margin grew (+13 million compared to 2019), which benefited from the increase in average assets under management.
P&C net revenue amounted to €132 million, down 10.5% compared to 2019, mainly due to the evolution of the technical provision and claims settlement expenses, which had lower extraordinary releases in 2020 compared to 2019. This negative change is partly mitigated by the growth in business, especially in the welfare sector, with gross premium revenue up by €13 million (+6%).
The fourth quarter of 2020 shows revenue substantially in line with the fourth quarter of 2019 (+€1 million, +0.1%). Life net revenue increased by €12 million, mainly due to the performance of other technical provisions (+€43 million), which were affected by higher accruals to the expense reserve in the previous year, while the financial margin fell (-€30 million), due to unfavourable market conditions. P&C net revenue decreased by €12 million, mainly due to the development of the technical provision and claims settlement expenses.
Gross premium revenue in the P&C business amounted to €237 million, slightly down on 2019 with lower inflows in the Payment Protection line (-42.4%, -€20 million). This decrease was mitigated by the increase in inflows in the Welfare (+23.2%, +€15 million) and Personal and Property Protection segments. The new modular policy “Poste Vivere Protetti” complements the protection coverage available to retail customers, to protect their health, home and pets. Modules and related coverages can always be added or removed as customers’ needs change, and the coverages, which are indicated in the policy, always form a single contract. Contracts signed for this new modular offering as of 31 December 2020 amounted to 114 thousand.
51. The separately managed accounts identify an investment portfolio, specifically created by the insurance company, in which the premiums of customers who subscribe to a life insurance policy (Class I products) are invested and revalued on the basis of the account results.
Life business technical provisions amounted to €153.5 billion and increased by €13.5 billion compared to 31 December 2019, mainly as a result of growth in mathematical provisions (+€7.2 billion), supported by positive net inflows, and the performance of Deferred Policyholder Liabilities (+€6.4 billion), which includes changes in the fair value of financial instruments used to hedge policies issued. During the year, there was a significant increase in the reserves relating to multi-class policies (+76.2%) related to the development of this segment. technical provisions for the P&C business, after the portion ceded to reinsurers, amount to €212 million at the end of the period (€236 million before the portion ceded to reinsurers), an increase of 17.9% compared with the end of 2019 (€180 million; €207 million before the portion ceded to reinsurers).
53. Included within the Italy Govies asset class is the Company’s financial liquidity (cash awaiting transfer to the asset class managers). In 2019, the incidence of this liquidity on the entire portfolio was approximately 0.14%, while in 2020, this incidence was 0.43%.
54. The figure takes into account the dividend that the Company will pay to the Parent Company following the annual audit process and that will be communicated to IVASS by 20 May 2021. Net of the dividend paid to the Parent Company, the Group’s Solvency ratio at 31.12.2020 was 279%.
In a market context of extreme volatility and uncertainty and taking account of the proposed dividend distribution of €429 million included in the Company’s draft financial statements in favour of the Parent Company (Poste Vita’s Board of Directors meeting on 23 March 2021 and the General Meeting scheduled to approve the financial statements on 28 April 2021), the Solvency ratio stood at 267%54, slightly down from the 276% recorded in December 2019 (-9 p.p.), and continues to remain at a level well above regulatory constraints and management aspirations (200%).
The change in the period was due to the slight decrease in available funds (-5 p.p.) as a result of the dynamics of the spread (-40 bps 10-year BTP-Swap spread), which offset the reduction in interest rates (-46 bps 10-year Swap rate) and the hypothesis of dividend payments in 2021 in favour of the Parent Company amounting to €429 million. There was also a slight increase in the capital requirement (-4 p.p.) due to higher market, counterparty and operational risks, which were not fully mitigated by the decrease in life underwriting risks due to the reduction in redemption risk.
Δ Own Funds Δ Solvency capital requirement 20 (26)10Y SWAP (bps)
The change in the last quarter of 202055 (+17 p.p.) is due to the following factors: z increase in available own funds (+15 p.p.), following the positive dynamics of the spread trend (-29 bps), which offset the reduction in interest rates (-3 bps)
As already mentioned in the section on the business model, the importance of physical networks as an alternative to the Post Office for the provision of the Group’s products/services is growing, as they provided a valid alternative for customers during health emergencies.
Digital properties Also in line with the new strategic guidelines of the 2024 Sustain & Innovate Business Plan, the Group has implemented a programme of “digital transformation” of all its service and offer models in order to guarantee its customers excellent full digital contact experiences, in addition and complementary to the physical assets of post offices and the letter carrier network. This programme was significantly accelerated in 2020, in view of the effects of the current health emergency, in order to make the Group’s products available to customers in conditions of absolute safety and, if required, without the need to be present at post offices.
Market context With reference to the Digital market56, in Italy more than 50 million people are accessing online (over 1 million people connected to the internet for the first time during 2020, an increase of 2.2% compared to 2019) and 41 million are present and active on social channels (over 2 million new users, an increase of almost 6% compared to 2019). 97% of Italians use a smartphone and 74% a desktop or laptop computer, while almost doubling the penetration of smart home devices in Italians’ homes (14% penetration in 2020 compared to 8% in 2019). As for e-commerce, 24% more money was spent in 2020 in Italy than in 2019 in the consumer goods world.
Stock 7.6M Download* Stock 5.8M Download* Stock 9.8M Download* Stock 4.6M Download* Stock 0.78M Average users/day 0.74M Average users/day 54k Average users/day 188M Average users/day 68k Average users/day 4.0 Average Rating 4.4 Android 3.5 IOS
Source: Webtrends, Adobe Analytics, Store iOS, Android, Windows, internal elaboration DTO.
Below is the performance of main KPIs of digital channels and third-party networks in 2020 with comparison to 2019.
