3. TIM
SUSTAINABILITY REPORT 2016
CHAIRMAN’S LETTER
II [G4-1]
According to a rather popular saying:
“There are two ways to deal with change:
suffer it or embrace it”.
While encouraging people and companies to challenge themselves by pursuing innovation is
always a good thing, this motto may convey the idea that change is a kind of tidal wave that
will overwhelm everything in its path.
Change is not something that needs to be remedied, it isn’t a misfortune. Change is the
natural state of things, it has been happening constantly, relentlessly, since the beginning of
time. The best thing we can do is intercept and understand that change, so we can cultivate
it and ensure it continues to bear fruit, taking a new path towards sustainable economic
growth, one that will keep us at the centre of the new innovation economy, which is a source
of continuous improvement.
The Global Compact and the UN Sustainable Development Goals, to which we have long
been committed, can only make complete sense if viewed from this perspective. These are
not undertakings that responsible companies decide to give temporarily, but a new way
of doing business where, in the new market economy, everything is interconnected and
interdependent.
The principles of human, social and
environmental sustainability require that
profit is achieved with respect for the
interests of the various stakeholders.
4. TIM
SUSTAINABILITY REPORT 2016
CHAIRMAN’S LETTER
III[G4-1]
It has always been true that to make a profit we need to do something useful. Our Corporate
Shared Value system sets out to produce a certified measurement of our commitment. This
year it amounts to around 14 billion euros, including both the business and social value of our
domestic activities.
TIM’s existence and operations are again shown to be essential and supportive, responding
to the emergencies which hit the country in 2016. In emergency situations, ensuring
communication is fundamental: our relationship with the Civil Protection Department has
always been extremely close. We were on the front line of installing new lines, boosting
mobile signals, providing free Wi-Fi in the main emergency shelter sites and LTE coverage
in disaster areas, as well as boosting services in the various local coordination centres. TIM
also made available its “With You We Do” crowdfunding platform for the “Un aiuto subito”
initiative, which helped to increase fund raising for the people affected by the earthquake.
Internally, we launched a significant organisational simplification process, with renewed
attention paid to our customers, so we can continue looking to the future, without fear,
tackling the fourth industrial revolution with enthusiasm and optimism. An optimism that
stems from confidence in ourselves, our values, our abilities and our energies. Because they
are values, abilities and energies that exist in the communities we inhabit, of which we are
part, and for which we feel responsible. Every day with a little more awareness.
Every day with a little more desire to keep
growing and building the best of all possible
worlds together.
Giuseppe Recchi
5. TIM
SUSTAINABILITY REPORT 2016
IV
SUSTAINABLE DEVELOPMENT GOALS AND
THE MATERIAL ISSUES OF TIM
On 25 September 2015, in New York, the government leaders of the 193 UN Member States
approved the “Transforming our world: the 2030 Agenda for Sustainable Development”
resolution, a policy document that identifies 17 global objectives (Sustainable Development
Goals), broken down into 169 detailed targets to be achieved by 2030.
The Sustainable Development Goals (SDGs)
represent common objectives in key areas to ensure
the sustainable development of the planet, such
as ending hunger and poverty, the protection and
conservation of water resources, the production of
clean energy, raising awareness about responsible
and conscious consumption, promoting access to
healthcare and education, and reducing economic
and gender inequality.
“Commonobjectives”meansthatallthecountriesandallindividualsarecalledontocontribute,
joining forces with a view to collaboration and partnership. Companies are therefore asked to
play an active role; with their resources and skills they can have a fundamental impact on the
achievement of the global objectives.
The 2030 Agenda for sustainable development recognizes that “the dissemination of
information and communication technologies and global interconnections have great
potential to speed up the progress, to overcome the ‘digital divide’ and to develop a knowledge
society.” This is what emerged from the “#SystemTransformation” study published in 2016 by
Global e-Sustainability Initiative (GeSI) in partnership with Accenture.
The analysis revealed that at global level all the countries have significant gaps in the
achievement of the SDGs and the progress obtained with the current business models will
not allow the world to achieve them in the 15 years envisaged. Urgent changes are required,
with exponential development rates and people-centred development.
This is why the ICT sector and digital solutions are critical: the rate of the dissemination and
penetration of digital solutions is up to 23 times faster than traditional approaches.
The research has in fact shown that digital solutions can have a measurable positive impact,
both directly and indirectly, in all three dimensions of the development covered by the SDGs,
among which there is strong correlation: improve people’s quality of life, promote equitable
growth and protect the environment.
6. TIM
SUSTAINABILITY REPORT 2016
V
DEVELOPMENT DIMENSIONS AND SDGs
Protecting the environment
The study has highlighted that the ICT sector is capable of contributing to the achievement of
all 17 SDGs and more than half of the 169 detailed targets, and that only in partnership with
institutions and other sectors of the economy can the potential detected be fully achieved.
Improve the quality
of life
Promote
the growth
7. TIM
SUSTAINABILITY REPORT 2016
VI
SOME DIGITAL SOLUTIONS USEFUL FOR THE ACHIEVEMENT OF SDGs
TIM, aware of the ICT sector’s role in the achievement of the goals set for 2030, has
responded to the ‘call to action’ launched by the United Nations. In 2016, the Corporate
Shared Value department began an analysis of the contribution the Company can make
in the achievement of the sustainable development goals.
Following this analysis, the material issues for the Company and the stakeholders of
reference were redefined, based on the most important SDGs for TIM.
8.5 billion
people will live
with dignity
in 2030
Participation and security
- e-Government
- Smart police
- real-time disaster warning
Food and Real Estate
- Smart Agriculture
- Smart Buildings
Health and education
- e-Health
- e-Learning
Infrastructure and Environment
- Connectivity
- Smart Conservation
- Smart Energy
- Smart Water Management
Mobility
- Connected private
transportation
- Smart logistic
- Traffic control &
Optimization
Work and Business
- e-Banking
- e-Commerce
- e-Work
- Smart Manufacturing
8. TIM
SUSTAINABILITY REPORT 2016
VII
As a result, the Group’s materiality matrix, in addition to highlighting TIM’s priority areas of
commitment, also reflects the SDGs to which the Company believes it can make the biggest
contribution.
Specifically, the important Goals for TIM are:
n.4: Education and quality
n.5: Gender equality
n.8: Decent work and economic growth
n.9: Industry, innovation and infrastructure
n.11: Sustainable cities and communities
n.12: Responsible consumption and production
n.16: Peace, Justice and strong Institutions
in addition to no. 3 “Good health” for positive impacts of e-health solutions and no. 13
“Combat climate change and its impacts”, for the inevitability and importance of the topic
at global level.
On the basis of this evidence, TIM has launched a series of initiatives concentrated on the
creation of shared value, focusing on three strategic areas of intervention identified as
priorities as part of its Corporate Shared Value model: Social Innovation, Environmental
Protection and the Digital Culture. Through these projects TIM creates shared value among
the Company and its stakeholders and makes a solid contribution to the achievement of the
reference SDGs.
In the infographic below, the 22 projects that create shared value can be attributed to SDGs
that are important for the Group. A description of the individual projects is given in the
corresponding chapters.
SDGs TARGET
achievement of
9 SDGs reference
COMMITMENT OF TIM
achievement of
objectives
22
PROJECTS
Digitalisation, connectivity
and social innovation
Environmental protection Digital culture
9. TIM
SUSTAINABILITY REPORT 2016
VIII
SDGs
objectives
TIM’s commitment Projects
strategic
area
TIM, together with external partners and research activities, such as
JOL WHITE, offers innovative e-health solutions (e.g. Nuvola IT Home
Doctor, Cassiel 2.0) designed to improve the Italian health service and the
effectiveness of healthcare.
▪▪ Digital healthcare
▪▪ Digital Security - NUE
Solution
TIM promotes various digital literacy and inclusion initiatives in schools
supporting innovation in education, an important lever for the social and
technological development of the country. The two-year project “Using ICT
in schools, with TIM” in collaboration with the Ministry of Education (MIUR)
involves teachers from schools of all types and levels in 18 Italian regions.
▪▪ TIM College
▪▪ Partnerships with the
world of education and
academia
▪▪ Programme the Future
▪▪ TIM ACADEMY
▪▪ UsingICTinschools,withTIM
TIM believes that economic and social sustainability is based on actions
that promote gender inclusiveness and as such it has set up 20 company
daycare centres and 1 nursery school for a social value of over 1.3 million
euros; #TIMgirlsHackathon to help bridge the gender gap under the scope of
scientific culture, for a social value of 260,000 euros.
▪▪ TIMGIRSLHACKATHON
▪▪ Nurseries
TIM contributes to producing approximately 1% of the added value of Italian
GDP with an employment impact of around 106,000 direct and indirect jobs,
with a social value of 8,311 million euros. TIM supports economic growth
through TIM #WCAP Accelerator with more than 9,000 projects involved
in digital innovation and 294 start-ups supported, and through TIM Venture
with 2.4 million euros invested in the best start-ups which have produced
2.5 million euros in turnover and collected 7 million euros in risk capital.
▪▪ Employment impact
▪▪ TIM #Wcap and TIM
Ventures
Through the Digitisation of the Country, in 2016 TIM generated
approximately 4.1 billion euros in Business Value and almost 2.8 billion
euros of social value, with over 26,000 jobs provided thanks to the
construction and deployment of the UltraBB network. With the JOLs it
creates a profitable collaborative model of Open Innovation between
universities and industry generating almost 700,000 euros of Social Value.
▪▪ Digitisation of the Country
▪▪ Patents
▪▪ JOL
▪▪ WithYouWeDo
TIM integrates the fixed and mobile BB and UBB connectivity offer with
innovative solutions for more sustainable, secure and efficient cities
and communities, ensuring business continuity in emergencies. With
smartworking TIM has involved 9,000 employees with a saving of 250,000
euros for social costs avoided, 7.5 million km not travelled (amounting to
1,000 Tons of emissions saved).
▪▪ SMARTWORKING
(TIM people)
▪▪ Smart Services
▪▪ Infomobility and Smart
Cities
Through energy efficiency TIM reduces its environmental impacts and
proposes technological solutions to optimize consumption by private
entities, businesses and the PA. In 2016, 80 million euros of shared value
were measured for the environment.
▪▪ Energy efficiency
GeSI studies demonstrate that ICT solutions can reduce global emissions
by 20% by 2030. With the Digital Life Programme, a set of solutions for
security, the environment and optimal energy management, TIM promotes
a low environmental impact Smart City model, enabling energy savings of
over 50%.
▪▪ TIM’s Digital Life
Programme
▪▪ Olivetti solutions
Through the Joint Audit Cooperation (JAC) initiative, of which TIM has
been a promoter partner since 2009, 69 audits were performed in 2016 in
the manufacturing sites of suppliers and sub-contractors in Asia, Central
and South America, North Africa and Eastern Europe to verify the level of
sustainability and respect for human rights.
▪▪ www.jac-initiative.com
10. TIM
SUSTAINABILITY REPORT 2016
IX
TIM CORPORATE SHARED VALUE MODEL
Companies are increasingly aware of the importance of Corporate Social Responsibility as
a strategic lever for their long-term success. In recent years, there has been a perceived
need to bring closer and integrate social responsibility with business activities, using it as an
opportunity to create value for society and the business itself.
At the same time, tools are needed to enable stakeholders, including shareholders, to perceive
the contribution that sustainability can make to the company’s operating results and to the
community in terms of social value and protection of natural resources.
In this context, best practice has in recent years highlighted a process of evolution towards
the concept of Corporate Shared Value. The culmination of this process is the integration
of the sustainability approach conventionally adopted by companies as part of their overall
corporate strategy, turning it into a vehicle for creating economic and social value.
TIM has been following this very path over the past few years, in order to guide the company’s
strategic decisions and measure its financial and non-financial performance and therefore
respond to the legitimate demands of its stakeholders.
During the past year, in order to complete the move to Shared Value undertaken in 2014,
TIM’s CSV department considered the need to verify the maturity of its measurement system,
in order to allow the Group’s stakeholders to see beyond the numerical data and assess the
reliability of the information supplied.
THE GROUP CORPORATE SHARED VALUE MODEL
TIM defined a CSV model (TIM Corporate Shared Value Model) Based on an analysis of the
country’s main needs (Social Needs) and of the objectives set by the Digital Agenda, identified
areas of intervention that can respond to these needs, through technologies, skills and specific
projects. The areas identified are:
▪▪ Digitisation, connectivity and social innovation: in 2016 generated 13.912 milion euro in
Business Value;
▪▪ Environmental protection: in 2016 generated 83 milion euro in Business Value;
▪▪ Digital culture: In 2016 generated 16 milion euro in Business Value.
In addition to the activities dedicated to employees (TIM’s people) generating 1 milion euro
in Corporate Shared Value in 2016 the Economic Shared Value generated in 2016 was 14.012
million euro.
SHARED
VALUE
projects that
create shared
value
SOCIAL
VALUE
projects that
create
social value
BUSINESS
VALUE
projects that
create
business value
11. TIM
SUSTAINABILITY REPORT 2016
X
During 2016, in addition to increasing the range of indicators to measure and record the risks
and performance of the company, in order to allow more informed decisions to be taken, both
internally and externally, TIM decided to validate its CSV reporting and measurement system,
submitting the TIM Shared Value Model to validation by PricewaterhouseCooper Advisory
S.p.A. (PwC), the Group’s auditor. In order to allow PwC to carry out its assessments of the
CSV measurement model, a document was drawn up that describes the process, method and
quantitative logic underlying the measurement of CSV.
With this reference, PwC was able to perform its assessment of the 3 areas that make up the
CSV template defined above, which are examined according to six key dimensions:
▪▪ certainty of measurement (the extent to which the CSV calculation model includes
quantitative elements that depend on estimates, benchmarks, statistical data that may
influence the result of the measurement);
▪▪ reporting framework (the extent to which the indicators used in the CSV model are
attributable to known reporting frameworks other than the specific methodology
developed internally for the assessment of results);
▪▪ integrity of the information (the extent to which the data and information used for the
calculation of the CSV are obtained using stable processes and systems equipped with
control tools);
▪▪ consistency (the extent to which the CSV calculation model of multi-annual projects and
projects of the same nature is applied consistently over the years and between them and
the extent to which any changes are subject to disclosure in the restatement of results.
The extent to which the CSV calculation model is applied to a consistent Group scope over
time);
▪▪ consistency of performance indicators (the extent to which the CSV model emphasises
elements that are consistent with those used by management for managing and directing
the business);
▪▪ external validation (the extent to which the CSV model draws on data and information
which are subject to external verification of other management areas).
This innovative method allows assessments resulting from audits conducted on the various
dimensions to be graded and the results to be presented in a qualitative manner for each
of them, providing useful information to recipients for them to understand the maturity of
the reporting model and its evolution, or improvement, over time. It also provides all the
information needed to ensure that the auditor can come to a conclusion regarding the CSV
measurement model developed by TIM.
The conclusions of the audit by PwC are given in the Report issued and attached to this report.
The forms used for the measured projects are shown below.
12. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XI
Scenario
In line with the objectives established by the Digital Agenda in 2020, and the Governments
super-fast broadband Strategy, TIM’s investment plan is strongly oriented towards ensuring
access to fixed and mobile super-fast broadband to the greatest possible number of Italians,
reducing the gap that still separates them from more developed European countries, providing
ever faster connection speeds and making the most of technological evolution.
DuringtheyeartheTIMWholesaleDepartmentbecamefullyoperationalwithanorganizational
change that gave rise to the creation of the New Equivalence Model. The aim is to further
strengthen the equality of treatment guarantees among the commercial retail departments
of TIM and other operators, in a logic of efficiency, autonomy, quality and transparency in the
activities linked to the access infrastructure.
The strategy is based on an excellent network infrastructure, the creation of which will be
further accelerated over the Plan period. More specifically, around 5 billion in investments are
envisaged in Italy, dedicated to speeding up the development of ultrabroadband networks.
TIM’s investment plan does not only concern municipalities that have a secure economic
return but also the more disadvantaged regions.
By the end of 2019, TIM plans to have increased Italy’s coverage with new generation
networks to over 99% of the population with the LTE mobile network (4G), and 95% of the
population with optic fibre; in particular, by the end of the Plan, 50 major towns and cities
will have connection speeds of up to 1Gbit. TIM thus confirms its position as the undisputed
leader in infrastructure development and in the digitisation of the country, completing the
ultrabroadband coverage of Italy independently and quickly, thanks to a combination of new
fixed and wireless technologies which, with respect to the past, will permit greater efficiency
and the reduction of costs exploiting the reuse of its own infrastructure to the full.
The increased coverage will support ever greater penetration in terms of Ultrabroadband
Customers also thanks to the numerous strategic partnerships with the leading Media Players
on the domestic market (SKY, MEDIASET, NETFLIX) for the Pay-TV service.
As regards the fixed network, in addition to the expansion and acceleration of FTTx solutions,
TIM has planned for the widespread introduction of new access technologies which speed up
the connection for each client using FTTCab accesses, supporting offers of up to 300 Mbit/s
(through eVDSL technology)
In the mobile area, developments in the Three Carrier Aggregation solution are also
expected, with speeds of up to 300 Mbps, and for native voice on the LTE network, thanks to
Project: DIGITISATION OF THE COUNTRY
Social Need: Innovative, secure ICT
Business Value: over 4,000 million euros
Social Value:
▪▪ more than 2,700 million euros by way of contribution to the Italian GDP for 2016 come from
investments in the construction and deployment of the fixed and mobile ultrabroadband
network
▪▪ over 26,477 jobs could be created thanks to the construction and deployment of the
ultrabroadband fixed and mobile network
13. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XII
the implementation of “VoLTE” (Voice Over LTE). Work is being carried out on new solution
to enrich the current 4G “user Experience” which will improve the quality of the service to
manage the increased traffic and satisfy customer expectations “everywhere and anytime.”
There is also a plan to use small cells to cover areas of particular commercial interest, such as
hospitals, stadiums, tourist centres, stations, high-speed trains and tunnels.
The new 2017-2019 plan also boosts the structural transformation of the Network. The
innovative investments and those dedicated to decommissioning and network modernisation
will act on the network architectures and the operating models, making the network more
modern, more capable and more efficient in the operative management (significant savings
on energy, maintenance and delivery/assurance).
The expected increase in customer numbers will be supported by bundle offers (fixed/
mobile, voice/data/video) that will provide Internet access from a variety of devices (PC, TV,
Smartphone, Tablet) while promoting the replacement of old terminals with next generation
ones.
The new 2017-19 plan will therefore strengthen the process of improving the overall coverage
and quality of the TIM network.
14. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XIII
Scenario
The work market has entered what technicians in the sector do not hesitate to call the “fourth
industrial revolution,” that is a set of transformations which, thanks to robotics, artificial
intelligence, nanotechnologies, 3D printing, genetics and biotechnologies, are changing not
only the business model, but also the number of workers and how the work force is used.
Fewer people and more machines, machines capable of independently managing almost the
entire production chain, seems to be the path taken by the industrial world. The change in
working methods obviously brings with it the need for new skills.
There are at least three industrial sectors in which advanced manufacturing is turning out
to be a powerful lever in the relocation of jobs: the new industry of smart communication
platforms, IT technologies, robotics, biotechnologies, healthcare products, new materials,
nanotechnologies;“strategic”largemanufacturingwhichisneveroutsourced:forexample,the
defence technology or aerospace industries; innovative services, in each sector where there is
a demand for new products: from security to the environment, entertainment, marketing and
finance. These are the very sectors TIM works in, and today, above all in the Italian context, it
represents the reference operator in the journey towards innovation and digitisation since it
launched that technological transformation process and internal organization processes. This
transformation not only influences the Company but all the satellite activities that refer to it.
Counting both its own employees and its suppliers’ collaborators, the Group employs more
than 100,000 people in Italy.
Project: EMPLOYMENT IMPACT
Social Need: economic well-being
Social Value:
▪▪ 8.311 million euros
▪▪ around 106,000 direct and indirect jobs
15. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XIV
Scenario
TIM Ventures, the corporate venture capital of TIM, is one of the instruments through which
TIM carries out open innovation, a distinctive factor of digital innovation.
