Mondo Eni

Transparency underlies all our actions

Prompt payment and respect for the law are fundamental values for us and are integrated at every level in our work.

Transparency on payments to governments

Energy companies such as Eni work closely with governments around the world that are often our partners in big financial transactions, which also contribute to support administration, healthcare, education and other social activities. Managing payments properly contributes to realise “Peace, justice and strong institutions” – Sustainable Development Goal 16 on the UN 2030 Agenda. For these reasons, since 2015, we deemed important to voluntarily disclose these payments. Since 2017, we have committeed a “Report on Payments to Governments” in line with European Directive 2013/34.

The criteria used to draw up the document are based on mainstream interpretations of national and international legislation. Our report covers payments for exploration, research, development and extraction of petroleum (including condensates) and natural gas. Payments for refining, liquefied natural gas (LNG), gas-to-liquids and other Downstream activities are excluded.

 

Eni e EITI

Since 2005, Eni has joined the Extractive Industries Transparency Initiative (EITI), a global multi-stakeholder initiative promoting a responsible and transparent use of financial resources from the extraction sector and participates as a supporting company .

In every member country, EITI is supported by a Multi-Stakeholder Group where the Government, extracting companies and civil society come together to carry out the Initiative’s aims. As part of its engagement with EITI, Eni monitors activities at an international level and in member countries it contributes annually to the preparation of Reports; it also participates as a member in the activities of Multi-Stakeholder Groups in Congo, Ghana, Timor Leste and the UK. In Kazakhstan, Indonesia, Mozambique, Nigeria and Mexico, Eni's affiliates interact with EITI's local Multi Stakeholder Groups through local category associations.

In line with its participation to EITI, Eni has expressed its position in favor of contractual disclosure by governments and its support for the initiatives that will be adopted in this regard by the countries where it operates.

Eni’s position on Contracts Transparency

Eni considers transparency a corporate value and views its promotion as crucial for a more inclusive resource governance in favor of communities’ interest and as a prerequisite to fight international corruption. Moreover, our commitment is confirmed by our active participation, since 2005, to the voluntary multi-stakeholder initiative of EITI and by our support to its efforts in promoting an open and accountable management of natural resources. In this context, Eni undertakes several activities and promotes a transparent approach in the conduct of its business activities: we take part to the initiatives of the International Board of EITI and – at local level – contribute to the activities of the EITI Multi-Stakeholder Group in the countries where we operate, while engaging in dialogue with the Governments of the countries that have not formally joined the initiative yet.

The 2019 EITI Standard has introduced an important new requirement for implementing countries, which is to “disclose any contracts and licenses that are granted, entered into or amended after 1st January 2021”, aimed at enhancing the trust of communities, stakeholders and investors towards Governments and Companies, by allowing civil society to monitor and oversight the terms of these agreements, the expected revenues and related social-environmental obligations. Eni, as an EITI supporting company, encourages Governments in conforming to the new standard on contract disclosure and expresses its support to countries’ mechanisms and initiatives to advance transparency.

EITI Countries & Non-EITI Countries

EITI countries Non-EITI countries
Albania, Angola, Argentina, East Timor, Ghana, Indonesia, Iraq, Ivory Coast, Kazakhstan, Mexico, Myanmar, Mozambique, Nigeria, Republic of the Congo, United Kingdom. Algeria, Australia, China, Cyprus, Denmark, Egypt, Gabon, India, Kenya, Libya, Iran, Italy, Montenegro, Pakistan, Russia, South Africa, Tunisia, Turkmenistan, Venezuela, Vietnam.

Country-by-Country Report

In accordance with Italian Law No. 208/2015, Eni publishes the "Country-by-Country Report" required by Action 13 of the "Base erosion and profit shifting - BEPS" project, promoted by the OECD with the sponsorship of the G-20, whose objective is the publication of data on multinational companies' aggregated profits and taxes with reference to the jurisdictions in which the economic activities that generate them are carried out. Although there is no regulatory requirement to disclose the CbC report, Eni publishes it on a voluntary basis. The publication of this report has been recognised as best practice by the EITI. The CbC Report is a tool for assessing fiscal risk and is sent by the Italian tax administration to all other such administrations with which it has an agreement for exchanging information. Furthermore, in line with its disclosure on “beneficial ownership”, Eni publishes its company structure in its Integrated Annual Report.

