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Measuring the impact of Eni’s business projects

An interview with Politecnico di Milano Professor Giovanni Azzone.

by Eni Staff
06 November 2020
2 min read
by Eni Staff
06 November 2020
2 min read

The Eni Local Content Evaluation (ELCE) model supports the measurement of the value generated by Eni through its business projects both locally and nationally. The overall value emerges by the measurement of the benefits brought to the economy, to society and to communities in the project life-span by measuring three dimensions: economic impact, employment impact and human capital development.    

To discuss this further, we talked to Giovanni Azzone, full professor at the Department of Management Engineering at Politecnico di Milano specialized in impact assessment for strategic investments and public policy.

What is the value of applying a replicable Model to calculate the value generated at local level?

A company’s legitimacy in operating both in developed and in developing Countries also depends on its ability to demonstrate that it actively contributes to socio-economic development in the Country, creating wealth, offering employment opportunities and developing human capital. For this very purpose, Eni has developed a replicable model (ELCE) that establishes a conceptual framework to analyse the impacts generated by the company, providing useful indicators to quantify each of them. The model adopts a conservative approach, inasmuch as it focuses on local content components that can be measured more objectively and reliably.

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A company’s legitimacy in operating both in developed and in developing Countries also depends on its ability to demonstrate that it actively contributes to socio-economic development in the Country, creating wealth, offering employment opportunities and developing human capital.

Full professor at Politecnico di Milano

Recognising complexity in analysing local content, which approach should be followed to properly manage it?

The process that led to the definition of the ELCE model was complex. From the conceptual standpoint, there is no unambiguous definition of local content and Countries adopt specific policies. This led to the need to define a shared framework, applicable in any context, that allows to integrate and consider specific local features. The choice to create an interfunctional project team between Eni and Politecnico di Milano was particularly important both to validate the model, and to have a constant conversation with Eni people living and working in host Countries. This has allowed to better understand the context, formulate the right hypotheses and critically interpret the results.