We started our transformation journey back in 2017 with a simple ambition: to maximise value for our clients and be the most effective and trusted distribution network in Italy.
We have gone beyond that and established ourselves as the largest phygital platform in Italy, thriving on the integration of multiple touchpoints and creating an omnichannel ecosystem where each portion of the platform complements the others.
13,000 Post Offices in every corner of the country, often where no other trusted institution can be found.
51,000 third-party network touchpoints all leading to 23 million daily interactions with our 45 million clients.
Whether clients start their journey online and then visit a physical Post Office or vice versa, the transition is seamless.
We have demonstrated our nature of being an antifragile company: we have always adapted to a rapidly evolving operating context, transforming challenges into opportunities, as we did during the pandemic.
In 2023 we posted a record EBIT of 2.62 billion, twice 2017 number, with a similar trend for our compelling dividend distribution, which grew at a slightly lower pace.
In Mail & Parcel, we anticipated the growth of the Italian e-commerce market and became a leading B2C parcel operator, focusing on e-shopper needs also by building an extensive Pick-Up and Drop-Off network and by investing to build a state-of-the-art logistic infrastructure.
In Financial Services we have created a unique omnichannel business, redefining our commercial offer to meet all our clients’ needs from lending, savings, investments, and insurance.
In Insurance Services, we have built a fully-fledged and resilient insurance company, able to deliver positive net flows in Life in the face of significant market headwinds and grow the Protection business also through the acquisition of Net Insurance. Our Solvency 2 capital position is extremely solid, and we have successfully addressed the volatility of this capital ratio.
The Postepay Services business unit has become the largest ecosystem in Italy for everyday needs, with payments at its core. Transaction value has almost increased 4-fold since 2017 to over €80 billion. We completed the integration of LIS and successfully launched the Energy business now standing at over half a million contracts signed in just over a year.
DIGITALIZATION
We have enabled the digitalization of our client base to increase satisfaction, loyalty and, as a result, cross-selling.
Our digital clients have grown by around 50% from 11.6 million in 2020 to 17.2 million in 2023; we have 12 million payment wallets and we are a SPID digital identity provider to over 27 million Italians.
Customer experience has grown exponentially since 2017, especially on our Apps, resulting in an increased use and loyalty of our clients (1 out of 4 clients uses our apps every day).
Digitalisation is also a key driver of value-creation for the group: in fact, hybrid clients using both physical and digital channels grew by 64% in the last three years, such clients have a higher cross-selling rate than average to the benefit of our bottom line.
Omnichannel interactions now total 6.9 billion per year, of which 3.3 billion on our digital channels, over 4 times the 2017 level and a remarkable 48% of the total.
Out of 2.8 billion annual transactions and sales almost 1 billion, or 27%, are completed through our digital channels.
Overall, nearly half a billion in revenues are generated through our digital channels, almost 4 times 2017 level.
Our purpose remains to reach everyone in an inclusive way through their preferred channel, digital or physical, bridged by remote assistance.
We have gone beyond that and established ourselves as the largest phygital platform in Italy, thriving on the integration of multiple touchpoints and creating an omnichannel ecosystem where each portion of the platform complements the others.
13,000 Post Offices in every corner of the country, often where no other trusted institution can be found.
51,000 third-party network touchpoints all leading to 23 million daily interactions with our 45 million clients.
Whether clients start their journey online and then visit a physical Post Office or vice versa, the transition is seamless.
We have demonstrated our nature of being an antifragile company: we have always adapted to a rapidly evolving operating context, transforming challenges into opportunities, as we did during the pandemic.
In 2023 we posted a record EBIT of 2.62 billion, twice 2017 number, with a similar trend for our compelling dividend distribution, which grew at a slightly lower pace.
In Mail & Parcel, we anticipated the growth of the Italian e-commerce market and became a leading B2C parcel operator, focusing on e-shopper needs also by building an extensive Pick-Up and Drop-Off network and by investing to build a state-of-the-art logistic infrastructure.
In Financial Services we have created a unique omnichannel business, redefining our commercial offer to meet all our clients’ needs from lending, savings, investments, and insurance.
In Insurance Services, we have built a fully-fledged and resilient insurance company, able to deliver positive net flows in Life in the face of significant market headwinds and grow the Protection business also through the acquisition of Net Insurance. Our Solvency 2 capital position is extremely solid, and we have successfully addressed the volatility of this capital ratio.
The Postepay Services business unit has become the largest ecosystem in Italy for everyday needs, with payments at its core. Transaction value has almost increased 4-fold since 2017 to over €80 billion. We completed the integration of LIS and successfully launched the Energy business now standing at over half a million contracts signed in just over a year.
DIGITALIZATION
We have enabled the digitalization of our client base to increase satisfaction, loyalty and, as a result, cross-selling.
Our digital clients have grown by around 50% from 11.6 million in 2020 to 17.2 million in 2023; we have 12 million payment wallets and we are a SPID digital identity provider to over 27 million Italians.
Customer experience has grown exponentially since 2017, especially on our Apps, resulting in an increased use and loyalty of our clients (1 out of 4 clients uses our apps every day).
Digitalisation is also a key driver of value-creation for the group: in fact, hybrid clients using both physical and digital channels grew by 64% in the last three years, such clients have a higher cross-selling rate than average to the benefit of our bottom line.
Omnichannel interactions now total 6.9 billion per year, of which 3.3 billion on our digital channels, over 4 times the 2017 level and a remarkable 48% of the total.
Out of 2.8 billion annual transactions and sales almost 1 billion, or 27%, are completed through our digital channels.
Overall, nearly half a billion in revenues are generated through our digital channels, almost 4 times 2017 level.
Our purpose remains to reach everyone in an inclusive way through their preferred channel, digital or physical, bridged by remote assistance.