Customers registered on Poste Italiane's digital channels (websites and apps) (m) 27.1 20.8 6.3 30.3%
Customers who use Poste's services digitally (%)**** 14.9% n/a n/s n/s
n/a.: not applicable n/s: not significant * “Addressable perimeter”: represents a sub-perimeter of Group revenue that excludes the recurring component of revenue from asset management and revenue from public tenders.
** Average daily values during reference period. *** Customers who have access credentials to digital channels. **** Customers who have made a payment on digital channels using Poste’s payment instruments.
12 million digital identities issued to allow access to PA platforms and services
The Group’s investment amounted to €680 million in 2020, a decrease of 7% compared with 2019 (-€54 million). As a consequence of the particular context due to the health emergency, the Group has revised its investment plan to verify its consistency with the peculiar characteristics of the “new normality” (e.g.: social distancing, preference for full digital solutions, etc.) and to take into account the reduced production capacity of suppliers.
In line with the investment programme for the period 2018-2022, designed to support delivery of the Strategic Plan, around 79% of the Group’s investment (€536 million) focused on the transformation of the Mail, Parcels and Distribution Strategic Business Unit.
In the last quarter of 2020, with regard to sorting and plant renewal activities, two new lines of the so-called “Mixed Mail” plants dedicated to mail entered into production at the Catania and Milan Peschiera Borromeo centres. In particular, at the Catania site the technological infrastructure has been completely renewed and the office area has been repositioned and upgraded, increasing the operating area by more than 1,500 square metres.
Work continued on the renewal of the company’s fleet, which already in the first quarter led to the completion of the supply of Euro4 two-wheeled vehicles (to date around 2,000 new vehicles) and to strengthen the green fleet, which is one of the objectives of Poste Italiane to significantly reduce polluting emissions. Furthermore, the particular shape of three-wheeled vehicles with low environmental impact increases their stability and safety for the driver and allows the installation of a special trunk that increases the amount of parcels and letters that can be transported, allowing to support the increase in the volume of parcels delivered as a result of the important development of e-commerce. The supply of 850 three-wheeled electric vehicles scheduled for 2020 has been completed. In addition, during 2020, 2 “Full Green” Distribution Centres (Imperia and Viareggio) will be created, which will therefore only use 3- and 4-wheeled electric vehicles.
To cope with the health emergency, all the necessary tools have been enabled to ensure the continuity of remote operations. This has led to the distribution of laptops, the massive adoption of Office 365 and Teams, and the activation of VPN connections and a dedicated Service Desk. In addition, the processes for securing activities were reviewed in order to guarantee the operational continuity of the services provided by Post Offices, letter carriers and customer care (activation of voice bots for pension payments, remote call centre and back office activities) and optimise queue management and service bookings at Post Offices.
The Financial Services Strategic Business Unit made a total of €63 million in investments, mainly in digitisation, simplification of processes and improvement of the customer experience from a multi-channel perspective. In particular, steps were taken to enable remote sales through the digital channel not only for postal savings products, but also for insurance products and mutual funds.
In the Insurance Services Strategic Business Unit, work continued to support operational and infrastructural development and improvement to key business support systems for €23 million. In the life business, investments were made in portfolio management systems and, in the latter part of the year, the project stream for the development of the new internal model for the calculation of capital requirements for Solvency 2 purposes was launched. The Poste Vita Group also continued to invest in the development of the new reserved area, the optimisation of claims management and compliance with the new IFRS 17 accounting standard.
Analysis of the (net debt)/funds of the Mail, Parcels and Distribution Strategic Business Unit (€m)
Total (net debt)/funds of the Mail, Parcels and Distribution Strategic Business Unit at 31 December 2020 showed a debt of €1,874 million, worse €1,059 million compared to 31 December 2019 (when there was a net debt of €815 million). Net of the financial lease liabilities provided for by IFRS 16 for €1,211 million, net debt/(funds) showed debt of €663 million (at 31 December 2019, it showed funds of €436 million).
* This does not include repurchase agreements on government securities totalling approximately €413 million. ** Senior unsecured, i.e. unsubordinated and unsecured, bonds issued under Poste Italiane’s Euro Medium Term Notes (EMTN) programme, listed on the Luxembourg Stock
Exchange and placed with institutional investors. *** Bond issue placed with institutional investors in private form. **** Bank loans with an original duration of more than 18 months. ***** Loans granted by the EIB-European Investment Bank, with medium to long-term maturities, for the implementation of specific investment programmes that meet eligibility criteria identified by the bank.
The following table shows the Parent Company’s liquidity at 31 December 2020 (excluding BancoPosta’s equity).
Performance of Poste Italiane SpA and report on operations of BancoPosta RFC
Total revenue earned by Poste Italiane SpA in 2020 amounted to €9,041 million, down 3.8% on the previous year (€9,403 million in 2019), primarily due to changes in Revenue from sales and services and, in particular, a reduction in revenue from BancoPosta services, reflecting lower operations related to the Covid-19 pandemic. The largest decreases were recorded in revenue from the placement of loan products and commissions on payment of bills by payment slip.
Report on operations at 31 December 2020 6. Performance with the healthcare emergency (€57 million). The decrease in the ordinary component is partly offset by the increase in the cost of early retirement incentives in order to accelerate the Group’s industrial restructuring process.
Trade receivables and Other receivables and assets 5,484 4,845 639 13.2%
Prepaid/deferred tax assets//(liabilities) (403) 8 (411) n/s of which profit for the period 325 661 (336) -50.8%
The balance also includes Provisions for personnel expenses for €227 million (€63 million at the end of December 2019) to cover expected liabilities arising in relation to the cost of labour, which are certain or likely to occur but whose estimated amount is subject to change. They have increased by €220 million to reflect the estimated value of new liabilities and decreased as a result of past contingent liabilities that failed to materialise (€29 million) and settled disputes (€27 million).
