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Our position paper on fight against energy poverty, local content, ecosystem protection, and much more. This is one of the three documents that constitute the Sustainability Reporting System adopted ...

Our position paper on fight against energy poverty, local content, ecosystem protection, and much more. This is one of the three documents that constitute the Sustainability Reporting System adopted by eni in 2011, together with Annual report and Sustainability Performance

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Eni for Development Eni for Development Presentation Transcript

  • MissionWe are a major integrated energy company,committed to growth in the activitiesof finding, producing, transporting, transformingand marketing oil and gas. Eni men and womenhave a passion for challenges, continuousimprovement, excellence and particularlyvalue people, the environment and integrity.
  • CEO’smessageEnergy is a crucial issue of our use of their resources bringingtime. We are aware that the key energy to people, businessesto operate, for a major energy and communities. We providecompany like eni, is in the ability investment, expertise andto build a trustworthy relationship technologies to make energywith the society, represented by reliable and sustainable, a realour people and customers, the driving force for social andhosting communities and the economic development.Countries we work with. We make eni for development tells how wea pact with them, undertaking to work to foster and enhance thisoffer just as many opportunities commitment. It endorses eni’sas we were offered. support to the United NationsBeing an integrated company able resolution proclaiming 2012 theto operate to the best in every Year of Sustainable Energy for All.condition helps us to understandthe needs of the diverse contextsand meet their expectations,looking for solutions to localproblems as part of a globalsustainable development.We want to contribute to finding Paolo Scaronianswers through our strategies, Chief Executive Officerour operating models, and our and General Managerdialogue capacity that has alwaysbeen a hallmark for eni, workingalongside institutions andinternational organisations.The best way for us to proveour commitment is to supportCountries in making the best
  • II eni for developmentIII Integration, excellence and citizenship for sustainable development eni is an integrated company that goals for sustainable development operates throughout the energy in operational contexts, and sector, employing about 80,000 represent a competitive advantage people in 79 Countries all over the on today’s energy market. eni’s world. The secrets behind eni’s activities on the global market success include a company culture often involve areas with a very and business model that allow it low Human Development Index. to operate in an integrated way, eni is committed to supporting constantly striving for excellence, social and economic development establishing long-term relationships in oil-producing Countries, to help with oil-producing Countries. These mitigate inequalities, especially factors make it possible to reach regarding the access to energy. The operational context and scenario of Despite the relative abundance Opportunities for International of global energy resources, Oil Companies (IOCs) are further the energy industry are characterised over 80% of traditional oil and reduced by growing competition by an increasing complexity due to the natural gas reserves are directly controlled by major oil-producing from domestic companies in oil-consuming Countries, that growing competition from National Oil Countries. These Countries tend aim at increasing the supply of to need just technical services hydrocarbons to support local Companies (NOCs) in oil-producing and – and to a greater extent as time economic development. Openings oil-consuming Countries, in addition passes – in order to enhance the technical and managerial skills of for investment in traditional oil-producing Countries are to the uncertainties of future market local companies, thus becoming characterised by high costs and autonomous in the research and risks, or alternatively very small developments. production of hydrocarbons. margins. View slide
  • HUMAN DEVELOPMENTINDEX Development IndexThe Human <0.3 0.3-0.5 0.5-0.7 0.7-0.8 >0.8 n.a. The Human Development Index (HDI) was introduced by the economist Mahbub ul Haq in the late 80’s, and used for the first time in 1990 in the first Human Development Report by the United Nations Development Programme. The HDI provides an overall indication of development in a territory, considering more than just the economic dimension. The HDI combines three dimensions: health (in terms of life expectancy at birth), education (measured as the average expected and actual years of schooling) and the standard of living (calculated on the basis of the income index). Source UNDP International Oil Companies should eni started out as an “oil with a joint participation in the company without oil” in the development of the upstreamexperiment with less-traditional approaches era of decolonisation. On these business. Essentially, a model two weakness factors Enrico was created in which eni sat onrather than the usual exploration-production Mattei, the founder, engaged his the same side of the table as the logic, encouraging cooperation with intuition and vision, adopting oil-producing Countries rather than a new relationship approach on the opposite side, creating a oil-producing Countries and their with oil-producing Countries. greater wealth of resources for The “Mattei Formula” envisaged these Countries than for eni itself.communities. Strategic partnerships should the profit sharing through the eni quickly earned itself a include joint projects for the economic and establishment of a joint venture reputation as a reliable partner, with local energy companies for able to perform a technical social development of the Country. eni’s the exploration and development cooperation for development. of hydrocarbons, with the oil- Thanks to this approach eni was history, business culture, and operating producing Countries’ share rising welcomed in many Countries, models represent competitive advantages from 50% to 75%, an exchange becoming the first international of technology and know-how, operator in Africa. and opportunities to aim for. One of eni’s distinctive features, eni’s business portfolio is more electricity, as well as engineering structured and integrated than and construction, represents an useful for developing collaboration other IOCs. important competitive advantage. The integration of activities eni’s integrated approach enables with oil-producing Countries, is having throughout the sector provides a greater relationship flexibility operations and skills integrated in the a wealth of expertise, which with oil-producing Countries; represents an important key to moreover, eni offers solutions entire energy business sector. success. The reputation as a major that better fit their technological operator in the transportation and and infrastructural needs distribution of natural gas, and helping the local communities’ the generation and marketing of economic growth. View slide
  • IV eni for developmentV The approach includes the approach to technological skills The operational excellence and the integrated development of energy Master and safety for all the Country’s Plans and the management of available resources. approach aligned with a culture of cooperation projects even in sectors not This allows new opportunities for with the producing Countries enable eni strictly related to energy. investment to be undertaken Another distinctive feature is in “difficult” contexts and to operate with the responsibility of an eni’s ability to pursue excellence frontier areas, where safety and in all of its operations, which is environmental protection are International Oil Company whilst having the demonstrated by its trustworthy considered of critical importance. ability to invest in the Country’s future as a National Oil Company. This is the “dual flag” approach, which causes eni to assume the citizenship of the territories in which it operates. The roots of eni’s success are pursued with eni’s support. One realise the best outcome Through the “dual flag” largely located in the way flag shows the six-legged dog, from the available resources, the company conducts its the other is the host Country’s. with particular attention to approach, eni shows its business. This approach is well eni has the skills, technology territories, population and ability to take part in the represented by the image known and experience of an consequently enterprises. From to everyone who meets eni international energy company. the dual nature of a local and design and implementation of travelling the world: two flags It has the sensibility needed global company, eni has the waving together both on plant to understand the context; the ability to dialogue with local, sustainable development for and operational fields, as well credibility that comes from national and international Countries. as in villages and towns where making long-term investments institutions on the major large and small projects are in the Countries; the will to sustainable development issues. eni has always encouraged Companies; on the contrary, The integrated approach, the operational relationships with producing Countries based on dialogue and having developed a distinctive approach in its relations with excellence, and a fair citizenship represent cooperation to promote local social oil-producing Countries, the core features of a business model that and economic development. eni businesses, people and local is not subject to the competitive communities, eni has a competitive is historically and strategically aimed at environment based on new balances between International advantage, as proven by the recent cooperation agreements with sustainable development as a distinctive Oil Companies and National Oil Angola and Congo. element for value creation. eni operates in many developing continent characterised by these Countries, eni is actively Countries. The activities and deep-rooted economic and social involved in the exploration initiatives promoted locally as inequality. and utilisation of all available part of cooperation agreements, Many Countries in which eni energy resources, as well as in have a strong impact on the operates, especially in Sub- the construction of the related economy and communities. In Saharan Africa, have huge infrastructures, thus also particular, eni is the leading energy resources but very low faciliting the access to energy international producer of human development indexes for a greater segment of the hydrocarbons in Africa, a and limited access to energy. In population.
  • POVERTY LINE than 1.25 dollars a dayPeople living on less Energy is a prerequisite forVIVERE CON MENO DI UN DOLLARO AL GIORNO >60% 50-60% 40-50% 30-40% 20-30% 10-20% <10% n.a. development, and the unfair access to energy in the world is one of the greatest global imbalances. Supplying energy to populations who currently have a scarce access to it, gives eni the ability to indirectly, but efficiently, pursue the Millennium Goals defined bySource CIA World Fact Book 2008 the United Nations.eni’s activities, regulated by exports and the development encouraging and consolidating multilateral and internationalcooperation agreements drawn of local markets, creating the Company’s presence in organisations, governments,up with oil-producing Countries opportunities for people and an oil-producing Country is other oil companies and privateto deal with and solve urgent local businesses, promoting associated with the long- organisations to define andissues relevant to social and projects to improve local living term benefits the Company’s develop collective actions toeconomic development in the conditions, from health to activities can supply in improve business efficiencyCountry, aim to exploit all education, to the protection of terms of economic and social and transparency, with positiveavailable energy resources, the environment for present development of the Country. effects for both Internationalcreating functional energy and future generations. eni is also committed at a Oil Companies and oil-infrastructures for both One of the levers for global level to cooperating with producing Countries.eni’s mission focuses on its passion for operating strategies.challenges, continuous improvement Local and global development issuesand excellence as the Company’s guiding are wide-ranging and complex, thereforeprinciples, attributing a fundamental everyone needs to play a role. eni’srole to the integrity of people and the contribution is a positive example ofenvironment. eni wishes to create long- how an international energy companyterm value and be a trustworthy citizen can operate in today’s world, creatingof the world. This is why the Company benefits for both the productionis fully committed to sustainable activities, the Countries and thedevelopment, with its distinctive communities where it operates.
  • Thematic studies show how the energy industry can foster economic and social development, providing concrete examples of eni’s contribution. Access to energy deals with the production of electricity using associated gas recovery systems, and describes how eni’s initiatives in Congo and Nigeria help fight energy poverty. Natural gas as a driving force for development describes how eni’s infrastructures in the local market aimed at export and transport have helped support social and economic development in the oil-producing Country. Towards renewable energy page 02 describes how eni’s integrated business model helps promote efficient gas-fired plants and renewables, to guarantee an energy mix consistent with the goals of international bodies. page 10 Safe management of all resources including difficult ones illustrates how eni aims to exploit all the available energy resources in the Country, adopting the highest page 15 safety standards and using the best available technology to protect the environment, people and communities. page 19 Opportunities for local people and businesses describes how eni creates opportunities in terms of working quality, use of materials and services in the page 26 oil-producing Country, in order to promote social and economic development. It also focuses on the “Chimica Verde” project started in Italy. page 31 Local development and the Millennium Goals links the development projects for local communities, in particular those promoting the right to health and page 40 education, with the pursuit of the UN Millennium Development Goals. The value enhancement of natural resources page 44describes how eni mitigates the potential negative impacts of its activities, while safeguarding biodiversity and ecosystems, and promotes the correct use of water resources in the Countries in which it operates. page 08 Transparency and the commitment to fight against corruption page 24 portrays eni’s initiatives in preventing corruption and promoting transparency in relations with local institutions and communities. page 38 Contributions from page 50 Raffaella Centurelli International Energy Agency, Giuseppe Soda Bocconi School of Management, Glenn Denning The Earth Institute, Columbia University help put the scope of the problems into context, perhaps sending the most important message:having to operate in a difficult, extensive and complex context does not prevent a company from making a contribution – however small – to sustainable development.The document ends with: the Blueprint of eni’s business model, reporting principles and criteria, auditors’ report.
