The 2012 Report

The Terna Group’s Sustainability Report for the year ended December 31, 2012 (hereinafter “2012 Sustainability Report”) was prepared according to the Sustainability Reporting Guidelines & Electric Utilities Sector Supplement (EUSS) established in 2009 by the GRI – Global Reporting Initiative, and the G3.1 Guidelines update of March 2011. As in recent years, the Report was approved by the Terna Board of Directors and subjected to specific auditing procedures. The assurance report prepared by PricewaterhouseCoopers is attached.

The process of preparing the document included the identification of significant aspects to report and the presentation of the performance achieved by the Group relative to these aspects and the sustainability objectives.

The period considered is 2012: all the data refers to the year ended 31 December 2012; in addition significant events that occurred up to 31 March 2013 are also described.

The 2012 Report includes, compared to last year, a new core indicator. The A+ application level is confirmed. In fact, in light of the results presented in the GRI Content Index, we held that we had achieved an A+ level of application of the aforementioned guidelines.

Lastly, it is pointed out that since September 2011 Terna has participated in the "Pilot Programme" initiative promoted by the International Integrated Reporting Council in response to the widely recognized need to proceed in the direction of integrated reporting. During this process, in 2012 the interactive version of the "Integrated Report Project" was published on-line with the 2011 figures, and in 2012 the discussion of certain subjects was standardized in the Sustainability Report and in the Financial Report. Furthermore, some of the most important information in this Report on Terna’s sustainability performance has also been included in the 2012 Annual Report, in accordance with the guidelines of the National Council of Auditors and Accountants (CNDCEC) on sustainability information in obligatory communication (“Report on the management Financial Statements in the light of the innovations introduced by Legislative Decree 32/2007”, CNDCEC, January 2009).