Provisions for operational risks relating to liabilities arising from transactions conducted within BancoPosta and amounting to €131 million at 31 December 2020 decreased compared with the balance of €232 million at 31 December 2019. The change in the year was mainly affected by €88 million absorbed in the profit or loss account due to the elimination of liabilities identified in the past and referring mainly to the revision of estimates related to the reconstruction of operating items at the date of the Company’s incorporation and the conclusion of voluntary protection initiatives undertaken for the Europa Immobiliare I and Obelisco funds.
Equity amounted to €7,239 million and increased by €911 million mainly in relation to changes in the fair value reserve (+€1,215 million), which reflect the fluctuations (positive and/or negative) in the valuation of investments classified as FVTOCI as well as the net profit for the year of €325 million. These increases in Equity were partially offset by a dividend distribution of the dividend balance for 2019 profit for €402 million and interim payment of a portion of the regular dividend scheduled for 2020. The interim dividend of €211 million was distributed on 25 November 2020 (unit dividend of €0.162).
RFC net debt for capital outside ring-fence including intersegment transactions 2,206 1,254 952 75.9%
Further information regarding the corporate governance structure is provided in Poste Italiane’s “Report on Corporate Governance and the Ownership Structure”, approved by the Board of Directors and published in the “Governance” section of the Company’s website.
The valuation of BancoPosta’s Guidelines was subject to a fairness opinion by an external company.
Net impairment losses/reversals of impairment losses on receivables (22) (9) (13) -144.4%
Net profit from the sale of financial assets amounted to €365 million, up from €339 million a year earlier (+7.7%).
Net operating expenses, which include personnel expenses of €34 million, other administrative expenses of €4,410 million and other operating income overall positive for €67 million, decreased by €129 million compared to the previous year, in particular, due to lower costs relating to BancoPosta’s assignment of operating functions to Poste Italiane.
Net provisions for risks and charges showed a positive balance of €69 million. This figure reflects the revision of estimates of certain risks associated with the distribution of postal savings products issued in previous years and also takes account of the conclusion of voluntary protection initiatives undertaken for the “Obelisco” and “Europa Immobiliare I” real estate funds.
In addition, in 2020, the workforce of the BancoPosta Function was provided with specialist technical, regulatory/compulsory and behavioural/managerial training courses for a total of approximately 38 thousand hours in the classroom, webinars or through an e-learning platform.
Financial assets measured at fair value through profit or loss 72 70 2 2.9%
Financial assets measured at fair value through other comprehensive income 42,638 36,799 5,839 15.9%
Cash and cash equivalents amounted to €6,404 million at 31 December 2020 (€4,314 million at 31 December 2019, +€2,090 million) and included, for a total of €3,042 million, cash at Post Offices and at cash transportation companies, as well as balances on the account with the Bank of Italy for interbank settlements of €3,362 million, up €2,548 million on the previous year. The change in this item mainly reflects the increase in current account deposits (related to the Covid-19 pandemic), which gave rise to temporary excess liquidity on the account opened with the Bank of Italy, intended for interbank settlements, and not yet invested.
Financial assets measured at fair value through profit or loss of €72 million are mainly attributable to 32,059 Visa Incorporated (C series) shares and 2,199 Visa Incorporated (A series) shares.
Other assets of €2,631 million at 31 December 2020 relate to tax assets following the tax withholdings and items in progress that will be settled after the end of the year.
The principal liabilities are represented by financial liabilities, hedging derivatives, tax liabilities, other liabilities and provisions.
Financial liabilities measured at amortised cost amounted to €86,110 million (€70,379 million at 31 December 2019, +€15,731 million) and include: (i) amounts due to customers of €75,295 million (€63,193 million at 31 December 2019, +€12,102 million) attributable to deposits through current accounts and repurchase agreements; (ii) amounts due to banks of €10,815 million (€7,186 million at 31 December 2019, +€3,629 million) also relating to current account transactions and repurchase agreements.
Financial liabilities held for trading, amounting to €20 million, mainly represent the fair value of the forward contract for the sale of Visa Incorporated ordinary shares entered into in 2019.
Tax liabilities amounted to €979 million, an increase of €317 million, compared to €662 million at the end of fiscal year 2019, due to changes in deferred taxes in fiscal year 2020 related to financial assets measured at fair value through other comprehensive income.
Provisions for risks, which include amounts set aside to cover disputes and charges with personnel, customers and third parties in general, as well as various risks arising from BancoPosta’s operations, amounted to €213 million, down €114 million on 31 December 2019. The change in this item reflects the revision of estimates of certain risks associated with the distribution of postal savings products issued in previous years and also takes account of the conclusion of voluntary protection initiatives undertaken for the “Obelisco” and “Europa Immobiliare I” real estate funds.
BancoPosta RFC at 31 December 2020 amounted to €5,260 million (€3,961 million at 31 December 2019, +€1,299 million, +32.8%) and includes: (i) the BancoPosta RFC reserve, totalling €1,210 million (in line with the figure at 31 December 2019); (ii) the Reserve for Retained Earnings, totalling €1,143 million (up €85 million, following the General Meeting’s resolution of 15 May 2020 to allocate 2019 profit from BancoPosta RFC); (iii) the Valuation Reserves, totalling €2,278 million, primarily reflecting the change in the value of the reserves for Financial assets at 31 December 2020; (iv) net profit for the year of €629 million. The change in equity is mainly related to the change in the valuation reserve (+€1,195 million compared to €1,083 million at 31 December 2019).
The Report was prepared on the basis of the findings of the audit activities carried out by the function and set out in the 2020 Audit Plan. The report contains information on the outcomes of the audit of the services contracted out by BancoPosta to Poste Italiane’s Functions under operating guidelines and the activities outsourced to providers external to the Company.
