Impianto fotovoltaico

Integrating sustainability into our business model

For Eni, sustainability means contributing to a socially just energy transition that guarantees access to energy for everyone, while protecting the environment.

9 min read
9 min read

Moving towards a just transition to create long-term value

The main challenge faced by the global energy panorama is to balance two fundamental prerequisites: guaranteeing universal access to energy in a world that is growing in economic and demographic terms, while at the same time, tackling climate change by accelerating the transition process towards a more sustainable mix.

The concept of a “just transition” takes into consideration the impact of energy transformation on people, starting with direct and indirect workers, including communities and consumers. Managing the reduction in emissions must therefore also include managing the related social impacts, in other words, it must be inclusive. This not only contributes to equity in the transition, but also renders the policies and actions that are being implemented on the ground more effective.

In this context, Eni aims to achieve carbon neutrality by 2050, i.e. reducing its carbon footprint to zero, thus adhering to the provisions of the Paris Agreement to hold the increase in global warming within a threshold of 1.5°C till the end of the century.

By focusing first and foremost on our customers, we want to offer them energy products and services that are fully decarbonised, taking into consideration all emissions generated along the entire life cycle (Scope 1, 2, 3).

Indeed, our activities extend to our end markets, where we sell gas, electricity and products to retail and business customers and local markets. And in order to support our growth and that of our host countries, we have incorporated the 17 United Nations Sustainable Development Goals (SDGs) into our mission , making specific commitments for each of them.

Eni's business model

Eni organically includes the principles of environmental and social sustainability in its business plan, basing its range of actions on three pillars:

  • Operational excellence
  • Carbon neutrality by 2050
  • Partnerships for development

The Eni business model is developed on these three pillars, leveraging internal skills, the development and application of innovative technologies and the digitization process. The core factor of the business model is the Corporate Governance system, inspired by the principles of transparency and integrity.

Operational excellence

First of all, Eni business is constantly focused on operational excellence. This translates into an ongoing commitment to valuing people, safeguarding both the health and safety of people and asset integrity, protecting the environment, integrity and respect for human rights, resilience and diversification of activities and ensuring sound financial discipline. These elements allow the company to seize the opportunities related to the possible evolutions of the energy market and to continue on the path of transformation.

Carbon neutrality by 2050

It is based on an approach oriented to emissions generated throughout the life cycle of energy products and on a set of actions that will lead to the total decarbonisation of processes and products by 2050. This path, achieved through existing technologies, will allow Eni to totally reduce its carbon footprint, both in terms of net emissions and in terms of net carbon intensity.

Alliances for development

Through the enhancement of the resources of the Countries where it operates, promoting access to electricity and promoting Local Development Program (LDP) with a broad portfolio of initiatives in favour of communities. This distinctive approach, referred to as Dual Flag, is based on collaborations with other internationally recognized players in order to identify the needs of communities in line with the National Development Plans and the United Nations 2030 Agenda. Eni is also committed to creating job opportunities and transferring its know-how and expertise to its local partners.


Responsible and sustainable approach

Sustainability is part of every aspect of our business. This link is achieved by integrating the 17 Sustainable Development Goals of the UN 2030 Agenda into our mission. Eni has defined goals to be achieved in the short (2022-2025), medium (2025-2030) and long term (by 2050).

See the following infographic to discover Eni's business model in relation to:

  • the commitments made by the company
  • the main 2021 results
  • the SDGs that we contribute to

Eni has defined a clear set of targets and actions to contribute, directly or indirectly, to the achievement of the Sustainable Development Goals (SDGs), supporting a just energy transition with concrete and economically sustainable solutions to the challenges of climate change and global access to energy. Our achievements in 2021 show the progress made so far by Eni in terms of protecting People and Human Rights and ensuring a safe working environment, while advancing in our path towards net zero emissions in 2050.


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Eni's activities: the value chain

Eni is a global energy company that has a presence along the entire value chain, including exploration, oil and natural gas development and extraction, power generation from cogeneration and renewable sources, traditional and bio-based refining and chemicals and the development of circular economy processes. Eni’s reach extends to its end markets, selling gas, electricity and products to retail and business customers and local markets.

One of our competitive advantages is the ability to reduce the time-to-market of reserves, which together with efficient exploration helps to ensure a resilient asset portfolio to the scenario.