The business and its rules of play change at an incredible pace. The products and services
require continuous research. Talent and competences are fluid.
Therefore, innovation is increasingly a critical factor of success for a business. And in a
dynamic, digital context like that in which TIM operates, innovation must be applied using
not only internal resources, laboratories and its own in-house R&D departments, but also by
seeking assistance from the outside world, taking an “open innovation” approach, to use the
expression coined in 2003 by the US economist Henry Chesbrough, who directs the Garwood
Center for Corporate Innovation of the Berkeley University of California and who has written
several books on the matter.
The TIM innovation also involves entrepreneurial open innovation. Investment in digital start-
ups in synergy with the TIM business strategy aims to spark and promote a mutually profitable
virtuous circle, in which, on the one hand, TIM seeks to make the most of the best innovations
of product and service, optimising the time-to-market of the innovation and, on the other,
the start-up finds TIM as a subject able to support its development and act as partner and
industrial point of reference.
TIM Ventures is the corporate venture capital of TIM, which selects and supports, by investing
directly in the risk capital of the best digital start-ups operating in line with the Group’s
business strategy. TIM Ventures is currently specialised in investing in the early stages of the
start-ups’ activity and development, making minority or “seed” investments and “early stage
investments”.
TIM Ventures is part of an extensive network, represented by TIM#Wcap – the TIM business
driver – and some of the most important players in the Italian and European VC industry.
“TIM Ventures plays an important role in supporting the best start-ups, in terms of business
and social responsibility, helping innovative and making a considerable contribution towards
the country’s economic competitiveness and social development”. - TIM With TIM Ventures,
was the first in Italy to launch its 2014 corporate venture capital programme, helping boost
the ecosystem of Italian and European innovation.
Project: TIM VENTURES
Social Need: economic well-being - Digital Innovation
Business Value:
▪▪ 14 start-ups in the portfolio
▪▪ Amongst the top 40 most active investors in Corporate Venture Capital worldwide in 2015
▪▪ 7th place in the 25 European companies, the only Italian one, that best “dialogue” with
start-ups
Social Value:
▪▪ 2.4 million euros invested
▪▪ + €2.5 mln the value of production of TIM Ventures subsidiaries
▪▪ + €7 mln the total risk capital collected by TIM Ventures subsidiaries
▪▪ 87 employees of TIM Ventures subsidiaries
16. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XV
Scenario
The market and economic models change very quickly. This is the premise of Open Innovation,
an expression first coined in 2003 by the US economist Henry Chesbrough, who directs the
Center of the Open Innovation of the Haas School of Business and who has written several
books on the matter.
The paradigm prepared by the American scholar envisages that businesses innovate using
not only internal resources, laboratories, their R&D departments, but also seeking external
assistance. His vision has been widely accepted across the globe and in our country too,
major companies, as well as small and medium enterprises, instead of concentrating all their
innovative efforts internally, also look to what is considered and takes place outside their
office.
TIM was one of the first Italian companies to adopt this new approach through a series of
initiatives, including Working Capital, today TIM #Wcap Accelerator.
TIM #Wcap is indeed the business accelerator of the TIM Group that each year selects, boosts
and finances digital start-ups.
The project started out in 2009 with the aim of encouraging the country’s digital development
by financing innovative ideas. Over time, it has become structured and one of the most
important programmes in the field of Italian digital innovation. In 2013, four accelerators were
opened to welcome start-ups selected from time to time by means of a call for ideas.
The mission has progressively evolved towards identifying start-ups in line with the Group’s
industrial strategy to integrate the solutions they develop into the company value chain, with
consequent benefits both for TIM and the young businesses that, in becoming TIM suppliers,
are given the opportunity to grow and consolidate.
Today, there are more than 50 collaboration activities between startups and the company.
Project: TIM WCAP ACCELERATOR
Social Value:
▪▪ 6.6 million euros assegnati alle startup
▪▪ More than 4,000 sm dedicated to innovation with the accelerators of Milan, Bologna,
Rome and Catania.
▪▪ More than 9,000 projects collected.
▪▪ 294 start-ups supported.
▪▪ 12 start-ups boosted by TIM #Wcap were invested in by TIM Ventures.
17. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XVI
Scenario
The single emergency number 112 introduced by European Directive 2002/22/EC of 07 March
2002 is the number to contact the emergency services in the European Union. By keying in 112,
free of charge from a fixed or mobile network, the citizen is put in contact with an operative
centre that can direct the request to the relevant emergency service. The service is operative
in all 28 Member States, even if in some countries, the service does not yet cover the whole
of national territory.
In our country, in fact, testing of the single number started in Varese in 2010, before thereafter
being extended, in 2015, to the whole of Lombardy, with a user basin of almost 10 million
residents.
In 2016, to mark the Jubilee year, the NUE 112 was activated in Rome and province, with a user
basin of more than 4 million residents.
The national cover plan envisages the service being activated within the first six months of
2017 in the regions of Piedmont and Val d’Aosta, Liguria, Friuli Venezia Giulia, Trentino Alto
Adige and East Sicily.
To improve the management of the emergency services (112, 113, 115 and 118), in particular
providing the Single Response Centre with both the identify of the caller and the Network
Operator from which the call was made, so as to guarantee the geolocalisation of the caller.
TIM collaborates first and foremost with the Ministry of the Interior, the Police, the Carabinieri,
the Fire Brigade, the Regions and the Local Health Authorities, to:
▪▪ Creazione di specifici Call Center NUE112 su cui vengono dirette le chiamate 112-113-115-
118 del distretto di competenza;
▪▪ Nelle sale operative NUE112, si effettuano le operazioni di Call Taking, Geolocalizzazione
del Chiamante, Filtraggio Chiamate Improprie, Compilazione Scheda Contatto e inoltro in
fonia e dati della chiamata alla Centrale Operativa di II Livello piu’ competente (PSAP2,
Public Safety Answering Point di livello 2), per natura dell’emergenza e collocazione
geografica dell’evento.
I principali Benefici Attesi possono essere ricondotti a:
▪▪ Create specific NUE 112 call centres to which calls to 112-113-115-118 of the competent
district, are directed;
▪▪ In the NUE112 operating rooms, calls are taken and geolocalised, improper calls are
filtered, contact sheets filled in and operations carried out in telephony and data of the
Project: SINGLE EUROPEAN NUMBER 112
Social Need: economic well-being - Innovative and secure IT infrastructure
Business Value: 7.8 million euros
Social Value: €24.34 billion social cost of potential road accidents avoided per year1
1
source: Ministry of Infrastructure and Transport, value for 2013)
18. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XVII
call to the most competent level II operating centre (PSAP2, Public Safety Answering Point
level 2), according to the nature of the emergency and geographic location of the event.
The main expected benefits are:
▪▪ filtering of improper calls (jokes, hang-ups, mistakes, etc.) and therefore a smaller burden
of work on the specialised PSAP2 operators who are therefore able to focus on specific
emergency management;
▪▪ better coordination between the forces of public order, because the SW of NUE112 is
configured with a Coordinated Territorial Control Plan (PCCT) defined by the Prefect on each
territory, which allows the public security emergency to be sent to the most competent
response point (Carabinieri Provincial Command/Carabinieri Company Command/State
Police Station/State Police Commission) in the place and at the time (PCCT are often time-
sensitive);
▪▪ an important contribution to the objective of the PNSS 2020 (National Road Safety Plan)
to achieve the general objective of halving the number of deaths on the roads in 2020.
19. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XVIII
Scenario
The history of human progress is a succession of discoveries and inventions, the genius
of some put to the use of all. From an individual company’s point of view, patents are a
commercial tool with which to protect investments made in research and innovation and
obtain additional financial resources by managing the rights of use, after the patent has been
granted. In practice, a patent results in the effective enrichment of a company, in addition to
strengthening its market position.
However patents are also an important asset for the country as a whole. This is essentially
for two reasons:
▪▪ patenting promotes a wider dissemination of knowledge through publication;
▪▪ patenting helps companies monetise their innovations and grow.
Technical standardisation in the ICT sector is a clear synthesis of the two outcomes just
described.
The patents project is an ongoing activity for TIM and is split into numerous processes involving
various company departments, often availing of external partnerships with the best Italian
universities (206 patents deriving from partnerships with universities and research institutes
have been filed/granted), thereby stimulating the production of patents at a national level.
By the end of 2016, the Group’s portfolio of patents had grown to include 26 new patents filed
and dozens of other proposals undergoing assessment, strengthening a trend that has been
growing over the past 3 years. The patenting areas relate to the whole ICT sector, with areas
of excellence in the mobile sector.
Since 2014, a new process has been launched to enhance the patents portfolio in Standards,
in the knowledge that patenting and standardisation activities can interact in synergy,
generating value for the community, by increasing the wealth of knowledge, and for the
companies that hold the patents. Thanks to this process, 14 patents have so far become
essential components of standard technologies.
When innovating TIM uses various instruments synergically to transform innovative ideas into
reality. This is the case for example of Tim Working Capital TIM #WCAP of the Joint Open Lab
(JOL).
One of the successes deriving from the convergence of JOL, Patents, Start ups and Spinoffs
is “Spin-up” the new synergistic model for cooperation between industry and the world of
academia, thanks to an agreement between TIM and the start-up MovePlus, a spin-off of
Project: 2016 PATENT
Social Need: research and innovation for companies
Business Value: more than 5,000,000 euros
Social Value:
▪▪ approximately 140,000 euros
▪▪ 2nd telecommunications company in Europe and 6th in the world for the number of
patents developed in the mobile area.
20. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XIX
Turin Polytechnic. The agreement provides for granting MovePlus a licence to use the patent
developed and filed in 2014 by the Turin based TIM Jol Swarm, in partnership with the people
at Moveplus,in exchange for a stake in the company.
21. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XX
Scenario
WithYouWeDo (http://withyouwedo.telecomitalia.com/) is TIM’s crowdfunding platform
which provides an innovative, easy and efficient digital tool for raising funds promoted by
individuals, businesses, and institutions in the profit and non-profit world who want to develop
a digital project in the social innovation, digital culture and environmental protection areas.