As regards the evolution of significant risks, the 2020 financial year was characterised by an initial reduction in the yields on Italian government bonds until February 2020, and a subsequent rise in March 2020, caused mainly by the uncertainty on the markets due to the Covid-19 emergency, which recorded levels above 2%. This increase in yields was then reversed by the ECB’s interventions, to reach a level close to 0.5% on 31 December 2020.
The evolution of rates and spreads led to a change in net gains at portfolio level from around €1 billion at the end of 2019 to over €4.5 billion at December 2020. The BTP-Bund spread at the end of 2020 closed at about 111 bps, 49 less than in 2019.
At its meeting on 24 March 2021, the Company’s Board of Directors approved the updated Guideline on Financial Management, consistent with the new 2021-2024 Business Plan.
Details of the various areas of risk and the methods used for their measurement and prevention are provided in other sections of the Annual Report for the year ended 31 December 2020.
In the specific area of distribution of BancoPosta loans, a Prestito BP Online product will be launched during 2021 and customer engagement functions will be further implemented, making available automatic loan proposals with a high level of personalisation and new channels accessible remotely to make appointments at Post Offices with specialist consultants. In addition, with the aim of strengthening the multi-partnership model, a new collaboration with Santander will be launched in order to offer customers increasingly competitive products that meet their expectations.
BancoPosta plans to transfer its debit card business to PostePay SpA during the current year. This transaction will take place following the removal of the restriction on BancoPosta RFC.
For the Business and Public Administration segment, as part of current accounts, a new current account dedicated to the Small Business Operators (POE) segment, called “BancoPosta Business Link”, will be launched in the first four months of 2021: this specific offering will feature, among other things, a revamped online platform and a new App. With regard to the purchase of tax credits, Poste Italiane’s offering will be further expanded with new credits, including those relating to lease payments for non-residential use, and with the launch of a service aimed at corporate customers.
Related party transactions Information on transactions between BancoPosta and its related parties is provided in Poste Italiane Financial Statements for the year ended 31 December 2020 (BancoPosta RFC’s Separate Report, Part H of the notes).
Diversity and inclusion Support for local communities and the Country as a whole
• Confirmation of the highest legality rating score • Number of tenders conducted on the basis of environmental criteria +27% • Number of tenders conducted on the basis of social criteria +16% • 75.9% of suppliers with a ISO 14001 or EMAS certified environmental management system
% of suppliers belonging to significant product categories qualified according to ESG criteria
Following the introduction of the Organisation, Management and Control Model pursuant to Legislative Decree no. 231/2001, in accordance with the principles of integrity, transparency and legality that guide the Company’s operations, Poste Italiane has embarked on a virtuous path of risk control and management. This process involves all employees, with the aim of creating greater awareness of the behaviours to be adopted, initiatives and choices. The workshop entitled “The Corruption Phenomenon and the Safeguards of Model 231”, held at the end of October 2020, took place to disseminate the key principles present in the corporate culture guiding the Group’s strategy. This workshop focused on the 231 Organisational Model and on how the model has made it possible to create a structured control and organisational process that guides Poste Italiane ’s sustainability strategy with an ever-increasing focus on corporate transparency.
Moreover, Poste Italiane has set up a reporting system and an Ethics Committee with the task of managing reports and violations. In this regard, the Group has introduced the “Guideline on Whistleblowing”, a document aimed at regulating the system through which reports can be made by personnel and third parties, with reference to acts or facts referable to violations of internal and/ or external regulations, as well as illegal or fraudulent conduct that may determine, directly or indirectly, a financial or image damage for the Company. The Group has made a reference portal available to the recipients of the Guideline, the management of which is entrusted to the Whistleblowing Committee, which also performs the functions of the Ethics Committee being responsible for receiving, examining and evaluating the communications received. The Whistleblowing Committee envisages assigning the presidency to an external professional with high standards of professionalism, honourableness and independence and the permanent presence within the Committee of the Group Risk Management structure/Oversight 231, in order to ensure constant assessment of the relevance of the reports received.
Poste Italiane’s internal system for reporting violations is further strengthened by the provisions of the Organisation, Management and Control Model, prepared pursuant to Legislative Decree no. 231/01 and approved by the Board of Directors in the first quarter of 2021. With reference to the management and monitoring of corporate risks, the Company, as part of its Internal Control and Risk Management System (SCIGR), has adopted and implemented a management system that, through an organic and integrated vision, is able to provide an unequivocal and effective response to the risks to which the Group is exposed, thus defining an integrated risk management process.
The Group’s objective is to spread the themes of integrity and transparency and to this end, it invests in training and information activities for its employees, offering seminars and courses on transparency, integrity and anti-corruption, communicating its principles to stakeholders through the dissemination of the Code of Ethics, Policies and Guidelines.
In 2020, Poste Italiane confirmed its legality rating, receiving the highest rating of three stars from the AGCM, awarded to just 7% of companies
In 2020, Poste Italiane obtained the UNI ISO 26000 assurance statement, an international standard for the adoption of sustainable development strategies and the promotion of virtuous choices and conduct in the ESG (environmental, social, governance) area. The assessment, to which Poste Italiane voluntarily submitted itself, was carried out by the independent organisation, DNV GL - Business Assurance, which analysed the Group’s entire organisational structure in terms of the seven pillars of the UNI ISO 26000 guidelines: Governance, human rights, labour relations and conditions, environment, good management practices, specific user/consumer aspects, community involvement and development. Upon successful completion of the activities carried out, DNV GL issued Poste Italiane with a certificate of verification that recognises the Company’s commitment and mature awareness of the various dimensions of Corporate Social Responsibility. In particular, Poste Italiane Group distinguished itself for its ability to identify and periodically review the priorities on which to focus, integrating them into the group’s strategies and taking into account potential risks; the ability to take into consideration within its strategic, decision-making and operational processes, the requests of all stakeholders, integrating them into its governance system; the ability to plan and communicate social responsibility actions undertaken in a transparent and continuous manner.
