Italgas presents its 2022-2028 Strategic Plan
8.6 billion euros investments to complete the digital transformation of assets, create one of the main national players in the energy efficiency sector, continue to play a leading role in achieving EU climate targets.
Turin, June 15th, 2022 – Italgas Chief Executive Officer, Paolo Gallo, is today presenting to analysts and investors the Strategic Plan of the Group for the 2022-2028 period, which was approved yesterday by the Company's Board of Directors chaired by Benedetta Navarra. The new Plan envisages an investment program of 8.6 billion euros, with an increase of 0.7 billion euros compared to the previous Plan presented last year. The increase in investments (+8.9%) is driven by the digital transformation of assets, the extension of the network and the initiatives aimed at consolidating in the energy efficiency sector that will enable the Italgas Group to continue to play a leading role in achieving the EU climate targets; in addition, the 2022-2028 Strategic Plan integrates the future commitment of Italgas in Greece with the awaited acquisition of Depa Infrastructure. The strategic choices made in recent years by the Group have anticipated the approach of national and EU institutions towards the decarbonization and the containment of greenhouse emissions, which has materialized in the Fit for 55” and in the REPowerEU targets. The new 2022-2028 Plan is structured along three main pillars: (i) continuation of the digital transformation, repurposing and network extension program to equip the country with cutting-edge infrastructures capable of receiving and distributing renewable gases such as biomethane and green hydrogen; (ii) consolidation in the energy efficiency sector with the aim of placing Italgas among the main operators in the sector; (iii) new growth opportunities through ATEM tenders and M&A in the gas and water sectors, and development of the Greek market. In pursuit of these goals, Italgas will further develop the skills of its people – also through insourcing and an internal Academy – and it will use a solid and efficient financial structure ensuring an appropriate return for shareholders. The Plan pivots on ESG factors and responds to the challenges of sustainability by setting objectives for 2028 and 2030, in line with the carbon neutrality target for 2050, and further raising those defined last year in terms of emissions reduction, energy efficiency, competences, and people development to make the change effective. In Greece, the Italgas Group expects to be able to complete the acquisition of DEPA Infrastructure over the next few months and to integrate and make the investment plans, currently prepared by the operators involved in the transaction, consistent with its vision.
Highlights
Paolo Gallo, CEO of Italgas, commented: “In a European scenario that has REPowerEU as the new North Star to strengthen the resilience of the energy system and accelerate the ecological transition, Italgas can reap the benefits of a vision that had identified digital, flexible and smart networks as the main enabler of the decarbonization process. With 8.6 billion euros, a further increase compared to the investment program presented last year, the Group is confirmed as one of the leading industrial companies capable of putting its design, spending and value creation skills at the service of the objectives of sustainable development of the country and of the European Union. The largest share of the investments is once again destined for the extension, digital transformation and repurposing of the distribution network in order to create in time the conditions for the widespread use of the new gases, such as biomethane, green hydrogen and synthetic methane, which we will soon have to receive in our networks in increasing quantities. After twenty years we return to having objectives beyond national borders: this Plan allocates 1.8 billion euros to Greece. We expect to complete the acquisition of DEPA Infrastructure over the next few months and thus be able to verify the correspondence of the investment programs of the three operating companies with our vision and the decarbonization targets set under the REPowerEU framework. The role of energy efficiency in the Group's development programs is growing. With 340 million euros, almost double compared to the previous plan, we aim to create one of the main players at national level, with a focus on innovation and digitization, contributing to the consolidation of a still very fragmented sector. Innovation remains our main growth driver, the Digital Factory is the core of our cultural change: a place of 'contamination' around which we have developed an approach to open innovation that allows us to meet the most advanced startups and SMEs in the world. The ability to manage innovation and put it to value will ultimately pivot on our people, to whom we will continue to allocate important resources for training, for the creation of new professionals and to attract best talents, always paying great attention to the issues of Diversity & Inclusion and female leadership”.
