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Stakeholder Management System and Grievance Mechanism

A description of the mechanism for detecting grievances and use of stakeholder management systems to keep track of stakeholders, grievances and requests.

Listening to stakeholders

This is a fundamental factor in the attention we pay to local communities. Eni dedicates facilities, people and energy to encouraging dialogue and involvement, aware that the creation of shared value with stakeholders is an essential element of its business. In order to be able to listen to the needs of local communities effectively, Eni has adopted tools like the Grievance Mechanism and the “Stakeholder Management System”, which are described below.

Listening to and learning from criticism

Responsible business management is also about responding to the needs expressed by local communities, contributing to their medium- and long-term well-being. Eni considers the relationship with the people who live in the areas where it operates to be an important key to listening. This is why Eni analyses the requests made by stakeholders with an integrated perspective for each territory, to help identify the best actions to put in place to achieve sustainable development in synergy with local communities. 

Knowledge for action: the Stakeholder Management System

Since 2018, Eni has been using its own IT system, the "Stakeholder Management System" (SMS), to manage information relating to relevant stakeholders for each territory where it operates, in order to improve knowledge and understanding of the views and expectations of the multiple stakeholders.  

The Stakeholder Management System supports the 'mapping' of stakeholders according to their influence and attitude towards the company's activities. The SMS makes it possible to understand the specific nature of local contexts, any needs, critical issues and areas for improvement, the main topics of interest, potential impacts on human rights, and helps identify the possible presence of vulnerable groups and areas listed by UNESCO as sites of cultural and/or natural interest (WHS - World Heritage Sites). The SMS also tracks and monitors any grievances that have been raised by stakeholders, making it possible to analyse the issues raised and the status of the handling of the request. This makes it possible to produce critical stakeholder maps in each operating area, identify the relevant issues at a local level and prepare appropriate response or communication measures

Since 2020, the system has been in use at 100% of the sites where Eni has industrial activities, monitoring the relationship with around 4,000 stakeholders.  

In this perspective, the management of grievances is also a fundamental aspect of the attention paid to the areas in which it operates. Grievances are complaints raised by an individual or a group of individuals relating to actual, perceived, ongoing or potential accidents, damages or other environmental or social impacts caused by the company's operational activities. Eni has established its own Grievance Mechanism (GM) to receive, investigate, respond to and resolve complaints or grievances in a timely, fair and consistent manner. The Grievance Mechanism is a key component for building relationships based on trust with stakeholders, as it allows for the early identification of potential disagreements, which helps reduce business risks. The Eni GM is based on the International Guidelines on the subject, published by IPIECA, and has been active in all subsidiaries since 2016. Host communities are informed about the possibilities and ways to file complaints and to ask for clarification on Eni activities. Some communities have Community Liaison Officers, whose role is to help collect information and identify situations to prevent potential grievances by listening directly and continuously to members of the host communities.

A summary of the 2020 grievance data collected by the SMS system, such as the number, origin and main types of grievance, is given below.  In 2020, Eni received 107 complaints from 7 subsidiaries/districts/plants, of which 53%, or 57 cases, have been resolved and closed. Most of the grievances came from Sub-Saharan Africa, in particular Ghana and Nigeria, and were mainly related to: management of environmental aspects, employment development and land management.

Eni for 2020 - Performance di sostenibilità
Eni for 2020 - Performance di sostenibilità

(a) The grievances received by Eni's subsidiaries are classified into over 200 sustainability themes, within the corporate management system (SMS - Stakeholder Management System). The consistency of the various grievance themes may vary from one year to the next, both in terms of type and number, especially for particular years such as 2020 characterized by the pandemic, also involving high percentage variations for some categories. In particular, the category "Environmental management" presents the most significant value in 2020, compared to an insignificant figure for 2019 which was included in the item "Other".

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