Megatrend
Increased severity in the reference legislation applicable to the business with particular reference to environmental variables.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The increase in the level of detail and complexity of the regulatory obligations required by the competent authorities in relation to the regulations issued requires a growing cultural change within companies, which are called upon to review their operational activities in order to adapt to the increasingly frequent and pervasive amendments in the applicable national and international regulations. Regulatory developments are particularly influenced by the implications of the geopolitical context, technological innovations, sustainability and climate change issues, which are increasingly being addressed by national and international legislators. Frequent changes in regulations can make it complex for companies to adapt and plan long-term strategies, leading to increased uncertainty and volatility, as well as instability in the markets, affecting the decisions of investors and companies. The recent international sanctions resulting from the Russian-Ukrainian conflict play a crucial role in a global context strongly polarised by geopolitical factors. These measures aim to economically and strategically weaken those involved in the conflict in order to undermine their ability to sustain the ongoing invasion campaign. The impacts of such sanctions on the political and economic scenario of the coming years will be significant and diverse: politically, they could intensify international tensions and influence the balance of power between the nations involved; economically, sanctions could have significant effects on the economies of the countries involved, as well as on global supply chains and international financial markets. The legislator will also have to take into account another impactful subject in the evolution of regulation: Artificial Intelligence. Some jurisdictions have already introduced specific laws and regulations to address the ethical, social, economic and legal challenges associated with the use of AI, while others are still defining their regulatory approaches. However, it is important to balance the need for regulation with innovation and technological development in order to promote safe and ethical use of AI without holding back innovation and progress. Global regulations can also influence efforts to achieve sustainable development goals. Unclear or conflicting regulations can hinder the international collaboration needed to tackle crucial environmental and social challenges such as climate change, poverty and inequality. Trend: Increasing Risks impacted: - Compliance - Operational - Reputational - ESG SBUs impacted: - Mail, Parcels and Distribution - Payments and Mobile - Financial Services - Insurance Service |
Negative impacts: - Failure to respond in a timely manner to regulatory requests (for example, regarding governance structures, responsible finance, etc.), partly in view of the complexity and operational heterogeneity of the Poste Italiane Group - Potential penalties for non-compliance with applicable regulations -Growing impact of non-compliance with regulations on reputational risk, also in view of Poste Italiane’s economic and social role in the local area - Limitation of trade relations with subjects/ countries affected by international sanctions |
In view of the complexity of Poste Italiane and the numerous business sectors in which the Group operates, as well as the legal and reputational impacts, the Company has defined an integrated compliance process at Group level, with the specific aim of monitoring - in a structured way for each level of the company and in a manner appropriate to each business sector - the risks of non-compliance to which the Group is exposed, fully implementing the principles of integrity, transparency and legality. As part of the Integrated Compliance process, Poste Italiane continuously monitors the external regulations relevant to the Group and translates the set of regulatory principles into the body of rules required to ensure their application. The inventory of all regulations relevant to the Group is managed in an integrated manner on the dedicated GRC platform. Poste Italiane also takes part in technical and working groups on regulatory developments, in order to ensure analysis of changes in the regulatory framework, guaranteeing its correct implementation, and represent the Company’s position on these issues to national and international bodies, in order to support the Company’s business. For constant compliance with environmental regulations, also in line with the needs of consumers who are increasingly attentive to sustainability issues, Poste Italiane is progressively adapting its products to regulatory requirements in the ESG area (sustainable investment products, responsible investment products, etc.). The Poste Italiane Group’s Integrated Compliance process, as opposed to traditional models based on control systems structured by single specialist, is based on a structured and coordinated approach to compliance that combines multiple needs, through the integration and rationalisation of existing risks and controls. The activities of this process are carried out in such a way as to ensure, for example, the in-depth examination of the context, including the monitoring of the national and international political agenda, the views of legislators and regulators, and the position of competitors. The latter involves the definition of the company’s interest and position, including the formulation of proposals for regulatory changes and additions, as well as the preparation of documentation representing strategic business choices for institutional stakeholders and authorities. At the same time, the analysis of regulatory requirements involves an investigation to understand whether or not new regulations or significant changes to existing regulations are applicable to the operations of the business and/or the activities performed by the Group. Confirming the centrality of the Group’s principles of integrity and transparency, Poste Italiane was the first Italian company to obtain certification on Compliance Management Systems - ISO 37301, for the management of Integrated Compliance to oversee the processes of design, development and delivery of Postal, Financial and Logistics Services in the areas of administrative, accounting and fiscal responsibility. |
| Opportunities: - Launch of products that encourage prevention and responsible behaviour (e.g. ethical investment solutions) - Potential regulatory amendments to benefit the business - More timely than competitors in complying with complex regulations - Redirection/creation of new business business areas - Increased security and awareness in the use of technologies that make use of artificial intelligence components |
Negative effects on Poste Italiane’s business from the spread of new pandemics globally.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| In an increasingly globalised world, the emergence or mutation of viruses and bacteria can have serious impacts on the macroeconomic environment, disrupting national economies and undermining the health of the population, with consequent impacts on business operations and consumer behaviour. In particular, globalisation and the interconnectedness of peoples, climate change, accelerated urbanisation and overcrowding in urban areas, as well as large migration flows, favour the rapid spread and proliferation of infectious diseases. In addition, antimicrobial resistance is increasing due to the overuse and misuse of antibiotics. Finally, global food trade can contribute to the spread of disease through the transport of contaminated food. Trend: Stable Risks impacted: - Strategic - Operational - Compliance - Reputational - Financial and Insurance - ESG SBUs impacted: - Mail, Parcels and Distribution - Payments and Mobile - Financial Services - Insurance Service |
Negative impacts: - Possible economic repercussions from a global recession, resulting in a reduction in consumption of the products offered by Poste and difficulties in dealing with recovery - Adoption of new work models, which can create greater exposure to cyber attacks and fraudulent use of data - Difficulties in the timely management of new pandemics and inability to guarantee business continuity in the provision of its services - Amplification and acceleration of the effects of the main existing or emerging risks (e.g., disruption of the supply chains needed to carry out Poste Italiane’s business activities and remote management of personnel) - Focusing attention on the development of the pandemic, with reputational impacts due to reduced commitment to ESG issues (e.g. reduction of environmental investments) |
The experience gained in the management of the health emergency resulting from the spread of Covid-19, has allowed the Group to develop operating methods that have significantly reduced the potential impact on business continuity (e.g. organisational measures to reshape operations for the branch network and logistics-postal activities; purchase of laptops and software to carry out activities in smart working mode; expansion and strengthening of tools for remote connection, managing travel). In particular, the Group has been actively involved in constantly monitoring the evolution of the virus, which has allowed proactive management of its effects, also in the long term, through investments in new technologies, in the security of IT infrastructures and in personnel training, making it possible to provide services in compliance with the security protocols necessary to combat the spread of Covid-19. The controls implemented during the pandemic may represent useful resources for the management of any future emergency conditions. In particular, the Covid-19 pandemic has fostered the implementation of business models based on an omnichannel strategy, forcing companies to adopt liquid and open operating models that combine technological innovation, data management at the service of the ecosystem, and digital and customer-oriented operations to successfully cope with sudden changes in the market. In fact, the omnichannel strategy has transformed Poste Italiane into a platform company, resilient to the pandemic and the financial upheavals produced by the war in Ukraine and the Israeli-Palestinian conflict. With regard to the eventual management of new emergency measures and/or a new pandemic, the Group can leverage some specific strengths linked to the diversification of its activities, its multi-channel approach and the growth of its digital business, which ensure the service is also provided outside traditional Post Offices. The majority of the Group’s overall revenue will not be linked to short-term commercial activities and the business model of BancoPosta is capital light, not assuming credit risk. Moreover, the pandemic has accelerated the Group’s digitalisation path, which has, therefore, not only developed digital products and services, sustainable over time, in the postal, insurance, financial and payment areas, but has also introduced new ways of selling and communicating with customers, such as the introduction of the customer care service intermediated by artificial intelligence via voice (voicebot) and chat (chatbot and appbot), with the aim of promoting a radical cultural, organisational and technological change in the assistance model, relieving operators of the most repetitive tasks, allowing them to dedicate themselves to activities requiring human intervention and to the management of more complex and emerging situations. In addition, Poste Italiane, in response to the health emergency, pursues sustainable development by continuing to invest in projects aimed at strengthening ESG initiatives, as identified in the Sustainability strategy. |
| Opportunities: - Increased efficiency and productivity due to the adoption of remote working models and digital solutions to support the business - Acceleration of the transition to digitisation, with a consequent increase in demand for the digital products offered by Poste Italiane - Increased business opportunities due to changes in consumer needs, based on meeting the needs determined by the effects of the pandemic on the evolution of the socio-economic context - Cost reduction (e.g. travel; property management) |
Adverse consequences for people, businesses and ecosystems due to the development of innovative technological solutions (e.g. digital inequalities, digital market concentration, etc.).