It offers some tangible advantages with respect to other crowdfunding platforms already
present on the market, including no costs to use the platform and the extreme convenience of
the transaction commissions applied by the payment systems. To participate, you simply need
to register on the portal and upload your project. The WithYouWeDo team, which consists
of Company experts and crowdfunding platform specialists, checks and selects the ones
considered most suitable for each of the proposed areas (Social Innovation, Environment,
Digital Culture). The selected projects are then published online for a variable length of time
during which the funding offered by interested donors can be raised.The Company provides
strong communication support and visibility for the initiatives also through the engagement
of the various relevant communities and special dedicated initiatives.
In order to make donations, all you need to do is register on the platform supplying your email
address and a password, or using your Facebook, Google or Linkedin account. Donations can
be made of between 2 euros and 5,000 euros maximum.
In 2016, WithYouWeDo also helped to create unaiutosubito.org, the crowdfunding platform
for raising funds for victims of the earthquake that struck Central Italy several times, starting
on 24 August. Conceived in collaboration with Corriere della Sera, TgLa7 and Starteed, the
unaiutosubito.org platform has also made it possible to support earthquake victims with a
credit card in an easy, quick and secure way. The initiative has been highly successful, setting
the world record for raising funds for earthquake victims through crowdfunding, and during
the year it made it possible to deliver a new school to the population of Arquata del Tronto
and to start work on the construction of a school and town cafeteria and a food village in
Amatrice. Additional projects will be carried out in 2017.
Project: WithYouWeDo
Social Need: economic well-being
Business Value:
▪▪ Approximately 260 press reports
▪▪ Approximately 500,000 page views
Social Value: 2,150,000 euros (total funds raised: 850,000 euros + 1,300,000 euros)
22. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XXI
Scenario
Theroleofinnovationisevermorecrucialforthegrowth,performanceandsustainablerenewal
of companies, in terms of the transfer of advanced technologies to the market, systematic
product and service improvement, radical changes to business and the rules of the game.
The distinctive factors of competitiveness, particularly in periods of financial and industrial
crisis, are increasingly tied to how able a company is to innovate and invest in innovation. In
this new context, the Joint Open Labs play a key role. With the “company on campus” model,
they encourage a natural osmosis between the academic and industrial worlds, in which the
co-design and co-development of innovative solutions are not just the result of a process but
its fundamental reason for existing.
In 2013, the year the JOLs were created, TIM launched the innovative model of cooperation,
promoting the development of different JOLs distributed throughout national territory and
localised within Italian universities.
In this context, universities play an outreach role, promoting the direct application,
enhancement and use of knowledge to contribute to the social, cultural and economic
development of society.
With the JOLs, TIM has anticipated the Open Innovation paradigm, in which new ideas can
come from multiple sources, not always from within conventional organisational structures.
Direct and ongoing contamination with an expanded ecosystem of actors encourages the
openness of the value creation process, which becomes an essential vehicle for developing
entrepreneurship, and in turn generates opportunities for the Company.
The multidisciplinary nature of the partnerships has also promoted an exchange of knowledge
and approaches that create new business opportunities. Thanks to the results obtained, and
the participation and involvement in the ecosystem created, the JOL project was renewed for
2017 too. Each JOL conducts research and develops projects on specific themes.
Turin JOL: distributed intelligence and Internet of Things, namely how objects, people, data
and places interact with each other through new technologies, Visual Intelligence, how
robots exploit network functionality to interact with humans, Augmented Reality and the
development of mobile applications.
Milan JOL: Smart Space, namely the new way of interacting with the spaces around us
Trento JOL: Big Data, namely how use, in innovative services, the massive amount of digital
data generated each day.
Pisa JOL: Health and Welbeing going on to study innovative ideas which, through the latest
technologies, improve health and wellbeing and raise the quality of life.
Catania JOL: new smart devices and their interaction with the IoT and their direct application
in the region.
Project: JOINT OPEN LAB (JOL)
Social Need: Digitisation, connectivity and social innovation
Social Value: 575,000 euros
Involved:
▪▪ 5 Italian universities of excellence; 8 applied research and innovation laboratories; 100
young people made up of thesis writers, research fellows and PhD students
▪▪ Over 1.5 million euros of funding for TIM from European and national projects
▪▪ Around 200,000 euros of funding by TIM for the university ecosystem
23. TIM
SUSTAINABILITY REPORT 2016
DIGITISATION, CONNECTIVITY AND
SOCIAL INNOVATION
XXII
Scenario
TIM Brasil offers its customers solutions that allow processes to be made more efficient,
technological innovation to be improved and competitiveness to be boosted, while increasing
the number of jobs available.
TIM Brasil therefore has a positive influence on the development of Brazilian society. All these
factors have a positive impact on well-being and the growth of Gross Domestic Product (GDP).
An authoritative study entitled “The Mobile Economy - Latin America 2014”, conducted by the
GSM Association, revealed that throughout South America the incidence of the mobile phone
industry on the trend in overall GDP is significant and growing; more specifically:
▪▪ in 2013, the mobile sector accounted for 4.1% of overall GDP;
▪▪ by 2020, the percentage will increase to 4.5%;
▪▪ the 2013 figure includes a direct impact (1.35%) and an indirect impact (2.75%); in other
words the indirect impact is twice the direct one;
▪▪ the impact on the resulting society is considerable. In particular, the mobile sector employs
around 2.2 million people, including around 1 million direct jobs and around 1.2 million
indirect ones (ratio 1:1.27).
TIM Brasil in particular contributes to producing around 0.4% of Brazilian GDP, if only the
direct impact is considered, but if this is added to the indirect impact, its total contribution
is 1.1%. The Company’s activities generate direct employment for almost 10,000 people in
Brazil, while the indirect impact in terms of jobs generated is estimated to more than 12,500
(higher than average for South America).
In 2016, the efforts made by TIM Brasil focused on:
▪▪ expansion: increasing the capacity of existing aerials, installing new aerials and expanding
the fibre optic network;
▪▪ increment both in customers and 4G traffic;
▪▪ excellent cost control with savings goals flanked by focussed investments in technology;
▪▪ increment both in customers and the traffic they generate, particularly in 4G technology.
In the past 5 years alone, TIM has invested more than 23 billion reais in Brazil, focusing primarily
on building new generation infrastructure and actively contributing to the modernisation of
the country.
In recent years, TIM has strengthened its infrastructure further, in order to support the growth
in data, focusing in particular on 4G technology, which offers better quality of service. These
important investments have allowed TIM to strengthen its leadership in 4G, in terms of the
percentage of people reached and the number of towns and cities covered. As of the end of
2016, TIM covers 95% of the Brazilian urban population, with a presence in over 3,460 towns
and cities. In particular, 89% of the urban population is covered by 3G technology and 74% by
4G.
Project: MOBILE BROADBAND
Social Need: Innovative and secure IT infrastructure
Social Value*
▪▪ Almost 6 billion euros of direct impact on the GDP (0.4% of the Brazilian GDP)
▪▪ around 10,000 (direct) jobs generated
*This data is an initial estimate only and may change upon further examination.
Business Value: more than 1.5 billion euros in mobile broadband revenue
24. TIM
SUSTAINABILITY REPORT 2016
ENVIRONMENTAL PROTECTION
XXIII
Scenario
The concept of efficiency pertains to the relationship between the inputs of a production
process and the outputs sought by that process. Energy efficiency in the ICT context has
economic and environmental relevance in terms of managing the energy required. The energy
requirement and consequent consumption of the Domestic BU stands at around 2.2 TWh per
year and TIM is the second biggest electricity consumer nationally.
The topic of energy efficiency takes centre stage as regards the environmental sustainability
of our company and the related project is capable of generating economic value for the Group
(Business Value) and social value for the community (Social Value) expressed in terms of
environmental protection and the capacity to innovate.
Protecting the environment, improving energy efficiency and offering services that reduce
emissions of greenhouse gases and other pollutants are the main intervention policies adopted
by the TIM to promote sustainable development in its areas of influence. Specific actions
are therefore taken, aimed at reducing its environmental impacts and offering technological
solutions aimed at individuals, businesses and public administration for the creation of a
more inclusive and viable digital society. These are the fundamental principles that inspired
all the Group companies: optimising the use of energy sources and natural resources;
seeking to improve energy/environmental performance, minimising negative impacts and
maximising positive ones; adopting purchasing policies with suppliers that are sensitive to
environmental themes; dissemination of the correct approach to environmental issues. TIM is
equipped with an Environmental Management System (EMS) certified according to standard
ISO 14001. In some situations the EMS is integrated with the Quality Management System
based on ISO 9001 standard as well as with the Security Management System based on
OHSAS 18001 standard. For some sites certification of the Energy Management System based
on standard ISO 50001 was obtained, which establishes the requirements of organisation
and management models aimed at the continuous improvement of energy efficiency, and
promotes the best energy management practices, supporting projects and initiatives to
reduce greenhouse gas emissions. The Group measures its own energy efficiency by using an
indicator that establishes a relationship between the service offered to the customer in terms
of bits transmitted and the company’s impact on the environment represented by joules of
energy consumed. The factors taken into consideration are the amounts of data and voice
traffic of the fixed and mobile networks and energy consumption for industrial purposes,
domestic purposes and vehicles.
Energy Efficiency Certificates (EEC) were also awarded in 2016, for a total of 10 approved
projects, corresponding to an estimated financial value, over 5 years, of around 4 million
euros. The certificates, also known as white certificates, certify the achievement of energy
savings in the final use of energy through measures to increase virtuous energy efficiency as
the performance is better than the national average. Total revenues from EECs sold in 2016
came to approximately 19 million euros.
.
Project: ENERGY EFFICIENCY
Social Need: Protection of the environment and landscape; Research and innovation for
companies
Business Value: more than 60 million euros
Social Value: more than 18 million euros
25. TIM
SUSTAINABILITY REPORT 2016
ENVIRONMENTAL PROTECTION
XXIV
Scenario
The computerisation process within the Italian Medical-Healthcare context has undergone
huge acceleration in recent years. Hospitals, Private Clinics and Radiology Centres adopt
digital diagnostic systems, but this quite often happens in a way that is not in keeping with
current legislation.
The great advantages offered by computerized architecture with respect to the simple paper
management of workflows have a counter side, namely everything to do with ensuring the
integrity and authentication of digital documents. While in a situation where paper is king,
the signing of a document and its conservation in a simple paper archive were a guarantee
of integrity and authentication, in a fully digitised environment the need arises to identify
appropriate methods and structures.
This scenario covers the legal archiving service for health-related documents, designed with
outsourcing logic, which enables remote management of the historical archive in accordance
with the provisions set for diagnostic tests (images, reports, personal data, etc.) relieving the
organization of complex and costly operations.
The state-of-the-art in IT Radiology in Italy reveals a variety of situations in which
technologically innovative environments alternate with those in which technological
innovation is but a mere mirage. The distribution of these scenarios is not easy to classify and
it envisages great excellence above all in big cities.
The reference market for the dematerialisation of diagnostic tests and reports on the Italian
market can be valued at around 50 million diagnostic tests and just as many reports, generated
by over 1,500 public and private inpatient facilities (845 public inpatient and care facilities; 706
private facilities; 124 public outpatient clinics).
With Nuvola IT Image Archiving - Plus TIM has set itself the objective of providing public and
private healthcare facilities with a service capable of meeting the requirements deriving from
provisions on the conservation of healthcare documentation. And represents the answer to
the need for dematerialisation and conservation in accordance with diagnostic tests (digital
DICOM Tests) and documents in the healthcare context (reports, certificates…) to make them
available over time, ensuring their authenticity and integrity.
Project: DIGITAL HEALTHCARE
Social need: Protection of the environment and landscape; Research and innovation for
companies
Business Value: 264,000 euros
Social Value:
Documents processed with TIM digital solutions: 2.2 million euros
▪▪ 320,000 diagnostic images
▪▪ 1,000,000 medical reports
▪▪ 1,000,000 documents
10 tonnes of CO2
emissions avoided for a value of 2,233,000 euros
26. TIM
SUSTAINABILITY REPORT 2016
ENVIRONMENTAL PROTECTION
XXV
The service is provided in accordance with the SaaS (Software as a Service) model in the
Cloud, based on techniques and methods that ensure compliance with market standards in
the healthcare context (DICOM, Hl7, IHE).
Access to the documents by healthcare operators occurs through authentication and profiling,
through a simple and intuitive graphic interface.
The Digital Conservation service (Compliant Conservation) for healthcare documentation will
form part of the “Saas” services for PAs, which make up Lot 1 of the PCS Cloud Framework
Contract.
Significant and tangible economic/organizational advantages:
▪▪ Cost reduction and
▪▪ Legal fee concessions
▪▪ Complete technological management
▪▪ Logical and physical security
▪▪ Establishment of a historical/legal archive as required by current legislation
▪▪ “Externalization” of compliant conservation procedures
▪▪ Guaranteed availability and accessibility of the content of documents for document
viewing and administrative transparency purposes
▪▪ Creation of workflows to support the internal organizational processes of Entities
▪▪ Scalability of investments
27. TIM
SUSTAINABILITY REPORT 2016
ENVIRONMENTAL PROTECTION
XXVI
Scenario
The rapid increase in the Brazilian population has led to a growing search for spaces to install
telecommunication equipment, which has resulted in clusters of aerials springing up on roofs,
the façades of buildings and metal structures.
In order to regulate this situation, many cities have established rules which have made the
licensing process even more cumbersome. This has led to a slowdown in the expansion of the
network.
The Brazilian telecommunication association estimates that there are more than 250 different
municipal laws relating to aerial permits.
In order to circumvent these barriers, TIM Brasil has launched the Biosite, a metal pole that
supports all the equipment needed to install a Radio Base Station inside its own structure .
It is in effect a macro-site, developed and patented entirely by TIM Brasil, providing a triple
benefit:
▪▪ low TCO (Total Cost of Ownership)
▪▪ quick installation
▪▪ minimal visual impact
The Biosite is a multifunctional structure that improves the quality of data transmission and
can be used at the same time to provide public lighting and video surveillance.
Furthermore, it uses less energy and has a lower environmental impact because it uses 99%
less steel than a conventional base station and requires less physical space, avoiding the need
for external cabins or auxiliary structures.
The first Biosite was installed in June 2014 in Curitiba (Paraná). Over 500 Biosites have so far
been installed across the country. The technology can be found in Rio de Janeiro, Brasilia and
a further 92 cities.
Project: BIOSITE BRAZIL
Social Need: Protection of the environment and landscape; Research and innovation for
companies
Business Value: Reduction in costs in the amount of Reais 18,250,000 (calculated across the
100 Biosites installed to date)
Social Value:
▪▪ Less environmental impact: a Biosite supports more technologies (data transmission,
electricity and video cameras)
▪▪ Impact on the community: improvement in safety thanks to the installation of video
cameras
28. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXVII
Scenario
TIMgirlsHackathon is a wide-reaching project that can involve young women drawn to
the world of technology and who wish to see how they measure up in an area that often
tends to be reserved to their male counterparts. #TIMgirlshackathon comes as part of the
TIM digital innovation route and seeks to bring the female universe closer to coding, to help
bridge the gender gap under the scope of scientific culture and, more generally, STEM, not
to mention the fact that the unemployment rate of programmers and computer technicians
more generally, is today close to zero. A marathon lasting around 7 hours to introduce school
girls to coding. The challenge is to create a real App on a pre-established topic in one day
and without any expertise. A challenge that has been made possible thanks to TIM and the
tutors assisting the students on this adventure. A training day outside the classroom in a
stimulating and challenging environment where there is the opportunity to meet exceptional
Mentors, a tribute to female leadership that has been able to tear down prejudices and
cultural constraints.
The topic of #TIMgirlsHackathon is cyber bullying and the informed use of the web. The
challenge is therefore not only to learn to code but also to rise to the challenge and try to find
a solution to a widespread problem amongst the younger generation.
In 2016, eight events were held in the cities of Venice, Turin, Naples, Catania, Padua, Florence,
Cagliari and Bari, involving around 500 girls from secondary schools. In all events, all
participants were successfully able to complete development of an app prototype.
Project: #TIMGIRLSHACKATHON
Social Need: Access to culture, education and training. Reduction of inequalities
Social Value: 260K euros
▪▪ 8 events
▪▪ 500 girls involved
▪▪ 3.3 M reaches on Twitter
▪▪ 37 M impressions on Twitter
▪▪ 3 K tweets generated
▪▪ 100% positive sentiment on social networks
▪▪ 100% results achieved
29. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXVIII
Scenario
Continuing on with TIM’s commitment to the dissemination of the digital culture, school year
2016/2017 saw the start-up of the Digital Learning with TIM project pursued in collaboration
with the Ministry of Education, Universities and Research (MIUR).
The initiative offers teachers an overview of the new technological instruments that add value
and new opportunities to teaching. The project will last for two years - the 2016/2017 and
2017/2018 school years - and will involve around 7500 Italian teachers from schools of all
types and levels.
Digital Learning with TIM has started in Lazio, where around 500 teachers in the provinces
of Rome, Viterbo, Frosinone, Latina and Rieti had already signed up to the initiative, and will
then be rolled out to the remaining Italian regions.
The training is delivered in two stages: the first in the classroom, where teachers will be
flanked by qualified tutors for three hours, and the second on-line, via the scuoladigitale.tim.
it portal, where teachers can find further teaching material, more information and exciting
ideas by which to continue the training process.
Project: DIGITAL LEARNING WITH TIM
Social Need: Access to culture, education and permanent training - innovation and digital
transformation
Social Value: 80,000
▪▪ Approximately 500 teachers involved in Lazio
▪▪ 22 training sessions
30. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXIX
Scenario
The transition to the new ways of working is driven by the digital transformation, which is
marked by a reduction in transaction costs and an increase in flexibility, because supply
and demand for digital work meet on “platforms” at prices that compete on the service
(and, therefore, outside the logic of salary negotiation). This trend will also involve more
“traditional” working methods, which will be increasingly focused on flexibility and individual
autonomy in exchange for greater responsibility accepted regarding results (which will
replace the mere fulfilment of tasks). Smart working offers precisely these characteristics
of flexibility, autonomy and accountability and this is probably why it is attracting growing
interest and heading outside the domain of corporate welfare instruments. In other words,
the introduction of smart working can be a factor that facilitates the digital transformation. In
this context, TIM is implementing smart working in ways set to include as many professional
figures as possible, because it intends to create the conditions that facilitate the transition
to the digital organisation so as to ensure that it takes place starting from its history and
characteristics and not neglecting them or, even worse, regardless of them. In actual fact, if
the transition to digital requires digital competences, people are the real hub of this change.
This is why in TIM, the approach taken towards the digital organisation envisages giving voice
and listening to the transformation of people working them, having the intranet evolve into
a real collaborative platform of work, facilitating, thanks to smart working, the identification
of new organisational paradigms and new management and welfare models, to be kept
constantly in line with strategies and operations.
Smart Working in TIM is, therefore, not so much a tactical choice designed to make the
most of savings on the cost of labour (which, albeit slowly, are becoming concrete aspects
of the Italian legal order), nor even merely a welfare choice in a bid to conciliate the life-work
balance; rather, it is also a lever by which to recover individual and process productivity. In
these terms, it is a “perpetual beta” change management route that increases productivity
whilst increasing welfare and accountability for results.
As regards the implementation phases, the choice was made to proceed first (September 2015)
with a survey on working methods (involving more than 30% of TIM people) and thereafter
(October and December 2015), two stress tests were carried out to measure the work-life
balance and productivity when working from home or from a company office that differs from
your own; finally, in March 2016, a pilot project was launched that allowed for working outside
the office, structured with work hours designed to improve the work-life balance.
Project: SMART WORKING
Social Value:
▪▪ 250,000 euros of social costs saved for the reduction of CO2
emissions
▪▪ approximately 9,000 professionals involved
▪▪ 170,000 days of smartworking
▪▪ approximately 250,000 hours of home-office travel avoided
▪▪ more than 1,000 tonnes of CO2
saved for 7,500,000 km not travelled
▪▪ 14 articles
▪▪ 24,600 views on TIM website
▪▪ 12 interviews/articles on national, local, on-line press and TV
31. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXX
This approach enables the generation, collection and analysis of adaptive reactions of the
corporate organisation and therefore define a smart working policy that is not only functional
to welfare and productivity but above all supports the digital transformation of corporate
processes.
