Energy and operating segments

(302-5)

Many companies have rolled out various projects to install photovoltaic and thermal solar plants for self-production of the energy they consume, in addition to other plans to improve the efficiency of their total environmental performance, as detailed in the attached “Company highlights”. Furthermore, benefiting from energy from renewable sources certified with guarantees of origin to be consumed for uses other than railway traction, FS Italiane Group companies purchased energy certified with guarantees of origin that accounted for roughly 61% of their needs in 2021.

This improved from 37% in 2020, proving their growing commitment over the years. Furthermore, the Group’s European integrated logistics company TX Logistik, part of the Mercitalia hub, covers 94% of its consumption of energy for railway traction via energy certified with guarantees of origin.

PROCUREMENT OF ELECTRICITY FROM RENEWABLE SOURCES CERTIFIED WITH GO [GWh]

800 700 600 500 400 300 200 100 0 178 489

489

792 792

THE FS ITALIANE GROUP AIMS TO PROVIDE TRANSPORT SOLUTIONS THAT INCREASINGLY COMBINE IMPECCABLE SERVICE QUALITY WITH EXCELLENT ENVIRONMENTAL PERFORMANCE.

The roll-out of the new Pop and Rock regional trains began in 2019 and continued in 2021, involving several Italian Regions129. Designed to meet strict environmental standards, they consume up to 30% less energy than other trains in the same segment and are equipped with smart air conditioning energy management systems and the green drive and smart parking functions. The market has recognised the environmental performance of this new generation of trains, alongside the performance of the Group’s Frecciarossa 1000 trains, enabling the Group to place green bonds in 2021130. The green bonds also involved the railway sector’s freight transport segment, allocating a portion of proceeds to the purchase of latest-generation wagons and engines, improving the efficiency and sustainability of the transport service. A prominent role is given to increasing the already considerable percentage of railway infrastructure using the electric network to cut diesel-fuelled transport to a minimum. A large-scale campaign to upgrade lighting systems, along with smart management systems to remotely control and manage lighting, is being carried out at the network of main stations. Starting from August 2020, the road network is using green energy to light roads and tunnels thanks to a supply contract for energy from renewable sources certified with guarantees of origin that will cover almost all energy consumption. In the road transport segment, the Group aims to replace lower environmental category buses (Euro 2, 3 and 4) with vehicles meeting higher ecological standards, including hydrogen and electric hybrid vehicles. In 2021, the energy used to fuel low-emissions vehicles for local public transport accounted for 61% of overall consumption of the Group’s road vehicle fleet.

72.2%

of the railway network is electrified

~97%

of electric power used on the road network is from renewable sources (certified) 29,000 km of network

129) For details please make reference to the “Travel” section 130) For details please make reference to the “Sustainable finance as a tool for change” section

+2,000 km

of further electrification is expected in the next ten years

1,300

of illuminated tunnels

92.89%

Passenger tra c

98.27%

On the electrified railway network Energy consumption by low-emissions road vehicles* used in LPT *electric, diesel Euro 6, hydrotreated vegetable oil (HVO), gas-to-liquid (GTL) and H₂ vehicles

Freight tra c

Note. Considering pass*km and tonn*km by Group railway companies on the electrified railway network in Italy and abroad.

61%

THE FS ITALIANE GROUP’S COMMITMENT TO HYDROGEN MOBILITY

The search for technological solutions that can reduce transport emissions plays a crucial role in the Group’s sustainability drive. The experience of the Dutch LPT company Qbuzz, part of the Busitalia - Sita Nord group operating in Utrecht and Groningen-Drenthe, was significant in this regard. Qbuzz acted on the eco-drive in the transport sector pushed by the Dutch government by developing sound know-how on hydrogen as well as operating electric buses. Intent on replacing more pollutant vehicles, at the end of 2020 the company upgraded its vehicle fleet by adding two new hydrogen vehicles to the over 200 electric buses, for a total of 248 zero-emission buses.

In June 2021, QBuzz unveiled the new hydrogen fuelling station at the Groningen bus depot, one of the largest in Europe. On average, a bus is refuelled in less than 10 minutes and then lasts approximately 400 km. With the new station in operation, QBuzz added another 20 hydrogen buses in the Groningen area. By introducing hydrogen buses, QBuzz aims to save 1,375 tCO2 emissions per year. Moreover, by the end of 2022, the company aims to add another ten in the Emmen area, saving a further 687 tCO₂ per year. Following suit, Busitalia is taking part in a project on the use of hydrogen based in Terni, Umbria, financed by funds allocated by the National Sustainable Mobility Strategic Plan to make the country’s bus fleet more environmentally friendly. The Terni municipal authorities aim to use the funds to study the use of hydrogen produced for the city’s steelworks but that exceed production requirements to fuel Terni’s TPL buses.