Trust

What is the contribution of businesses to the economy, society and the environment? Which values do they bring in their operations?

Scenario

Today, companies must be ready to meet the expectations of those consumers that are socially responsible and concerned with protecting the environment, such as the “Millennials”- young people aged 18-30 years that do not trust big business and disapprove of the concentration of wealth, and demand simplicity and transparency in product and service offerings as well as communication 2.

After years in which Italian consumers’ trust in businesses gradually declined, in 2014 the trend reversed, and this continued also in 2015 4.

Establishing a fiduciary relationship with customers is complex and becomes a key strategic goal for companies, as showed by the commitment to, and investments in, transparency policies, brand reputation, and Corporate Social Responsibility.

By the numbers 3

80% of people believe that companies must help address the needs of society (+6% 2015 vs. 2014)

60% trust rating of TLC companies in 2016 (+1% 2015 vs.2014)

57% trust rating of Italian TLC companies in 2015 (+9% 2015 vs.2014)

Our answers

Simplification
and transparency

The logo is the first impression of a company: therefore, we decided to start from our brand to meet the demands for quality, security and proximity.
Those are the three pillars of our offering: we strive for quality through technological innovation; ensure the security of data and individuals by making the web reliable; and stay close to our customers by streamlining the user experience of our services as well as contacts.
By simplifying and repositioning our brand architecture, TIM has become the one-stop-shop brand for fixed-line and mobile communication services, internet services, digital content, and cloud platforms and solutions.

10 millions letters and mails sent to customers

52,000 mails sent to tim employees

9,000 technician uniforms

156 new concept stores by 2016

1,700 new signs by 2016

The birth of the new TIM is a cultural and industrial shift that impacts the professional identity of thousands of people. It is key that employees identify with the company’s values and feel represented.

The respect and care for our employees led us to overhaul the organisation of work inside our company, expanding it with remote working arrangements and placing increasing emphasis on trust. We launched a Smart Working project that encompasses all aspects concerning the flexibility of work, chief among them the opportunity to work from home or satellite offices. We are also reimagining the workplace by equipping it with state-of-the-art technology and several services to improve work-life balance.
Offering increasingly better working conditions requires a comprehensive vision ranging from the on-boarding of new hires to training and development programmes, performance and leadership, career management, compensation, values, and culture. In 2015, over 200 young new hires across Italy became our Employer Brand Ambassadors, welcoming young students, i.e. potential candidates, to career days, telling their on-boarding experience, sharing our initiatives on Social Media, and posting innovative video-selfies that showed a typical day at work.
Top Employers

For the fourth year in a row, we obtained the international Top Employers certification, which is only awarded to organisations that achieve the highest standards of excellence in employee conditions.

Best Employer of Choice

We ranked 14th on the Best Employer of Choice ranking for 2015, moving up 18 positions and thus making the Top 20 of the companies preferred by young graduates.

The digitisation and spreading of social media are dramatically changing the way consumers establish and manage their relationships with brands. They demand attention and to interact directly with companies, as well as fast and effective responses. This is why having a presence on new digital platforms and social networks is increasingly seen as the future of customer support, care and loyalty.

The growth in FB and TW interactions from 2013 to 2015

In 2015

65 mln calls

11,000 people assisting retail customers

68 offices in 59 cities

1,400 professionals in 13 offices
assisting large businesses

800,000 interactions during the year

99% response rate in the 4th quarter of 2015

24 minutes response time in the 4th quarter of 2015

5th on Social Baker’s global ranking in the 4th quarter of 2015

A new equivalence model

"To maintain sustainable economic development,
we need to shift our focus from speed to quality" 5

The transformation of the way people relate to each other in the digital age is affecting both individuals and companies. In the telecoms industry, the opportunities for discussion and collaboration among the various players have grown in number and importance; above all, they will represent the way to improve service quality and efficiency.

