to download Telecom Italia Annual Report 2011 - Company Reporting

Reporting
Scope and criteria
In accordance with the principle of materiality, and unless otherwise stated (see the Human Resources
chapter), the sustainability report covers only subsidiaries with revenue greater than 300,000 Euro and
more than 40 employees which are included in the Telecom Italia’s Financial Statements, (excluding
discontinued companies and non-current assets held for sale).
The Business Units referred to in the tables, unless otherwise stated, are:
• Domestic: telecommunication services and infrastructure and other associated activities carried out
in Italy
Brazil: services and activities of Tim Brasil
• Argentina: services and activities of the Telecom Argentina Group
• Media: activities of the Media Group
• Olivetti: activities of the Olivetti Group
In accordance with the triple bottom line (*) approach, the company's economic and financial data has to
be analysed and represented together with the environmental and social results. Only an overall analysis
of company performance including all three dimensions can provide stakeholders with comprehensive
information and allow their interests to be balanced in a way that guarantees the success and survival of
the company in the medium and long term. For this reason, the Group has included sustainability data in
the Consolidated Financial Statements since 2003, pre-empting the implementation of European
Directive 51/2003, which was transposed in Italy by Legislative Decree No. 32 of February 2, 2007.
The Sustainability Report is based on a multi-stakeholder approach involving the joint analysis of actions
taken in respect of the main stakeholders with whom the Company interacts. It is drawn up on the basis
of a system of around 200 Key Performance Indicators (KPIs) relating to all the areas in which the
Company has a major impact and measuring its capacity to respond as well as the degree to which it
has achieved the established objectives. The KPIs are defined on the basis of:
• the analysis of the Global Reporting Initiative (GRI), an international organisation which has
developed universally applicable guidelines for drawing up sustainability reports that facilitate
comparisons between companies;
the demands of stakeholders;
• the questionnaires sent out by the leading rating agencies for the purpose of admission to the stock
market sustainability indexes;
• the experience gained over the 15 years during which the Company has performed this activity.
The KPIs are managed on the CPM system, a dedicated application used also for the management of
financial data.
The AA1000 standard
The Sustainability Report is based on the AA1000 AccountAbility Principles Standard (APS) 2008,
adopted as of the 2009 Financial Statements, and set out below:
• inclusivity: identification of the stakeholders and their expectations, and the development of
strategies of involvement aimed at improving the Company's sustainability performance;
• materiality: identification of the important issues for the organisation and its stakeholders;
• responsiveness: a description of the initiatives carried out by the Company to meet the expectations
of stakeholders.
The adherence of Telecom Italia's financial statements to the AA1000 standard is verified by the
PricewaterhouseCoopers auditing company.
(* ) This approach was defined for the first time by John Elkington in 1994 in the article “Towards the sustainable corporation: Win-win-win business
strategies for sustainable development". California Management Review 36, no. 2: 2: 90-100.
Report of Operations Sustainability Section 108