Environmental costs are identified in the first place on the basis of the available definitions, in particular those of the National Statistics Institute (Istat), Eurostat, and the GRI, as well as the recommendation of the European Commission regarding the recording and publication of environmental information in annual accounts and management reports (Recommendation no. 2001/453/EC). According to this recommendation, “the term ‘environmental expense’ includes the cost of actions undertaken by a company, directly or indirectly, in order to prevent, reduce, or repair damage to the environment caused by its operations. The costs in question include, among other things, waste disposal and measures aimed at preventing its creation, protection of the soil and of both surface and underground water, protection of the air and the climate from pollution, the reduction of acoustic pollution, and the safeguard of biodiversity and the landscape”.

In the second place, the aforesaid definitions were cross-checked with the environmental aspects that were considered significant (for example, station noise, electro-magnetic fields) by the Company’s ISO 14001 certified Environmental Management System, to identify Terna’s operating and investing activities with environmental significance in the main corporate processes.

Many of Terna’s activities described in this report entail expenses for the environment. However, several limitations were introduced in determining the reporting boundary:

  • exclusion of integrated costs; that is, regarding activities that do not have an exclusively environmental purpose (for example, the use of pylons that, among other things, are innovative from the point of view of their environmental suitability);
  • exclusion of the additional costs of restrictions and requirements for the safeguard of the environment in the stage of planning and designing new lines (detours, putting lines underground).

Other conditions were that the costs had to be a) significant, b) consistent with the reporting of the annual accounts (clear distinction between operating and investment costs), and c) directly identifiable by the existing corporate accounting system. The last condition satisfies the requirement of minimising the use of estimates based on analyses that are not part accounting.