Energy communities, customer care, highly decarbonisation-focused business, and a clear plan: “Make Italy Green”. E.ON Italia CEO Frank Meyer is an optimistic visionary who is working tirelessly to position the German multinational as a key competitor in the Italian market. Although a considerable portion of its energy generation comes from fossil-based thermoelectricity (5GW), the Group’s Italian branch is increasingly pushing for the renewable model and the enhancement of the company’s ESG ranking. We met Frank Meyer on the sidelines of the launch of E.ON’s #MakeItalyGreen campaign, where a brilliant flash mob illustrated the hydrological situation in Lake Garda, highlighting the need to accelerate with regard to the climate crisis.

How important are ESG rating systems in today’s global economy?

ESG ratings are an assessment framework through which aspects relating to environmental, social, and governance matters within a company, fund, or country are systematically analysed and measured. For some time now, E.ON Group has achieved good results in the main sustainability assessments, such as, for example, the CDP (formerly Carbon Disclosure Project) “A List” classification, the “Robust” assessment from EuroNext/V.E., or the AA rating from MSCI ESG Research. ESG targets have also become increasingly important for E.ON Italia because they represent a clear vision of the results that we aim to achieve to contribute to a sustainable future for all. ESG objectives must become as fundamental as financial targets. And it is also important to communicate them externally: at E.ON, as a company operating in the energy sector, we must and want to lead by example, working constantly to create long-term value for all our stakeholders.

What are E.ON Group’s ESG targets?

The Group has focused primarily on certain areas. One is the reduction of CO2 emissions to achieve climate neutrality by 2050 and reduce Scope 1 and 2 (direct and indirect emissions from energy consumption) by 75% by 2030, bringing them to zero by 2040. It is very important to start by looking at ourselves, our operations, our mobility, and our buildings. The next step is to assist our clients and partners in the transition.

And in Italy?

For Italy, we have defined ten very concrete ESG priorities. Firstly, as E.ON Italia we want to be more ambitious in achieving climate neutrality: by 2030, we want to reach net zero for Scope 1 and 2 emissions, as well as for those emissions linked to operational activities such as energy use in our regional offices, corporate mobility (commuting, company fleet, business travel), billing, back office outsourcing, and IT services.
In addition to CO2, we have other concrete ESG targets because we strongly believe that sustainability for E.ON in Italy should not just be a way to do business but should build real purpose. As a company that offers residential, industrial, and public sector clients renewable energy and energy solutions that enable the reduction of consumption and emissions, we believe we have a role and a responsibility in Italian society to accelerate the energy transition and decarbonisation. This is why we have given life to a real green movement, to foster a widespread awareness that can bring together and activate people in a concrete effort toward the creation of a more sustainable future.
Speaking of concrete projects, for example, we will continue our collaboration in the education sector. Last year, we got over 17,000 students involved in our Schools project, providing useful tools and opportunities for discussion on topics linked to responsible energy use, climate change, and the protection of our planet. We want to continue into the future because, to have a positive impact, we believe it is vital to start by educating new generations regarding sustainability. The survey we carried out with Pleiadi of approximately 850 teachers throughout the whole country highlighted that 60% of students see collective action as much more impactful than individual behaviours in favour of the planet, recognising the importance of coming together and sharing common values to create positive change. This is in line with our ambition to create a movement for making Italy greener.
This movement also takes shape through our projects for the protection of the seas in collaboration with UNESCO and Filicudi Wildlife Conservation, and for reforestation in Italy with Rete Clima, where we get our community actively involved.
A third aspect that is vital for us at E.ON Italia is people centricity, caring for our people. This year we have set up mindfulness initiatives, offering all employees the possibility to explore neuropsychological matters, and launched a pathway to ‘liberate’ their potential. We started by involving our management teams last year, and this year we extended the possibility to take part in workshops and mindfulness sessions to everyone in the company.

Are these targets measurable?

Each of our ESG targets has at least one clear and measurable KPI. We can measure the target linked to CO2 emissions and monitor its progression over time, but this is also true for those actions that impact the organisation and the health and well-being of our people. We can, for example, measure the hours of volunteering that our collaborators carry out within third-sector organisations, but also the number of trees and woodland that we plant or the number of schools and students we work with.
Another point is the care for the health and safety of our collaborators. We are leaders in the number of installations of green solutions, such as solar photovoltaic. The challenge, therefore, is to keep numbers high in terms of delivery and ensure they are accompanied by excellent levels of safety, which must always remain a priority.

What results have you achieved in terms of gender equality?

Gender equality within our company is a very important goal for us. Obviously, skills are the leading factor, but we are also working to this end and seeing the first results: since last April, our Board of Management has been extended and now includes a woman. We also want to expand this example across our senior management and all levels of management.

Are there also women technicians?

Technician roles are still primarily filled by men. This is not only true at E.ON but across the entire sector. However, I foresee good opportunities for growth in this field.

What are E.ON Italia’s objectives in terms of governance?

We want to incentivise sustainability through internal governance instruments, coordinated by the Sustainability & Innovation Committee that we set up at the end of last year, giving it the scope to correctly assess matters relating to sustainability and innovation.
Social Responsibility is a result of the choices that direct the organisation’s activity toward behaviour that is respectful in equal measure of its collaborators and the society and environment in which it operates. Integrity, transparency, and social responsibility are the values on which E.ON Italia’s activities are based and they apply to the entire corporate community as well as external collaborators.

How have you structured the target of bonuses linked to management’s non-financial performance?

We have different components for management bonuses: one part linked to financial targets, one to corporate culture, and a third that is dedicated to our digitalisation and new business targets, such as with our work on energy communities or the growth linked to quality standards in terms of installations and new products and services.
Sustainability is part and parcel of E.ON Italia’s business. The effective implementation of a sustainability strategy requires the active support of the whole organisation’s leadership team. To encourage and reward this support, part of the variable remuneration distributed to executives and directors is determined by the achievement of sustainability targets within their departments. These targets are expressed through quantitative metrics. Members of the Management Board also have yearly targets linked to the company’s sustainability performance in terms of the reduction of carbon emissions, health and safety in the workplace, client loyalty, and ensuring diversity in the workplace.

Image: Envato Elements