  • 2 eni for development3 Access to energy eni is actively committed to fighting gas-fired plants. In some areas it is not energy poverty, one of the biggest possible to use the associated gas in obstacles to social and economic the local market or to exploit it and so development in most of the Countries it would be flared, wasting a valuable it operates in. energy resource. Thanks to its integrated business Through these initiatives eni model, built on operational excellence pursues multiple objectives from the and designed to promote development consolidation of relations with in the Countries, eni designs and oil-producing Countries to the optimal implements production and distribution use of available energy resources, to the programmes for electricity produced in reduction of greenhouse gas emissions.
  • The availability of energy is a prerequisite for development and the different distribution of energy consumption worldwide represents both a barrier to growth and a cause of inequality between nations. Supplying energy to people who currently lack access allows eni to indirectly but effectively pursue the UN Millennium Development Goals. Energy consumption is heavily 110 thousand barrels of oil are eni hydrocarbons concentrated in certain produced per day, respectively production geographical areas: around 2 50% and 62% of the population in relation to billion people consume over 50% has no access to electricity due energy access The chart shows eni of the total annual world energy to the lack of power generation hydrocarbons production production, and more than 1.4 plants and distribution (percentage of total production) 35% billion people totally lack access infrastructures (source IEA). 29% divided per the percentage to electricity (source IEA). This These Countries, like others in 30% of people with no access to is a particularly serious problem Sub-Saharan Africa, represent the 25% electricity. 22% of eni’s production in Africa, where eni operates in paradox of being major energy 22% 20% 23% comes from Countries where 20% 16 Countries and is the leading producers while suffering from 50-80% of the population has no 15% International Oil Company energy poverty. access to electricity. 52% of its in terms of hydrocarbons This situation is worsened by 10% production comes from Countries 5% production, with approximately the fact that the gas associated 5% where no data is available on a million barrels of oil per day. with oil production is often 1% access to electricity, but for which eni is also the leading producer burnt, due to a lack of suitable the Human Development Index 50-80 30-50 5-30 <5 MEDIUM HDI HIGH HDI of electricity within cooperation infrastructures, with a significant (HDI) is medium or high. programmes and development in negative impact on both the local oil-producing Countries. and the global environment. In Nigeria and in the Republic This practice is known as gasL’ACCESSO ALL’ENERGIA ELETTRICA of Congo, where about 172 and flaring. population (%) with no access to electricityNEL MONDO 50-80% 30-50% 5-30% <5% n.a. L’ACCESSO ALL’ENERGIA ELETTRICA NEL MONDO 50-80% 30-50% 5-30% <5% n.a. Population with no access to electricity About 1.4 billion people, the 20% of the world’s population, have no access to electricity. 85% of them live in rural areas. The regions with the lowest electrification rates are South East Asia and Sub-Saharan Africa. Source IEA 2009
  • 4 eni for development5 Gas flaring worldwide billion m3 180 160 In 2010 about 134 billion cubic metres of associated gas were 140 flared. 120 The recovery of the 15 billion Russia cubic metres of gas flared in 100 Nigeria Nigeria would boost the local Iran Iraq natural gas market by 50%. 80 Algeria If the 37 billion cubic metres Angola of gas flared in Africa were 60 Kazakhstan Libya used to generate electricity in 40 Saudi Arabia high-efficiency plants, it would Venezuela produce 200 TWh - about 40% 20 Next 10 Rest of world of the electricity demand for the 0 whole African continent. 2006 2007 2008 2009 2010 Source World Bank eni is currently responsible for around 4.6% eni has reduced flaring by over maximum productivity. If used in 30% in the last three years, natural gas liquefaction plants, of the gas flared, and is therefore committed and is investing in new energy the associated gas increases infrastructures in order to bring export capacity and consolidates to finding a solution to this problem through this figure up to 80% by 2014. the producer’s position on the the recovery or reuse of the associated gas Thanks to this programme, when international market. If the gas is fully implemented, around 5 billion used to supply the local market (flaring down). That allows the most to be cubic metres of gas per year will be and produce electricity, the recovered and made available for population of the oil-producing made of natural resources and generates markets in oil-producing Countries. Country gains access to a stable several benefits for the Countries involved. The associated gas, if reinjected and continuous supply of reliable into the system, allows for a more and safe energy - a catalyst efficient management of the for social and, consequently, TH TION D WI DUC resevoir, and grants the Country economic development. CIATENS PRO ASSO BO HYDROCARBONS GASDROCAR HY PRODUCTION GHG IDED AVO ISSIONS EM Exportation Gas sent to LNG terminals by ship HG HG ED G ED G VOIDSIONS A IS VOIDSIONS A IS EM EM Electricity Gas sent to turbogas stations produced Re-injected gas POPULATION REACHED GHG IDED AVO ISSIONS EM Gas sent to the local market Gas distributed
  • eni was the first International Oil Company Thanks to the expertise acquired stations have shown excellent in various segments of the energy results in 2010 (with a primary in Africa to invest in power generation using sector and to the advanced energy consumption to electricity technologies available, eni produced ratio equal to 0.167 toe/ associated gas, becoming the leading producer of invests in the construction of kWheq) and low greenhouse gas electricity among the other energy companies. power stations having the best emissions (407g CO2 eq/kWheq energy performance. eni power in 2010). eni has implemented major electricity In Nigeria only 47% of the projects are a formidable driving population, about 155 million force for social and economicgeneration projects in Nigeria and Congo. These inhabitants, have access to development in both Countries, electricity; in Congo, this figure two of the poorest in terms ofprojects meet, respectively, about 20% and 60% drops to 27% of the population, per capita income in the world, of the electricity production in Countries with about 4 million inhabitants ranked by the International (source IEA). Monetary Fund, respectively, high levels of energy poverty. eni electricity generation 142nd and 183rd place. Percentage of eni associated gas used in Nigeria 100% In the late 1990’s, eni 90% implemented the Zero Gas Flaring 80% project in the Niger Delta, with the 70% aim of preventing associated gas from hydrocarbons production 60% being burnt off into the 50% atmosphere. By the year 2000 eni was already using 50% of the 40% gas produced. In 2010 this figure 30% reached 78%. By 2014, with the implementation of further projects 20% for the reduction of gas flaring, 10% eni expects to be able to use 95% 0% of the associated gas. 2000 2010 2014 In 2005, eni built a 480 MW Africa to be registered as a technology in thermal power activities. The Memorandum combined cycle power plant in Kyoto Protocol’s CDM (Clean generation. The technology and of Understanding envisages Kwale Okpai (Nigeria). The plant Development Mechanism) fuel utilised permit in fact the electrification projects for the uses the associated gas from activity in 2006. greatest efficiency in fossil fuel- distribution of electricity to over production activities, which The Okpai Plant utilises fired power generation plants, 50 communities. 40% of the would otherwise be flared. combined cycle technology to reducing pollutant emissions per work has so far been completed. The plant supplies electricity minimise heat emissions. The kilowatt-hour. In order to make 16 electrification projects were to Power Holding Company of sustainability of electricity and the contribution to energy access implemented in the Rivers, Nigeria, which distributes it steam production is guaranteed more effective in the Country, Bayelsa and Delta states in 2010, to the end users. This was the by the combination of natural eni signed a Memorandum of for a total investment of over a second flaring down project gas and cogeneration combined Understanding with the local million euro in access to energy worldwide and the first in cycle technology, the latest communities affected by its initiatives.
  • 6 eni for development7 Based on its experience in with the assistance of eni and low voltage transmission Nigeria, in 2007 eni signed a technicians. network. The aim of this cooperation agreement with Utilising associated gas means partnership is to increase the Republic of Congo. The over $ 50 million a year savings the availability of energy for agreement envisages the in oil imports for the Country. the capital and to also supply construction of power stations The electricity produced is electricity to many smaller cities that utilise the associated gas. distributed to the Pointe-Noire currently without access. As part of the agreement an area, supplying approximately integrated project for the 700,000 people. Compared to exploitation of associated the Congo average per capita gas produced in the onshore consumption of 137 KWh per M’Boundi oilfield was initiated. year, in the Pointe-Noire area The gas is collected and piped consumption rose to 350 KWh Based on its positive experiences through a 55 km pipeline to in 2009 and to 462 KWh in in Nigeria and Congo, eni drew up Djeno, where it is used to fuel 2010. eni also plays a key two power stations: the Centrale advisory role to the Country agreements with other Countries Electrique de Djeno with a for the construction and current power output of 50 MW, management of electricity such as Mozambique, Ghana, Togo and the new Centrale Electrique transmission infrastructures. and Angola, characterised by low du Congo, with a current power eni entered into a partnership output of 300 MW (planned for with local institutions, energy access rates, to replicate a future output of 450 MW). public companies and an 80% of the Centrale Electrique Italian electricity company, this model of associated gas use. du Congo is controlled by the promoting collaboration for the Republic of Congo and 20% development and modernisation by eni. The plant is operated of the Congolese high, medium On January 28th, 2011, at the LEAD companies in fighting launch of the LEAD Platform – energy poverty by developing a Global Compact programme synergies between companies eni actively participates in for companies that excel in from different sectors and international working groups, the field of sustainability – in Davos, Paolo Scaroni international organisations. The first Collective Action promoting research activities and announced that eni would proposal was presented at promote a Collective Action the Global Compact Week in collective actions to guarantee against energy poverty. In Copenhagen. eni also takes energy access. the presence of UN Secretary General Ban Ki Moon, Paolo part in a World Business Council for Sustainable Development Scaroni described the objective initiative on energy access, of the Collective Action: involve launched on April 6th, 2011.