Pannelli solari e pale eoliche

Eni's value chain

Consolidated expertise, technologies and the geographical distribution of assets in 69 countries are the levers that strengthen our presence along the value chain.

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Sustainability governance

Eni’s corporate governance system, based on the principles of integrity and transparency, reflects the desire to integrate sustainability into the business model. This approach is confirmed by the adherence to the 2020 Corporate Governance Code, applied by Eni since 1 January 2021, which identifies “sustainable success” as the objective that must guide the actions of the Board of Directors and that consists of creating long-term value for the benefit of shareholders, taking into account the interests of other stakeholders relevant to the company. Moreover, since 2006 Eni has considered the interest of stakeholders other than shareholders as one of the necessary references that Directors must assess when making informed decisions. In compliance with the Code, the Board of Directors (BoD) has also approved, upon proposal of the Chairman, in agreement with the CEO, a policy for dialogue with shareholders. The BoD has a central role in defining, as proposed by the Chief Executive Officer (CEO), sustainability policies and strategies, in identifying annual, four-year and long-term objectives and in monitoring results. In performing its sustainability duties, the BoD has been supported, since 2014, by the Sustainability and Scenarios Committee (SSC), which provides information, makes proposals and provides advice on scenarios and sustainability, for example in the areas of climate transition and the protection of rights, in particular human rights. Under the 2020 Corporate Governance Code, the Control and Risk Committee, in assisting the Board of Directors, is also responsible for assessing the suitability of periodic non-financial information for the correct representation of the company’s business model and strategies, the impact of its activities and the performance achieved, expressing an opinion thereon to the Board and coordinating with the SSC, and for examining the content of periodic non-financial information relevant to the internal control and risk management system.

To ensure that the aspects of sustainability are managed by the top management up to all subsidiaries, Eni has adopted a sustainability unit since 2006. This unit coordinates and supervises activities related to the main sustainability issues (such as, for example, the overall approach to sustainable development and local development, human rights, related national and international collaborations and partnerships, disclosure and reporting of sustainability), in collaboration with the various central and local staff and business functions. Since 2019, issues relating to climate strategy, an integral part of long term planning, have been managed by the CFO area through dedicated structures, with the aim of supervising the process of defining Eni’s carbon neutrality strategy and the related portfolio of initiatives, in line with international climate agreements, in coordination with all businesses and transversal functions including sustainability. At the local offices, the top management of the companies, responsible for defining the development plans of the countries according to local needs, are supported both by the sustainability representatives present in the area and by the central sustainability function.

Roles and responsibilities of the Board of Directors on sustainability topics

Board of Directors
Defines:
  • the Corporate Governance system;
  • the fundamental lines of the organisational, administrative and accounting set-up and the guidelines of the internal control and risk management system;
  • the strategic lines and the objectives, including sustainability objectives, as proposed by the CEO.
It reviews or approves:
  • the basic outlines of the internal regulatory system and the main corporate regulatory instruments;
  • the main risks, including socio-environmental ones;
  • the Policy for the Remuneration of Directors and managers with strategic responsibilities;
  • financial and non-financial reporting.
Chief Executive Officer Chairman
  • The person in charge of managing the Company, without prejudice to the tasks reserved to the Board;
  • Implements the resolutions of the BoD, informs and submits proposals to the BoD and to the Committees.
  • Central role in the internal control and risk management system;
  • Steers the BoD’s activities and ensures that Directors are trained on sustainability matters.

Committees

Sustainability and Scenarios Committee Control and Risk Committee Remuneration Committee Nomination Committee
It provides proposals and advice to the BoD on scenarios and sustainability and delves further into the integration between strategy, evolutionary scenarios and business sustainability in the medium-to-long-term. It supports the Board in evaluations and decisions relating to the internal control and risk management system, and in particular in the quarterly review of the main risks, including ESG risks, and the approval of periodic financial and non-financial reports. It informs, makes proposals and provides advice to the Board of Directors on remuneration topics, and in this context proposes annual and longterm incentive systems, defining their objectives, also supporting the guidelines adopted on sustainability issues. It supports the BoD in the appointments, in the periodic assessments of the directors’ requirements and in the self-assessment process, formulating opinions to the BoD on the composition of the BoD and of its Committees also with respect to required competencies.
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