This clear aim of digital transformation, moreover, allows TIM to make its choices regarding
technological equipment in such a way as to innovate the machines and services used, in
accordance with criteria in accordance with criteria consistent with the transformation itself,
ruling out anything that does not satisfy this requirement. This approach that is so closely
focused on digital transformation also enables TIM to strike synergies with the supply of
smart working services offered to its customers.
32. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXI
Scenario
In an ageing country, as is Italy, TIM has chosen to give seniors new options, encouraging and
supporting their integration into today’s highly technological society from which they had
been partly excluded; giving them a special tariff and a series of initiatives aimed at helping
them through this transition that is not necessarily obvious to them. This has helped them
feel closer to their loved ones, using new technological tools of which they have little or no
knowledge. It has allowed TIM to look after a target that is highly receptive and hungry for
knowledge.
TIM for the over-60s ...
▪▪ 24-hour assistance with a 119 operator
▪▪ 3 months of TIM Entertainment without consuming GB
▪▪ to make best use of the GB envisaged by the offer and bring the over 60s to approach
the world of internet and social networks, we have envisaged digital training events
specifically for the over 60s who have not yet become digitally literate. Training has been
delivered at 8 chosen sales outlets in central and south Italy.
Project: TIM 60+
Social Need: Education and training. Inclusion
Business Value: 10,4 million euros
Social Value:
▪▪ 102,922 over 60 included
▪▪ + 50% Customer base
▪▪ growth of user data from 45% to 79%
▪▪ doubling up of usage data from 198MB to 405MB
▪▪ digital training events in 8 TIM sales outlets
33. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXII
Scenario
The TIM Academy today represents our Corporate University model (internal training school)
and works along several areas of activities: the definition of new contents for learning in
support of business strategy, the use of new formats and new digital technologies for learning
and the certification of competences and knowledge acquired.
TIM Academy also has a faculty of teachers and experts comprising both trainers of HR
Services and a great many colleagues who transfer their know-how internally through
meetings in person or social and digital solutions.
TIM Academy has a dedicated digital platform that comprises a library of on-line courses open
to everyone - many of which can also be accessed by mobile devices - videos on technological
and business scenarios, links to external contents and a social environment in which to start
discussions and exchange contents and documents with other colleagues.
TIM Academy is knowledge management; this means that it promotes a model that allows
for the use of the tacit and explicit knowledge of each individual in the company. It does so
through the involvement and collaboration of people and encouraging corporate collaboration
experiences, the creation of learning communities and team spaces, as well as the design of
initiatives to promote a collaboration- and sharing-focussed culture.
TIM Academy is also a partnership and research model, open and evolving constantly, which
involves universities and national and international training and research centres, peers and
competitors, suppliers and vendors, as well as start-ups and digital champions. In thus doing,
it fosters the contamination with different contexts and the development of co-innovation
paths.
TIM Academy represents a major step forward in the field of education and research, because
it optimises the creation, exchange and use of company know-how in all its forms, considering
it the real wealth of our company.
Its aim can be summarised in a few, essential words: taking part in knowledge.
Project: TIM ACADEMY
Social Need: Education and Training
Social Value:
Training
▪▪ Courses digitisation 30% (+ 164% on 2015)
▪▪ 138,638 hours of digital and social training
▪▪ 34,442 participants - 202,458 participations
Social Network Indicator
▪▪ 201 conversations - 542 endorsement - 6,212 enabled users
Smart Corner
▪▪ 80 events - 2300 participants - 11 cities involved
▪▪ 30 on-line knowledge objects
▪▪ Community Pioneers
▪▪ 6 new capabilities proposed
34. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXIII
In TIM, the training activities are split into four macro-categories:
▪▪ management education
▪▪ development of role-based and specialized skills, and new capabilities
▪▪ development and empowerment
▪▪ institutional and corporate culture
For each category, the learning methods are increasingly characterised by models that are
coherent with our lifestyle and the existing new formats:
▪▪ All Digital: Web Based Training, Short Videos, Webinars, Virtual learning
▪▪ Social: interaction between participants, co-production of contents autonomously but at
the same time shared by all participants (active role)
▪▪ Blended: mixed solutions (digital + attended training)
▪▪ Gamification: methods and techniques adjusted from typical gaming scenarios
(competition, timing, score, levels).
More than 150 courses are available on TIM Academy, open to everyone, giving people the
chance to create their very own training path. Instead, on the personal page, employees can
access their learning plan directly, which contains the training activities dedicated to their
corporate role or development path.
We have also worked on a greater use of social tools and platforms, as well as the creation
and strengthening of open professional communities, which can strengthen learning paths
through the sharing of personal skills and experiences by their participants and teachers.
35. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXIV
Scenario
The internet offers a great deal of interesting contents for our children and their education,
but it also sometimes entails some risk, particularly for those not yet able to automatically
recognise the danger signs.
Our children watch videos on-line, chat to friends and make purchases. But the more they
use devices, the more exposed they are to fraud attempts, the abuse of personal data, cyber
bullying and identity theft:
▪▪ between 9 and 17 years old, mobile telephones are the main device used to access the
internet.
▪▪ 8 out of 10 on line with smartphones between 9 and 17 years old
▪▪ between 9-10 years old, access to the internet is via the smartphone
▪▪ children aged 9 years old already on social networks
▪▪ one in five of those aged 9-10 years old and one in four of those aged
▪▪ 11-12 pretends to be older when signing-up with Facebook
▪▪ of the very young, 10% are victims of bullying on the internet or via APPs
▪▪ 9 in 100 have been victims of cyber bullying
The TIM Protect service offers a safe, secure and automatic way by which to respond promptly
to the threats of the web without renouncing the potential of browsing the internet. The 4
protection areas of TIM Protect:
Anti-theft and device localisation: protects your smartphone and tablet in the event of theft
or loss, allowing you to localise and easily block your device and, if you so wish, even delete
the data.
Parental Control: protects your children from undesired websites and allows you to control
their on-line life.
Banking protection and safe browsing: guarantees the protection of your on-line banking
transactions and automatically verifies the reliability of a website before accessing it.
Antivirus: guarantees complete, real-time protection for all your devices. Offers the most
cutting-edge protection from viruses, spyware, hacker attacks and identity theft, at the same
time blocking dangerous websites and on-line attacks whilst exploring the web.
Project: TIM PROTECT
Social Need: Education and training. Safety.
Business Value: 0,8 million euros
Social Value: 181.821 people made aware on the topic of internet safety
36. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXV
Scenario
In the current “knowledge society”, knowledge has taken on a key role, both in economic
and social and political terms: research and innovation are behind the development of this
emerging type of society. A key role is played by the universities and schools in supporting and
fostering the direct application, optimisation and use of knowledge generated by training,
through constant synergy with businesses and other local stakeholders.
In 2016, TIM defined a new development model of relations with the educational ecosystem
(the academic world, schools, business schools, institutional and social entities), thereby
further enabling the optimisation of talent for the transfer of innovation. The goal is to
strengthen and accelerate the Group’s ability to innovate while at the same time contributing
to the development of young people by offering them the opportunity to gain new skills and
experiences. Partnerships were therefore activated or consolidated aimed at generating value
in the short/medium-term, making know-how available to develop and train the younger
generation.
The “TIM-Network Scuola Impresa” project, sponsored by the Italian Ministry of Education,
was set up in 2009 to transfer key skills, scenarios and evolutionary trends in the sector
to students, promoting the image of the company across the country and enhancing the
Company’s skills by promoting its dissemination externally. From 2009 to 2016, 8 editions
of the TIM Network Scuola Impresa (School Business Network) project have been held and
the 9th edition is currently in progress for school year 2016/2017, involving 24 schools and 23
teachers of TIM, the “Maestri di Mestiere” (Masters of the Profession). Moreover, in 2016, with
a view to further strengthening contact with the world of school and helping enhance the
competences of secondary school students, we chose to adhere to an experimental project
of Alternanza Scuola Lavoro (school-work alternation) with Assolombarda in 4 Milan-based
secondary schools.
Project: PARTNERSHIPS WITH SCHOOLS AND THE ACADEMIC WORLD
Social Need: research and innovation for companies
Social value: 3,3 million euros
37. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXVI
Scenario
The way in which digital natives approach new technologies involves a change in learning
processes and educational paths.
New media are increasingly becoming an unavoidable dimension for young people from their
early years of life. However, ease of access, product and publication of content are not always
accompanied by cultural growth, a capacity to reflect and critical skills. Educating young
users, responsible and aware of new technologies, but also reinventing the way they study
thanks to the web, experimenting a new way of being at school that combines studying and
playing, it is essential for today’s children and teenagers.
In 2016 TIM signed up to Programme the Future, as the Founding Sponsor partner, for the
third scholastic year (2016/2017); the project is an initiative by MIUR (Ministry of Education,
Universities and Research) and CINI (National Inter-University Consortium for Information
Technology) aimed at disseminating a new digital culture in schools by introducing the basic
concepts of information technology and computational thought to give young people greater
opportunities to enter the innovative professions of the future. The initiative has involved over
one million students to date for a total of 10 million hours of training, with the participation
of around 6,000 schools.
To support the initiative TIM also brought its strengths into play through the TIM4Coding
project. In the last edition, namely scholastic year 2015/2016, over 400 employees voluntarily
led the students, mainly from primary schools, through their first hour of coding, while at
the start of this third scholastic year (2016/2017) TIM organized four events for young people
with the aim of testing the basic concepts of information technology. Around 200 students
from high schools participated at the TIM #Wcap business accelerators in the cities of Milan,
Bologna, Catania and Rome, where through the use of simple and fun tools they were involved
in a useful educational experience also to increase their opportunities to enter the innovative
professions of the future. The young people took part in coding lessons and were issued an
official certificate of participation in Programme the Future.