  • 8 eni for development9 A candlelit dinner is romantic, a candlelit surgical operation is not “A candlelit dinner in a smart who live in New York consume, How can energy contribute to dining room seems to be in one year, the same quantity achieve the existing Millennium romantic. A candlelit surgical of energy – 40TWh – as the Goals? operation in a poor rural village about 800 million people in Sub- As we said earlier, access to is not.” Saharan Africa. energy is not explicitly among Today 1.4 billion people - more the MDGs, but it is a prerequisite Raffaella Centurelli than 20% of the global population What is the connection for many of the UN existing International Energy Agency - has no access to electricity, between access to energy and goals. Access to energy surely whereas more than 2.7 billion development? contributes to the first MDG: people use traditional biomasses Access to modern forms of eliminate extreme poverty and to cook, breathing substances energy is a prerequisite for social hunger. It supports economic that are very harmful to their and economic development. development, giving more health: every year the number It is crucial to supply drinking efficient and safer means to of premature deaths from water and deliver basic hygienic guarantee basic needs and respiratory disease related with services. It brings benefits in undertake productive activities. these practices is higher than the terms of development, giving Energy allows electric pumps number of deaths from malaria people the possibility to rely to bring water up from wells, and tuberculosis. According to on lighting, air-conditioning, providing drinking water and our estimates, if governments do cooking, automation of daily making agriculture more not take any strong actions, the operations, transport, and productive. Access to modern, problem will persist and get worse telecommunication services. clean cooking methods would in the long term. In 2030 people In spite of the evident guarantee the progress of the without electricity will be a little relation between energy and goals related to infant mortality less than today – 1.2 billion, but development, unfortunately the and pregnant women’s health the number of users of traditional Millennium Development Goals (MDGs 4, 5, 6): according to the biomasses will increase to 2.8 (MDG) make no explicit reference World Heath Organisation the billion, recording more premature to energy and contain neither polluting substances emitted by deaths than HIV. quantity objectives nor specific traditional stoves are responsible indicators to allow Governments today for the premature death of In which areas of the world is the and the international community more than 1.45 million people. problem especially serious? to monitor the progress towards In Regions where the use of More than 85% of the people universal access to modern biomasses prevails, women and without modern forms of energy. Recently, however, children are generally in charge electricity live in the rural areas of positive steps forward have of collecting fuel, an activity Sub-Saharan Africa and South- been taken: the Advisory Group that demands time and fatigue. East Asia. The bigger problem is on Energy and Climate Change Providing cooking instruments, in Sub-Saharan Africa, where only at the UN asked for a goal to communication technologies 31% of the population has access be adopted on this issue by and, even more simply, lighting to electricity, being the lowest 2030 and the United Nations and electricity, will contribute to percentage in the world. Just has declared 2012 the “Year of MDGs 2 and 3, donating time to think that the 20 million people sustainable energy for all”. women and children, supporting
  • schooling and allowing women to to electricity a total increment additional investment to achieve on fiscal budgets. Today, thesedevelop their potential. Finally, of electricity production of universal energy access. Countries face difficult choicesuniversal access to modern approximately 950 TWh by 2030 with reference to resourceenergy will contribute to MDG is needed. To generate this extra What do you think is the biggest allocation. Among the various7: guarantee environmental energy we need to increment challenge facing the issue of development needs, climatesustainability. Abandoning the the productive capacity by 250 energy and poverty? change is often considered as aunsustainable use of firewood GW, both through generation The need for relatively high long term problem versus morewould relieve pressure on with the electrical mains and investments is neither the only urgent priorities and problems.the environment, avoiding through “off grid” solutions. nor the biggest barrier. The We have estimated that universaldeforestation and soil erosion. These decentralised solutions recognition of the urgency of access to electricity would have aCleaner energy would decrease play a central role for rural areas this issue by the international modest impact on energy-relatedgreenhouse gas emissions, and will represent the majority community and national CO2 emissions and on energyreducing climate change. of investments in the period of Governments, together with a demand. Emissions would only consideration. long-term political commitment, increase by 0.8% in 2030 - thatThe IEA has published a study are the real “condition sine qua is, 2% of the current emissionswhere they estimate the costs Do you think these investments non”. Giving the priority to the of the OECD Countries. And oilnecessary to face the issue of will actually be made? issue of energy access as a key demand would grow less than 1%universal access to modern forms Investments to guarantee factor for development is a first if compared with the demand levelof energy by 2030. What are the universal access to modern step. We will need the commitment expected in 2030. This proves thatmain results? energy services by 2030 seem of the international community, energy access and climate changeBringing electricity to 1.2 billion very high and so far they have the definition of national goals are two challenges that can bepeople by 2030 means a total been lower than the real needs. supported by specific plans, fought and solved together.investment of 700 billion dollars However, it is necessary to see monitoring and an appropriatebetween 2010 and 2030, i.e. things under the correct light. The financial, technological and What are your next steps?33 billion dollars every year. To investments that are necessary institutional framework. In our opinion it is crucial toguarantee universal access to for the next twenty years would identify the best way to find andclean modern forms of cooking for be 36 billion dollars a year, an What is the link between energy manage the necessary funds to2.8 billion people an investment amount that only accounts for access and another big challenge: provide energy access to thoseof 2.6 billion dollars a year is 0.05% of the annual global GDP. In climate change? living in poverty conditions. Weneeded: therefore, 36 billion 2009 an amount ten times higher Climate change is a global problem are working on a special editiondollars a year would be needed was spent on subsidies for fossil and therefore requires global of the World Energy Outlookto achieve both results by 2030. fuels and the costs to guarantee solutions. Poor Countries are 2011 that will present a newThe majority of investments for energy access in the ten biggest certainly not among the major architecture to finance universalelectrification must take place gas and oil exporting Countries of causes of climate change, but access to modern energy forms.in Sub-Saharan Africa and in the Sub-Saharan Africa is 0.4% of the their populations are suffering We will present our conclusionsdeveloping regions of Asia. cumulative oil and gas revenues the most severe effects of it. during a summit that will be held of Governments up to 2030 (WEO Moreover, in developing Countries by the Norwegian GovernmentWhat are the requisites in your 2008). We have calculated that that import oil, volatility and price in October 2011 in Oslo. We hopescenario of universal access to the addition of 0.3 cents of a increases have amplified the to make the issue of energy andmodern energy services? dollar to the current rates of the problem of energy access and poverty the first item on theTo guarantee universal access OECD Countries could finance the imposed an additional burden international agenda.
  • 10 eni for development11 Natural gas as a driving force for development eni has long sought to use the for the Country’s growth. opportunities presented by natural gas With its initiatives in the natural gas both as a driving force for the social and sector, eni has already contributed to economic development of the Countries the development of important Countries, it operates in, as well as an economical especially in North Africa. The company is energy solution with low emissions also committed to the research on a new for the future. frontier of unconventional or “difficult” eni develops infrastructure for the gas, when produced in a safe and production and transport of gas both for environmentally friendly way, to support export, as well as for local consumption, energy availability and independence in providing an essential source of energy new operating Countries.
  • eni’s history, from the first well discovered With 97 billion cubic metres of Country’s energy security. natural gas sold in 2010, eni is The natural gas produced inin Italy in 1944 to the building of major the largest operator in Europe, 2010 made up 44% of eni’s where it owns or holds the total hydrocarbons production.gas transport infrastructures in transport rights of the most A large part of the natural gasRussia, Holland, Algeria and Libya, has extensive and integrated network production took place in Africa, of gas pipelines with multiple the continent contributed 47% ofbeen defined by a preference for the inlet and storage points. The the total production. Local gas volume of gas transported in consumption is growing in Africadevelopment of natural gas. Italy in 2010 was 83 billion cubic compared to export volumes, metres, satisfying 80% of national accounting for approximately 42% demand and contributing to the of production in 2010.In order to gain access and contribute to eni gas productionthe development of natural gas markets in 350,000 Kboethe Countries where it operates, eni relies 300,000on its own business model based on an AFRICAintegrated approach, distinguishing skills, 250,000experience acquired in operating, sales and 200,000 ASIAmid-downstream techniques and the dual AMERICAflag approach. These characteristics allow the 150,000company to plan and implement integrated OTHER AREAS EUROPE 100,000energy development plans together with theproducing Country. 50,000 0 2008 2009 2010The implemented energy combined cycle electricitydevelopment plans include generation plants, offering theactivities such as: construction of best performance in terms of eni use of gaslong-distance gas transport and efficiency and emission factors. produced in Africa in 2010distribution pipelines; design and Egypt and Tunisia are significant 42%construction of liquefaction and examples of how the support Local Marketregasification plants, that employ provided by the creation ofthe best available technologies a local natural gas marketfor safety and environmental can aid economic and social 49%protection; construction of development. Export 9% Self Consumption
  • 12 eni for development13 Egypt is a Country where eni boasts a historic presence: eni began operating there in 1955 and today is the largest International Oil Company active in the Country, with a production of about 600,000 barrels per day, 230,000 of these are eni’s share. Extracted hydrocarbons come has an indirect shareholding several Egyptian electric power companies in shared projects from five large fields, in which in the LNG plant at Damietta, stations, providing an energy in the Mediterranean basin eni has the operatorship. 60% with an annual capacity of 5.1 saving of over 20% (in terms and in eni’s activities in Gabon of the production, equal to 8.2 million tons of liquefied natural of natural gas non-consumed) and Iraq. billion cubic metres per year, is gas equivalent to approximately and important environmental The agreement will enable eni represented by natural gas. 7.6 billion cubic metres of gas benefits. The improved to acquire transport rights eni has promoted and developed per year, the largest single train efficiency of the power stations to the Arab Gas Pipeline, the natural gas production to in the world. will also reduce greenhouse gas infrastructure that allows the satisfy the growing demand In addition, as a part of the emissions, helping protect the African Country to export gas to within the Country and has collaboration agreement environment and combat global Jordan, Syria and Lebanon. The contributed financially and with the Egyptian Natural climate change. aim is to create in Egypt a gas in operational terms to the Gas Holding Company Another example of how centre of strategic importance construction of infrastructure (EGAS) and the Egyptian eni operates to enhance for the entire Mediterranean for the export and liquefaction Electricity Holding Company Egypt’s development is the basin, extending the Arab Gas of natural gas (LNG), allowing (EEHC), eni contributes to collaboration agreement signed Pipeline to connect it with other the Country to generate the application of advanced with the Country, that will show transport systems managed significant revenues. Indeed eni production technologies to the involvement of two state by eni. Natural gas has been the main driver of economic Gas consumption and GDP in development in Egypt which, Egypt since the 1950s, has risen GDP Per capita gas consumption sharply in world rankings both Billion m3 Billion of 2000 USD using PPPs 0.6 400 in terms of per capita GDP (despite having a population 0.5 350 of 77 million) and human 300 development, and is no longer 0.4 250 considered a developing 0.3 200 Country. 150 0.2 100 0.1 50 0 0 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007