The tax risk management and control system implemented by the Group requires top management to be kept constantly informed of the tax consequences of all strategic and operational business transactions, both planned and to be carried out, thereby ensuring that every decision taken on tax matters is consistent with Poste Italiane’s Tax Strategy and 62. Poste Italiane SpA’s Tax Strategy is available on the Group’s website at the following link files/1476487789735/Strategia-fiscale-Gruppo-PI-eng.pdf that the Tax function is involved in the preliminary assessment of the tax impact of such transactions. The Tax function is divided into seven areas that are assigned distinct roles and responsibilities and they are: Tax Planning and Business Support, Tax Risk Management, Processes and Procedures, Regulations, Studies and Tax Substitution, Corporate Income, Indirect Taxes, Local Taxes and Litigation and VAT and IT Compliance.
Poste Italiane SpA’s Board of Directors, subject to the opinion of the Control and Risk Committee, is responsible for assessing the adequacy and effectiveness of the internal control and risk management system. To this end, with specific reference to the tax risk management and control system, the Board of Directors, supported by adequate preparatory work by the Control and Risk Committee, examines at least once a year the report prepared by the head of the Tax function containing the results of the periodic review of this system.
Poste Italiane and its subsidiary Poste Vita have been admitted to the
Following Poste Italiane Group’s entry into the Collaborative Compliance regime, the Group has adopted a well-structured set of procedures to govern the management of tax risk, including the activities, controls, roles and responsibilities defined within the processes.
Poste Italiane has also made monitoring updates to the relevant legislation the responsibility of the Tax function. More specifically, the task of the Regulations, Studies and Tax Substitution (NSSI) unit, which is part of the Tax function, is to: monitor the evolution of the national, EU and international tax system, in order to propose measures to guarantee the interests of the Group and the optimisation of operating obligations; guarantee the study, interpretation and dissemination of tax regulations, assessing their impact on the Company and the Group in collaboration with internal functions/companies. To this end, the NSSI unit, thanks to the continuous exchange with the operational structures of reference, receives suggestions and input that give greater consistency to the actions implemented in this area. As part of the monitoring of regulations, the Processes and Procedures unit, in conjunction with other internal functions, analyses the impacts on processes and systems deriving from changes in tax regulations, defining the related adaptation plans. Finally, the Tax Risk Management unit monitors, with reference to the compliance plans developed by the Processes and Procedures unit, the proper execution of controls and related activities.
In accordance with what is stated in the Tax Strategy and aware of the fundamental role played by training in an area characterised by rapid change, the Tax function trains and supports all personnel involved in the management of tax-related activities, not limiting itself to resources specifically dedicated to tax matters, in order to ensure that all personnel have the right skills and experience to fulfil their responsibilities.
Poste Italiane promotes responsible supply chain management to ensure sustainability, functionality and traceability of procurement. The Company guarantees compliance with current regulations and company directives and bases its purchasing processes on pre-contractual and contractual relations oriented towards full respect for legality and transparency, placing central attention on compliance with agreements, payment methods and times. The Group makes sure to include, within its own fleet, suppliers possessing adequate quality characteristics and capable of ensuring the protection of workers and compliance with environmental standards.
In 2020, in line with 2019, a continuous revision and update of the internal procedures which govern the procurement process have taken place, regarding contracts that are subject to the Public Contracts Code as well as those excluded from its scope of application. During the updating of the “Procedure for the authorisation and issue of purchase requests”, the “target times” for the sending of the PR by the requesting functions have been regulated, as a tool to guarantee the respect of the expected delivery times, functional to ensure the continuity of recurrent services and the start-up of new projects. In 2020, the “Procedure for managing the contractual execution phase” was issued, which governs the activities linked to the execution and management of passive contracts agreed upon by Poste Italiane Group, identifying roles and responsibilities involved.
Together with the Internal Regulations for the Award of Works, Service and Supply Contract Procedures (approved in November 2017 and modified in July 2019) and the Public Contracts Code, the procedures constitute documents for the governance and regulatory compliance oversight of Poste Italiane’s contract awards. The Parent Company’s procurement has been marked by constant, large-scale use of competitive procedures that guarantee competitive advantages for the Company and ensure impartiality, transparency and equal collaboration opportunities for suppliers. In order to ensure efficient and integrated management of the supply chain and improve relations with suppliers, promoting confidentiality, authenticity, competitiveness, integrity and availability of data exchange, purchases are managed through the “PosteProcurement” Purchasing Portal, a web platform used for all procurement activities and for the management of the Supplier Register.
The Group Risk Management function within the Corporate Affairs is responsible for identifying all the elements of risk needed to ensure verification of the requirements of reliability and integrity, through analyses of the corporate, financial and asset profiles of companies and representatives and their relations with the Poste Italiane Group. In particular, the relationship with suppliers can generate strategic and reputational risks. The objective of risk management is to limit the risks deriving from transactions with third parties, ensure adequate supplier rotation and minimise losses deriving from non-collectible receivables, through a process of continuous monitoring of the degree of exposure to risk. Boosting prevention of illegal activities, via integrated analysis of internal and external information, enables detection of direct and indirect relations that highlight possible critical issues. Moreover, due to the health emergency, the Company has included in the supplier assessment the Covid-19 risk analysis taking into account both the specific sector to which they belong, through the classification of economic activities adopted by the Italian National Institute of Statistics for national economic statistical surveys (ATECO code), and the April 2020 guidelines prepared by the Government-INAIL task force for the assessment of production sectors.