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| Digital transformation and technological advances have not only created a wide range of benefits for companies, but have also amplified the risks that need to be understood and managed. In particular, the development of technology is a process that generates impacts that move in a dual direction: positive, for innovations that allow us to pursue more efficient, sustainable and flexible solutions; negative, due to the consequences that robotics and data centres can have in terms of potential cyber threats, polluting emissions and energy consumption. In addition, due to the widespread adoption of agile working, the boundary between work and private life becomes more blurred and there is greater isolation of people, while at the same time requiring companies to implement upskilled and reskilled programmes with regard to digital skills for workers. In view of the activities carried out by Poste Italiane, it is necessary to consider that the e-substitution is drawing a new market perimeter, produced by the exceedance of the digital market (electronic communications) and the Parcels segment (especially due to the spread of e-commerce), as well as changes in the habits and behavioural patterns of the population. Trend: Increasing Risks impacted: - Operational - Strategic - Compliance - Reputational SBUs impacted: - Payments and Mobile - Financial Services - Insurance Service - Mail, Parcels and Distribution |
Negative impacts: - Inability to maintain attractiveness, due to the excessive digitisation of the products and services offered, towards part of Poste Italiane’s traditional customers and/ or potential target customers not reachable due to the digital divide - Inadequacy of standard products for changing consumer needs y Difficulty in responding in a timely manner to the digital drive in the sectors in which Poste Italiane operates - Interruption of digital services provided by Poste Italiane - Inability to provide employees with the same levels of IT security both in agile mode and at company facilities |
For Poste Italiane, innovation and digitalisation are two central drivers of strategic progress and enable it to guarantee its customers innovative technological solutions, also through the integration of its own products and services with those of third parties. Poste Italiane has embarked on a digitalisation process that has influenced both its offer and business processes through the evolution of its omnichannel distribution model, which allows the Company to deliver services in an agile manner and in step with needs of customers. Through a digitalisation of services, Poste Italiane intends to make integrated digital solutions available. Communication channels with customers are also constantly evolving, which has led to the development of Artificial Intelligence solutions. These solutions have several positive impacts for both customers and the Company, as they allow for a 24-hour customer service 365 days a year, which contributes to bringing part of the population closer to and familiarising them with advanced technological systems. Among the actions aimed at reducing the digital divide, in recent years, Poste Italiane has undertaken a path of digital education of citizens, carried out through the organisation of several training sessions with the aim of providing a valuable contribution to the digitisation of Italy and by expanding the dedicated section of the website with video clips, games, infographics, podcasts and a glossary. Through the programme, the Group has adopted a highly inclusive approach in order to facilitate and simplify the use of new technologies to all its customers and beyond. Poste Italiane set up the “Smart Letter Box” project to renovate classic letter boxes and equip them with IoT technologies and sensors. In addition to sensors for detecting mail, Poste Italiane’s new Smart Letter Boxes have been equipped with sensors capable of detecting certain parameters such as temperature, humidity, atmospheric pressure, particulate matter and nitrogen dioxide. More than 550 second-generation Smart cassettes were installed throughout Italy in 2023, which when added to the letter boxes installed in 2022 will total 707. The Group has identified human capital as a vital resource for innovation. This is why, in addition to continuing its policy of open innovation and inorganic growth by acquiring or taking majority stakes in some of the most innovative companies and start-ups, it is also implementing a policy of “reshoring”, hiring and bringing back home several “brains” that had emigrated for work. In this way, the company contributes to the digitalisation and modernisation of the country and combines the virtualisation of services with a constant and qualified presence on the territory. In order to coordinate and contribute to the direction of initiatives aimed at increasing the profitability, impact and future sustainability of the Poste Italiane Group, the “Open Innovation” team was formed, a group with diverse multi-industry experience and areas of expertise united by a passion for innovation. In particular, the team aims to disseminate knowledge of the most innovative trends in technology and business performance within the Group, as well as to identify valuable partners to improve current products and services. By defining the positioning of the medium- and long-term target on innovation issues, the aim is to seize the challenges in advance to bring about changes in the Group’s operational and business areas. Moreover, with the new Polis Project, Poste Italiane intends to foster the economic, social and territorial cohesion of the country and overcome the digital divide in small towns and inland areas, making a widespread, concrete and resilient contribution to the missions aimed at digitising the country and ensuring greater social inclusion and cohesion. In particular, the creation of an innovative technological infrastructure for the provision of services to citizens and the accompaniment of PA, citizens and businesses in the adoption of the necessary digital skills, reducing the gaps that exist today, offer the tools to compete globally and boost the local economy. The Polis project, SPID, the launch of fibre connection services and the entry into the energy market show how Poste Italiane is a facilitator of the country’s technological transformation. |
| Opportunities: - Development of products in line with different consumer needs, also leveraging technological innovations - Development of new technologies to strengthen Poste Italiane’s processes - Greater ability than competitors to understand customer needs, also with reference to targets in the “digital divide” - Increased demand for the products offered by Poste Italiane, thanks to customer confidence in its handling of privacy and sustainability issues - Development and growth of Poste Italiane employees in terms of digital skills |
Risk of incurring economic/financial losses and/or reputational damage as a result of the occurrence of accidental events or malicious actions relating to the security of the information system (hardware, software, databases, sensitive data, etc.), also in view of the constant increase in the use of information systems.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The technological evolution of the business and the wider use of innovative digital solutions, requires increasing attention to the aspects of cyber security. Attacks on IT systems can compromise IT infrastructure, allowing company and customer data to be stolen or used, or malware to be planted, in order to access company funds and/ or damage the reputation and brand. The increasing demand for personal identification and authentication, including through the use of biometric identifiers, may increase the risk of fraud and identity theft. In relation to cyber security, there is a proliferation of regulations aimed at ensuring the security of products with digital components, governing the design and development phases of the products themselves, as well as their entire life cycle. This implies the creation of a comprehensive cyber security regulatory framework that facilitates compliance for hardware and software manufacturers. The ultimate goal is to improve transparency regarding the security features of digital products in order to enable both companies and consumers to use them safely. It is also essential to consider technological advances in the field of Artificial Intelligence, which could potentially lead to new forms of cyber attacks capable of overcoming the preventive and defensive measures implemented by Poste Italiane. Trend: Increasing Risks impacted: - Operational - Strategic - Compliance - Reputational SBUs impacted: - Payments and Mobile - Financial Services - Insurance Service - Mail, Parcels and Distribution |
Negative impacts: - Removal of sensitive information for Poste Italiane, with economic, reputational and compliance impacts (e.g. removal of biometric data of customers acquired for the management of payment systems) - Service disruptions caused by attacks on information systems and/or communication networks - Deletion or deterioration of data |