  • Tunisia is another North African underwater pipeline belonging Gaz has increased the availability an overall length of 11,624 km: Country, in which eni’s long- to the TransMediterranean of natural gas in the Country. 2,066 for transport and 9,558 for term presence has contributed Pipeline Company (TMPC), In 2009 the network reached distribution. to a process of progressive which connects Tunisia with development (STEG data). 2010 Sicily. The main purpose of was the fiftieth anniversary of this pipeline is to transport the SITEP company, which is gas from Algeria to Italy. The The availability of Algerian gas in Tunisia now completely nationalised transport system is made up reached 44% of the Country’s total gas but was once held by eni. of two lines, each about 370 SITEP manages a field on the kilometres in length (the first consumption in 2009. This gas, together border between Tunisia and has been operating since 1983 Algeria, El Borma, which still and the second since 1994). In with the gas produced locally, fuels fourteen produces oil and gas, and is 2009 the transport system was electric power stations. Today almost 94% of one of the longest living fields expanded by the construction in the world. Thanks to the of two new compression Tunisia’s electrical power is generated using agreements made between stations (there are now five in eni and Tunisia in 1977, and total) and the expansion of the natural gas. subsequently in 1991, a major existing stations. gas transport system was The construction of the TTPC built, managed by the Trans system made a substantial Tunisian Pipeline Company contribution to the industrial In Tunisia more than 550 industrial the supply of natural gas. There (TTPC). The gas pipelines development of Tunisia, which companies operating in different are also approximately 500,000 cross Tunisia, from the border has a limited quantity of both sectors (25% in textiles, 24% in “low pressure” gas customers in with Algeria (Oued Saf-Saf) offshore and onshore natural gas. food, 16% in the manufacture of the service sector, including 321 up to the Mediterranean Infrastructure built alongside building materials, 10% in chemical hotels that support the Country’s coast (Cap Bon), where the the TTPC pipelines by the Société industries and 25% in other tourism industry and 314 service TTPC system connects to the Tunisienne de l’Electricité et du sectors) were created thanks to companies. Gas consumption and GDP in Tunisia GDP Per capita gas consumption Billion m3 Billion of 2000 USD using PPPs 0.5 1000.45 90 0.4 800.35 70 0.3 600.25 50 0.2 400.15 30 0.1 200.05 10 0 0 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007
  • 14 eni for development15 The expected growth in natural gas demand makes traditional to a reduction of natural gas prices and provide many parts of production insufficient in the medium- and long-term. Therefore, the world with direct or indirect access to energy. The first effects it will be necessary to invest in research into unconventional or of this phenomenon have been “difficult” resources, always ensuring high safety and environmental initially noticed in the United States, where the extraction of standards. unconventional natural gas was pioneered and today represents On a global scale, most of the This has increasingly shifted control of hydrocarbons reserves the largest base of supply. In the natural gas produced up to now reserves and production towards between the International Oil United States shale gas has had a has been easy to extract with National Oil Companies. Companies, which have the dramatic effect on the dynamics no particular technological The tendency to start production required technologies, and the of gas prices, contributing to barriers to overcome in terms of of unconventional or “difficult” National Oil Companies. halving them in less than three discovering and developing fields. resources will rebalance the The increased supply will lead years. eni considers the development of unconventional gas as an opportunity to Natural gas is a sustainable driver open new markets or reinforce its presence for development also thanks to its in markets where it already operates, competitive pricing and low environmental as well as a driver for local social and impact in terms of emissions. economic development. Europe’s CO 2 emissions production capacity using reduction targets could be wind power generation (net of As a result, in 2010 eni reached an in Eastern Europe and currently achieved by converting any incentives on the energy agreement to become the operator importing approximately 70% of its coal-fired power stations into produced). The use of gas for of three licences in the Baltic gas needs, research activities on natural gas power stations. electrical power also means Basin in Poland, an area with high shale gas represent an opportunity With an overall investment for lower emissions of SO 2, potential for shale gas. For Poland, to an energy independent future for of about one third of what it NO x and particulate than other being one of the largest economies the Country. would cost to achieve this fossil fuels.
  • Towards renewableenergyPlacing an emphasis on its integrated low greenhouse gas emission fuelapproach and proven track record and generates an easily-modulatedfor innovation, eni is also aiming energy supply. Natural gas and solarfor growth in the renewable energy power are ideal allies in guaranteeinggeneration sector. Even though the energy mix of the futurerenewable sources are not yet everywhere.competitive compared to conventional In order to develop the solar powerenergy sources, they represent an of the future, which will be the trueimportant factor for the future of turning point in the energy production,energy generation. eni is looking into advanced researcheni believes that natural gas is the alongside qualified partners, with thebest available energy source during goal of finding innovative products tothis transitional phase towards improve efficiency, method of userenewable energy sources: it is a and costs.
  • 16 eni for development17 Electricity from renewable sources often has no competitive production costs compared to fossil fuels, especially to natural gas, one of the most abundant and cost-effective resources available today and in the foreseeable future. Today technologies for the for the distribution network. Electricity production cost exploitation of renewable The production of electricity 10-20 €/kWh cost range for residential resources are not able to satisfy from renewable sources is, use (OECD, 2009) the primary energy demand, however, a very important 4-20 €/kWh cost range for industrial (OECD, 2009) not only because they are factor for the future of energy, expensive, but also because because it will contribute to Photovoltaic solar they do not permit a significant effectively fighting climate production of electricity and, most change through an energy mix Thermodynamic solar of the times, do not guarantee with lower greenhouse gas sufficient production stability emissions. Biomass Wind Natural gas and renewable sources are the Nuclear ideal allies to guarantee the energy mix Coal of the future. Both are sustainable from the environmental viewpoint and are a Gas good combination in terms of production 0 10 20 €/kWh 30 40 costs, given the high competitiveness of eni data processing on CERA, NRC-National Academy of Engineering USA, electricity production from natural gas. NEA-IEA, EIA, IRP, EPIA, CBO One of the limits of renewable power variations. In turn, such a eni’s integrated approach is one of the sources is its intermittent capacity depends on the technical generation, which contrasts characteristics of the system and bases for the development of energy with the needs of the electrical in general corresponds to 20-25% distribution network of of rotative power in the network. production from renewable sources, and in continuously maintaining a To balance the intermittence of particular solar energy. dynamic balance between renewable sources, an easily power level and user demands. modulated resource is necessary. one of the International Oil eni’s capacity of operating Connecting intermittent power This resource should be able to Companies with the highest efficiently using innovative generators to the network means rapidly complement production, production share of natural technological solutions along introducing sources of power when production from renewable gas (amounting to 44% of its the entire energy supply chain disturbance which, over time, sources drops and to reduce or hydrocarbons production). is a point of strength also for force the network control system stop production, when renewable The leadership among the corporate growth in the field to continually compensate. sources reach production peaks. International Oil Companies in the of electricity generation from As a result, although combined Natural gas can play this role and production of natural gas in Africa renewable sources. in the best way possible, the can do it with low CO2 emission and the relevant production of The dual flag culture will favour weight of renewable sources in levels. electricity are an excellent starting the study of the best energy mix the energy mix is limited by the eni has achieved the leadership in point to guarantee a balanced for the producing or consuming reaction capacity of the network natural gas sales in Europe (18% energy mix that includes not only Country, having eni as a reliable control system to unscheduled of the market), and represents gas, but also renewable sources. partner also for future energies.
  • In this transition towards higher competitiveness of the renewable source system, the strength of eni’s business model finds its application in several small-sized projects that were carried out in different Countries. The goal was to provide electricity to isolated areas that are difficult to reach with the electrical network and to increase efficiency of business, thus contributing to the economic and social development of local communities. In such a scenario eni uses the modules to electrify regulation knowledge of Enipower to produce stations along a gas pipeline and market photovoltaic panels in the Algerian desert, (with a maximum productive offshore platforms in Egypt, capacity in Italy of 30 MWp/year) telecommunication systems in and install turn-key photovoltaic Nigeria, water pumping systems in systems. Nigeria and Congo, electrification Some projects carried out by of remote villages in Nigeria and eni include: use of photovoltaic Mongolia. eni believes that among renewable energies solar energy has the greatest potential to In 2010, with a five-year plan, The collaboration between the partnership gave life to the eni and MIT is based on aintegrate traditional sources. For this reason it “Solar Frontiers Center” (SFC) with multidisciplinary approach to is investing more than 106 million euro in the headquarters at the MIT in Boston, research that creates significant a centre entirely dedicated technological and cultural next four years. The most significant initiative to research and development synergies. In particular, the activities on solar energy with meeting between researchers is a partnership with the Massachusetts common spaces and labs. from MIT and from the “Research Institute of Technology (MIT) to investigate eni-MIT Solar Frontiers Center centre for non-conventional is proof of eni’s commitment energies – Istituto Eni Donegani” technologies for large-scale exploitation of to the development of stimulates the exchange of pioneering initiatives in the different experiences and solar energy. field of renewable energies, knowledge through the pursuit of and in particular solar energy. common goals.
  • 18 eni for development19 The collaboration with MIT has originated some records, such as the realisation of the first solar cell printed on paper, the ultra flexible solar cell, as well as the development of solar cells that imitate the photosynthesis process. Ultra flexible solar cells are paper, as if it were a printed hydrogen - through fission. Such composed of a thin layer of document. The innovative a device imitates the natural photoactive material coated technique used to make the photosynthesis process of plants with a transparent plastic sheet device is the same technique but with a substantial difference: and can be folded without used to produce cells on flexible the artificial leaf photosynthesis breakage or performance drops. plastic substrates. A “paper process will be far more efficient This permits irregular surfaces cell” can be the latest low-cost than the natural process. to be covered without the solution for applications in which The alliance with the MIT also need for bulky metal supports longevity is not necessarily develops through the MIT Energy and structures, reducing the the key aspect, where instead Initiative (MITEI), with eni as a coverage weight to cover, for the important aspect is fast Founding Member: the goal is example, tensile structures, installation speed and easy to study solutions to transform greenhouses, noise barriers transportation. the existing energy system and along roads, boats and a The goal of the study on artificial meet future challenges through series of indoor applications in photosynthesis is to make the analysis of every aspect buildings. low-cost efficient devices to of energy supply, demand, In solar cells on paper, the reduce the water molecule to environmental protection and photoactive device is made on its components - oxygen and safety. Expected development of photovoltaic solar energy in the world GW 3,500 3,000 The total electricity production on greenhouse gas reduction from photovoltaic panels in 2010 policies, production costs and 2,500 equalled the energy demand of technology developments. 2,000 ten Countries in Central Africa According to the forecasted (Angola, Benin, Botswana, scenarios, in 2020 photovoltaic 1,500 Cameroon, Congo, Ivory Coast, panels are expected to cover 1,000 Eritrea, Ethiopia, Gabon and almost 4% of the total energy Ghana). demand and rise to 11.3% (21.2% 500 In the future the share of according to the most optimistic 0 produced electricity will depend forecast) by 2050. 2000 2010 2020 2030 2040 2050 Source EPIA 2010
  • Safe managementof all resourcesincluding difficultonesThe world’s growing energy demand to guarantee high safety andand the need to balance the energy environmental standards.reserve portfolio are determining a eni’s ability in operating, based onthrust towards the exploitation of enhancing technological innovation,non-conventional resources or of organisation and knowledge, allowsconventional resources in difficult areas. challenging business goals to beeni intends to make the most of the achieved in full compliance withnew business opportunities in non- the requirements of the producingconventional sectors and in difficult Countries and guaranteeing high safetyareas, adopting the best technologies and environmental standards.