Turin, June 15th, 2022 – Italgas Chief Executive Officer, Paolo Gallo, is today presenting to analysts and investors the Strategic Plan of the Group for the 2022-2028 period, which was approved yesterday by the Company's Board of Directors chaired by Benedetta Navarra. The new Plan envisages an investment program of 8.6 billion euros, with an increase of 0.7 billion euros compared to the previous Plan presented last year. The increase in investments (+8.9%) is driven by the digital transformation of assets, the extension of the network and the initiatives aimed at consolidating in the energy efficiency sector that will enable the Italgas Group to continue to play a leading role in achieving the EU climate targets; in addition, the 2022-2028 Strategic Plan integrates the future commitment of Italgas in Greece with the awaited acquisition of Depa Infrastructure. The strategic choices made in recent years by the Group have anticipated the approach of national and EU institutions towards the decarbonization and the containment of greenhouse emissions, which has materialized in the Fit for 55” and in the REPowerEU targets. The new 2022-2028 Plan is structured along three main pillars: (i) continuation of the digital transformation, repurposing and network extension program to equip the country with cutting-edge infrastructures capable of receiving and distributing renewable gases such as biomethane and green hydrogen; (ii) consolidation in the energy efficiency sector with the aim of placing Italgas among the main operators in the sector; (iii) new growth opportunities through ATEM tenders and M&A in the gas and water sectors, and development of the Greek market. In pursuit of these goals, Italgas will further develop the skills of its people – also through insourcing and an internal Academy – and it will use a solid and efficient financial structure ensuring an appropriate return for shareholders. The Plan pivots on ESG factors and responds to the challenges of sustainability by setting objectives for 2028 and 2030, in line with the carbon neutrality target for 2050, and further raising those defined last year in terms of emissions reduction, energy efficiency, competences, and people development to make the change effective. In Greece, the Italgas Group expects to be able to complete the acquisition of DEPA Infrastructure over the next few months and to integrate and make the investment plans, currently prepared by the operators involved in the transaction, consistent with its vision.
Highlights
- Total net investments Plan of 8.6 billion euros (+700 million euros compared to previous Plan);
- 4.5 billion euros net for the development, digitization and repurposing of the Italian gas distribution network;
- 1.8 billion euros for Atem tenders and 1.8 billion euros for Greece;
- 340 million euros to accelerate growth in the energy efficiency sector;
- Reduction of greenhouse gas emissions Scope 1 and 2 by 34% by 2028 and by 42% by 2030, Scope 3 (supply chain) by 30% by 2028 and by 33% by 2030, decrease in energy consumption by 27% by 2028 and by 33% by 2030 (baseline 2020);
- “Net Zero goal” by 2050;
- Strong attention to generational change, the engagement of the Group’s people as protagonists of the ecological transition and focus on training: the 3 levers that enable change;
- Optimization of the financial structure, with maintenance of the ratios in the solid investment grade area;
Paolo Gallo, CEO of Italgas, commented: “In a European scenario that has REPowerEU as the new North Star to strengthen the resilience of the energy system and accelerate the ecological transition, Italgas can reap the benefits of a vision that had identified digital, flexible and smart networks as the main enabler of the decarbonization process. With 8.6 billion euros, a further increase compared to the investment program presented last year, the Group is confirmed as one of the leading industrial companies capable of putting its design, spending and value creation skills at the service of the objectives of sustainable development of the country and of the European Union. The largest share of the investments is once again destined for the extension, digital transformation and repurposing of the distribution network in order to create in time the conditions for the widespread use of the new gases, such as biomethane, green hydrogen and synthetic methane, which we will soon have to receive in our networks in increasing quantities. After twenty years we return to having objectives beyond national borders: this Plan allocates 1.8 billion euros to Greece. We expect to complete the acquisition of DEPA Infrastructure over the next few months and thus be able to verify the correspondence of the investment programs of the three operating companies with our vision and the decarbonization targets set under the REPowerEU framework. The role of energy efficiency in the Group's development programs is growing. With 340 million euros, almost double compared to the previous plan, we aim to create one of the main players at national level, with a focus on innovation and digitization, contributing to the consolidation of a still very fragmented sector. Innovation remains our main growth driver, the Digital Factory is the core of our cultural change: a place of 'contamination' around which we have developed an approach to open innovation that allows us to meet the most advanced startups and SMEs in the world. The ability to manage innovation and put it to value will ultimately pivot on our people, to whom we will continue to allocate important resources for training, for the creation of new professionals and to attract best talents, always paying great attention to the issues of Diversity & Inclusion and female leadership”.