Centralisation of Group companies’ procurement activities within a corporate function z The qualification system, set up following publication of a specific notice for each product or service category and governed by specific documentation, limited to the open categories, can be accessed by all economic operators meeting the established requirements for participation z In order to rationalise the processes involved, the Qualification System is also used by Group companies z The Supplier Register provides the Group with a range of economic operators capable of meeting Poste Italiane’s requirements and enables it to adopt certain and transparent selection criteria when procuring goods, services and works z Web platform used to conduct online tenders and in general in procurement z Published rules meeting the requirements of the Public Tenders Code (Legislative Decree no. 50 of 18 April 2016)
In line with current regulations (art. 134 of the current Public Contracts Code), in 2006, the Company established its own Supplier Register, with the aim of simplifying procurement procedures, ensuring homogeneity among the subjects selected in each product sector and transparency towards the market. Training and management regarding the Register is governed by the Supplier Register Regulations which regulate the Supplier Register Qualification System, as well as by the Qualification System Regulations which regulate the system and the qualification procedure for each product category. For each product category, the Supplier Register may be accessed at any time by submitting a request accompanied by the necessary documentation.
All suppliers seeking qualification for the Supplier Register are required to meet general requirements (moral and professional suitability ), as well as specific business, financial, technical and organisational requirements. In this way, the Group aims to strengthen the governance of the purchasing process.
In addition, in its relations with suppliers of works, services and supplies, Poste Italiane operates on the basis of standard contractual clauses that are constantly updated in consideration of new regulatory provisions and special needs expressed by internal customers. This speeds up contracting times and ensures governance on the most relevant issues.
Selection of suppliers The Group has paid special attention to the social and environmental aspects of its supply chain management, in the belief that the development of transparent and long-lasting relationships with suppliers, paying utmost attention to quality, respect for the environment, safety and social implications in the procurement process, are useful principles for constantly improving the service offered to its customers, as well as for pursuing a public interest objective for Italy’s entire economic system63.
Number of tenders carried out on the basis of environmental criteria +27 percentage points compared to 2019
Number of tenders conducted on the basis of social criteriaNumber of tenders conducted on the basis of environmental criteria
z multi-level view of risk, with the ability to analyse ESG risk at the aggregate level, at the level of individual E/S/G aspects, and at the level of individual risks; z clear identification of areas for improvement on the basis of the rating given to the way individual risks are managed; z facilitated compilation of the questionnaire, characterised by multiple closed answers with the aim of facilitating and making compilation immediate; z reliability and recognisability of the proposed methodology, based on internationally recognised studies that are renowned best practices in relation to the area under analysis; z expendability of the proposed model by Poste Italiane, which may consider making it a proprietary model and offering it on the market once it has been registered with the appropriate trademark.
Increase the number of participations in soft skills development programmes developed on the occasion of care activities
Environmental monitoring for the determination of the annual average concentration of radon gas in the air, aimed at assessing the risk of exposure to ionised radiation, in accordance with Legislative Decree no. 101/2020
Implementation of a new corporate welfare model: development of screening programmes for the prevention of illnesses and corporate welfare programmes to protect the health and safety of Poste Italiane's personnel and aimed at improving their welfare and well-being
The Poste Italiane Group is aware that human capital is a key element in creating competitive advantage and achieving the Group’s objectives, and believes it is essential to invest in the promotion of training programmes for its personnel, identifying training as a key factor in ensuring the ongoing development of professional and personal skills and in making the most of each Group employee. With this in mind, the Parent Company is committed to offering training courses for its employees, also by developing new training and knowledge sharing methodologies that have facilitated and guaranteed learning continuity in the emergency context due to the Covid19 pandemic.
The training activities are part of a broader project outlined in the 2024 Sustain & Innovate Plan, which envisages the provision of approximately 25 million hours of training in the fiveyear period 2020-2024, in line with corporate principles and the needs of the market, customers and regulations. With the aim of ensuring the smooth running of training courses, the Corporate University was set up in 2015, a Human Resources function divided into different Academies specialised by business content based on the different skills to be cultivated. The function has the task of defining and guaranteeing the entire training process (including operational training), also making use of territorial structures, the operating mechanisms and organisational ownership of training and operational training activities, according to logics oriented towards ensuring the effectiveness, efficiency and conformity of the expected results, introducing and foreseeing specific indicators of quality control and training effectiveness.
Poste Italiane’s training model is based on three backbones: z basic training, provided to the entire workforce, regardless of their role, aimed at developing a shared corporate culture on topics of transversal interest (financial education, digital skills, language training); z role training, aimed at proposing specialised training contents provided to the various professional figures according to the specific role covered in order to maintain and improve performance in carrying out their duties; z training for development, aimed at proposing ad hoc training contents for the best resources included in development paths to support them in more complex roles.
Hours of training provided 25 million by 2024 2018 14.3 million hours
Increase the number of educational and professional orientation initiatives for employees' children
Number of injuries -740 events in the PCL area by 2024 2020 New
Legislative Decree 231/2001 From October 2020, the new online course “The Decree 231 in business ethics” is in progress. It describes, through the stories of its protagonists, the general contents of Legislative Decree no. 231/2001 and the tools that Poste Italiane has adopted to comply with the principles and provisions of the Decree. The course is part of the mandatory training programme and is therefore intended for all Poste Italiane Group personnel, with the exception of letter carriers, who will receive the same training in documentary form. The training initiative illustrates general topics of Decree 231 that are also of interest to the Subsidiaries. Nevertheless, it is the responsibility of each Subsidiary to assess any additional training needs in this area, taking into account the specific activities carried out by its employees and the operational and organisational peculiarities of the Company.
IT security Launched in January 2020, the online course “IT security” illustrates the most sensitive areas of the topic, highlighting its importance in relation to the many aspects of professional life on which it impacts. The course is also valid for the purposes of achieving the 30 annual hours of compulsory professional updating for Insurance Brokers (IVASS Regulation no. 40/2018).