Managing cyber security risk is a key priority for the Group, considering the increasing number of cyber threats and the sensitivity of the data managed. Poste Italiane is committed to protecting company data with the aim of safeguarding its customers and all its stakeholders through technologically advanced protection systems and in accordance with the measures set out in the relevant regulations. The function responsible for IT security assesses the cyber risk on a monthly basis, based on technical security checks conducted on three applications: - Vulnerability Assessment: the process of identifying, measuring and prioritising system vulnerabilities, performed with special tools twice a year for each application; - Code Review (Static and Dynamic): process of checking the source code of an application to verify that the correct security controls are in place and that they are working as intended. By means of special tools, the verification is carried out of both the source code (“Static CR”) and of the code in execution (“Dynamic CR”); - Penetration Test: process of evaluating the security of a system or a network through the simulation of attacks that aim to gain undue access to the system, performed on a specific perimeter of applications. These precautionary measures combine with other two essential parameters to ensure effective and efficient management of potential IT risks in the Company: patching and hardening. Poste Italiane has also undertaken a series of additional initiatives: - developed Security Planning, defining and implementing a methodology for planning technical security audits deriving from regulatory/contractual requirements and from the Security By Design process; - extended the scope of Cyber Risk analysis to include BancoPosta, PostePay, PosteVita, Poste Assicura, Poste Welfare Servizi and other compliance/security areas; - set up the Information Security Committee - DTO, a periodic working table between the Information Security and Digital, Technology & Operations functions with the aim of jointly planning and directing security activities and identifying areas for improvement; - established the Fraud Prevention Centre, which plays a key role in protecting the company’s customers from financial fraud and scams, using advanced monitoring systems, risk analysis, collaboration with the relevant authorities and awareness-raising to prevent and counter fraudulent activities. In relation to the Russian-Ukrainian crisis, Poste Italiane has raised the levels of monitoring and attention to security events and strengthened cyber intelligence activities, in order to prevent and/or intercept potential cyber attacks against the Group. In addition, several training initiatives were launched for internal staff in order to minimise human factor risks and their impacts. In the area of cyber security, Poste Italiane has obtained the following certifications: - ISO/IEC 27001/2013, standard for establishing and managing an information security management system. The standard also includes the requirements for assessing and dealing with IT security risks, which are customised according to the needs of each organisation. - ISO 2000-1/2018, the international standard for IT Service Management, focusing on the quality of these services. It is based on risk management, with the aim of minimising the risks associated with increasingly harsh customer reactions in situations of “discrepancy” with their expectations, needs and requirements, including incident management, requests, continuity, accessibility, service level, service catalogue and service capacity. In order to guarantee Group-wide supervision of cyber security and data protection activities, and to actively combat cybercrime, in 2021, Poste Italiane set up CERT (Computer Emergency Response Team). The team is made up of IT security experts who carry out their duties by operating in real time 24 hours a day to prevent risks, manage IT incidents affecting company systems and develop actions in response to cyber events, reinforcing in this way the defence capability of the entire Company. Moreover, Poste Italiane collaborates with CNAIPIC (National Centre Against Cybercrime for the Protection of Critical Infrastructure) of the Postal Police. In order to ensure adequate levels of confidentiality, integrity and availability of data, information and services provided to customers, Poste Italiane has also developed and adopted a specific Privacy framework. The Privacy function ensures a single Group-wide oversight for all responsibilities related to privacy issues and oversees the development of the framework. Poste Italiane envisages the figure of the Data Protection Officer, as a privacy expert who assumes responsibility for observing, evaluating and directing the management of personal data processing, in accordance with GDPR. The Privacy Service Centre operates within this function and is in charge of representing a single point of reference on privacy matters for customers, as well as of collecting and managing in an efficient and centralised manner all requests received from them. In order to make the entire corporate IT structure secure and resilient to possible cyber attacks, Poste Italiane has implemented specific training programmes aimed at employees on cyber security issues, so as to educate them on the behaviour to adopt in the event of cyber attacks. |
| Opportunities: - Higher IT infrastructure security levels than competitors - Increased customer confidence in the robustness of Poste Italiane’s IT structure to protect sensitive data - Increased efficiency and productivity due to the adoption of tools to guard against cyber attacks - Increased awareness of Poste Italiane employees on cyber security issues through specific training programmes |
Possible negative impacts of climate change phenomena on Poste Italiane’s business and reputation.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| In the coming decades, a rise in average temperatures of 3 degrees Celsius compared to pre-industrial times could trigger disastrous chain effects. Phenomena such as rising sea levels, ocean acidification and loss of biodiversity, as well as hurricanes, floods, forest fires and droughts, become more frequent and intense, altering terrestrial and marine ecosystems. Such events have catastrophic effects on local communities, causing enormous damage to infrastructure and natural resources with long-term economic consequences; financial losses are often significant, especially in the agricultural, tourism, and insurance sectors. Climate change can destabilise societies and accentuate socio-economic inequalities, contributing to political tensions and internal and external conflicts. Moreover, the need to mitigate and adapt to climate change requires political and diplomatic action at national and international level, not helped by the geopolitical instability of recent years. The combat against climate change, therefore, is not an option but a must. It is therefore necessary to consider these aspects when defining the strategies and operational activities of companies. Trend: Increasing Risks impacted: - Reputational - Operationel - Strategic - Compliance SBUs impacted: - Mail, Parcels and Distribution - Payments and Mobile - Financial Services - Insurance Service |
Negative impacts: - Restrictions on Poste Italiane’s business operations due to extreme weather conditions - Inadequacy of the products and services offered with respect to the demands of consumers increasingly driven by sustainability issues - Underestimating sustainable development and not actively pursuing decarbonisation can lead to serious consequences in terms of corporate reputation, with negative impacts on stakeholder trust, market opportunities and overall company value |
Poste Italiane analyses, among others, the risks related to climate change also in relation to the long term. Specifically, the risk management model adopted by the Group considers both the possible impacts that climate change-related phenomena may have on the business of Poste Italiane (indirect impact) and those that Company’s activities may have on climate (direct impact). The process of identifying and assessing risks and environmental management methods also extends to counterparties, impacting the procurement processes and any extraordinary finance transactions, providing, among other things, for the identification of suppliers and partners that may present risks related to environmental protection, also through a multi-dimensional analysis that takes into account parameters such as: possession of environmental, quality and energy performance certifications and adoption of environmental management systems, ethical standards of conduct and Minimum Environmental Criteria (MEC). In order to classify climate-related risks and opportunities, Poste Italiane takes different drivers into consideration referring to two macro-areas (transition and physical risks). In addition to defining the associated opportunities, the Group provides for specific mitigation measures to respond to the risks identified and associated with each driver. Poste Italiane defined a perimeter in the risk assessment process that takes into consideration not only direct activities, but also downstream and upstream operations, including customers in the final analysis, given that they are the main beneficiaries of