Project: PROGRAMME THE FUTURE
Social Need: access to Culture, Education and Lifelong Learning – Innovation and digital
transformation
Business Value:
▪▪ 1.325.911 students envolved in the projext “Programma il Futuro
▪▪ more than 5.000 scools involved in the project
▪▪ 427 volunteers in TIM involved in the whole
▪▪ 5,873 “likes” on FB (Programme the Future page)
▪▪ 2,404 followers on Twitter (Programme the Future account)
▪▪ 72,774 impressions on Twitter for TIM4Coding (TIM account)
Social Value: 30,000 euros
38. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXVII
Scenario
Officiallyfoundedin1585andtransformedoverthecenturiesintoamodernandinternationally
acclaimed symphonic and concert institution, the National Academy of Saint Cecilia in Rome
combines an academic body of 100 members, which includes the most illustrious exponents
of musical art and culture, with a symphony orchestra and choir among the most renowned
internationally, while preserving an immensely rich historical heritage, reflected in its
centuries-long history.
The PappanoinWeb project stems from the consolidated partnership between TIM and the
National Academy of Saint Cecilia, created to promote culture by making innovative use
of the Web, encouraging the dissemination of high quality content and the socialisation of
classic artistic experiences, involving audiences and innovative content distribution channels.
Since 2011, the TIM Group has been interacting with Internet audiences to share the cultural
values of the country, including classical music. All the concerts are streamed live and made
available on demand on the telecomitalia.com/pappanoinweb website. The project is aimed
both at young people, allowing them to approach and appreciate cultural themes like classical
music, and the not so young, who, attracted to the Internet by cultural content of interest to
them, gain familiarity with digital technologies, understanding their potential.
The 2016 edition of PappanoinWeb was structured into four appointments, with the direct
participation of the web public who, thanks to the dedicated live chat and above all the
innovative WebArena, a privileged place close to the orchestra, kitted out technologically by
TIM and reserved for a young public aged under 30, were able to attend concerts, for the first
time ever using mobile telephones and tablets during the events, with no limits to internet
connections, the sharing of photographs, selfies, video clips, emotions and real experiences.
Over its six-year programme, PappanoinWeb has been followed by 200,000 users connected
by streaming, generating considerable interaction on social media.
Since 2015, the on-line user experience has been further enhanced by new viewpoints thanks
to the potential of “360° panoramic” filming technologies offering close-ups of the orchestra
and conductor, thereby giving the web spectator the sensation of actually being present in
the room.
Project: PAPPANOINWEB
Social Need: Education and training - Participation in cultural activities
Business Value:
▪▪ 5,77 milioni reach social
▪▪ 50 press reports
▪▪ 117.000 page views
▪▪ 11.665 video streaming
Social Value: 220,000 euros
39. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXVIII
Scenario
The TIM College offer sets out TIM’s commitment to bring technology into Italian schools.
The offer is aimed at people under thirty, with a focus on target students aged 14-18, and is
intended to boost digital schools, providing a valid tool to help young people in their training
and studies. The pack consists of a tablet, digital content to study at home and a monthly
connectivity bundle. TIM was the first telephone operator to launch this type of offer, entirely
dedicated to students, on the Italian market in May 2014.
In addition to the tablet (the latest tablet model, a Samsung Galaxy TAB A 10.1, 2016 ed.),
the offer includes 4G connectivity with a data traffic bundle of 5 GB per month and a series
of educational contents in digital format for young people aged between 14 and 18, including
an English, French, Spanish or German De Agostini language course and a Redooc maths
course, both lasting for 30 months. The offer is completed by 21 classics of Italian literature, 3
manuals, a 50 euro voucher to buy digital school books at scuolabook.it.
In 2016 TIM expanded its digital school offer by complementing the student offer with an
exclusive dedicated to teachers, seizing the Teacher Card opportunity, a 500 euro bonus which
MIUR makes available to Italian teachers for their training and professional development. The
TIM College Pack - Teachers Special was launched in March 2016. The package on sale in TIM
shops consists of: a tablet chosen from some Android models available, digital content for
professional training (books, a sector journal and an online e-learning course which issues
training credits) and a connectivity data bundle free for 3 months.
In 2016, 944 packs in total were sold.
The Digital School offers proposed by TIM in recent years have contributed to the spread of
technology in the digital school area in an attempt to push for a new approach to study and
training using more modern methods.
The adoption of digital text books not only promotes digitisation in the schools, but has
also resulted in around 8,655 tonnes of paper being saved, with a resulting reduction in CO2
emissions from paper production, and a saving of approximately 261,000 tonnes of water.
Project: TIM COLLEGE
Social Need: Education and training - Participation in cultural activities and economic well-
being
Business Value: 754,385 euros (revenues from sales)
Social Value: 40,700 euros (in bonuses distributed for the purchase of school books)
Economic shared value: 795,085 euros
40. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XXXIX
Project: START! LA VITA A PORTATA DI APP
Social Need: Innovation and digital transformation
Social Value: 369,000 euros
▪▪ 10 episodes
▪▪ average of 644K AMR per week
▪▪ 12.2 M reaches on Twitter for the hashtag #Start16
▪▪ 6.9 M impressions on Facebook on the TIM fanpage
▪▪ 100% positive sentiment on the social networks
▪▪ +19% Brand Familiarity
▪▪ +28% Brand Trust
▪▪ +36% Intention to Buy
▪▪ 76% programme enjoyment
Scenario
A television programme that describes how digital and innovation can concretely help im-
prove people’s lives. It is a light factual entertainment programme, presented by Francesco
Mandelli and Federico Russo. During the 10 episodes, the presenters met with and inter-
viewed various start-ups, offering an original presentation of their services.
The first edition, which was broadcast on Rai Due late evening from March to June 2016
enjoyed great success amongst the public, with more than 600k television viewers per week
and an average share of 6.4%.
41. TIM
SUSTAINABILITY REPORT 2016
DIGITAL CULTURE
XL
Scenario
One of the priorities of the Brazilian government is to increase the availability of professional
and technological education courses. In 2011, the government launched PRONATEC - National
Programme for Access to Technical Education and Employment – on which 6 million people
are currently enrolled. One of the initiatives of PRONATEC is the e-TecBrasil Network, which
provides free technical and distance learning courses.
The TIM Institute, which shares the same ideas as PRONATEC, has created TIM Tec, a distance
learning platform that uses the MOOC (Massive Open Online Courses) concept. These courses,
which are provided and made available for free on the platform, are intended for students
attending high schools and technical colleges.
Anyone can enrol on the courses, which teach programming languages and how to create
databases, websites, games and many other things. There are also courses for primary school
teachers and others intended to improve the skills considered to be basic for the training of
any professional, such as how to write well.
The technology and content of the TIM Tec platform are share with the Federal Institutes of
Education, Science and Technology, with the support of the Department of Vocational and
Technological Education of the Ministry of Education (SETEC/MEC).
The source code of the system developed for the platform can be downloaded on GitHub, thus
allowing teaching establishments to use it free of charge and adapt it to their requirements.
The TIM Institute supports the Federal Institutes in the process of installing and using the
platform.
The first pilot course was organised for students from the Cultural Training Centre of the City
of Tiradentes in São Paulo and the Sul-Rio-Grandense Federal Institute (Ifsul).
With TIM Tec, the TIM Institute has confirmed its commitment to vocational and technological
education in the country thanks to an investment of around 10 million reais in the 2013/-2016
period for the implementation of this project.
Project: TIM TEC
Social Need: education and training
Business Value: improvement in reputation
Social Value: approximately 21 million reais, as follows:
▪▪ savings generated, thanks to the free courses, of around 19 million reais
▪▪ almost 1.7 million reais in investments made by Instituto TIM to support the project
▪▪ reduced environment impact: reduced CO2 emissions thanks to the fewer journeys made
by students
42. TIM
SUSTAINABILITY REPORT 2016
TIM PEOPLE
XLI
Scenario
The MioNido nurseries for children of colleagues (or living as part of their families), aged
between 3 months and 3 years, are internal facilities within the company, charging the same
fees as local nurseries, with hours to suit the various requirements, aimed at improving work-
life balance and quality of life in the Company.
9 company nurseries are currently operating in offices in Turin, Milan, Florence, Ancona, Rome
(2), Naples, Catanzaro, Palermo, with an additional 11 private nurseries operating by special
agreement in Turin, Padua (2), Trento, Bologna and Rome (5), Caltanissetta. These facilities
offer different time bands for children, in order to meet the needs of the staff, particularly
those doing shift work. The location of the nursery is chosen based on assessments of the
type of people employed by the company (average age of employees, number of children
between 0 and 3 years, presence of female workers) and the workplace location (logistical
difficulties, presence of a call centre, etc.).
The 9 company nurseries and 11 private nurseries offer any places not filled by colleagues to
external companies (Poste Italiane, Banca Intesa, Assicurazioni Generali, etc.) which, in turn,
provide TIM with places in their nurseries.
For the academic year 2016-2017, there are 20 nurseries and the company is the first in Italy
to be trying out a preschool service at its offices on Via Oriolo Romano, Rome, which already
has a nursery.
Project: NURSERIES AND PRESCHOOLS
Social Need: economic well-being, quality of work
Business Value:
▪▪ significant reduction in absences of working mothers with children between 0-3 years in
offices with nurseries, with a consequent reduction in the costs of absenteeism
▪▪ reduction in the full use of parental leave or recourse to part-time work by parents who
have benefited from the service
Social Value: over 1,3 million euros
Results: 489 available places in 20 nurseries
43. TIM
SUSTAINABILITY REPORT 2016
TIM PEOPLE
XLII
Scenario
Starting from the conviction that together we can build a better world, TIM Brasil encourages
its employees to participate in volunteering and solidarity initiatives, in order to do good by
helping others.
Thanks to the “Citizen without borders” (Cidadão Sem Fronteiras) programme, employees of
TIM Brasil can personally choose the organisations to which they want to provide their service
or can take part in charitable activities promoted within the Company.
All employees can take a day off work per year to dedicate to volunteering for children, young
people, the elderly and whole families by supporting welfare organisations. This kind of work
contributes to achieving the annual volunteering objective of TIM Brasil.
In 2016, 140 employees of TIM Brasil joined in the “Citizen without Borders” programme.
