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Our materiality matrix

01/30/2019 - 10:00 AM

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The materiality matrix is a way of representing the issues that have an economic, social and environmental impact on our company and cross-referencing them with our stakeholders' level of interest in these issues. The matrix is drawn up through a process of analyzing and identifying the priority issues for us and for our stakeholders. It is then reviewed and updated annually. This page describes the process leading to the definition of the matrix for the year 2018.

Materiality is determining the relevance and significance of an issue to an organisation and its stakeholders.

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Why it is important for us to analyze priority issues

TIM operates Italy's largest fixed-line infrastructure network, covering the entire country, and provides one of Italy's most extensive and advanced mobile network platforms. The Group invests heavily in the development of the UBB, LTE and 5G networks and in giving people the capabilities to drive the transformation of Italy (and the other countries where TIM operates) into a digital economy that is more sustainable and more responsive to people's individual needs.
We are therefore a "systemic" company in terms of our size, our reach, and our infrastructure, technology and people. Through ongoing dialogue with our internal and external stakeholders and their active engagement, our company plays an integral role in the country and its social and economic make-up. We have a ubiquitous role in Italy's economy and in the competitiveness of its companies, in the efficiency of its public administration and, more generally, in the wellbeing of its citizens. This means that there has to be greater alignment between our social, environmental and economic performance and our strategy.

Our model: Continuous Stakeholder Engagement and Monitoring

In 2017, we began the digital transformation of the materiality analysis process, using semantic analysis, big data analytics and digital engagement through a collaborative platform.
The use of advanced analysis methods allows us to consider more sources of information and data, to get a clear and comprehensive view of our operating environment and the opinions of our stakeholders. The collaborative platform helps us to encourage dialogue with our stakeholders. At the same time, it enables us to keep the stakeholder map updated and to monitor the impacts of TIM's complex system of relationships and activities, which in turn means that we can update issues and concerns faster and more responsively, helping us to analyze emerging risks.
TIM Group's materiality matrix 2018 was drawn up through the following steps:

Multi-stakeholder consultation 2018

In 2018, we updated and extended our knowledge of stakeholders' views on the importance of the material issues by consulting groups of them using a number of digital tools: customers on a dedicated section of the company website, a significant proportion of our suppliers on the procurement portal, and a selection of key representatives of various stakeholder categories on the RE2N collaborative platform(*).

In the latter category, 59 people representing institutions, suppliers, customers, competitors, the environment and the community responded to an interview to give their views on issues relevant to TIM and the sector in which it operates.  
This initiative is part of TIM's new materiality analysis methodology – described in the relevant paragraph of this chapter – which it adopted to exploit the potential of digital in sustainability activities. In 2019, TIM intends to use the same platform to develop stakeholder engagement and collaboration initiatives, both to make stakeholder consultation and engagement more fluid and continuous – rendering its stakeholder initiatives more systematic – and to feed in the process of updating the materiality analysis "in real time" with the results of the consultations carried out on the platform.
Download and consult the presentation of the results of our materiality analysis (in Italian)

(*) Company that develops innovative tools for Sustainability and Shared Value

The taxonomy of the semantic engine was updated based on internationally recognised references in the fields of sustainability and digital.
•         GRI Standards, ISO26000, Sustainable Development Goals (SDGs) and assessment specialist (e.g. Dow Jones Sustainability Index);
•         Italian Digital Agenda, Objectives of the European Digital Single Market and dedicated indexes (e.g. the Digital Economy Society Index), and regulatory references which are relevant for TIM and its stakeholders.
In addition to better detailing and defining some of the themes identified in 2017, this activity also brought new ones to light.
To identify and pull together the documents connected to the Group's core business, we used a series of Italian and international, public and non-public, and in-company and external sources (*).
The semantic engine then analyzed all these information sources, generating a list of topics to be submitted for evaluation by the company and external stakeholders.
Here is the list of issues:
•         correctness of corporate conduct
•         stakeholder engagement
•         integrating economic, social and environmental aspects in governance and the strategic plan
•         supporting the development of digital skills in the community (in schools, in the public administration, in businesses)
•         developing the resilience of areas to disasters and calamities
•         consolidating social and environmental aspects in the supply chain
•         managing the workforce and employment development
•         managing the health and safety of workers
•         developing personnel competencies
•         service quality
•         online protection of minors (cyber bullying, child pornography, gambling)
•         safeguarding privacy and personal data security and protection
•         contributing to and taking initiatives to fight climate change in company policies, strategies and processes
•         reducing the environmental impact of TIM's operations
•         increasing the use of energy from renewable sources in company processes
•         electromagnetism
•         digital inclusion in society
•         developing digital infrastructures with next-generation networks
•         promoting and safeguarding human rights
•         reducing inequalities and promoting equal opportunities in the company
 

(*) For example: The “Piano Nazionale italiano per l’Agenda 2030” (Italian National Plan for the 2030 agenda) of the Italian government, the “Ernst & Young Megatrends report 2018”, the “Fair and Sustainable Well-Being in Italy 2017” (BES) report promoted by the National Council for Economy and Labour (CNEL) and the National Institute for Statistics (ISTAT).  

So far a key aspect had been missed out: defining the significance of each of these issues for our company and our stakeholders. To review and analyze our stakeholders' points of view, we used a series of innovative tools such as semantics and big data analysis, as well as digital collaboration tools.
We called on the help of 18 top managers at TIM and on stakeholders both inside and outside the Group.
Using social media and the internet, we also indirectly collected the viewpoint of around 500 companies and organizations and engaged 531 people in a questionnaire.
Having completed this analysis, we assigned a materiality score to each of the issues.

The materiality matrix is the result of this analysis and assessment process, representing precisely the issues that have an economic, social and environmental impact on our company and the level of importance attributed to those issues by our stakeholders.
Taking our cue from the priority issues, we identified the Sustainable Development Goals to which TIM believes it can make the greatest contribution through its people, technologies and services, adopting business practices that promote and safeguard human rights and the environment.  
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The company validated the entire materiality analysis process with the help of its sustainability reporting function, the TIM Data Room and RE2N, an external consultant.
TIM Data Room is the TIM Group department that analyzes online data through listening, reporting and benchmarking activities.
The Control and Risk Committee then approved the 2018 materiality matrix on November 30, 2018.
The review phase is intended to be preparatory to the next reporting cycle, with the updated results of the analyses carried out being submitted to specific consultation and stakeholder engagement activities.
At TIM, we update the materiality analysis according to guidelines that incorporate the GRI standards.