Report on payments to governments 2021 of Eni Group

Payments overview 2021 (€ thousand)

Country Production Entitlement Taxes Royalties Bonuses Fees Infrastructure Improvements Total
Europe              
Italy
11,532
203,823

14,590

229,945
Cyprus
519
519
United Kingdom 76,082
2,324 78,406
Africa              
Algeria 261.266 23.950 54.738 339.954
Angola 1.001.574 155.157 70.809 8.708 111 1.236.359
Congo 96.267 153.893 148.053 398.213
Egypt 659.411 7.608 667.019
Ghana 281.094 98.749 1.007 380.850
Ivory Coast 2.959 2.959
Libya 1.016.906 149.269 1.166.175
Nigeria 626.933 49.785 106.399 18.581 801.698
Tunisia 129.218 2.168 15.119 146.505
Americas              
Mexico 85.292 28.253 7.439 120.984
United States (8.378) 81.585 11.195 1.902 86.304
Asia              
China 243 243
Indonesia 206.123 31.520 211 237.854
Iraq 26.635 26.635
Kazakhstan 161.391 161.391
Oman 422 422
Pakistan 28.017 1.120 5.065 49 34.251
Timor Leste 23.353 20.506 471 44.330
Turkmenistan 95.611 5.103 100.714
United Arab Emirates 456.545 200.186 2.959 614 660.304
Australia and Oceania              
Australia (3.470) 1.250 (2.220)
Total 2.573.482 3.072.312 1.136.363 88.378 49.279 6.919.814
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PDF 2.54 MB

Reporting obligations of Eni’s UK subsidiaries – Section 172(1) UK Companies Act Statement (part 1)

ZIP 42.93 MB
ZIP 42.93 MB

Reporting obligations of Eni’s UK subsidiaries – Section 172(1) UK Companies Act Statement (part 2)

ZIP 30.10 MB
ZIP 30.10 MB

Fighting corruption at every level

Fighting corruption is based, above all, on prevention. This is why we have adopted an Eni’s Anti-Corruption Compliance Program, which we ask all our staff to respect and act upon consistently. Such Compliance Program is inspired also by our Code of Ethics and provides the principles and rules to follow, in compliance with anti-corruption law, for everyone we employ and work with around the world. We believe that it is important not just to ensure that Eni employees conduct themselves properly, but also to extend that conduct to the places in which we work and among our peers.

In 2021, 20 audits were carried out in 9 countries, in the context of which applicable anti-corruption audits were performed on compliance with the Anti-Corruption Compliance Programme and 22 audits were carried out on the 231/Compliance Models of Italian/foreign subsidiaries. In continuity with 2020, specific training initiatives on Whistleblowing were also carried out (2 workshops in Italy). As in 2020, the number of ascertained cases of corruption relating to Eni Spa in 2021 was 0. Eni also carries out an anti-corruption training programme for its employees, both with e-learning and classroom events such as general workshops and job-specific training.

Tax policy: we respect the tax rules in the countries in which we work

Through our work we make a significant contribution to tax revenues – and therefore the development and socio-economic wellbeing of the countries in which we operate – both by paying taxes and transacting directly with governments.

Eni is aware of how important these financial activities are to countries’ collective wellbeing and conducts itself with transparency, honesty, probity and good faith, as set out in its Code of Ethics.

In practical terms, our strategy is to calculate the correct taxes in the different systems under which Eni works, mitigate the risk of double taxation (both legal and financial) on our profits and prevent any disputes with legal or tax authorities in the countries in which we work.

 

With this in mind, Eni adopted the principles in the OECD Guidelines for Multinational Enterprises (2011 version), according to which companies should:

  • Contribute to the public finances of host countries by making timely payments of their tax liabilities
  • Comply with both the letter and spirit of the tax laws and regulations of the countries in which they operate
  • Promptly give the relevant authorities all information required by law or needed to correctly determine taxes due
  • Determine transfer prices between groups in line with the OECD Guidelines on such prices for multinationals and tax administration.

Tax strategy

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PDF 215.61 KB

Representing interests through working in partnership

Representing our interests at all our different offices is challenging – not only in terms of protecting the company, but also in properly assessing the impact of our work on local areas and improving the effects, and effectiveness, of our interventions. This is why we establish transparent dialogues with state institutions and civil organisations in all countries. As an energy company, it is only right that we should hold consultations to work out policies, pooling our expertise in energy and the environment. In 2017, for example, Eni took part in an Italian consultation on energy strategy, organised by the Ministry of Economic Development and the Ministry for Environment, Land and Sea Protection. It put forward opinions and suggestions to the institutions involved in defining Italy’s long-term energy strategy.