As highlighted in the new corporate mission, which integrates a clear reference to the Sustainable Development Goals (SDGs), Eni's commitment aims to respond, with concrete, rapid and economically sustainable solutions, to the challenge of improving access to reliable and clean energy, fighting climate change. Eni recognises the Intergovernmental Panel on Climate Change's (IPCC) scientific evidence on climate change and was among the signatories of the Paris Pledge for Action, supporting the objectives of the Paris Agreement to limit temperature increases to well below 2°C.
The road map of our commitments
Eni intends to play a leadership role in the energy transition process and is ready for a new phase of evolution of its business model which, strongly focused on the creation of value in the long term, combines economic and financial sustainability with environmental sustainability. Eni's strategy combines the objectives of continuous development in a rapidly evolving energy market with a significant reduction in the Group's carbon footprint. The Eni of the future will be even more sustainable, strengthening its role as a global player in the world of energy and boosted by the progressive development of the renewable energy business and new businesses based on circularity.
This evolution will be achieved within the Long-Term Business Plan presented by Eni in February 2020 and which, leveraging on know-how, its own technologies, innovation and the flexibility and resilience of its assets, will allow Eni to seize new opportunities for development and efficiency, as well as further improve workplace safety.
Eni's commitments in achieving the expected targets provide for an overall spending of approximately 4.9 billion euros in the four-year period 2020-23, for decarbonization, circular economy and renewables, including specific R&D activities on these issues and a forestry programme.
A low-carbon and resilient portfolio: gas as a bridge fuel
Gas is taking on an increasingly important role in Eni's future, with the aim being to reach a 60% share of the production mix in 2030 and around 85% in 2050. LNG is making a decisive contribution to the growth of gas and Eni is developing a model that will make it a leader in the market. These actions will help make Eni's portfolio more sustainable and exploit fossil fuels with lower GHG emissions as a bridge fuel for the long-term energy transition. The use of technology solutions such as carbon capture and storage in electricity generation plants, in LNG plants and for the production of blue hydrogen, will allow a further reduction of the carbon footprint of gas from equity production. To this end, aware of the importance of maximising the climate benefit from the use of gas, Eni is a partner in various initiatives for implementing voluntary activities to reduce methane emissions throughout the entire Oil & Gas production process, and that promote the implementation of regulations and targets on the reduction of methane emissions along the natural gas chain.
The progressive mitigation of its carbon impact makes gas a fundamental energy source to accompany the transition to a low-carbon energy mix, thanks in part to the replacement of the most polluting fossil sources in electricity generation and energy-intensive industries. It will also help ensure electric power system balancing by integrating intermittent renewable sources.
Portfolio resilience is ensured by a regular review of the portfolio of assets and new investments, to identify and assess potential emerging risks associated with regulatory changes on emissions and the physical conditions for carrying out operations. The profitability of the main investment projects is tested through sensitivity to carbon pricing, both in the Final Investment Decision (FID) and subsequently in the half-yearly monitoring of projects, based on the following assumptions: Eni's hydrocarbon and CO2 cost scenario and IEA SDS low carbon hydrocarbon price and CO2 cost scenario.
Risks and opportunities associated with climate change
Climate change is analysed, assessed and managed by considering five reference drivers relating both to transition risks – market scenario, regulatory and technological evolution, reputational issues – and to physical risks, such as extreme or chronic meteorological and climate phenomena. The analysis is carried out with an integrated and cross-cutting approach that involves specialist functions and business lines and allows for the assessment of risks and opportunities related to climate change.
The Board of Directors has a central role in managing the main issues related to climate change. On the issue of climate change, the BoD is mainly supported by three Directors' committees: Sustainability and Situations Committee, Control and Risk Committee and Remuneration Committee.
The Sustainability and Situations Committee examines the integration of issues of strategy, evolutionary situations and business sustainability in the medium-long term and examines scenarios for preparation of the Strategic Plan. During 2019, the CSS went deeper in its work in relation to climate change, including the carbon neutrality strategy, energy scenarios, renewable energies, research and development to support the energy transition, climate partnerships and water resource and biodiversity issues. The Control and Risk Committee supports the BoD in the periodic review of the main risks, including climate change, which takes place on a quarterly basis. The Remuneration Committee also plays an important role in this area, proposing the general criteria for the annual incentive plans for the CEO and executives with strategic responsibilities to the BoD, which include specific targets related to the reduction of GHG emissions. Furthermore, from the second half of 2017, the Board of Directors set up an Advisory Board, called on to analyse the main geopolitical, technological and economic trends, including those relating to the energy transition process.
Eni confirmed as a leader in the fight against climate change by CDP
In 2019, Eni again confirmed its leadership position in tackling climate change by obtaining an A rating in the CDP's Climate Change programme, in which Eni has participated since 2003. In 2019, around 8,500 companies were invited to complete the CDP questionnaires, including 250 from the Oil & Gas sector, representing more than 50% of the world capitalisation. Eni's score was equalled by only a few other companies in the sector. Oil & Gas and is well above the global average of C, on a rating scale from D (lowest) to A (highest).
CDP is a non-profit organisation recognised internationally among the reference institutions for the assessment of climate and environment performance and strategy of listed companies.
Eni has been submitting its GHG emissions to a third party audit process both within its sustainability reporting, since 2006, and also with a specific assurance assessment, since 2011, to ensure a proper reliability of its climate disclosure data. Since 2019, Scope 1 and Scope 2 GHG emissions related to Eni’s operating activities have been subject to a reasonable assurance assessment, with the aim of guaranteeing even greater reliability of the data with a strategic relevance for Eni. The reasonable assurance statement was released by an external audit firm (PwC), also responsible for the audits of the Annual Report, the Consolidated disclosure of Non-Financial Information and Eni for, that carried out the assignment in accordance with ISAE 3000 and ISAE 3410 standards. Moreover, a limited assurance statement was released for the Net Absolute GHG Lifecycle Emissions and Net Carbon Intensity KPIs, included in Eni’s 2050 carbon footprint reduction targets.
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