Anti-money laundering and anti-terrorism Launched in April 2020, the online course “The Anti-Money Laundering Legislation”, available on the new HCM Learning platform, aims to provide personnel with the necessary knowledge to operate, with awareness and in full compliance with the provisions of the law, in all phases in which the system for preventing and combating money laundering is articulated. The course is an integral part of the Anti-Money Laundering Plan, and is valid for the purposes of achieving the 60 hours for basic training and the 30 hours annual compulsory professional updating for Insurance Intermediation personnel (IVASS Regulation no. 40/2018). For resources operating in the investment sector (consultants/informants), it is valid both for the 60-hour ESMA path, and for the 30-hour update training path, regulated by the ESMA/2015/1886 Guidelines of 22 March 2016 and the new Intermediaries Regulation no. 20307 of 15 February 2018 published by CONSOB.
The main managerial training initiatives focused on the following aspects: z innovation and economics, with reference to Industry 4.0 and digital mindset issues through periodic meetings with internationally renowned experts on business topics and access to external platforms for the proposition of market best practices; z engagement, with reference to the themes of inspiration and visioning through periodic “inspirational” paths with external testimonials on organisational managerial behaviours (management of complexity, courage, energy, inclusion, etc.), accompanied by subsequent moments of specific in-depth study through the “educational workshop” formula; z leadership, for the development of managers ’ communication skills and to which experiential training courses have been added, in synergy with the main Italian business schools, for the development of skills in managing complex situations, results orientation, generation of the context and complex thinking.
Initiatives dedicated to new managers continued in 2020 to develop key skills such as systemic vision, customer focus, ability to work in a team, leadership, cooperative orientation, decision -making in complex contexts and innovation.
Finally, particular attention has been paid to spreading growing sensitivity and awareness of the value of differences and inclusion through a programme called “Diversity&Inclusion”, which includes training initiatives in support of the company’s policy on gender, inter-culturalism, disability and generations.
The development system The Development and Performance Management Function supports the growth of the business through the enhancement of all Poste Italiane people, seizing their potential, developing their talent, supporting their motivation, consolidating their experience through growth opportunities. All these actions are the real engine of change towards the centrality of the person and the enhancement of the capabilities of each individual.
Poste Italiane’s well-established Development System is based on the following three pillars, which integrate an articulated set of processes, tools and methodologies: 1. Scouting: to map the pool of talented resources and plan their development in relation to the different level of expendability on target positions; 2. Management planning: aimed at identifying development priorities with a view to succession and the reduction of managerial risk; 3. Development: to accompany people in their growth and accelerate the development of skills in relation to company and business needs.
The first edition of “Libera il tuo talento” (Unleash your talent), the creative contest launched by CEO Matteo Del Fante and aimed at all Poste Italiane colleagues, ended in 2020. The initiative was designed to allow all the personnel of the Company to propose ideas on topics relevant to the business. The project is part of the wider framework of corporate initiatives aimed at promoting active participation and a culture of innovation. 300 employees, through the sharing of experiences, skills, curiosity, inventiveness and vision, discussed the theme of environmental sustainability, which was the topic of this first edition. The project developed in various steps that saw the formation of working groups established remotely to propose innovative ideas on the theme of the contest. Approximately 60 projects were submitted in the first phase, then selected and addressed in subsequent phases. After the various selection steps, 6 finalist teams continued their journey through classroom training on agile working methodologies and Design Thinking, which allowed “unconventional” team work, aimed at exploring the starting ideas. With the support of inter-functional tutors, each group produced a business plan and a video-pitch, which were carefully evaluated by the technical jury and the Innovation Committee. The work carried out by the teams, in spite of the difficulties due to the delicate historical moment that has influenced the pace and methods of work, has been of the highest level. During the final event, held in digital conference, the video pitches were shown and each team was able to receive feedback from the representative of the business function most impacted by the project. The first place was awarded to Team 22 with the project “Green E-ticket”, an idea that serves to consolidate among customers a simple daily practice to eliminate paper waste, digitising the reservation in the Post Office through SMS or app. Second place went to the “Green & Go” project, based on a programme of education and incentives for eco-sustainable driving with the aim of reducing CO2 emissions. In third place was the idea of developing rooftop gardens.
The redesign mainly concerned the following initiatives: z POP: is the process of identifying potential young people with limited company seniority, inserted, according to predefined criteria, in a process of assessment and professional orientation, functional to growth towards management area roles. The process is managed by internal Assessors, certified to conduct the assessment and subsequent development sessions in fully digital mode. In 2020, 19 editions were carried out, with the participation of 108 young employees, equally divided by gender.
In 2020, an evolutionary review of Performance Management was launched, which in recent years has been consolidated as one of the most widespread development processes in the Company, involving 100% of the company population, with unique numbers in the panorama of Italian companies. The current more challenging external context, which requires increasing engagement and motivation of people, combined with new social and health challenges, has contributed to push towards change, bringing to the fore the concepts of responsibility, autonomy and flexibility, drivers of the new process. Its evolution was made possible by the introduction of a new technological platform with new functionalities and targeted tools, such as self-assignment of objectives, self-assessment and continuous feedback.
Individual Business Coaching is an additional tool to support managerial growth, complementary to Mentoring paths. The programme was managed by a digital backbone carrier, which allows all phases of the process to be managed remotely. The initiative is aimed at Managers taking on wider responsibilities, who have prospects for expanding the role in the short term or who have potential to be strengthened with a view to future investment. A total of 98 participants were involved in 2020. In addition to coaching and mentoring, a counselling course was set up to support a number of managers working in the areas most exposed to the Covid-19 emergency.
The course was divided into two individual meetings, dedicated both to personal support to visualise how the emergency was dealt with, and at managerial level, to gain awareness and capitalise on the lessons learned, providing concrete and practical support to face the future. A total of 51 participants were involved in 2020.