This is why we created in early 2016 a new equivalence model: a project to transform how we provide and maintain access services for our copper and fibre-optic network, in order to ensure equivalence of inputs between TIM and other service providers.
The goal is ensuring that our structures and those of other providers are treated equally. This is why provision and maintenance operations will be carried out using the same organisational unit, processes, systems, and databases. This will ensure a consistent level of transparency, service quality, response time internally and externally, and flexibility.

18 months time required
to implement the model

120 million euros
in investments

~60 quality indicators
monitored

Our commitment
to sustainability

"The Fourth Industrial Revolution is also a values revolution” 6

Corporate strategies are increasingly oriented to creating “value” not only in terms of profits, but also by striking a balance between the expectations of the different stakeholders.
The Corporate Shared Value model we have adopted is intended to help create shared value through all the company’s operations as well as by designing and implementing projects that generate Business Value as well as Social Value.

The goal is enabling a digital ecosystem that meets the social needs of Italy in accordance with the Italian Digital Agenda.
The CSV approach puts the demands of the community, the expectations of stakeholders, and the new role of the company in society front and centre, building on the principle that we cannot achieve long-term economic growth without improving social conditions and protecting natural resources.
An innovative model monitoring and reconciling operating and financial performance with social progress
Multistakeholder approach, definition of material topics and CSV projects.
3 strategic areas for intervention to meet Italy’s needs: Digitisation, connectivity, and social innovation, digital culture, environmental protection.
17 projects carried out for a total CSV of 12.44 bn euros up to 2015.
The CSV model which consists of three strategic areas, also raises awareness inside the company about Environmental Protection, allowing to adopt innovative and virtuous alternative solutions. For instance, in 2015 Shared Value measured as TIM’s internal energy efficiency totalled 25.5 million euros, thanks to declining energy costs (Business Value) and lower CO2 emissions (Social Value).
The Information and Communication Technology (ICT) industry contributes to achieving the goals of the green economy, which is part of the Italian Digital Agenda.
Consistently with European sustainability policies, we have promoted initiatives such as purchasing energy exclusively from renewable sources, self-generating power, and adopting led lighting.
For the next few years, we have set ambitious goals to reduce our energy and environmental footprint.
Our efforts to reduce our environmental footprint is reflected also in the products that end up in consumers’ homes. We have developed a line of “Green” eco-friendly products, certifying their environmental sustainability and the benefits for users in terms of energy savings. For instance, the Green ADSL modems are designed to automatically go into stand-by, thus saving at least 40% compared to the previous generation, all things being equal.
Business Unit Domestic 2015 Results 2015 Target 2016 Target 2017 Target
Total power purchased and generated (GWh) 2,071 2,015 1,974 1,925
Power self-generated from co-generation (GWh) 130 151 151 151
Eco-efficiency indicator (bit/joule) 4,707 5,300 6,100 7,250
Reduction in CO2 emissions from the purchase and generation of power (tonne) 697,500 680,000 680,000 680,000

TIM Brasil Biosite

Tim Brasil has launched the Biosite, a multi-purpose facility that improves data transmission quality and can be used also for public lighting and video surveillance, consumes less energy, and has a lower environmental impact, since it uses 99% less steel than a conventional station. Currently, there are over 100 Biosites across Brazil, including in Rio De Janeiro, Brasilia, and 6 other cities. The goal is adding 300 new installations in Rio De Janeiro for the 2016 Olympics.

Sustainability is also increasingly driving investment decisions. Markets acknowledge and reward Socially Responsible Investments, characterised by low risk profiles, in the medium/long-term.
Being part of sustainability indices is an important achievement for companies, and positively impacts their reputation.
Evolution of financial markets
Cumulative number of SRI funds in Europe (at 30 June 2015)

In 2015, we made both the Dow Jones Sustainability World and Europe Indices for the twelfth year running, and, for the second year in a row, the Climate Disclosure Leadership Index (CDLI) of the Carbon Disclosure Project (CDP).