to download Telecom Italia Annual Report 2011 - Company Reporting

Sustainability Section
Introduction
For the past 15 years, Telecom Italia has been publishing a Sustainability Report in which it analyses the
Company's performance in respect of the stakeholders with whom it interacts on a daily basis.
As a demonstration of the importance attached to this subject, as of 2003, information and indicators
regarding sustainability have been incorporated into the Report on operations, thus confirming the
Group's intention to present financial and non-financial data together.
References and Governance
The Telecom Italia Group operates with the conviction that business activities must be conducted in a
way that considers the expectations of stakeholders, in accordance with the principles established by
internationally recognised standards. In defining and implementing its sustainability strategies and
programmes, the Group makes reference to the guidelines issued by the main international Corporate
Responsibility guidance and standardisation organisations.
In 2002, Telecom Italia signed up to the principles of the main point of reference at the global level, that
is, the Global Compact, which was launched in 2000 by the UN to promote the protection of the
environment, respect for human rights and working standards, and anti-corruption practices.
The Sustainability Management System also takes into account the principal reference regulations and
international standards:
European Commission directives, recommendations and communications;
• the OCSE guidelines directed at multinational enterprises;
ISO9000 and ISO14000 quality and environmental management system certifications;
• principles of the International Labour Organization (ILO) Conventions on respecting the fundamental
rights of workers;
• the Social AccountAbility 8000 standard (SA8000), aimed at promoting respect for human rights and
working conditions by companies and their supply chains;
• AA1000 AccountAbility Principles Standard (APS 2008) drawn up by AccountAbility, an international
organisation which promotes collaboration between stakeholders, and lays down standards and
guidelines on matters of sustainability. The APS 2008 standard establishes the principles a company
must respect in order to define itself as accountable;
• ISO26000 guidelines presented at the end of the year for private and public organisations of all
sizes.
Since 2009, the Committee for Internal Control and Corporate Governance has been supervising
sustainability activities in general, including projects conducted by the Telecom Italia Foundation, to
ensure they are consistent with the Group's ethical values.
Placement in the indexes
Sustainability indexes are stock indexes in which securities are selected not only on the basis of
economic-financial parameters but also in the light of social and environmental criteria. The selection
process is carried out by specialised agencies that assess companies on the basis of publicly available
information or questionnaires, taking account of opinions expressed by the media and stakeholders.
Inclusion in these indexes is of strategic importance to companies because of the positive effects on
their reputation and because, in addition to the pension funds and ethical funds, an ever increasing
number of investors favour sustainable companies, considering them to be less risky and more
promising in the medium to long term.
Taking part in the process of evaluation is, moreover, a timely moment for reflection within the company
on the results achieved. The suggestions of the rating agencies at the end of the process are taken into
consideration when planning improvement actions in the future.
In 2011, for the eighth year in a row, Telecom Italia has been confirmed in both categories of the Dow
Jones Sustainability indexes:
Report on Operations Sustainability Section 106