As a pioneer in the field of corporate sustainability in Italy, Telecom Italia has established a new

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1 #WESHARETHEFUTURE #wesharethefuture expresses the Corporate Social Responsibility vision of Telecom Italia, systematising all the Company s sustainability initiatives and projects. As a pioneer in the field of corporate sustainability in Italy, Telecom Italia has established a new strategy based on creating economic and social value, developing Corporate Social Responsibility into Corporate Shared Value (CSV) with the aim of linking economic and financial results to the social progress created by responding to the needs expressed by the sectors in which it operates. This innovative process aims to guide the company s strategic decisions and measure their financial and non-financial performance in order to meet the legitimate demands of stakeholders. Corporate Shared Value: BUSINESS & SOCIAL SOCIAL social value SHARED shared value BUSINESS business value Telecom Italia s role is to allow everyone to seize the opportunities offered by the world of ICT, maintaining a balance between three dimensions: environmental sustainability: implementing projects and initiatives aimed at reducing the environmental impact of its activities and those of its customers, in addition to promoting more sustainable lifestyles; social sustainability: disseminating a digital and innovation culture as an enabling factor for the development of people and the countries where it operates; economic sustainability: creating value, in the long term, for shareholders and stakeholders in general. The Group is aware of the responsibilities that arise from its role as a market leader in electronic communication and therefore an enabler for improving well-being in the various contexts in which it oper- III

2 ates. Telecom Italia is also strengthening its commitment through its active contribution to achieving the country s digitisation objectives as defined in the Italian Digital Agenda, developed by the Italian government by transposing the directives set out by the EU in the European Digital Agenda. The macro areas stated in the Digital Agenda and main actions taken in this field by the Group are listed below: Enhancing the Network investments in IT infrastructure (broadband and ultra-broadband). Improving the efficiency of government local offices and secure use of public services online from investments in healthcare, justice and education digital products and solutions to digital identity and big data management solutions. System continuity and respect for privacy investments in network and information security and safe Internet use awareness projects. Developing the digital skills of people and companies projects to disseminate digital culture and reduce the digital divide. Attractiveness of territories and good management of urbanisation smart solutions allowing urban spaces to be management smartly and sustainably, promoting a reduction in environmental impacts and more efficient services. Growing the market and strengthening companies company digitisation solutions, from cloud services to mobile payment solutions. The Group has identified three strategic areas of intervention which contribute to creating value for the Company and for the sectors in which it operates, in response to the social needs and objectives of the Italian Digital Agenda: Digitisation, connectivity and social innovation. Digital culture Environmental protection Digitisation, connectivity and social innovation. In this area, the Company stands as a digital ecosystem enabler, connecting companies, government bodies and local communities, so as to create positive synergies for development. The contribution our Group makes to developing the sectors in which it operates doesn t stop at infrastructure projects but ranges from digital solutions for government local bodies to cloud services for businesses, digital platforms for healthcare, applications for people with disabilities to technologies for reducing energy use by cities and companies. Further initiatives have been developed in this context, including projects for the digital inclusion of women, both within the Company and outside, and the crowdfunding platform that receives requests for donations and other non-profit-making financial assistance for people intending to implement environmental protection and social projects. Furthermore, Telecom Italia is a founding member of the Italian Digital Champions association. Digital Champions are innovation ambassadors appointed by each Member State of the EU to promote the benefits of an inclusive digital society and make their citizens digital, working with communities, businesses, IV

3 governments and academia. The Company is also supporting the digital innovation process of SMEs to enhance Made in Italy products, developing social education campaigns for the correct use of terminals. Digital culture. For growth and social development to be achieved in the digital era, all citizens must be able to acquire the skills they need to make full use of the benefits offered by the Web and new technologies. In the knowledge that an effective schooling system and adequate standards of education and training play a fundamental role in the growth and socio-economic development of the country, Telecom Italia is committed to implementing projects to support digital education and schooling, including by supplying infrastructure and tools. This has led to the EducaTI digital education multi-project aimed at supporting innovation in Italian schools. A concrete commitment that is fulfilled by training teachers and students to use new technologies, introducing programming in schools, raising awareness about the responsible use of the Web and combating phenomena like cyber-bullying. Integration with the Group s other initiatives, including the introduction of new models and the testing of advanced and inclusive digital education platforms, in addition to initiatives to digitise traditional cultural environments, complete Telecom Italia s commitment to promoting digital education. Environmental protection. Telecom Italia has launched both projects to improve the efficiency of its operations and initiatives aimed at reducing the environmental impacts of its customers. In 2014, Telecom Italia entered a agreement, that also cover 2015, to buy guarantees of origin which certify electricity generated by renewable sources, drastically reducing its carbon dioxide emissions. The Company continues to market energy efficiency products and services and to implement customer involvement and awareness-building initiatives, including the IORiciclo project, a programme that facilitates the transition to devices that allow next generation network services to be used and provides guidance on how to reuse or dispose of used and obsolete handsets. ICT solutions that allow the smart management of cities and productive open spaces, thanks to IoT, and limiting the environmental footprint of its customers, are examples of how social and economic value can be generated for the community and a contribution can be made to environmental sustainability. All this takes place thanks to the 66,000 people who contribute every day to achieving the Group s strategy. In order to respond to their requirements, in addition to contributing constantly to improving people s quality of life, Telecom Italia has started to implement its new People Strategy, launching a radical review of activities and processes that involve the staff, from management to training, remuneration to organisation, involving numerous managers from all over the Company. Nine working groups were therefore set up with the aim of calibrating and shaping motivational, training and organisations techniques and processes to ensure that the Company is able to face the technological, market and financial challenges to which it is increasingly subjected. V

4 Over the past year, a survey was carried out of CSV projects that meet the demands of the Digital Agenda and the country s key Social Needs, as shown in the following diagram and discussed in detail in the final chapter. EDUCATION AND TRAINING "EducaTI" and "Scuola Digitale" QUALITY OF SERVICES Products, services and offers promoting inclusivity RESEARCH AND INNOVATION Open Labs, Working Capital Big Data SECURITY Digital Identity, Privacy Protection Solutions INNOVATIVE AND SECURE IT INFRASTRUCTURE Investments in broadband and ultra broadband ECONOMIC WELL-BEING Network infrastructure, enabling factor of a digital ecosystem TELECOM ITALIA GROUP PROTECTION OF THE ENVIRONMENT AND THE LANDSCAPE Energy Efficiency solutions and Environmental Impacts (IORiciclo) INNOVATION CULTURE School technological innovation EFFICIENCY AND TRANSPARENCY Real time data and information HEALTH Digital healthcare QUALITY OF WORK Telework, Nurseries IT PROJECTS, PRODUCTS AND SERVICES FONDAZIONE TELECOM ITALIA CORPORATE SOCIAL RESPONSIBILITY DEPARTMENT VI

5 Complementing the Group s commitment, the Fondazione Telecom Italia renewed its mission throughout the year, in line with the Company s activities, by promoting a culture of change and innovation and acting according to three guidelines for the development of projects in the fields of: education innovation culture social empowerment The Foundation s renewal and revitalisation process includes launching a pool of consistent projects that strongly enhance innovation culture. In fact, according to a recent study on foundations 1 in Italy, for the value of a foundation to benefit the group to which it belongs, strong synergy and cohesion has to exist between the two entities. Foundations are considered to be an important component of Corporate Social Responsibility: activities must be synergistic to be effective. Marcella Logli Head of Telecom Italia Corporate Social Responsibility Dpt. Director General Fondazione Telecom Italia 1 Ipsos Corporate Social Responsibility according to Italians: knowledge and opinions, February VII