  • 20 eni for development21 eni is committed to carrying out its activities minimising operational risks. In the exploitation of real and potential resources of a Country, eni has an optimal process management, an excellent knowledge of Employee safety indexes Contractor safety indexes eni eni technologies, the necessary organisation Frequency index Severity index Frequency index Severity index and skills to guarantee the highest safety 3.0 3.0 Frequency index Severity index 0.07 0.07 0.07 3.0 standards and environmental compliance in 0.06 0.06 2.5 implementing its activities. 2.5 2.5 0.06 0.05 0.05 2.0 0.05 In order to reduce its installations, as well as through 2.0 2.0 0.04 operational risks, eni verification activities by 0.04 0.04 formalised the main processes management systems. Where 1.5 1.5 1.5 0.03 and issued internal rules possible, eni aims to act as an 0.03 0.03 to guarantee safety during operator in order to fully control 1.0 1.0 0.02 and after the design and the activities implementation 0.02 1.0 0.02 construction of the plant. and the compliance with 0.5 Compliance with eni standards best operating procedures. 0.5 0.01 0.5 0.01 0.01 is regularly and rigorously Such a rigourous approach is monitored through inspections also applied to outsourcing 0.0 0 0.0 0 and maintenance of activities. 0.0 2006 2007 2008 2009 2010 0 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 eni has an excellent knowledge of the technologies that allow the potential of hydrocarbon fields to be used Blowout vs drilled wells in the best possible way and in safe conditions, Drilled wells Blowout Frequency (blowout/1,000 drilled wells) 1,466 including non-conventional or “difficult” fields 5.98 1,134 In the effort to increase the are discovered. An increase 1,000 1,003 availability of hydrocarbons, eni of only one percentage point has started research activities in the recovery rate may lead 845 4.00 771 for the application of enhanced to adding reserves on a global recovery techniques (Enhanced scale of 35-55 billion barrels, Oil Recovery) through steam which equals one or two years 2.59 injection, polymeric solutions, of world oil production. This natural gas or carbon dioxide. allows an increase in the The goal is to increase the production of hydrocarbons 1.18 0.88 recovery factor of heavy crude without an additional impact oils extracted from operated in terms of additional surface 4 6 2 1 1 0 fields. occupation, use of resources An improvement in the recovery (water and energy), production 1980-1984 1985-1989 1990-1994 1995-1999 2000-2004 2005-2009 factor increases the available of polluting sub-products (acid reserves even if no new fields gases).
  • eni’s technological experience and leadership in traditionalsectors is a winning card also in terms of non-conventional anddifficult resources (deep waters, arctic areas, complex geologicalstructures and sensitive areas), where technology plays animportant role to utilize valuable resources that would otherwisebe unused, whilst respecting the environment.Estimate of oil resources in the world:14-17 trillion barrels - of which 6.5 billion recoverable barrels 0.9 still-to-discover resources1.4 In the future, non-conventionaloil shales recoverable oil resources may be a valuable 0.031resources 2009 world consumption resource to face the increasing energy demand in front of a 1.1 reduction of conventional oil1.6 world accumulated consumption reserves. In particular, it isextra heavy crude oil estimated that at the globaland bitumen recoverable 1.5 level non-conventional oilresources world remaining recoverable reserves resources correspond to about (including reserve growth) 1,300 million barrels, 24% of which is situated in Canada.7-9 7-8non-conventional resources conventional resourcesSources U.S. Geological Survey; IEA; WOGR 2010The experience gained and the fracturation and the protection of controversial experience that exhausted sand, in addition toresearch begun in the field of water layers at different depths. took place in Canada, where the occupation and alteration of largeexploitation of shale gas (among The potential development of tar world’s second largest tar sand territories. In Canada, techniqueswhich the partnership with the sand fields in Congo, which is part field is located. According to the included open-air miningprestigious Gas Technology of the cooperation agreement Canadian experience, the main activities and the creation ofInstitute) will allow eni to with this Country, foresees a territorial impacts of tar sand large decantation basins, i.e. withdefine and improve the existing significant research activity to be exploitation activities are to be significant alterations in the localtechnologies with the goal of carried out with local authorities attributed to the management geomorphology.minimising environmental in order to develop this energy of evaporation basins andimpacts. That will be done, for resource while respecting theinstance, through the definition environment, thus avoidingof processes to optimise the use interference with primary forestof water resources, the reduced and any relevant alteration to eni is committed to exploiting non-conventionalimpact in the realisation of local geomorphology. The need resources, respecting the environment andproduction wells, the minimisation for environmental protectionof additive use in hydraulic is especially felt after the applying the best safety standards.
  • 22 eni for development23 eni invests in technological research to operate safely and to increase the efficiency of drilling activities even in to maintain well pressure at checking and approving deep optimal values thanks to a water drilling programmes and difficult areas, such as deep waters. fluid circulation system. As an providing specialised support additional safety guarantee, the during operational steps and so-called “Blow out preventer” - in emergency conditions Such a need has become a For years eni has operated the automatic system that blocks (Remote Drilling Center); common heritage in the energy in deep waters in total safety the leak of fluids from the well • presence of two in-well industry after the accident conditions due to its leadership head - is equipped with numerous barriers that are suitably which occurred in 2010 at the in technological innovation, with redundant safety systems tested for field and Deep Water Horizon platform over 40 patented technologies in (automatic closing systems, independent fluid pressure; in the Gulf of Mexico, which drilling activities. In this field, the multiplex signalling systems • obligation for drilling team caused an uncontrolled most representative technologies and valves to connect automatic members to attend a well hydrocarbons leak from the are the “extreme lean profile submarine valves or “Hot Stub”). control course validated by a Macondo well estimated at 4.9 technology” for developing wells In particular, to guarantee the certified institute; million barrels of oil, with the with reduced diameter, the “eni highest safety level of deep water • specific and standardised consequent decision by the US deep water dual casing” for wells, some basic principles are emergency plans that activate Government to suspend drilling developing well coating during adopted by eni: an internal team and highly and granting new exploration the laying of the guide pipe, and • creation of a centralised specialised international licences in the Gulf of Mexico. the “eni near balance drilling” technical group with the task of contractors. To guarantee excellence, eni makes the best use of available technologies, superior organisation and optimum skills management. The training of staff operating on the field and making the Training hours for eni people by typology most of its people are the basis of safe 3,500,000 management of eni’s activities. 3,000,000 HSE and quality training 2,500,000 The training of technical staff university, consistent with and continuous monitoring corporate strategies and needs. 2,000,000 languages and IT of operations are distinctive The courses aim to develop and institutional elements that characterise enrich technical-professional 1,500,000 behaviour communication eni’s safe operations. Every and management knowledge technical-sales year, upon a specific request and skills of people, in addition 1,000,000 training from the operational areas, to developing a good awareness 500,000 transversal training specific training programmes of a corporate identity founded are organised and implemented on operational excellence 0 through eni corporate criteria. 2008 2009 2010
  • 24 eni for development25 Human capital: from responsibility to sustainability In the debate on competitiveness different. Once again, the recent from the declarations made. of economic systems that crisis has demonstrated that For instance, in evaluating pervades the economic world, actions on human capital have intangible resources, the from corporations to policy- not found, either in the economic empirical evidence shows that makers, the call for the need to policies or corporate strategies, in the accounts to financial invest in human capital is almost consistent answers with the community, corporations Giuseppe Soda, never missing. supposed centrality, often relegate investments in the SDA Bocconi School This happy intuition, which assuming in some instances a development of human capital in of Management we owe to the Nobel Memorial secondary, if not marginal, role. the indistinct magma of social Prize Winner, Gary Becker, is So, a legitimate doubt arises: responsibility activities or social based on the idea that people when we say that the richness balance sheet. can really make the difference of a Country is strictly linked in competitive processes that with the competitiveness of Additionally, more aggregate are more and more founded its corporations and “system” data indicate a clear preference on knowledge accumulation and when we affirm that in the of financial markets for cost- speed, innovation and intangible globalised knowledge economy cutter corporate profiles, elements. In brief, individual the most critical asset for regardless of the value or creativity, knowledge, skills, corporations and Countries is productivity generated by cost motivation and involvement are the human capital, do financial reduction. As already shown central elements in corporate markets and tutors of the “value” in many investigations, there innovation and development generated by corporations is a remarkable preference by processes. They are the only really believe in this? What financial markets for aggressive road to maintain leadership may seem a rhetorical question organisational behaviours, positions in high added must however find an answer in built for instance on the rapid value sectors and globalised policies and actions, otherwise reduction of human capital costs competition. This is also true we remain in the intellectually that inevitably jeopardise the for developing Countries, where interesting, yet sterile field of supposed centrality of human competence is a lever for growth, hypotheses. capital. although from the viewpoint If we really believed in it, of many corporations the idea then the empirical evidence This is a contradiction. In fact, of human capital in these should deliver clearer data on if the stock of knowledge and situations is still related to the the positive reaction towards competence of a corporation cost compared advantage. virtuous corporations in medium- represents a key element of the long term competitiveness innovation and development While general agreement exists and in the capacity of processes, if these processes on these statements, together generating new knowledge are necessary to maintain with some rhetoric, their practical and innovation through the leadership positions in high translation is different. In spite effective management of human added value sectors and of the strong commitment of capital. Unfortunately, some globalise competitiveness, then many corporations and some elements indicate that the real the issue is sustainability of Countries, reality seems to be situation is rather different competitive edge and not of
  • social responsibility. been extremely popular in recent or skills. component of the social capital.It is however true that years, such as for example In other words, a human capital Moreover, there are someinvestments in human capital the ones on talents, have engine for development and organisational factors that affectof meta-national corporations in contributed to consolidating this sustainable growth must not be the way in which “motivateddeveloping Countries - such as distortion. Confusion has been confined only to competence human capital” is organised intraining - also produce important also nourished by the aseptic levels, but it must include a corporation like an economicpositive “social” effects that translation of macro-economic at least two other important system. Therefore, there isgo well beyond corporation logic (i.e. the educational factors. an organisational factor thatboundaries. The economic levels of a Country will help We have known for a long is complementary to humanresearch has drawn attention to its economic development) time now that competence capital and motivation, whichthe link between investments into corporate policies. In fact, or knowledge is not able to is necessary to generatein human capital, in particular at an organisational level, produce satisfactory results sustainable performance. Intraining, education and economic although measured correctly, if it is not sided by consistent other words, the unorganiseddevelopment. Moreover, unlike human capital stock can only levels of personal motivation, human capital is not able tothe physical and, in part, also partially predict individual and commitment and involvement. translate its sustainable growthfinancial capital, the effects of organisation performance. The stereotype of demotivated potential because investmentscapital are exercised on very A second aspect, in detriment talent or of the “good, but non- in human capital are largelybroad temporal horizons. of studies on “capital levels”, committed” student generally unproductive if not accompanied shows the need to recuperate indicates performance levels by adequate investments in andSome important issues come to a perspective that looks that are inappropriate or under attention to organisational skills.light when looking from a closer at processes triggered by expectations. When we talk In summary, still looking at theperspective at corporations and investments in human capital about human capital, from the effects produced by humanat the effects of investments (innovation, productivity) and perspective of the results it capital and not at its absolutein human capital on the consequent performances. From may produce and not in terms level, organisational skills aresustainability of competitive this perspective, the equation of stock, we necessarily need to a competence at corporateedge. that governs individual, group consider the socio-psychological level that effectively combineA first issue is pay-back, that is and organisational performance processes of identification and the human capital and thethe return time of investments is more complex than the commitment at an individual psychological processes thatin human capital that seem to simple link with the capital of level, to which social influence, are implied in the person-be inconsistent with respect to knowledge, competence and cohesion and leadership organisation relation. If not fullymarket action speed, reference skills. To solve such a paradox we dynamics in the organisation understood, such a complextemporal horizons of investors must consider that the human are added. It is a set of factors complementarity will feed aand persistent instability and capital-performance relation is that, together with human capital syllogism that often becomesuncertainty conditions of activated through some crucial levels, determine a relevant a self-confirmation trap of thecompetitive and geo-political organisational processes, which part of individual and group uselessness of human capitalscenarios. In an attempt see the intervention of factors performances. Also at broader investments: since humanto overcome this problem, that refer to people and groups levels than corporations, social capital investments are madereasoning must shift from the on scales that are different climate elements - cohesion, and no tangible results are seen,levels of human capital (stock) from the ones that are generally identification, citizenship - are it is believed that no relationto the effects it may produce. used when we talk about human factors that nourish economic between human capital andCorporate practices that have capital - competence, knowledge growth and represent a performance exists.
