The Board of Directors (BoD) plays a central role in managing the main aspects linked to climate change.
The process for managing the risks and opportunities related to climate change is a part of the Integrated Risk Management (IRM) Model developed by Eni to ensure that management takes risk-informed decisions, by taking into full account current and potential future risks, including medium and long-term ones, in the frame of an integrated and comprehensive approach.
|Sustainability and Scenarios Committee||Control and Risk Committee||Remuneration Committee|
|It addresses the integration among strategy, evolution scenarios and business sustainability over the medium to long term and examines the scenario for the strategic plan preparation. Set up in 2014, the SSC was the first example, in the Oil & Gas sector, of an integrated approach in the evaluation of sustainability and energy scenarios. In each of the twelve meetings held in 2017, the SSC discussed issues related to climate change and assessed the consistency of the results achieved with the climate objectives.||It supports the BoD in the quarterly review of the main risks, including climate change.||It proposes to the BoD the general criteria for the annual incentive of the CEO and managers with strategic responsibilities, which include specific objectives associated with the reduction of GHG emissions.|
The Board has assigned a central role in the internal control system to the Chairman, in particular with regard to presiding over the Internal Audit function. The chosen model establishes a clear separation between the functions of Chairman and Chief Executive Officer. In 2018, Eni also contributed to the “Climate Governance” initiative of the World Economic Forum (WEF), with the involvement of the Eni BoD through its Chairman. During 2018, following up on the training initiatives for the Board of Directors on these issues in recent years, ongoing training sessions were held through visits to laboratories of upstream and renewables operational areas and to the Zohr plant in Egypt on the occasion of the Board meeting held abroad.
Since the second half of 2017, for a broader view of the factors affecting the value creation in the long term, the Board has set up an Advisory Board, composed by international experts, to further strengthen the monitoring of long-term trends in energy markets, geo-politics, technological innovation, energy transition and the decarbonisation process among which Christiana Figueres, ex Executive Secretary of the UN Framework Convention on Climate Change.
In order to chart out and monitor the path to decarbonisation, Eni has adopted new structures such as the Energy Solutions Business Division (from 2015, for the development of renewable energy with medium-large scale projects) and dedicated functions such as central organizational function for climate change (which coordinates the definition of Eni's climate strategy and the development of the portfolio of related initiatives in line with international climate agreements) and the new unit dedicated to long-term positioning with particular reference to Circular Economy and Carbon Neutrality initiatives.
The CEO’s Short-Term Incentive Plan (STI) includes objectives associated with climate strategy that are consistent with the guidelines defined in the Strategic Plan and it is subject to deferral over a three-year period in order to assess sustainability in the medium term. Additional monetary targets are assigned to top management and the entire Eni management population with responsibilities related to achieving the targets of the decarbonisation strategy.
The process for managing the risks and opportunities related to climate change is a part of the Integrated Risk Management (IRM) Model developed by Eni to ensure that management takes risk-informed decisions, by taking into full account current and potential future risks, including medium and long-term ones, in the frame of an integrated and comprehensive approach. The IRM Model also aims to raise awareness, at all levels, that appropriate risk assessment and management can produce on the achievement of Company objectives and values.
Climate change is analysed, assessed and managed considering 5 key drivers relating to energy transition aspects (market scenario, regulatory and technological evolution, reputational issues) and to physical aspects (extreme / chronic meteo-climatic phenomena). The analysis is carried out using an integrated and cross-cutting approach which involves specialist deparments and business lines and enables an assessment of risks and opportunities related to climate change. Climate change risk is analyzed, assessed and managed considering 5 risk drivers: