Chief Executive Officer and General Manager, Iren
IREN PIANO STRATEGICO @ 2030 - SPECIALE CLASS CNBC
About Gianluca Bufo
Gianluca Bufo, Chief Executive Officer and General Manager of Iren, stated that a single unpaid bill eliminates the margin generated by ten families' bills over a year. He made the remark while discussing the financial pressures on utility companies and the need for efficient cost management. Bufo also noted that companies investing in regulated sectors such as water and waste treatment are granted a return of approximately 6% to 7%, and must maintain efficient operating costs while seeking annual reductions. He made these comments during an interview about Iren’s history and the challenges of managing a multi-utility company.
Transcript (5 segments)
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Gianluca Bufo0:17
Ambition and growth are the key words guiding the new 2021-2030 strategic plan of the Iren Group, which was presented in Milan. 12.7 billion euros of investments over ten years, which see Iren as a reference partner for the territory and communities. A plan focused on the ecological transition and which looks with particular attention to decarbonization, electrification of consumption, circular economy, and energy efficiency. The plan is extraordinary, very ambitious: 12 billion in investment over ten years, a step change especially on the topic of renewables. We aim for progressive decarbonization; it is a contribution that the country asks of us. We have all the capabilities to achieve these objectives, and therefore this plan, thanks to the passion, flexibility, and determination of our employees and the skills they have, we will certainly succeed in realizing.
This is a 12.7 billion plan that invests heavily in sustainability. 80 percent of our investments are focused on what is defined as 'hirschi compliance', meaning that it accesses sustainable finance. 70 percent at the European taxonomy level, which means the ability to attract lower-cost investments on the territory and also contribute to the transformation of the territory. Investments in the water cycle, sustainable electricity production, resilient cities and communities. Overall, these are the main lines on which we are investing and transforming our territories. An ambitious growth for the Iren Group of the future that concerns every business area, starting with external lines through M&A operations but also with projects related to innovation and digitalization, and the entry into the group's perimeter of 7,000 new workers.
We will create 900 million in value, almost one billion, from 2020 to 2030. Our net profit almost doubles over the decade. Mainly for four factors: first, significant organic growth, which is partly the result of all the investments in renewables, new plants, environment, regulated activities; then we will have 220 million of inorganic growth related to M&A activities and consolidations, acquisitions; and then about 120 million from efficiencies. The electrical grids especially will be subject to large investments, as will the water grids, both to make them more resilient, and for the water grids obviously to reduce losses with targets that are really very ambitious: below 20 percent losses, considering that the national average is 50 percent. So large investments but also resilience capacity, since most of these investments are all in the regulated or semi-regulated sphere, so this gives us great strength and great stability for the future.
In detail, there are three pillars of the Iren Group's growth strategy from here to 2030: ecological transition, territoriality, and quality of service. Being a leader in the ecological transition becomes a fundamental element for Iren's core business, and therefore means development of renewables on one hand, excellence in recycling and management of materials that we currently throw away and should bring back into the production cycle on the other. The plan draws strength from being a territorial company: we invest in our territory, 85 percent of resources. We look at our territory as an opportunity for excellence but also the possibility to expand investment opportunities beyond what normally serves Iren's area, supporting and enabling administrations and communities to seize the opportunities that come from the PNRR. And this is the contribution Iren can make in accelerating the implementation of investments that come from European funds.
Finally, quality, quality means excellence in the management of our networks and reduction of water losses, acceleration in the strengthening of electrical grids that will require more and more consumption and will be the instrument and network of choice for energy transmission; and on the other hand, excellence in customer management: a customer care that is able to identify and provide a personalized service to 100 percent of our customers. And we are convinced that we can design a very bright future and we are sure to achieve these goals that we have set for ourselves, very ambitious, but we are convinced we can achieve them.