Group products. The correct identification and assessment of climate-related risks and opportunities is also ensured by listening to stakeholders. They are periodically involved in the Multi-stakeholder Forums organised by Poste Italiane and have a reporting system that allows them to bring any perceived risks to the attention of the Company. With reference to physical risks, such as extreme weather events and changes in rainfall trends, Poste Italiane has adopted a continuity business plans and measures aimed at preventing physical damage to structures, to ensure business continuity. In addition, for the coordination of emergency and recovery activities, the Group maintains a dialogue with institutions (e.g. Civil Protection, Civil Defence) as well as interfacing with relevant bodies and international protection and defence organisations (e.g. participation in drills or other initiatives, etc.). Furthermore, with regard to Poste Italiane’s direct impacts, and considering its widespread presence within the country and consequent environmental impact resulting from carrying out its normal activities, Poste Italiane adopts a responsible approach aimed at reducing its environmental footprint and contributing to the country and economy’s low-carbon transition. In line with its decarbonisation strategy and in implementation of the guidelines for the exercise of voting rights and engagement activities and for investment in sensitive sectors, Poste Italiane, through its subsidiaries Poste Vita and BancoPosta Fondi SGR, has joined Climate Action 100+, an international collaborative engagement initiative to raise awareness of climate change issues among the world’s largest greenhouse gas emitters. The portfolios of BancoPosta Fondi SGR and Poste Vita are periodically subjected to ESG analysis to assess their degree of social responsibility, and carbon footprint, with the aim of mitigating any risks. The results obtained both for BancoPosta Fondi SGR and Poste Vita, are higher than the ESG performance of reference benchmarks. As part of the Poste Italiane Group’s strategy for pursuing its Sustainability objectives, the integration of ESG principles into its investment processes is also of particular importance, with investments in sectors that contribute to the Sustainable Development Goals (“SDGs”) (e.g. investments in bonds in the “Green”, “Social” and “Sustainable” categories in line with the standards and principles defined by the International Capital Market Association). Poste Italiane, in accordance with the main regulatory trends and in response to the growing requests from the financial community and the main stakeholders, reports information regarding climate change on the basis of the areas defined by the TCFD: Governance, Strategy, Risk Management, Metrics and Objectives. For further details, reference is made to the paragraph “MANAGING CLIMATE CHANGE RELATED RISKS AND OPPORTUNITIES” In order to reduce the direct impact that Poste Italiane’s activities may have on climate, the Group is making constant progress in using energy sources that do not use fossil fuels (e.g. solar energy from photovoltaic panels on buildings) and in reducing energy consumption (e.g. replacing neon lights and using LEDs), partly in order to deal with potential sudden changes in energy prices (already 99% of the Poste Italiane Group’s electricity needs come from renewable sources). In addition, over the years, Poste Italiane has inaugurated photovoltaic plants for energy production and undertaken a series of initiatives to ensure that its buildings are increasingly sustainable, including initiatives to reclassify sorting centres, with a view to decarbonising buildings. Among other things, in line with having subscribed to the Paris Agreement and the New Green Deal, Poste Italiane has committed to reducing its emissions by 30% by 2025 and has set itself the ambitious goal of making its contribution to achieving the international carbon neutrality objectives by 2030, well ahead of the timeframe defined by the European Union. |
| Opportunities: - Increased business opportunities due to changes in consumer needs (e.g. development of low-emission services; development of investment and insurance products for climate adaptation) - Possible access to new markets and new customer segments requiring insurance coverage - Advantages deriving from the greater reliability of the supply chain and Poste Italiane’s improved ability to operate in various conditions compared to its competitors |
Negative change in consumer purchasing behaviour for Poste Italiane in relation to the payment instruments to be used (e.g. cryptocurrencies, fintech, etc.) also due to the introduction of new payment methods.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| Internet access and the use of electronic payments is spreading worldwide. Consumers who shop on-line are also looking across borders for the products and services they want, and are developing new habits and needs geared towards the use of electronic payment solutions. The payments industry is undergoing major changes related to the advent of new technologies and the development of Artificial Intelligence, as well as the proliferation of relevant legislation and regulations (e.g. the European Payment Services Directive - PSD2). Companies must be ready to adapt and innovate in order to Capitalse on new opportunities and mitigate the associated risks Trend: Increasing Risks impacted: - Operational - Strategic - Reputational - Compliance SBUs impacted: - Payments and Mobile |
Negative impacts: - Poste Italiane’s untimely response to emerging payment trends resulting in loss of market share y Inability to maintain attractiveness to traditional customers, potentially more averse to digital channels, for Poste Italiane’s electronic payment services - Increase in Poste Italiane’s competitors in the payments sector (e.g. organisations introducing new payment systems) - Increased digital transactions and increased risk of fraud and security breaches - Entry of new players in the payment industry |
In order to provide new payment solutions and respond to the changing needs of its customers, Poste Italiane is developing new digital payment services, intercepting and driving customer habits in the context of digital transformation, through the creation of innovative products and services that simplify everyday life, such as: - PostePay Connect, first integrated payment and mobile product that allows managing, through a single app, telephony and payment services in an intuitive and secure way; - PostePay app, the e-wallet that allows paying for purchases directly with a smartphone in all stores that accept contactless payments, thanks to the recent introduction of the Google Pay service in the App; - Codice PostePay, an app that allows buying in stores using a QR Code and getting discounts and benefits at affiliated partners. During the year, the user experience of the Code payment mode was evolved through the launch of “QR Code Web”, the solution that allows the cardholder to frame the automatically generated QR code on the payment page, without additional clicks; - Collaboration agreements with start-ups for the development of innovative solutions in the financial services and payments area; - With a view to expanding its services, PostePay SpA has made available the possibility of making contactless payments also to customers with iPhones, Apple Watch, iPads and Macs via Apple Pay, giving them the option of adding their PostePay card, whether prepaid or debit card associated with their BancoPosta current account, to the Apple wallet. In addition, Poste Italiane established the Fraud Prevention Centre, which plays a key role in protecting the company’s customers from financial fraud and scams, using advanced monitoring systems, risk analysis, collaboration with the relevant authorities and awareness-raising to prevent and counter fraudulent activities. |
| Opportunities: - Adoption of strategies to increasingly personalise the offer of payment services - Adoption of new technologies that can be extended to the current customer target of Poste Italiane y Segmentation and differentiation of the offer, through the expansion of Poste Italiane’s customer target (e.g. young people) - Creation of a specific offer for Poste Italiane’s digitally evolved customers - Launch of new products (e.g. platforms and instruments for cryptocurrency payments) |
Need to review business models and delivery operations due to the introduction of new mobility models, technological evolution of vehicles, sharing mobility.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The transport sector is undergoing significant transformation, driven primarily by technological innovations and the impact from digital on the habits, needs and preferences in terms of mobility of passengers and companies. Over the years, the revolution in mobility and automation of machines and processes will lead to a radically different world, characterised by greater efficiency, sustainability and connectivity. However, it will be essential to address the social, economic and regulatory challenges that accompany this transformation to ensure that its benefits are fairly distributed and its potential risks mitigated. In addition, the shift towards more sustainable modes of transport, the control of polluting emissions, the environmental Sustainability of major works are issues that increasingly guide the preferences of citizens and the choices of transport operators. Trend: Increasing Risks impacted: - Operational - Reputational - Compliance SBUs impacted: - Mail, Parcels and Distribution |
