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Eni for 2016 | Sustainability Performance

Global gross value added is divided between the following the calculation are shared with the relevant technical
beneficiaries: employees (direct remuneration composed structures/business units. Tangible economic benefits are
of wages, salaries and provisions for severance payments identified in a “what if” scenario, that is as the difference
(TFR) and indirect remuneration consisting of social (delta) derived from comparison with the application of
welfare contributions); State and Public Administration the best alternative technology or, in the case of new
(income tax); financial backers (medium- and long-term products, as the difference compared to the margin
interest paid for the availability of borrowed capital); generated by the products replaced. The intangible
shareholders (dividends distributed). benefits are recognized by assessing on the one hand the
The method for assessing the value generated from effectiveness and efficiency of the Company’s innovative
research allows the benefits of R&D to be calculated in capacity over time through the number of first filings of
terms of both tangible and intangible value. The tangible patent applications, and on the other by the diffusion of
value is measured by the economic benefits related specialized know-how and the effectiveness of research
to the application of product technologies/process in supporting operating activities.
innovation. Specifically, the overall tangible value is Procurement data refer to the share deriving from suppliers
applied to 100% of the investment in the technological who fall within the Group’s Procurement Management
applications projects and is before tax. The economic System Guideline which regulates the stages and activities
benefits may be identified based on actual results (final of the procurement process. The MSG applies to the
values) or expected value (net present value - NPV). procurement functions of Eni SpA and companies directly
The assumptions applied on a case-by-case basis for or indirectly controlled by Eni in Italy and abroad.

Reporting boundary

The following paragraphs contain the sustainability With regard to data on health, safety and the environment,
performance indicators for the 2014-2016 period. the consolidation domain is defined on the basis
The information relates to Eni SpA and its consolidated of the operational criterion (control of operations).
subsidiaries. The consolidation boundary is the same Data on employees in service and related KPIs refer only to
as that for the Integrated Annual Report 2016, with the consolidated companies based on the line-by-line method.
exception of certain data specifically indicated. Corporate Governance KPIs refer to all Eni’s subsidiaries.