  • 26 eni for development27 Opportunities for local people and businesses The dual flag approach enables eni businesses, transferring know-how and to promote cooperation agreements improving the competitiveness of the with the producing Countries in order businesses involved in its value chain. to offer concrete solutions to specific eni promotes integrated projects socio-economic requirements for the for the empowerment of its own development of the host Country. personnel and the development of the eni is committed to exploit the economic value generated at a local resources of Countries where it level, with significant benefits for the operates, even through the creation economic and social development of of opportunities for local people and the region.
  • International Oil Companies should aim eni’s culture and business model In general, the development of and its ability to establish solid local resources is implementedeven more to long-term strategies that and durable relationships with primarily through the use of producing Countries is a strong local businesses, products andmaximize the value created by their competitive advantage. services all along the supplypresence in the Countries of operations eni’s local content objectives take chain, the creation of quality the specific requirements of the employment at a local level andand that enhance the available resources producing Country into account the development and transfer of and are often regulated by expertise and skills.at best. cooperation agreements.eni is committed to creating employment At the end of 2010, 79,941 in which they work, in both people worked for eni (+ 3% managerial and technical roles.opportunities in the Countries in which compared to 2009). This overall For example, in 2000 in Nigeria increase has led to a decrease 862 local people and 110 expatsit operates promoting the creation of in a number of people working were employed. Only 19 localmanagerial and technical skills at a local in Italy and an increase in the workers were managers or number of people working middle managers, whilst thelevel. Interaction with both the National abroad, which is 58% of the total most part of employees were today. 44% of eni employees workers. In 2010, the localOil Companies personnel and the local work in developing Countries. personnel comprised aboutsuppliers, fosters the best practices and Long since, eni is committed to 1,400 people, an increase the development of managerial of 40%, 200 of whom wereskills transfer with positive effects on the position nationalisation employed in senior or middle programmes, which aim to management positions.growth of the local energy industry. developing local professional The number of expats fell to skills in the energy industry, 105. Taking also Saipem into which can increasingly be consideration, the number of transferred from the so-called people employed in 2010 were “expats”, the employees that more than 6,300, the majority of do not come from the Country whom were Nigerian. eni local foreign employees eni local foreign in managerial positions employees 6,000 MANAGERS 50,000 IN NON-OECD COUNTRIES MIDDLE MANAGERS 45,000 5,000 40,000 4,000 35,000 30,000 3,000 25,000 IN OECD COUNTRIES 20,000 2,000 15,000 1,000 10,000 5,000 0 2008 2009 2010 2008 2009 2010
  • 28 eni for development29 eni has always invested Scuola Mattei is a post-graduate Geographic origin of the Scuola Mattei foreign students advanced training programme. from 1957 to 2011 in its relationships with Since its institution, it has provided 3% producing Countries training to around 2,600 young people, 55% of whom are non- North America 2% through providing Italians coming from 110 Countries 2% Central America worldwide. A significant proportion training for the future of the students come from regions, Australia 20% managers of the energy in which eni operates, with low economic development rates. The 21% Asia South America industry. Scuola Mattei multicultural approach has always been a standard for the Scuola 11% has been providing Mattei which has, right from the Middle East 21% advanced training outset, contributed to guiding eni towards internationalism and Western Europe to students from around diversity management. Many of 16% the students that attended the Africa the world since 1957. Scuola Mattei have subsequently 4% Eastern Europe obtained very important roles in institutions and energy companies not only in their own Country. eni promotes the development of businesses in sectors that supply training, monitoring and quality- control, that enable suppliers goods and services to the energy industry through its own network of and subcontractors to improve their management process suppliers, resulting in a positive impact on the economy of the region. and, therefore, become more competitive. eni plays an important social role 2010, local supply increased by an suppliers in order to achieve eni’s shared goal with in the region in which it operates, average of 50%, reaching figures ever higher standards and levels the operating Countries is to create since its activities alone stimulate of 90% in some Countries, such as of performance. The training a profitable and entrepreneurial an additional 30 billion euro per Nigeria and Gabon. also covers operating methods: system able to meet eni’s needs year through purchasing goods The purchase of local goods and sustainability, and in particular of provision and to generate and services from around 34,000 services is also accompanied the protection of human rights, employment opportunities for qualified suppliers worldwide. In by training activities for are object of cross actions of other companies and other sectors. historical trends of DISTRIBUZIONE in the main eni local procurement eni procurement Countries of presence (in millions of euro) <20% 20-40% 40-60% 60-80% >80% 36,000 35,000 34,000 33,000 32,000 31,000 30,000 29,000 28,000 27,000 2008 2009 2010 suppliers used 30,026 35,205 32,626
  • Within the strategy for strengthening Within the engineering and construction activities developed the direct employment of 2,100 people, and indirect and relationships with the Countries of by Saipem in Kazakhstan, a generated employment of around methodology has been used to 4,200-4,900 people. With regards operations and for developing local measure the economic impact to the development of human content, eni has launched an experimental of the local content development strategy, through quantifying resources, the contribution is more than 1.8 times the direct project in Kazakhstan to measure the the economic value generated, expenditure in training, resulting the employment opportunities in the creation of an expected economic impact generated from its created and the human resources further total economic value of activities on the region. This skill could be development. The results show that the contribution provided to 20-25 million USD over the next five years. The experience gained used to develop cooperation agreements the Country amounts to around in Kazakhstan translates into a 350-375 million USD, more than method for assessing the value with oil-producing Countries better 1.4-1.5 times the direct costs generated in the Country through defined on the actual local economic and incurred by the company in terms of local purchases, wages and the business and quantifying the overall results on sustainable social development requirements. taxes. The company generates development policy. Other examples of empowering the economic a job related to eni’s activities and autonomous development. distributed among 80 companies. At the end of 2010, thanks to value generated at a local level are the The transfer for southern Val d’Agri the awareness efforts carried of the headquarters for southern out, the Basilicata Confindustriainitiatives taking place in Val d’Agri (Basilicata), of Italy appears to be strategic (Italian Manufacturers’ following the moving to the Southern District of for strengthening local economic Federation) has created the competitiveness. The eni decision first network of businesses in the exploration and production management to be more present in the region southern Italy, the “LOG network”, has improved the relations with while Assomineraria, the Italian activities in Southern Italy. the local decision-makers and Association for the mining key players. In this context, and petroleum industry, hasThe relocation of the Southern employment. The investments eni has been implementing the created and funded the AssoilDistrict in 2008 has stimulated made have created new jobs, 35% “Missione di Comunità” project School in Val d’Agri for advancedthe development of highly of which is at a local level. Taking since 2007, which aims to training in the oil&gas sector,specialised industrial activities, also into account subcontractors promote the involvement of local both dedicated to nurturingwith a significant positive and collaborators, there are players and to identify common the competitiveness of localimpact on the local economy and over 1,500 people that have measures to promote sustainable businesses. The project is focused on the an engagement process and ability of companies to sustain the development of a range of local economic development indicators, including impact In 2009, eni joined the National Market through the economic value generated by the presence of indicators, which enable eni to test new measuring mechanisms. Participation Initiative, launched a big player in the region. The The mechanism presented to results a year after the launch the members of the WBCSD at by the World Business Council for of the project is the creation of the 2011 Montreux Liaision Sustainable Development. a shared reference framework for dialogue between companies Delegates Meeting will be tested over the forthcoming months by and governments on the subject a selection of pilot companies, of local content development. including eni, in order to assess The project includes defining its efficiency and applicability.