Negative impacts: - Restrictions on Poste Italiane’s operations, with particular reference to deliveries, due to traffic restrictions (e.g. restrictions on polluting vehicles) - Limited availability of “green” vehicles suitable for carrying out Poste Italiane’s logistics and delivery activities - Negative impacts on the environment and on Poste Italiane’s reputation due to the use of polluting vehicles |
Poste Italiane, aware that the vehicles used to carry out its logistics and delivery activities do not lend themselves to any type of optimisation, has been replacing them with equivalent electric-powered vehicles in recent years, improving its fleet in order to reduce atmospheric pollution. Among companies in the utility sector, Poste Italiane has one of the largest fleets of 100% electric commercial vehicles in the country. During the year, Poste Italiane continued to implement sustainability initiatives, with particular reference to reducing the environmental impact of the corporate fleet, through the use of additional alternative fuel vehicles (electric, methane and LPG). The Fleet Renewal Plan, which had already been activated in 2019 with the aim of replacing the entire fleet of vehicles used for the delivery of postal products with green vehicles, was continued in 2023 through measures to reduce energy consumption, lower atmospheric emissions, increase safety and increase load capacity for delivery. Poste Italiane demonstrated its commitment to pursuing the plan for the complete renewal of its vehicle fleet, increasing the green component of the fleet itself, through the introduction of electric and hybrid cars and motorbikes in line with ESG targets of a 40% reduction in emissions. In this regard, 14,189 alternatively fuelled vehicles (electric, natural gas and LPG) are already deployed in the fleet. The Company has gone from 11% green vehicles in 2016 to 44.4% in 2023, with the aim of replacing the entire company fleet with low-emission vehicles by 2024. The total number of vehicles with reduced environmental impact introduced from 2019 is 26,225, and during the year, Poste Italiane completed the inflotment of 2,169 electric vehicles, 750 hybrid electric or methane vehicles, and 696 low-emission vehicles. The interventions are in line with the goal of reaching 27,800 vehicles by 2024. As regards the purchase of logistics services, Poste Italiane maintains conduct consistent with sustainability issues, selecting and rewarding suppliers in line with the environmental, social and governance issues that the Poste Italiane Group promotes. In particular, the Company verifies the technical and professional suitability of its suppliers by requesting, for qualification purposes, the possession of specific requirements, including composition and type of vehicles in the fleet. |
| Opportunities: - Reduce the Group’s total energy consumption from non-renewable sources (e.g. fossil fuels) - Reduction of emissions related to the use of the vehicles that make up the company fleet - Leaner and more efficient management of operations - Cost reduction |
Changes in consumer purchasing habits as a function of the macro-economic scenario and customer needs and expectations.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| In addition, the current macro-economic context - characterised by high instability, volatility and persistent inflation - affects consumers’ purchasing power and investment choices (e.g. as a function of market rates). In particular, during periods of economic instability or uncertainty, consumers tend to be more cautious in their spending: they might avoid impulsive purchases or risky investments, preferring to buy cheaper products and services or concentrate their spending on essential goods and services, such as food, basic commodities and health services. Moreover, rising low interest rates and volatile financial markets may influence the choices of investors, who may prefer investments that are considered safe or less volatile, such as certificates of deposit or government bonds. With regard to the financial services offered by Poste Italiane, if consumers perceive a favourable economic situation and feel secure about the future, they may be more inclined to take financial risks. Conversely, if consumers are pessimistic about the economy and fear for their financial security, they might reduce investment activities or direct them towards lower-risk products. Changes in consumer purchasing and investment choices in response to the macroeconomic scenario can have a significant impact on the economy and market dynamics in the long run, influencing consumption through changes in consumption patterns, changes in investment sectors and overall economic growth. Trend: Increasing Risks impacted: - Strategic - Operational SBUs impacted: - Insurance Service - Mail, Parcels and Distribution - Payments and Mobile - Financial Services |
Negative impacts: - Loss of customers due to Poste Italiane’s failure to adapt its products/services to customer needs - Difficulty in developing reliable forecasting models that allow the Group to predict market developments - Reduction in purchasing power and change in consumers’ investment choices that could have negative effects on Poste Italiane’s margins and liquidity, as well as on the attractiveness of the products offered |
In addition to distinguishing itself through a diversified business structure that allows it to benefit from a constant physiological balancing effect between the trends affecting its businesses, the Poste Italiane Group has historically demonstrated resilience in times of economic uncertainty and financial turbulence, indeed establishing itself as a “safe haven” for savers, thanks to a portfolio of financial offerings characterised by products with low risk exposure and volatility. In response to growing consumer awareness of environmental issues, the range of BancoPosta and Poste Vita investment products has been increased, with investments oriented towards assets with strong sustainability characteristics. As far as the evolution of the range is concerned, BancoPosta Fondi SGR’s objective is to carry out over time a gradual transformation of the existing funds as well, integrating environmental, social and governance sustainability criteria into the investment policy of each. Poste Italiane continued its efforts to expand its proposal of financial products that promote environmental or social characteristics, with a view to channelling an ever-increasing amount of capital in favour of sustainable development and meeting the demands of savers and investors attentive to the creation of positive social-environmental value through the investment products they subscribe to. This commitment was shared by both BancoPosta Fondi SGR and Poste Vita, which, with reference to its range of insurance investment products, finalised the configuration and launch of a product with a strengthened profile in terms of ESG integration in its investment activities. Poste Italiane has equipped itself with a Web Opinion Monitoring (WOM) Service, through which it collects and analyses data from the desired sources of interest, such as social networks, App stores, reviews of Post Offices on Google Maps, public on-line information sources, blogs, forums, in order to generate real-time reporting on all topics of interest. The service responds to the needs of different member structures and consolidates in a single solution the services used by the various functions of Poste Italiane and Group companies. The areas for improvement that have emerged in relation to customer feedback constitute an important stimulus for process assessment and revision activities, together with the support activities functional to maintaining quality certifications and those identified by the “inter-functional communities”. Finally, Poste Italiane pays particular attention to the quality of the products and services it offers with a view to constantly improving customer satisfaction, by carrying out a dual monitoring process, considering both the quality delivered and the quality perceived, on the basis of a KPI system, built around the individual business units. It constantly monitors the objectives and performance of the services provided and provides progress and trends to the top management through regular reporting. |
| Opportunities: - Increased business opportunities due to changes in consumer needs, including through the adoption of strategies of increasing customisation of the offer - Greater ability than competitors to understand customers’ needs - Development of socially and environmentally oriented products and services |
