SOCIO-ECONOMIC EFFECTS DETERMINATION

The Group's global contribution to the development of local economies

During 2016, the Group developed a special proprietary calculation model, called the SEED (Socio-Economic Effects Determination) Model, which calculates the total contribution of Salini Impregilo to the economic growth and social development of specific countries in terms of employment, GDP, revenue for the public administrations, and labor income distributed to households [1].

 

Direct Contribution

due to business operations
bollo_contributi_diretti bollo_contributi_diretti-plus
The purchases from local suppliers generate:

Indirect Contribution

due to the activation of the supply chain
bollo_contributi_indiretti bollo_contributi_indiretti-plus
The income provided to local households generates:

Induced Contribution

due to local household expenditures
bollo_contributi_indotti bollo_contributi_indotti-plus
ico-1
EMPLOYMENT
People involved throughout the value chain
ico-2
GDP
Difference between production value and intermediate costs
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CONTRIBUTION TO P.A.
Income taxes, Duty fees, Social security charges, and Other taxes
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LABOR INCOME
Wages and salaries, Provision for termination indemnities, Leaving Indemnity, and Other costs

In 2016, the model was tested in three pilot countries: Italy, Ethiopia and Panama [2]. The findings, summarised below, confirm that Salini Impregilo's local investment policies produce significant effects on the economies of the countries where the Group operates.

SEED MODEL

Total contribution generated by Salini Impregilo's activities

The high multiplier of the GDP and the Public Administration revenues generated in Italy is mainly due to the significant use of Italian suppliers in the Group's overseas projects, and demonstrates quantitatively how the activities of the Group contribute to "exporting" national excellence and the "Made in Italy” brand.

The high employment multipliers recorded in Ethiopia and Panama are due to the large number of direct staff employed by the Group in these countries and the structure of the local economies, characterized by high labour intensity. In these countries, the overall contribution that the Group's projects bring to macroeconomic indicators (employment, GDP, revenue, wages) [3] appears significant.

 

 

[1] The SEED Model is based on the analysis of investments made locally by the Group and on the application to them of specific multipliers derived from the Social Accounting Matrices, published by internationally renowned research institutions.
[2]
Taking into consideration 2015 data.
[3] Data showed refer to the total contribution of the projects in progress in the three pilot countries in 2015, regardless of Salini Impregilo’s percentage. Italy includes the contribution generated by the corporate activities.