  • 30 eni for development31 Within its business objectives, eni promotes integrated projects with significant impacts on the economic and social development of the territory. An example is the “Chimica Verde” resources, which are imported of a short, completely integrated initially and will be produced supply chain. In order to promote project that eni has launched in Porto Torres locally later on. With regard to the development of this local in Italy. The aim is to reconvert a structurally this, an agreement has been industry, eni and Novamont will signed between Novamont and provide the entrepreneurs of the non-compliant petrochemical plant into Coldiretti to identify crops with Sardinia region, who wish to enter a high production yield, that are into this new industrial sector, the world’s largest and most innovative not competitive for food-related all the necessary know-how and plant for the production of environmentally use, but can be found in the skills. natural habitat of Sardinia. The The “Chimica Verde” project will friendly chemicals, creating new employment new centre will require a smaller have very important implications surface area, than currently in also at an environmental level, positions and favouring integration with local use, which will free up land both as it will involve reclamation agricultural and industrial activities, whilst inside and outside the site for activities and the creation of experimenting with crops that are a solid biomass cogeneration reducing the environmental impact. suitable for production and the power plant with a capacity of service industry. approximately 40 MW. The plant eni is present in the of the industrial plants of Porto The new production plant will will be designed to exploit the petrochemical sector with Torres into a plant for the also stimulate the birth of a new biomass produced in Sardinia, various industrial plants in Italy production of environmentally local manufacturing industry: including any waste from the and in Europe. In general, the friendly chemicals and for the bioplastic products, in particular agricultural supply chain of dispersion of production sites, realisation of a Research Centre. plastic bags for separate waste non-food related crops, that their cumbersome size and An investment of 230 million collection, shopping or catering are necessary for operating logistical difficulties make them euro has been added in order to items, which, if produced in the environmentally friendly less competitive compared to build a biomass power plant and locum, will enable the creation chemicals plant. other companies, in particular, to adap the existing ones. The their Middle Eastern and Asian first biorefinery integrated in the competitors. The Porto Torres territory will be therefore realised Porto Torres - view from the satellite site in Sardinia is one of the in the world. most vulnerable to international The “Chimica Verde” project competition due to critical will result in the creation of an aspects such as non-competitive efficient new generation plant products, the small size of the and will contribute to the social plants and the distance from the and economic development of consumer market. However the the region, creating new jobs site has the potential to become and freeing up industrial areas a key worldwide centre for green for the service sector. In 2010, chemistry, first of all due to the the activities of the Porto Torres usable surface area (1,250 ha) plant, which has always been a new agricultural and also the presence of qualified fundamental player in the local area personnel, the availability of economy, directly employed non-food related agricultural around 590 people and this figure new industrial resources in Sardinia and the will rise to over 600 people in the area support of institutions. eni in new plant. The reconversion will partnership with Novamont, a also be the driving force behind leading producer of bioplastics, a stronger and more diversified has launched a project involving network of satellite businesses. an investment of about 500 The new industrial centre will million euro for the conversion be supplied with agricultural
  • Local developmentand the MillenniumGoalseni has a significant presence in basic sanitation services, drinkingtransition and developing Countries water and schools, and through thethat may experience serious enhancement of society as a whole.hardships and poverty. eni contributes to the socialThe dual flag approach allows eni to and economic development oftake part in the local development the Countries, operating withinprocesses through concrete the reference framework of thesolutions to answer the needs of Millennium Goals defined on a globalthe population, including access to level by the United Nations.
  • 32 eni for development33 eni is committed to providing concrete overlapping of local requirements as babies and their mothers. responses to the problems and requirements and intervention strategies with the strategies of the company itself The macro intervention sectors into which eni makes a significant of the Countries where it operates in synergy and the local and international investment are the safeguarding with the development strategies of the Country guidelines. eni creates transparent partnerships and collaborations and promotion of health, often closely associated to the issue of itself and operating within the reference with local stakeholders and adopts accessing basic healthcare services, framework of the Millennium Goals. appropriate project planning and management tools. This activity drinking water and nutritional and health and hygiene education, eni studies the context and also takes place through the access to primary and secondary economic, social and environmental Eni Foundation, an autonomous education and socio-economics conditions of the regions where it philanthropic foundation, formed empowerment, with a particular operates in cooperation with local in 2006 in order to involve eni in focus on valuing the contribution institutions and other stakeholders, intervention programmes that of women to society, as well with the aim of responding better favour local communities, with as accessing energy and other to the expectations and the actual particular reference to the area resources. needs of the population. The areas of safeguarding the health of of intervention are identified by the particularly vulnerable groups, such Community investments by type 2010 Community investments by geographic area 8% India, Indonesia and Oceania 34% Community relations Infrastructure 9% Europe development Health South America 13% North America (Alaska) 19% Socio-economic Environmental development initiatives Central Asia 7% Professional training Northern Africa Sub-Saharan Africa 5% 5% Cultural initiatives Access to primary training 0 5 10 15 20 25 30 mln € eni is actively participating in safeguarding In defining the local priorities and eni’s commitment is clearly therefore the healthcare activities demonstrated in the numerous the health and well-being of people and to be carried out in the community, projects that target improvement eni uses Community Health and in the health conditions of local communities through development support Infrastructure Project Management populations, through the integrated policies in the Countries. (CHIPM), a tool that, in line with the development of basic healthcare eni best practices and approach, services (Primary Health Care), provides the basic methodology the creation of management and and operational tools for technical expertise, the adaptation producing, managing, supervising of infrastructure and facilities, and evaluating community sensitisation programmes and the health development projects health and hygiene education of the that are in line with the policy target population. and strategies of the Country.
  • eni’s efforts represent an improvement To date, the main challenges from a health point of view are centred The challenges are approached head on by eni through thein the life expectancy of population in on reducing complications during development of local skills, pregnancy and, in particular, close collaboration in all phasesCountries with a very low rate of human on diminishing the incidence of the project cycle and thedevelopment and when the majority of of endemic illnesses such as malaria and HIV, which, in the implementation at various levels on the healthcare system (onpeople live below the poverty line. Sub-Saharan African Countries a national, regional and district are the main cause of mortality, scale), favouring development of together with illnesses that can the sector and associated policy be easily prevented or cured. at a local level. Drawing on consolidated experience in the fieldASPETTATIVE DI VITALife expectancyNEL MONDO(in years) of infrastructure, eni <50 50-60 60-70 70-80 >80 plays a very active role in projects to strengthen infrastructure for the storage and distribution of water, a necessary resource for improving the standard of living of the population. Safeguarding and promotingSource UNDP health is, in the majority of cases, closely tied to scarce hygieneCommunities health - the main eni projects worldwide conditions caused by a lack ofEcuador Congo, Eni Foundation, local government). Kazakhstan access to drinking water. In thisIntegrated Health Program and HIV counselling given to almost 13,000 Healthcare infrastructure, sensitisation regard, aside from promoting thestrengthening water networks for the women. campaigns, water networks. Watercommunity of Block 10, Province of Nigeria: Hospital clinic services, healthcare network built in Aksai and Akbulak with an construction of suitable infra-Pastaza. 3,200 people involved. sensitisation campaigns on HIV and investment of more than $5 million. structure, eni is committed to malaria prevention and reducing infant training and awareness activitiesItaly mortality. IndonesiaStudy on the impact on health in the area Mozambique: preliminary feasibility study Project for the treatment of cleft lip and necessary for maintaining andof Gella (Public Institutions, Università for healthcare services. Strengthening the palate (Eni Foundation, local Ministry of managing the results achieved.di Catania). Support for the Theodora water supply network for Cabo Delgado (a Health). 125 young patients operated onChildren’s Foundation. population of almost 8,000 inhabitants) since the start of the project. Guinea Bissau: food aid project.North Africa (Libya) Gabon: contribution to the planning of a East TimorStrengthening health care infrastructure rural healthcare clinic, strengthening water Community health; support for the(emergency clinic at Jalo, Tripoli Heart infrastructure in rural areas. healthcare prevention campaignCentre, Zuwarah Clinic), medical and Western African Countries: vaccination for women; water network. 6 waterhealthcare personnel training. campaigns in response to poliomyelitis distribution systems requalified. epidemics.Sub-Saharan Africa PakistanAngola: The Kilamba Kiaxi Project in Iraq Bhit Rural Sustainability ProgramLuanda (Eni Foundation). About €46.2 Adequate infrastructure to respond to health (BRSP), healthcare centres, vaccinations,million spent (2009 to 2011). emergency situations. MoU for restructuring consulting, infrastructure. Access to waterCongo: Integrated intervention to support and equipping the paediatric departments for 57 villages.the national healthcare system (Eni of the Bassora general hospital.
  • 34 eni for development35 A striking example can be found in Congo, where eni has participated in improving living standards and healthcare for the local population through partnerships with the government and the local communities since 2000 and through the activities of the Eni Foundation since 2007. The actions started out small but whose objectives are to meet the with big ambitions and today their MDG 4 (reduce infant mortality), 5 number has earned their just place (improve maternal health) and 6 as part of a complete healthcare (to fight against HIV/AIDS, malaria development programme of and other endemic illnesses). The the Country, in line with the initiatives launched include the national plan for safeguarding Salissa Mwana project (let’s protect and promoting health. The first the children), the objective of which actions were carried out by eni in is to improve health care in three response to the direct requests for regions, with a population of around support on the part of the Country 200,000 infants from 0 to 5 years in the isolated well communities. (30% of the total infant population With regards to the services provided as part of the Salissa Mwana eni has continually carried out of the Country) and the Kento Extended Vaccination Programme (EVP) in 2010, around 180,000 initiatives in these regions in the Mwana project (Mother and Child), vaccinations were given to babies, with a coverage rate of 83% of the form of individual projects, first of whose objective is to reduce vertical project target, in terms of the villages included. As part of the Kento all (e.g. through strengthening the transmission of the HIV virus from Mwana project, 13,000 pregnant women have used the prenatal Dolisie hospital structure), until 30% (with no care) to 2 to 3% in consultancy and screening for HIV and as a result, the mother- 2007 when the Eni Foundation pregnant women covered by the child HIV transmission in the cases treated has dropped to 0.6%, launched two important projects project. comfortably surpassing the 2-3% target set in the project. eni promotes access to primary and secondary education for the populations of the Countries in which it operates, actively participating in the social and economic growth of the community. The eni education projects have, on operates in those Countries that A poignant example of how eni contributes to the whole, a wide scope and include still have a low rate of schooling. initiatives that facilitate access to There are approximately 69 million promoting access to education in a Country primary education for students people that do not have access to and specific training designed to education worldwide, half of whom with a low rate of schooling is Ecuador. promote access to the world of live in Sub-Saharan Africa and employment, as well as developing more than a quarter in southern the leadership skills of the young Asia. Guaranteeing access to The education initiatives are educational materials, the provision people involved. The support that education involves, above all, carried out in collaboration with of meals to students, support for eni offers also comes in the form of providing suitable buildings and the Provincial Directorate of the teachers and University study providing the financial and material qualified teachers. Poverty and Ministry of Education and involve grants. The programme has means for constructing schooling marginalisation appear to have the construction of buildings that contributed to increasing the rate infrastructure and making all the been the main causes for stopping are capable of accommodating of primary schooling in the area necessary equipment available MDG 2 from being achieved around 500 students from from 0.51 to 0.98 and secondary to carry out the activities The eni (guaranteeing universal primary elementary levels to secondary schooling from 0.60 to 0.86 from intervention is important as it education). school, and the distribution of 2002 to date.