Possible negative impacts on Poste Italiane’s business due to geopolitical tensions and international conflicts and related escalations.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| The geopolitical context, characterised by phenomena such as the return to protectionism, military conflicts, largescale migrations, increased perception of social inequality and populism, is provoking extremist movements and potentially endangering international cooperation, which could lead - according to the most extreme scenarios - to military (also in light of the Russian-Ukrainian and Israeli-Palestinian conflicts) biological, chemical, cyber and/or physical attacks. The current geopolitical context has had major impacts on the macro-economic context, putting pressure on global supply chains and commodity markets and fuelling inflationary dynamics on a global scale. In the major advanced economies, the slowdown in economic activity is attributable to weakening demand and the start of a cycle of tightening monetary policies adopted by the major central banks to counter rising inflationary pressures. In a dynamic and globalised world, local crises quickly become global crises, with huge economic, social and geopolitical repercussions and resulting in new priorities in terms of countries’ domestic policies. We could see a de-globalisation of the economy with consequent reshoring of the supply chain. Geopolitical instability exposes countries to new risks from attacks on strategic infrastructure or digital infrastructure (communication networks, data centres or key government systems). When such infrastructure is damaged, there are major repercussions in economic terms, as well as potential reputational impacts. Trend: Increasing Risks impacted: - Strategic - Operational SBUs impacted: - Insurance Service - Payments and Mobile - Financial Services |
Negative impacts: - Difficulty in developing reliable forecasting models that allow the Group to predict market developments - Increased raw material costs and procurement difficulties (e.g. oil, gas) - Business activities being suspended in areas involved in the conflict (e.g. international shipments stopped) and/or restrictions on international trade relations (e.g. Trade Compliance bans) - Substantial changes to aggregated market demand due to possible price inflation, making forecasts in company strategic plans less remunerative - Poor company liquidity due to difficulties in securing credit lines or it becoming impossible to utilise existing loans |
Poste Italiane continually monitors the political, social and macro-economic context and regulatory aspects that could impact on its business, so as to identify and prioritise the response measures to be undertaken based on the different macro-economic scenarios and geopolitical projections. In particular, as part of the Integrated Compliance process, Poste Italiane continuously monitors the external regulations relevant to the Group and translates all the regulatory principles into the body of rules necessary to guarantee their application, also with reference to legislation applicable to international trade relations. In addition, Poste Italiane carries out checks on counterparties in order to assess their legal, technical and professional requirements, financial stability and identify variables with an impact on revenue and costs, also in consideration of geopolitical scenarios. |
| Opportunities: - Acceleration in the energy transition |
Growing demand for customised health services due to the increasing focus on health protection and safeguards.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| In the aftermath of the Covid-19 health crisis, there has been a steady increase in the focus on forms of health protection and safeguards in which welfare and improved quality of life play a key role, resulting in a greater demand for personalised health services. Increased life expectancy is, however, accompanied by an increased incidence of chronic diseases that have replaced infectious ones. However, in Italy, the presence of private healthcare provision is still limited compared to other countries, while the costs of the public healthcare system are increasing at a faster rate than overall spending. There is a progressive movement towards a system in which citizens supplement public social security and health services with private insurance policies in order to guarantee themselves a level of care appropriate to their needs, with the ever-increasing risk of under-insurance of the weaker sections of the population who cannot afford such services. In this context, the insurance activity carried out by the Poste Italiane Group through the Poste Vita insurance group can play a fundamental role, as the company, through the offer of flexible and modular protection solutions based on the identification of the lifelong needs of its customers, aims to expand its market share in a sector, that of health insurance, which is constantly growing and increasingly competitive. Furthermore, for the Poste Vita Insurance Group, it is essential to align itself with corporate objectives, and therefore define and market its products, pursuing the objectives of enhancing the social role of insurance protection and inclusiveness through facilitating economic accessibility. Finally, the Poste Italiane Group considers the health and well-being of its employees to be a priority element of its human resources management strategy and, in light of the context described above, considers the risk of increased costs related to the growing need for care for its employees who cannot rely on the public health service. Trend: Increasing Risks impacted: - Strategic - Reputational SBUs impacted: - Insurance Service - Payments and Mobile - Financial Services - Mail, Parcels and Distribution |
Negative impacts: - Inadequacy of the insurance products offered with respect to the growing consumer demand for health care that is defined on the basis of the specific needs arising in different periods of life - Inability to maintain attractiveness in a constantly growing and competitive health insurance market - Underestimation of population trends and failure to take into account the increased incidence of factors associated with the incidence of chronic diseases - Increased personnel costs related to healthcare - Inability to provide employees with adequate health care facilities - Inability to align with Group objectives of supporting and sustaining territories and including weak population groups |
Through correct and effective implementation of risk management processes, the Poste Vita Insurance Group is committed to contributing to the protection of the community and the sustainable development of society. The Poste Italiane Group is, in fact, committed to defining and marketing its products taking into account the company’s objectives, but also the enhancement of the social role of insurance protection and economic inclusiveness. During the development phase of the offer, the Group focuses on the inclusion of more vulnerable social groups, such as young people, the elderly and people with special pathologies. Furthermore, in risk coverages such as term life or health policies, which play a crucial social role, the Group seeks to expand the potential number of policyholders by adopting inclusive underwriting criteria. A tangible example of this commitment is Poste Assicura, which is dedicated to bridging the insurance gap by providing cover for companies and their employees on a consistent basis, in line with the Company’s social responsibility. In order to adequately respond to consumer expectations, the Group monitors its initiatives and the products and services offered by promoting continuous and structured dialogue initiatives. The purpose is to monitor the needs of the reference community and the degree of satisfaction with the products and services offered. Poste Italiane uses principles of seriousness, reliability and elasticity in providing dedicated offers to all categories of customers to whom it caters, also on the basis of specific needs. In this sense, “Poste Vivere Protetti” represents one of the insurance offers offered by Poste Assicura in the area of protection that is most recognised by customers and aims to provide an integrated and modular protection and assistance solution. With regard to its own people, Poste Italiane is committed to promoting activities aimed at improving the well-being and health of its employees also through prevention initiatives. Regarding this last aspect, Poste Italiane organised, in collaboration with the Veronesi Foundation, a series of informative meetings aimed at employees and their families on issues related to ethics, healthy lifestyles and scientific disclosure with content proposed from an intergenerational perspective. Finally, the Group ensures the health care of its employees also thanks to the activities of Poste Centro Medico, the center of excellence dedicated to the care and prevention of Poste Italiane workers, their family members and pensioners with the aim of strengthening the medical support for employees through the provision of health care and prevention services. |
| Opportunities: - Growth opportunities by exploiting the potential of a rapidly changing market and increasing demand for healthcare - Opportunities to ensure the accessibility of protection also to the weaker sections of the population by contributing to sustainable development |
Adverse consequences for employees, consumers and the environment due to the impact of artificial intelligence-based technologies.
