Renewable energy for a sustainable future
"Unlike most energy companies, which have only recently started a process of ecological transition, Italgen is 'natively renewable' having started operating as a producer of energy from hydroelectric sources at the beginning of the 20th century" Luca Musicco, CEO and General Manager of Italgen, explains with a certain pride. Although formally the company was founded in 2001 as a spin-off of the energy branch of Italcementi, Italgen's roots actually date back to an ambitious plan for the construction of renewable energy production plants, promoted in the early 1900s to serve the “Ditta Pesenti” of Alzano Lombardo, which produced cement. From the very beginning, sustainability has been an integral part of the company's philosophy, a commitment that has been further consolidated over time, also thanks to the ESG investments promoted first by Italcementi and today by Italmobiliare.
A turning point in the history of Italgen was 2016, when the company became a portfolio company of Italmobiliare. "From that moment on – explains Musicco – we first started a transformation process, with an initial phase of automation and remote control of the plants, a second phase that involved changing the business model, and a third phase which saw total disinvestment from all projects abroad; then, starting from 2021, we launched an intense M&A activity in hydroelectricity and developed the first greenfield projects in photovoltaics, integrating the industrial vision with the modern values of sustainability. This process has resulted in significant and diversified growth in both energy mix and geography: from the 17 hydroelectric plants managed in 2016 in northern Italy, Italgen has expanded its portfolio to 30 hydroelectric derivations and 6 photovoltaic plants distributed throughout the country. By doing so, in just 3 years we have gone from 57 to 82 MW (+45%) and our plan is to exceed 100 MW already in 2025, aiming then to double output in the following years." A growth plan supported by ambitious ESG programmes integrated into the development strategy, which aim to achieve challenging objectives that are constantly evolving.
"In 2021 we launched a three-year Strategic Sustainability Plan structured around three main pillars (green mission, development of people and communities, and business continuity) which aims to consolidate Italgen's role as a protagonist of the energy transition. The objectives were defined through the mapping of the priority sustainable development objectives, an analysis of the stakeholders' priorities and a comparison with the Italian leaders in the energy sector." In 2023, Italgen joined the UN Global Compact, committing to integrate the Ten Core Principles into their corporate strategies and contribute to the SDGs. These advances have been recognized by important sustainability assessments, including the ESG rating "A - Excellent" from CRIBIS and Gold Medal recognition in the EcoVadis Sustainability Rating, which places Italgen among the 5% of companies with the best performances in terms of the environment, human rights, ethics and sustainable purchasing. "These are milestones that we are very proud of – explains Musicco – because they bear witness to our commitment to a form of development that respects people, the environment and communities through the integration of ESG levers in every area of the business."
In April 2024, Italgen also adopted the legal status of a Benefit Company, completely decarbonising its corporate purpose and formalising its commitment to sustainability. "A choice that protects Italgen's mission in the long term as a producer and distributor of electricity from exclusively renewable sources, committing the company to operate and report its business in a responsible, sustainable and transparent way, identifying - alongside profit objectives - common benefits that we are committed to achieving" says Musicco.
Italgen's ESG strategy also involves dialogue and concrete initiatives to support local communities and the territory; it also constitutes an important starting point in the dialogue with local administrations when new projects are presented. "Italgen has never sold a plant built in Italy – Musicco states proudly – what we create is born to last, which is why we manage each investment with the utmost care and attention, always aiming to create a deep and lasting bond with the local community. We try to integrate, with the awareness that we will be there forever; for this reason we are committed to building solid roots and contributing to the well-being of the local area."
A significant example is the project developed by Italgen in Modugno, Puglia, which transformed a former limestone quarry by means of reclamation and environmental redevelopment. Italgen has built two photovoltaic systems and, as part of the project, has "donated to the local authority a natural area of over 20 hectares, which increases the green surface of the town by 5 times, also creating a cycle/pedestrian path with an educational trail that crosses the park and a panoramic area with a view of the lake inhabited by various species of plants and animals – explains Musicco. To preserve biodiversity and enhance ecosystem services, landscape architecture experts, biologists and agronomists were involved."
There are also many initiatives developed by the company in the territories in which it operates and which combine passion for sports, history and culture. These include sponsorship of the “Mille Gradini”, a much-loved cultural walk in the city of Bergamo that involves thousands of people every year; then there was the contribution for the construction of the Skate Park of Villa di Serio, part of a larger redevelopment project of the area, and the opening of the Vaprio d'Adda power plant on the occasion of the "FAI Days" organised by the Fondo Ambiente Italiano. Also the support for the training project, "A Scuola di Energia", which every year brings over 1000 students to discover the cycle of energy production from renewable sources, to the "Day of school and solidarity in the mountains", organised by UNICEF together with CAI - the Italian Alpine Club, and the "Grandi Spettacoli per i Piccoli" programme of the Teatro alla Scala, which aims to bring a growing number of children closer to theatre and culture.
Another fundamental pillar of Italgen's sustainable commitment are the people "who are our main resource – Musicco underlines – and who with their professionalism, dedication, passion and enthusiasm make the difference every day and contribute to the success of our company." Italgen organises a team building event every year for its employees and has recently completed the conversion of part of the buildings and areas of the former Villa di Serio power plant into a clubhouse with a living area, refreshment area, changing rooms. There is also a large outdoor green area that is used for convivial moments involving the families of employees or ex-employees, with whom a barbecue is organised a couple of times a year. "If we assess the benefit that the Club House has brought compared with the investment, we can safely say that it is perfect – explains Luca Musicco. It is a space used on a day-to-day basis by dozens of people, which represents an added value for everyone. Furthermore, confirming our holistic approach to ESG issues, the area is heated by our renewable energy, without any increase in company consumption." It is also important to remember that every year Italgen rewards the sons and daughters of employees who have distinguished themselves in their studies, completing the school/academic year on time and with good grades. "A tradition that we have proudly carried forward since the company was founded in 2001, and which over time has led to the awarding of over 200 prizes."
And it is precisely of colleagues that Musicco thinks, looking to the future "If we have grown so much in these years it is thanks to them, as they have always given their all without ever holding back. The goal is to continue on this path, while promoting an ever-improving work/life balance."
GREEN ENERGY, CERTIFIED
There are two types of energy companies on the market: “traditional” ones that claim to sell 100% green energy and those that actually do so. Italgen belongs to the second type because, in addition to producing only 100% green electricity, is also able to sell its own Guarantees of Origin (GO) to its customers.
GOs are electronic certificates that use a circulation mechanism very similar to the blockchain and, once generated by the energy supplier through a centrally managed electronic platform, they are cancelled and delivered to the customer. In this way, the customer has the guarantee that the quantity of 100% renewable energy that he is purchasing has actually been produced by the supplier, and that this energy has not been marketed various times to different customers.
The integrity and traceability of the system are ensured in Italy by the Energy Services Manager, which is responsible both for managing the GO exchange platform and for certifying each individual renewable energy producer plant, preventing fraud and ensuring the transparency and traceability of the entire system.
All of the energy sold by Italgen to Italmobiliare Portfolio Companies is certified by GO, so in addition to having the guarantee of purchasing only and exclusively energy produced from 100% renewable sources, the companies can completely eliminate their Scope 2 emissions.