Transparency, a value that guides us in every field

Compliance with laws and ethical rules are fundamental values for us and are integrated at every level.

The transparency that underpins our actions

Transparency is a company value. We believe that it must be promoted so that we can inclusively manage resources for the benefit of community interests. Ethics underpins our activities and plays a key role in supporting a fair energy transition. We require people to carry out their daily activities with integrity and transparency and we oppose all forms of corruption. We work closely with governments around the world, which often receive major economic transactions, promote the responsible use of financial resources generated in the extractive sector, and publish “Country-by-Country”, a voluntary report to ensure transparency. As an energy company, we participate in policy-making consultations, including by making our energy and environmental expertise available to the community.

Data on payments to governments available to all

As a global energy tech company, we work closely with governments around the world, who are often our counterparties in major economic transactions. Our payments to governments therefore also represent socio-economic support to states, and their proper management contributes to achieving Sustainable Development Goal 16 of the UN Agenda 2030, which prioritises “Peace, Justice and Strong Institutions”. Precisely for these reasons, since 2015 we have included a voluntary disclosure of the payments we make to governments, and since 2017 we have published the “Report on Payments to Goverments”, in line with EU Directive 2013/34.

The criteria by which we draft this document are based on the prevailing interpretations of national and international legislation. Reporting includes payments made in connection with the exploration, prospecting, research, development and extraction of oil (including condensates) and natural gas. Payments relating to refining, natural gas liquefaction (LNG) and gas-to-liquids and other downstream activities are excluded.

Eni and EITI

Since 2005 we have been participating to the Extractive Industries Transparency Initiative (EITI), the global initiative promoting responsible and transparent use of financial resources generated in the extractive sector, as a supporting company.
In 2023 Eni was appointed as Board member of the EITI, the main decision-making body of the Initiative.

In each participating country, the EITI is supported by a Multi-Stakeholder Group in which government, mining companies and civil society work together to effectively implement the initiative. As part of our involvement with the EITI, we track activities at international level and in member countries, contribute annually to the preparation of reports, and participate in the activities of the Multi-Stakeholder Groups in Congo, Ghana, Timor-Leste and the United Kingdom. In Kazakhstan, Indonesia, Mozambique, Nigeria and Mexico, our subsidiaries liaise with the local EITI Multi-Stakeholder Groups through the trade associations present in the countries. In line with our participation in the initiative, we stand by our position advocating contractual transparency on the part of governments, expressing our support for initiatives that will be adopted in this regard by the countries in which we operate.

Eni’s position on Contractual Transparency

We regard transparency as a corporate value and consider its promotion crucial for a more inclusive management of resources, in favour of community interests and as a prerequisite for counteracting corruption. Our commitment is confirmed by our active participation in the global multi-stakeholder EITI initiative. In this context, we promote numerous activities and a transparent approach in the management of our operations: we take part in EITI Board initiatives and – at local level – contribute to the activities of EITI Multi-Stakeholder Groups in countries where they are present, while also initiating dialogue with the governments of countries that have not yet formally joined the initiative.

 

The 2019 EITI Standard introduced an important new requirement for member countries to “disclose any contracts and licences granted, entered into or amended after 1 January 2021”, with the aim of strengthening community, stakeholder and investor confidence in governments and companies by enabling civil society to monitor and oversee the terms of these agreements, expected revenues and associated socio-environmental obligations. 

As a company supporting the EITI, we encourage governments to comply with the new standard on the publication of contracts and express our support for the mechanisms and initiatives that will be undertaken by countries to promote transparency in this area.

 

EITI and Non-EITI countries

EITI countries

Albania, Angola, Argentina, Congo, Côte d'Ivoire, Ghana, Indonesia, Iraq, Kazakhstan, Mexico, Mozambique, Myanmar, Nigeria, United Kingdom, East Timor.

Non-EITI countries

Algeria, Australia, China, Cyprus, Denmark, Egypt, Gabon, India, Kenya, Libya, Iran, Italy, Montenegro, Pakistan, Russia, South Africa, Tunisia, Turkmenistan, Venezuela, Vietnam.

The Country-by-Country Report

In compliance with Italian Law No. 208/2015, we voluntarily publish (although there is no regulatory obligation to do so) 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 to have the profits of multinational companies reported in the jurisdictions where the economic activities that generate them are carried out, in proportion to the value generated. 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 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.

Fighting corruption at every level

Fighting corruption is based, above all, on prevention. This is why we ask all our people to commit to the Anti-Corruption Compliance Programme on an ongoing basis. This Compliance Programme is also inspired by the Code of Ethics, and sets out the principles and rules that must be followed to ensure compliance with anti-corruption laws for all Eni employees and all those working, in Italy and abroad, for or on behalf of Eni. Indeed, we believe it is important not only to ensure correct conduct among Eni employees, but also to disseminate it in the areas where we operate and among our counterparties.

In 2022, 25 audits were carried out (in 10 countries) on compliance with the Anti-Corruption Compliance Programme and 19 audits were carried out on the 231/Compliance Models of Italian and foreign subsidiaries. As in 2021, the number of ascertained cases of corruption relating to Eni SpA in 2022 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.

We respect the tax rules of the countries in which we operate

Our activities enable us to make a significant contribution to the tax revenues and therefore to the development and social and economic well-being of the states in which we operate, including through payment of taxes, as well as through direct transactions with governments. We are aware of the importance of these financial flows for collective well-being, and we therefore adopt conduct consistent with the principles of transparency, honesty, fairness and good faith set out in our Code of Ethics. Our tax strategy aims to correctly assess taxes in the different jurisdictions in which we operate, to mitigate the risks of legal and economic double taxation of profits, and to prevent potential disputes with the tax and judicial authorities of the countries in which we operate.

The principles in the OECD Guidelines for Multinational Enterprises

Contribute to the public finances of host countries by promptly paying any due taxes.

Comply with both the letter and the spirit of tax regulations in the countries where business operations are conducted.

Communicate in a timely manner to the relevant authorities all information required by law or necessary for the correct assessment of due taxes.

Determine transfer prices in intra-group relations in line with the “OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations”.

Tax Strategy

Fair representation of interests that is open to dialogue

Representing our interests at the various institutional forums is our duty, not only to protect the company, but also to permit a correct assessment of the impacts of our activities on the local area, as well as to improve the effects and effectiveness of our actions. For these reasons, we maintain a transparent dialogue with public institutions and civil society organisations in all countries. As an energy company, it is natural and appropriate for us to participate in policy-making consultations, including by making our energy and environmental expertise available to the community. In 2017, at national level, Eni took part in the consultation on the Energy Strategy at the initiative of the Ministry of Economic Development and the Ministry for Environment, Land and Sea Protection, contributing opinions and proposals to the institutional bodies involved in defining Italy’s long-term energy strategy.

Eni for 2022. How we support development and carbon neutrality

Goals, strategies, projects, results for a fair and inclusive energy transition.

The values underpinning our actions

Integrity, respect and protection of Human Rights, transparency, promotion of development, operational excellence, innovation, team work and collaboration define our commitment and guide our conduct and the conduct of those who deal with us.



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