Positive energy

ERG is an independent renewable power producer, Italy's leading wind-power operator and a frontrunner in Europe's green energy market. Today, the company focuses on producing sustainable energy, and is playing a big role in helping reduce the risks of climate change.

"My father had worked in the industry for over 40 years, so in 2002, the family decided to appoint me as CEO and my brother as Chairman of ERG," said Alessandro. "In 2006, we wanted ERG to be a leader in sustainable energies. But not just because it was the right thing to do. It was also because we wanted to diversify and mitigate business risks in areas such as volatile oil prices and political issues."

That was the plan. But like any big change in business, it didn't happen overnight. In fact, it took more than 10 years for ERG to cast off its oil-focused past and emerge as a truly sustainable energy company.

In an industry more used to appointing CEOs from outside business-owning families, Alessandro faced some skepticism at first: "Appointing family members as business leaders can unnerve investors. This is why it was very exciting but also very challenging."

His planet-saving plans also faced obstacles in the company board room. "There were doubts that this was the right way to go," he said. "Perhaps the hardest part was trying to change traditional mindsets within the previous generation."

Not only did Alessandro and the family members need to change minds. They also needed to consider the company's operations and workforce, particularly the skills and resources ERG would require.

ERG transformed into a sustainable energy business in just 10 years, and now produces electricity solely from wind, sun and natural gas.

Alessandro believes much of ERG's success boils down to strong relationships and treating everyone with respect. "There are many technicalities to consider when changing business direction," he said. "But we're a family business that believes deeply in treating people decently and respectfully. Only by engaging with everyone constructively and openly did we gain everyone's agreement to transform our business."

This spirit of respect and openness is part of Alessandro's family history and runs through everything the business does: "Our values make us stronger, and they've been fundamental in enabling us to change."

Rather than dive in at the deep end, the company initially dipped its toe in shallower waters. "To help us understand what we were getting into, we made some small investments in new sustainable business models," he says. "It enabled us to identify commonalities between the new business and our previous one. For example, we identified the skills our staff already had that they could apply in the new business. That reassured everyone."

Alessandro and his family were the driving force behind ERG's sustainable transformation. But he doesn't discount the value of external expertise: "External managers can function as mentors and facilitators during business transformation. They've been invaluable in areas like deciding where to focus and invest. It's also important to have strong governance processes, with experienced boards and independent directors acting strategically and swiftly in the best interests of the company."

Beyond the usual business formalities, for Alessandro, it's all about working hard, collaborating harmoniously, and keeping your eyes on the prize. "It's easy for a sustainable business to say it's doing good in the world," he said.

"But I don't think it's enough. It also involves looking after your people, taking care of your community, and respecting everyone you work with. Those are our values. Our business might have changed, but our values never will."