| MAIN TRENDS | POTENTIAL SIGNIFICANT IMPACTS FOR POSTE ITALIANE | MAIN RISK MANAGEMENT METHODS |
|---|---|---|
| Artificial intelligence (AI) is playing an increasingly important role in various areas of modern society and is now a key element driving the transformation of companies in various sectors. The average number of AI functionalities used by companies has doubled in the last three years. These capabilities mainly include natural language text generation, computer vision and operation optimisation technologies. At the same time, investments in AI have increased significantly over time and are expected to grow exponentially in the future. With reference to the impact of this trend on Poste Italiane’s areas of operation, the modernisation of postal services through AI is revolutionising sorting, delivery and tracking processes, making them more efficient, accurate and cost-effective. In the financial sphere, AI offers new opportunities in transaction security management and financial data analysis, also facilitating the detection of suspicious patterns and abnormal behaviour, thus reducing the spread of fraud and misconduct. Finally, the use of AI in customer service across the Group’s different business units (Insurance Services, Financial Services, Mail, Parcels and Distribution and Payments and Mobile) enables them to understand and, in many cases, anticipate consumer requests and needs, improving the relationship between consumer and company. However, in this context, it is equally crucial to consider the negative consequences and ethical implications associated with AI and its rapid development. These include the risk of increased unemployment, risks to user privacy and reputational risks associated with misunderstandings caused by the use of digital assistants. Trend: Increasing Risks impacted: - Strategic - Operational - Compliance - Reputational SBUs impacted: - Insurance Service - Payments and Mobile - Financial Services - Mail, Parcels and Distribution |
Negative impacts: - Increased unemployment rate due to the replacement of work activities carried out by Poste Italiane Group employees with artificial intelligence tools with a consequent reputational impact on the company - Strategic risk of inappropriate use of big data and AI and increased privacy breaches - Growth of regulation in the field and consequent increase in compliance pressure - Lack of empathy on the part of the Poste Digital Assistant to understand the emotions, tone or intentions of the consumer negatively impacting customer trust, satisfaction and loyalty - Increased vulnerability related to technological interruptions or failures, with possible negative impacts on daily operations |
Innovation and digitalisation constitute, for Poste Italiane, two central drivers for strategic progress and allow it to guarantee its customers innovative solutions, also through the adoption of technologies based on artificial intelligence in its processes, products and services, while still knowing how to manage the risks associated with such disruptive technologies. In order to manage the potential impact on employment resulting from process automation, Poste Italiane uses People Analytics practices, also known as HR Talent or workforce analytics. These practices involve the collection and analysis of human resources data, using statistics and other data analysis techniques. This enables strategic workforce planning, combining the needs of the different business lines with appropriate management strategies. Through these tools and, in particular, through the “Insourcing and Redeployment” programme, the Group is able to identify resources that are no longer needed as a result of the AI intervention and relocate them to other production sectors, ensuring that they acquire the skills required for their new roles. The Artificial Intelligence solutions adopted by the Group in the area of customer service are also constantly evolving and developing: the service system developed uses an approach in which AI supports both customers and service employees. AI operators (former call centre operators who have acquired new skills) work on a daily basis to improve their understanding of customers’ future requests and intentions, bridging any gaps related to misunderstandings. Moreover, thanks to the Group’s continuous investments, the Digital Assistant is able to provide proactive assistance, based on the rapid analysis and interpretation of data and transactions made by customers on different channels. In these cases, the Digital Assistant is automatically activated and suggests solutions to problems before they are even reported. In addition, the Poste Italiane Group, with a view to continuous improvement, has implemented a feedback collection system to allow consumers to express their opinions on the functioning of the Digital Assistant, in order to identify any problems encountered in interactions with it. Compliance with regulations, internal and external policies and codes of conduct, respect for rules and the strictest fairness are elements of strategic importance for the Group. For this reason, Poste Italiane undertakes to constantly monitor national and European regulations on the use of data and artificial intelligence, promptly taking all necessary measures to ensure compliance. In relation to Privacy risks, Poste Italiane is committed to protecting company data with the aim of safeguarding its customers and all its stakeholders through technologically advanced protection systems and in accordance with the measures set out in the relevant regulations. Over the years, the company has attached great importance to the issue of personal data protection, constantly upgrading its corporate regulatory system and ensuring full compliance with current provisions and the General Data Protection Regulation (GDPR). From an organisational point of view, in addition to identifying the roles and responsibilities required by law, the Poste Italiane’s Privacy Service Centre is responsible for representing a single point of reference on privacy matters for customers, as well as collecting and managing efficiently and in a centralised manner all the requests that arrive from the latter. |
| Opportunities: - Reduced waiting times for customer problem solving through the use of the digital assistant - Pro-active customer support through analysis and interpretation of data and operations - Sorting and delivery efficiency through the use of artificial intelligence-based technologies |