Initiatives in communities

In keeping with its intention to return value to civil society and local communities from its activities of developing and maintaining the electric grid throughout the country, in 2010 Ternai confirmed its support for social, cultural, and environmental initiatives.

Terna’s corporate giving activities consist mainly in financial support for charitable initiatives in the form of donations and sponsorships. In addition it dedicates resources to organizing its own community initiatives, such as the Terna Prize –  the transfer of corporate property, and the support provided in the form of work dedicated by Terna employees to a number of initiatives, in particular the paid hours devoted to volunteer activities.   

As provided for by Terna’s Code of Ethics – contributions are never made to political parties or their representatives   

To have accurate reporting on these matters at its disposal for both internal monitoring and external comparison, Terna joined the London Benchmarking Group (LBG), an international group of companies engaged in corporate giving that developed the standard of the same name for classifying community initiatives and the related inputs (cash and in-kind donations, employee time) and outputs (benefits actually generated by the initiatives for both the ultimate beneficiaries and the company).   

The application of the LBG model entails discontinuity in this regard with the previous Reports. The latter provided the figures regarding donations and sponsorships, which in 2010 amounted respectively to 575,035 and 958,667 euro (659,425 and 1,100,458 euro in 2009). To allow at least a partial comparison, it should be noted that:

  • The donations have been broken down into gifts and investments in the community (projects that are more structured and enduring). In particular, the latter group includes the “Kami”,  and “Vote your value”.
  • Sponsorships – i.e. expenses for initiatives of other parties that contractually provide for a return in terms of visibility for the Company – were normally classified as commercial initiatives, with half their contractual value being recorded as an estimate of the contribution actually enjoyed as a benefit by the beneficiary. However, in cases in which the contribution went to a non-profit organization and – as in donations – was essentially given for support and for noncommercial reasons, the entire sum of the sponsorship was recorded as a gift.
  • The donations in kind in 2010 consisted in the transfer free of charge of machines no longer useful to Terna (e.g. diesel generators) to non-profit organizations, which have used them in their own charitable projects. This category includes, among others, the support for the project to electrify Kami, in Bolivia, and the horticultural project with pumping powered by solar panels organized in Nigeria by a network of municipalities in Piemonte called Recosol (Rete dei Comuni Solidali).
  • Wwork time – valued at the Company’s average cost per hour – consists in the granting of paid leave for employees who work as volunteers on projects of non-profit organizations. In 2010, most of the leaves (77%) regarded the electrification project in Kami.

Community initiatives 2010

Values in euro  
Total value of contributions (excluding internal overhead costs)
Composition by kind of contribution  
 - In money
 - In kind (free-of-charge transfers of corporate property)   
- Work time
Composition by kind of initiative   
 - Gifts
 - Investment in the community
 - Commercial initiatives in the community
Composition by purpose  
 - Education and youth   81,297
 - Health   
 - Economic development   
 - Environment
 - Art and culture   
 - Social welfare    
 - Support for emergencies      
 - Other