We have a commitment to reduce our net GHG emissions to zero by 2050, and contribute to limiting global warming within 1.5°C by at the end of the century to mitoigate the climate emergency.
Towards the Net Zero target
Following a phase of great trasformation that allowed the company to increase and diversify its portfolio whilst strengthening its financial structure, in 2020 Eni reached a new milestone in the development of its business model by presenting its first long-term strategic plan. Combining the goals of continuous development in a rapidly evolving energy market with a significant reduction of its carbon footprint, the company's long-term strategy takes full commitment to reduce all GHG emissions related to the energy-related activities and products sold (Scope 1+2+3).
In 2021, Eni took a further step forward, committing to total decarbonisation of all products and processes, outlining the integrated and evolutionary paths of its individual businesses towards carbon neutrality in 2050.
In 2022, we further enhanced our strategy by leveraging technology integration, development of new business models and close collaboration with stakeholders, accelerating our path towards Net Zero in 2050, with new short and medium-term targets that confirm our commitment to further align our emissions reduction trajectory with 1.5°C scenarios.
The new short and medium-term targets envisage a 35% reduction in absolute net scope 1, 2 and 3 emissions by 2030 and 80% by 2040 (vs. 2018), accelerating the 25% and 65% reduction targets of the previous plan. In addition, the target of Net Zero emissions from Eni’s operations (scope 1+2) has been brought forward to 2035 and a new reduction target of 40% in 2025 compared to 2018 has been set. These targets clearly show our progress in implementing our decarbonisation strategy.
Proprietary and breakthrough technologies will be the strategic drivers of the decarbonisation path, ensuring a leading position in the energy transition through research and technological innovation.
Moreover, Eni has long-standing and solid partnerships with academia, civil society, institutions and the business associations to contribute to the energy system decarbonisation.
Creating long-term value
The pillars of our evolution that will lead Eni towards Net Zero in 2050.
Eni’s strategy towards Net Zero is supported by an industrial transformation plan that encompasses the whole value chain, including an optimization and enhancement of the upstream portfolio through progressive decarbonization, combined with the expansion of bio, renewable and circular economy businesses and with the offer of new energy solutions and services.
Around 90% of the absolute reduction target in the long term will be achieved by transforming conventional operations. In the Upstream sector, production will reach a plateau by 2025 with a gradual growth of the gas share, which is expected to reach 60% by 2030 and more than 90 % after 2040, while oil production volumes will decline in the medium to long term. This evolution of the energy mix will contribute more than 50% to the 2050 decarbonisation target.
In addition, a methane emission reduction target was set in line with the Global Methane Pledge. Midstream and downstream operations will contribute about 40% of emission reductions thanks to the enhanced use of equity gas and LNG, to a faster conversion of traditional refineries into biorefineries and to circular economy hubs that will reduce the risks associated with raw materials through vertical integration. CO₂ capture and storage projects will play a complementary role in reducing emissions that are difficult to abate with existing technologies, and only about 5% of the total reduction in supply chain emissions by 2050 will be related to compensation through offsetting, mainly from Natural Climate Solutions.
Skills and technology in research and development of energy from alternative sources.
Eni is committed to bringing its plans and investment decisions in line with its decarbonisation strategy, progressively increasing the share of investments dedicated to enhancing renewable generation capacity, expanding the growth of biofuels and green chemistry, scaling up new energy solutions and services for decarbonisation (CCS), to energy efficiency and the decarbonisation of legacy assets. Thus, the share of capital devoted to new energy solutions and services will reach about 30% of total investments in 2025, about 60 % in 2030 and more than 80% in 2040.
The share of expenditure devoted to Oil & Gas activities will be gradually reduced, selecting the main investment projects based on their emission profile, in line with the targets set for the reduction of emissions and with the commitment to phase out investments in carbon-intensive “unabated” activities or products as a necessary condition to achieve carbon neutrality by mid-century.
For the 2022-25 period, Eni has planned investments in decarbonisation, circular economy, renewables and retail portfolio development for around €9.7 billion, including supporting scientific and technological research activities.
|Data in mld of €(1)||2022-2025|
|Power generation from renewable sources||4,3|
|Reduction of GHG emissions||1,0|
|Research for decarbonisation and circular economy projects||0,5|
|Retail portfolio development (including e-mobility)||2,0|
|Other initiatives (including Natural Climate Solutions and Venture Capital)||0,9|
Risks and opportunities related to climate change
The risk and opportunity management process connected with climate change is part of the Integrated Risk Management (IRM) Model, developed by Eni with the aim of supporting the management in the decision-making process by strengthening awareness of the risk profile and related mitigations.
Alongside its commitment to ensuring the integrity of its operations, as a responsible operator Eni is also actively addressing the issue of adaptation to Climate Change also regarding the socio-economic and environmental impacts in the countries where it operates. To this end, a project for the assessment of the main risks/opportunities connected to Climate Change was completed in 2021 in collaboration with FEEM (Fondazione Eni Enrico Mattei) and the Pisa Institute of Management (IDM). The project led to the development of guidelines and measures which will provide methodological support for the identification and implementation of adaptation actions in Countries of interest.
Read more about decarbonization path
Selected content on this topic.