Project: CITIZEN WITHOUT BORDERS
Social Need: quality of work
Business Value: improvement in relations with local authorities and brand reputation
Social Value: 36,000 reais
44. Contents
TIM Group 03
TIM Group’s profile 04
Corporate Governance system 06
Key economic performance data and economic value generated and distributed 19
Reference context 22
Being sustainable at TIM 33
Human Rights 34
Opportunities and socio-enviromental risks of the Group’s operations 41
Enterprise Risk Management system 42
Business Continuity management system 44
Corporate Shared Value:
TIM’s strategic approach to sustainability 46
Sustainabilty governance 51
Position in indexes and other awards 52
Stakeholder engagement 53
Materiality analysis 63
Digitisation, connectivity and social innovation 68
TIM strategic relevance 69
Group’s costumers 77
Research & development and innovative services 93
Sustainabilty throughtout the supply chain 107
Enviromental protection 115
Climate change 119
Enviromental performance 125
TIM eco-friendly 137
45. Digital culture 139
Relations with local communities 142
TIM people 148
Concise figures 150
Gender balance 153
People caring 155
New skills and development 158
Internal communication 168
Health and Safety 169
Industrial relations 172
Remuneration policy 174
Reports received through the internal control procedure 176
Appendix – Detailed tables 177
TIM Foundation 188
Appendix 192
2015 and 2016 results 193
2017 Objectives and multiannual targets 196
Note on methods 199
Report of the indipendent auditors on
the Sustainability Report 200
Report of the indipendent auditors on
TIM Corporate Shared Value Model 203
GRI content index 214
Contents
47. TIM
SUSTAINABILITY REPORT 2016
TIM GROUP
4
TIM GROUP’S PROFILE
[G4-3] The TIM Group offers fixed and mobile communication services and ICT solutions1
.
In Italy, the Group operates the biggest fixed voice and data infrastructure, covering the
whole territory and provides one of the country’s most extensive and advanced mobile
network platforms. [G4-6] In addition to its domestic leadership, the Group has a significant
international presence in South America, particularly in Brazil. [G4-17a] For the details of the
countries where TIM operates see Note 45 of the Group’s consolidated financial statements,
which also lists the Group companies, subdividing them by consolidation method. [G4-13],
[G4-22] No significant changes in operations and in the consolidation scope took place
during 2016.; For details of the changes that did take place, see Notes 1 and 3 of the Group
Consolidated Financial Statements.The main changes over the past three years include
the Sofora – Telecom Argentina Group being recorded among discontinued operations the
creation of INWIT S.p.A., listed on the Milan stock exchange, which operates in the electronic
communication infrastructure sector, specifically in those dedicated to hosting radio
transmission equipment for mobile voice networks both of TIM and the other operators.
[G4-8] [G4-9] All the Group’s activities are encompassed in the following Business Units:
▪▪ “Domestic” operates primarily in the field of domestic fixed and mobile voice and data
services for end customers (retail) and other operators (nationalwholesale), as well as
in the domestic Information Technology products and services sector. In addition to
the management of the digital multiplexes through Perdisera S.p.A.2
, the Business Unit
also includes the activities of INWIT S.p.A. and on an international note, the activities
related to the development of fibre optic networks (international wholesale) in Europe, the
Mediterranean and South America;
▪▪ “Brasile”(TIM Brasil Group) provides mobile telecommunications services. Furthermore,
as a result of the acquisition of a number of fixed line operators, it also offers fibre optic
data transmission and residential broadband services;
▪▪ the “Other Activities” include the financial companies and other minor companies not
strictly connected with the Group’s “core business.
THE GROUP’S MAIN BRANDS
[G4-4] [G4-8] The main brands market voice/data and information technology products
and services for residential and business customers, public administration, national and
international operators. The Group also provides transmission capacity and technological
solutions for TV sector operators.
TIM is the single brand for the whole Group, which operates in the domestic market offering
fixed and mobile telephony, internet, digital content and cloud services. TIM is supporting
Italy in its quest for full digitisation by building an ultrabroadband network infrastructure and
providing next generation services. In Brazil, TIM markets mobile phone, mobile internet and
fixed line services
Through the Sparkle brand, the Group offers international voice, data and internet solutions
to fixed and mobile telecommunications operators, Internet Service Providers/Application
Service Providers, content and media players and multinational companies.
1
[G4-3] For general information about the Group, see the consolidated financial statements of the TIM Group.
2
Perdisera S.p.A. stems from the joint venture stipulated between the network operators Telecom Italia Broadcasting
(TIMB) and Rete A, owned by Gruppo Editoriale L’Espresso. The company owns five national digital multiplexes and is
the supplier of reference for the most important television editors operating in Italy
48. TIM
SUSTAINABILITY REPORT 2016
TIM GROUP
5
The Olivetti brand markets information technology products and services for residential and
business customers.
Persidera offers terrestrial digital transmission capacity and high quality technological
solutions to leading TV networks operating in the domestic market.
Finally, INWIT is the Group’s tower company.
MAIN SHAREHOLDERS OF TELECOM ITALIA S.P.A.
[G4-7] Telecom Italia is a joint-stock company organised under the laws of the Republic of
Italy 1
, [G4-5] where the parent company has its registered office. [G4-7] As at 31 December
2016, the reference shareholder is Vivendi S.A., with 23.94% of the ordinary share capital,
[G4-13] The share ownership did not change significantly in 2016, after the 2015 entrance by
French shareholder, Vivendi.The Net Equity structure and the number of shares in circulation
are shown in Note 14 of the Group Consolidated Financial Statements. For further information
relating to reports made to Consob regarding significant shareholdings, see the Report on
Operations of the TIM Group.
The shareholding structure as of December 31, 2016 is shown below2
.
[G4-13] An examination of the share capital structure in the period 2014-2016 shows that
in 2016, in addition to the increase in the shareholding owned by Vivendi S.A. (+2.6p.p.),
compared to 2015, there was a slight increase in the shareholdings owned by foreign and
Italian institutional investors: +2.3p.p. and 0.5p.p. respectively. The shares held by foreign
legal entities, during this period, increased slightly (from 3.0% in 2014 to 3.8% in 2016) while
the shares held by Italian legal persons decreased slightly, falling from 0.8% in 2014 to 0.5%
in 2016.
Lastly, as regards the other Italian shareholders and other foreign shareholders categories, a
decrease in ownership over the three-year period (-4.8pp) continued in 2016, slight for other
foreign investors.
1
[G4-7] Also see the TIM Group Consolidated Financial Statements.
2
Source: Register of shareholders as of December 31, 2016, supplemented by communications received and by other
available information.
9.77%
Others
shareholders
Italy
 0.05%
Other
shareholders
abroad
 23.94%
Vivendi (*)
 1.08%
TIM
 4.03%
Institutional
shareholders Italy56.81%
Institutional
shareholders abroad
3.79%
Legal entities abroad
0.53%
Legal entities Italy
49. TIM
SUSTAINABILITY REPORT 2016
TIM GROUP
6
THE CORPORATE GOVERNANCE SYSTEM
Some aspects of the Group’s Corporate Governance which are particularly relevant (material)
to the reporting of sustainability in accordance with the GRI-G4 guidelines are briefly
illustrated below. For a more detailed and comprehensive description see the 2016 Report on
Corporate Governance (“RCG”) and Share Ownership, the Report on Remuneration (“RR”), the
Bylaws and the Group Governance Procedures, available at telecomitalia.com.
[G4-34], [G4-35], [G4-40] The Group’s Board of Directors is appointed by the Shareholders’
Meeting based on slates submitted by eligible voters who own a total of at least 0.5% of the
ordinary share capital (or any other amount that may be required by the regulations issued
by Consob). The existing Board of Directors was appointed by the Shareholders’ Meeting on
April 16, 2014. In December 2015, the number of Directors increased from 13 to 17 with the
appointment of 4 Directors at the request of the reference shareholder Vivendi S.A.. During
2016, the number of members fell by 1, due to the departure of the Group’s previous CEO.
[G4-38], [G4-40] The only stakeholders represented in the Board of Directors are the
shareholders. Directors’ powers are granted (and revoked) by the Board of Directors, which
determines the purpose, limits and methods by which they are exercised.
[G4-40] The Group’s Bylaws require the least represented gender to account for at least one
third of the total number of directors, rounded up to the next unit in the event of a fraction.
The independence of a minimum number of directors is required by the law (Consolidated Law
on Finance) based on the overall composition of the Board; the same law and the Corporate
Governance Code of Borsa Italiana also define the criteria for the independence of Directors.
An amendment made to the Bylaws of TIM in May 2015 introduced the principle that at least
half of the candidates and elected members from each slate must be independent when
the Board of Directors is renewed. Reference is made either to the legal independence
requirements or the Corporate Governance Code drawn up by the Corporate Governance
Committee of Borsa Italiana, with which TIM complies.
[G4-40] In delivering its guidance to shareholders, with a view to the Shareholders’ Meeting
called to renew the Board of Directors on April 16, 2014, the outgoing Board of Directors
expressed a few wishes regarding the new Board, including:
▪▪ the skills which were deemed to be necessary were a knowledge of the telecommunications
and/or information technology sectors (including regulations) or associated areas of
business, strategic guidance, finance, communication and organisation, risk management
and internal control. In terms of professional background, people of managerial extraction
were to be preferred (primarily: CEOs or CFOs of significantly large companies), but the
contribution of academic experts in finance and taxation, risks, law or the technical sector
in which the Group operates were also judged useful;
▪▪ International openness was desirable, with the inclusion in the slate of non-Italian
candidates, i.e. individuals who had gained professional experience overseas;
▪▪ A balanced mix of the various components was required, as the coexistence of diverse skills
and experience ensures the complementarity of professional profiles, promoting fruitful
discussion and the efficient operation of the Board, in the knowledge that specialised skills
can be contributed by internal structures or, if necessary, by external consultants, and that
the complexity of the matters to be dealt with suggest that candidates with prior experience
gained on the boards of listed companies would be appropriate.(see Resolution Proposals -
Shareholders’ Meeting of April 16, 2014, available at telecomitalia.it)
[G4-38] The Board of Directors in office consists of 16 members, including 9 independents.
6 of the Board members are women and the female gender is the only social subgroup
represented. Table 2 “Structure of the Board of Directors and Committees and other positions
held” contained in the RCG, shows for each director their term of office, the committees to