Report on operations at 31 December 2020 6. Performance this broad context of business transformation through training and ad hoc projects, “Percorsi di sviluppo sul territorio” (Development paths in the territory) is included, an initiative that, in line with what was done in 2019, sees an internal and itinerant training path on the themes of organisational development, seen at 360°
as a compass for management choices, professional growth and career. The “Office 365 - Teams” platform was the main support tool for the implementation of many project activities. In 2020, the project involved a total of 69 participants.
In recent years, Poste Italiane has embarked on a process of transformation linked to the digitisation of products, services and processes, and the diversification of investments into new business areas, which has led to the need for new skills and resources within the Group. For this reason, with the aim of enhancing the value of the human capital present in the company, at the end of 2020, Poste Italiane launched the “Insourcing and re-employment” project, which achieves the replacement of resources employed in production sectors for which the number of employees is greater than actual needs, in new or strategic activities. Participation in the initiative is on a voluntary basis and is supported by a training programme aimed at developing the skills necessary to make placement in the new sectors of operation effective. In addition, the project represents a useful tool for the re-employment of “workers in fragile conditions” who, unable to carry out their duties on site due to the ongoing health emergency, have the opportunity to carry out different activities.
The Company has always placed the well-being of its employees at the centre of its interests with the aim of constantly improving their condition and that of their families. In 2020, the Group committed to assuming greater responsibility for taking care of the well-being of the people who work in the Company, through actions aimed at consolidating the welfare system and paying increasing attention to aspects related to the protection of the fragile, reconciliation, support for the younger generations and issues of high inclusion relevance. Due to the health emergency, many of the activities carried out were reshaped and implemented online, thus experimenting with new forms of interaction and involvement of personnel throughout the country.
The Group places people and their needs at the centre of its welfare strategy, implementing initiatives aimed at promoting the well-being of employees and their families
The interventions promoted aim to stimulate an improvement in the state of well-being of employees, allow easier living conditions and encourage better work performance. By promoting these activities, the Group aims to increase and strengthen the engagement of its personnel, which has always been considered a key element in ensuring a positive corporate climate and guaranteeing social well-being and productivity levels in line with business objectives.
Over 2020, the Group strengthened its communication channels with its employees, offering a simplification of services useful for the working and everyday life of its personnel. In a context characterised by social distancing, stimulating interpersonal relationships among employees was fundamental to maintaining a high sense of corporate belonging.
NoidiPoste, the innovative mobile channel in support of Poste Italiane’s employees
The app is not just an information tool, but it also aims to be a listening channel: in the “Your opinion counts” section, ad hoc surveys are proposed on various topics to find out the opinion of the Community and guide the development of services designed to improve the professional life of personnel. It is a process of involving Poste Italiane’s people in listening and discussing activities, in different ways, with the aim of enhancing personal interests, promoting new opportunities for aggregation, discovering needs and ideas about our initiatives, products and services, and analysing our point of view regarding the changes affecting the Company. Since the launch of the initiative, 16 surveys have been administered on different topics (from welfare to mobility management, from communication to new Poste Italiane products and services), with over 25,000 questionnaires completed.
workers awarded with the “Stella al merito del lavoro” (Star of labour merit) for their particular expertise and hard work
Distributed 180,000 hard copies of the monthly Poste News; produced 5,130 articles and recorded an average of 40,000 visits per month on the Postenews website
In 2020, in particular, 5 surveys were provided: z “DilloaNoidiPoste 2020” Your contribution is important for our company: join the community dedicated to the co-creation and improvement of Poste Italiane’s products and services; z “Poste Guidare Sicuri” Survey dedicated to Poste Guidare Sicuri, the new car protection offer reserved for employees and pensioners of Poste Italiane Group; z “Corporate volunteering: an internal survey promoted by Sodalitas and Poste Italiane” By virtue of the collaboration with Fondazione Sodalitas, with which the company has been working for many years on issues of Corporate Social Responsibility and social welfare, the survey on Corporate Volunteering is now underway; z “2020 Home-Work Mobility Survey” Annual survey that analyses employees’ home-work travel habits in order to identify, in the medium and long term, sustainable mobility solutions to reduce CO2 emissions in the interests of employees and the community; z “Let’s continue together” Listening survey to find out experiences and expectations regarding the company’s communication during these months of health emergency.
The Company has strengthened its focus on the social and family aspect of its employees to support the parental role and launched, in October 2020, an online entertainment platform “Virtual Academy” aimed at the children of employees in the age group up to 11 years. A project that offered educational content and study support and introduced listening spaces with personalised counselling sessions for parents, run by experts in the field to deal with the daily problems of family life. In the three months of activity, the number of subscribers was over 500, distributed throughout the country, with access to content that exceeded 2,000 total uses. An educational welfare programme that valued the digital component of learning and evolved consistently with the need for restarting and actively involving families.
In 2020, the corporate day-care service continued at Rome and Bologna offices, dedicated to the children of the Group employees and a number of third-party users from municipal entities. The service, extended to over 90 families, following the Covid-19 pandemic and the institutional prescriptions deriving from the lockdown, had a temporary suspension from March to July, which was integrated with virtual modalities aimed at guaranteeing educational continuity in support of children’s growth and family conciliation. The service resumed in September, in line with the organisational and management indications for prevention and health protection outlined by the competent bodies. The educational project, characterised by attention to the values of eco-sustainability and inter-culturality, was supported by the introduction of new ways of dialogue aimed at fostering the educational alliance with families to meet the real needs of the moment, through innovative ways of communication. In particular, seminars to support parents on current issues have been held, also online, and a new web platform has been activated for the management and interactive communication with families on the activities of the daycare, providing a virtual room and simplifying administrative processes.