Disclosures concerning the COVID-19 pandemic
In view of the complexity of the current situation, the Group has carefully monitored the evolution of the COVID-19 pandemic with regard to the main areas and countries in which we operate, in line with the recommendations of ESMA in the public statements(1) published in March, May, July and October 2020, and of CONSOB in its warning notices nos. 6/2020 of April 9, 2020, 8/2020 of July 16, 2020 and 1/2021 of February 16, 2021.
The Group has analyzed the impacts of COVID-19 on business operations, the financial position and performance, which are also reflected in the assumptions underlying the Group’s Business Plan, also identifying the main risks and uncertainties to which it is exposed, as reported in the “Risk management” section of the Report on Operations. For more on the effects generated by the COVID-19 pandemic at December 31, 2020, please see the specific section “Financial impact of COVID-19” in the Report on Operations.
Consistent with the disclosures provided in the earlier sections of the Report on Operations, the consolidated financial statements at December 31, 2020 offer additional specific information regarding the COVID-19 pandemic, based on specific company circumstances and on the availability of reliable information, in order to highlight its impact on the financial position and performance of the Group at that date.
In this regard, additional information on the financial implications of the COVID-19 pandemic is available in note 2.1 “Use of estimates and management judgment” and in the notes to specific items.
Disclosures on climate change
The Group is moving forward in its commitment to lead the energy transition, in line with the objectives of the Paris Agreement (COP21) and the Sustainable Development Goals set by the United Nations.
In particular, the Group is fully committed to the development of a long-term sustainable business model, consistent with the objectives of the Paris Agreement to achieve a reduction in CO2 emissions and to limit the average increase in global temperature to below 2 °C compared with pre-industrial levels. Since 2019, the Group has officially reaffirmed this commitment, responding to the United Nations call for action and is the only Italian company to have signed the commitment to limit the increase in global temperatures to 1.5 °C and to achieve zero emissions by 2050.
These objectives form the basis for the 2021-2030 Strategic Plan presented in November 2020. It is founded on the Group’s leadership in the energy transition process through the decarbonization of its generation mix, the electrification of energy consumption and the creation of digital platforms for the development of new business and operational models.
The Group has considered the risks related to climate change and the objectives of the Paris Agreement in the preparation of the consolidated financial statements at December 31, 2020, which appropriately reflect the effect of achieving net zero emissions by 2050 on assets, liabilities, profits and losses, incorporating the material and foreseeable impacts as required under the Framework of the IFRS.
Furthermore, in compliance with the document published by the IFRS Foundation on November 20, 2020,(2) the Group provides explicit information in the notes to these consolidated financial statements regarding how the implications of climate change are reflected in the financial statements.
For further details on the financial implications of issues related to climate change, please see note 2.1 “Use of estimates and management judgment” and in the notes to specific items.
The accounting assumptions used for the preparation of the 2020 consolidated financial statements are consistent with the information on the risks deriving from climate change reported in the “Risk management” section of the Report on Operations, which readers are invited to consult for further information.
(1) ESMA 71-99-1290 of March 11, 2020; ESMA 32-63-951 of March 25, 2020; ESMA 31-67-742 of March 27, 2020; ESMA 32-63-972 of May 20, 2020; ESMA 32-61-417 of July 21, 2020 and ESMA 32-63-1041 of October 28, 2020.
(2) “Effects of climate-related matters on financial statements”, which expands on an article on the issue written by Nick Anderson, a member of the International Accounting Standards Board in November 2019.