  • The projects designed to enable access to In Brazil, where the situation is (Nova Maré). The programme aims critical for babies coming from poor to enable children with very feweducation are carried out in collaboration families, eni has been supporting opportunities to attend a private the UERE Projeto since 2002. school that is adapted to theirwith the local people, in accordance with This project was drawn up by a particular needs. The project hasthe requirements of the Country. non-profit organisation specialised received a number of awards, and in the education of infants and has been recognised by UNESCO teenagers (3 to 18-year-olds) as a functional tool for restarting living in very poor social conditions the learning process after a in the area of Baixa do Sapateiro trauma.TASSO DI SCOLARIZZAZIONENEL MONDOLevel of literacy Today 69 million people worldwide <50% 50-71% 71-83% 83-95% >95% n.a. have no access to education, a half of these are in Sub-Saharan Africa and more than a quarter in southern Asia.* Data based on populations aged 15 or over.Source UNDPeni is strongly committed to promoting The initiatives that focus important factor for the economic on empowering women are and social development of athe commercial autonomy of the local prioritised in integrated rural Country. 60% of people that suffercommunities, with particular attention paid development projects in certain Countries in which eni has had a from hunger in the world are women and children; a paradox,to diversity of gender as a resource of the presence for some time, such as as women produce between 60% Pakistan and Nigeria, where eni and 80% of food in developingregions. has consolidated relationships Countries, without having the with the local communities and right to own the land. In the can therefore draw up and carry majority of these Countries, out long-term action plans that women are further discriminated favour the female population in against when it comes to paid various areas of development. employment, sources of income Gender equality and the economic and social recognition. empowerment of women are an
  • 36 eni for development37 A significant example of the commitment support activities for women cooperatives in the agricultural, through microcredit and training animal husbandry and fishing shown by eni towards local communities programmes, offering a valuable sectors. and, in particular, towards improving the contribution towards providing women access to the economy. The In 2010, in Nigeria, 30 cooperatives benefited directly from the role of women in society is the Green microcredit plan, started in 2006 in programmes, receiving micro-loans partnership with the Central Bank of $4-$6,000 each, totalling in River Project in Nigeria, in collaboration of Nigeria and the United Bank for excess of $100,000. 51% of the with Phillips Petroleum and the Nigerian Africa and strengthened in 2008 through the collaborative work beneficiaries comprise women’s associations and cooperatives, National Petroleum Company. carried out with the Community while a further 250 women Development Foundation, offers have gained access to training The objective of the project economic well-being in the Nigerian not only access to credit, but also programmes. The rate of repayment launched in 1987 is the creation rural areas in the states of Rivers, training in the efficient use of the of the loans stood at 80% in of a sustainable farming system, Bayelsa, Delta and Imo. The loans. The main beneficiaries of the 2010, a clear confirmation of the as well as the creation of socio- project has developed business loans on offer are the active local effectiveness of the programme. The improvement of the status of women is 1,343 vaccinations were given to uniforms, books and school bags women and children in 2010 through through the 18 schools built and a key component of the Bhit Rural Support the activities of the health care managed as part of the project. The centres constructed, particularly same can be said for the 10 schools Program (BRSP), an integrated action plan the Bhit Mother and Child Health in the area of the Kadanwari field launched in 2002 by eni in Pakistan for the Centre and the five community for a total of 413 pupils (25% girls). health centres. Help was also offered Occupational training takes place in development of rural communities near to women from the pregnancy to the two professional centres set up the postnatal stages (with a total in collaboration with the WHO(one of the Bhit natural gas field, carried out in of 526 babies monitored). The which is now already fully managed collaboration with the local NGO Thardeep project also facilitated access to by the community, thanks to the quality water for 57 villages in the management skills acquired). Rural Development Programme and LEAD area, encompassing a total of over Women can attend courses 2,000 people, with positive results on dressmaking at the Chinni Pakistan. on the economic conditions of Vocational Centre (15 have women. The development of young completed the course out of a girls is achieved primarily through total of 39 attendees in 2010) and schooling: 233 young girls (out of IT courses at the Ibrahim Hyderi a total of 714 pupils) have received Computer Training Centre (CTC). In 2010, at the end of the University in New York. third Global Compact Leaders This collaboration will enable Summit, where eni was the the development of new tools eni’s commitment to local development main sponsor, an important for assessing and making the partnership was signed with investment carried out by eni into has also been strengthened by the The Earth Institute and the Vale regional development projects partnerships signed with important Columbia Center on Sustainable more efficient, and to carry International Investment, out education and specialised international organisations. promotion and research centres training aimed at eni personnel for development at the Columbia and young students alike.
  • 38 eni for development39 The role of business in local development Which are - in your view - the Access to mobile phone networks achieving economic sustainability. real priorities for sustainable and the internet has opened up Small- and medium-scale development in developing unprecedented opportunities for enterprises generate essential countries? Which are the “must do” information sharing within and products and services that fuel the actions to achieve the MDGs in the across all sectors. local economy and provide jobs. poorest areas of Africa or Asia? All of these investments must Multinational companies can make Glenn Denning, Sustainable development requires be accompanied with actions important contributions to national Director of the Center that we first meet the most basic that protect the environment development. They generate on Globalization and human needs: sufficient, healthy and conserve essential natural revenues, which can then support Sustainable Development and nutritious food; clean drinking resources for a healthy and public investment programs. The Earth Institute, water; effective sanitation; and productive life for current and International companies can bring Columbia University access to essential health services future generations of producers much needed capital, technology and education. But escaping and consumers. and expertise, that can also “spill- extreme poverty also requires Achieving the MDGs in the poorest over” into domestic enterprises that households and communities areas of the world requires an or other sectors of the economy. engage in business enterprises integrated multi-sector approach They can help develop smaller, that generate employment and that includes support for more national and local companies, income. productive and diversified through supply and service In low-income Countries, agriculture, improved access to relationships and they can support smallholder farming is typically health services and sanitation, full the improvement of infrastructure the basis of both food security and access to primary and secondary (power, roads, rail, ports and ICT) income generation for 60-80% of education for girls and boys, that foster development in other the population. By increasing farm critical infrastructure investments, sectors of the economy. productivity and improving access environmental restoration and to markets, farmers are able to protection, and business enterprise Do you think there’s some generate surpluses above their development. Investments and distinctive contribution that subsistence requirements. These better policies across all of these extractive industry - and oil&gas surpluses, in turn, can stimulate sectors will reduce extreme sector in particular - can give? economic growth in rural areas poverty and create the conditions Extractive industries have both an with impacts extending to the for more sustainable and equitable opportunity and a responsibility entire economy. This agriculture- development. to foster sustainable development led economic transformation took in their Countries of operation. place throughout much of Asia Which kind of role do you see for Many extractive industry projects and Latin America beginning in the the private sector - and in particular take place in poor regions with 1960s. for multinational companies? vast development potential. It Basic infrastructure in the form Sustainable development is a challenge both for investors of rural roads and electrification incorporates three broad and governments to optimize the are important catalysts for the components: environmental contribution of extractive industries provision of basic public services sustainability, social sustainability, to the sustainable development and for increasing economic growth and economic sustainability. A of local communities affected by though improved market access. healthy private sector is the key for the extractive projects and of the
  • broader region. Failure to meet this Second, extractive industries, of resource revenues. development projects in Asia andchallenge can engender political host governments and other Fifth, extractive companies Africa, I have concluded there areand social opposition which leads stakeholders should identify should support a transparent, broadly 7 success factors:to suboptimal development and opportunities to leverage the robust, legal framework for First, engage communities toinvestor outcomes. Avoiding such resource investments to meet the extractive investments, that is identify priorities and promote localnegative outcomes requires an development needs of the region. implemented and monitored by leadership. Second, work togetherunderstanding of the complex For instance, oil and gas companies strong governmental and societal with governments, both local anddevelopment needs of the and governments should consider institutions, with the cooperation national, to ensure alignment andcommunities and countries in the current and future domestic of industry. This includes, among complementarity of developmentwhich the investments take needs for oil and gas, including other things, supporting fiscal investments with strategies andplace, and an action plan that the potential for downstream regimes that ensure the fair priorities. Of course, transparentaddresses these specific needs industries, as well as opportunities distribution of resource revenues goals and mutual accountability ofand development priorities. to build capacity among local between the companies and the results are essential ingredientsThrough a partnership of the Earth suppliers. Transport and energy governments, and committing to for a productive partnership withInstitute and the Columbia Law infrastructure can also be used contract transparency, so that government.School, the Vale Columbia Center for improving the productivity and governments and communities can Third is the need to invest in theon Sustainable International market access of agriculture, which understand how the risks, benefits development of local and nationalInvestment has identified five is often the principal source of and responsibilities are allocated capacity. Technical assistanceessential “pillars” that should livelihood of local communities. among the various stakeholders. may be needed in strategic andguide the contribution of extractive Third, extractives must work In recent years, many Countries critical areas, but it should alwaysindustries to sustainable with governments, communities have seen how the extractive aim to reinforce and advance localdevelopment. These five pillars and other partners to manage industry can play a driving force institutional capacity over time.integrate the responsibilities of and reduce the cumulative for national economic growth but Fourth, identify best practices andextractive industries companies, environmental risks and impacts because this growth to continue establish practical monitoring andgovernments, communities and associated with resource steadily over time, it will be needed evaluation systems.other development partners into a investments, including of the strategies and investment that Fifth, encourage public-privateframework for realizing resource- related infrastructure investments, promote a more inclusive and partnerships and supportbased sustainable development. while helping to address the most fair national development. It’s enterprise development,First, extractives should recognize pressing environmental challenges time for the extractive industry contributing in this way toa responsibility to support in the region, which may include to demonstrate competence, economic sustainability.integrated area development, both climate change resilience, water commitment and leadership Sixth, engage several partnersin the immediate locality of the management or deforestation. skills beyond its core business. and deploy a range of multipleextractive investments, and at Fourth, extractive companies Therefore, the extractive industry technologies and skills.regional and national scales. These and other stakeholders should would commit fully to sustainable Seventh, invest for the long-term.investments become a win-win for encourage and support effective development. A common failure I have observedthe extractive industries and the government strategies and is the premature terminationhost countries by ensuring more capacity for managing resource Which are the major challenge of promising projects. Theinclusive growth and thus avoiding revenues, including national and what’s wrong in the programs development of communities,conflict and social unrest that may development planning, effective that are now in place in developing business enterprise and local skills,undermine sustainable investment budgetary mechanisms and countries? needs time to be built, definitelyand development. execution, and strategic allocation In my 35 years of experience in not through a 3- to 5-year project.
  • 40 eni for development41 The value enhancement of natural resources eni is committed to minimise the environmental challenges. environmental impact of its operating eni is aware of the relevance that activities and making an active access to water has for the social contribution to the conservation and and economic development of the enhancement of biodiversity and operating Countries and is also ecosystems, in order to promote the committed to effectively managing development of the local communities this resource, especially where and contribute to overcoming global it is scarce.
  • eni has always considered the eni cooperates with a number ofconservation of biodiversity, ecosystems international organisations in defining theand natural resources as a strategic standards and mechanisms to be usedobjective and an operational priority. in the conservation and enhancement of biodiversity and ecosystems.eni’s way of operating has the sustainable and ethical In this context, eni also carries services and business activities andalways been consistent with use of natural resources that out specific projects, such as that to quantify the associated positivethe principles of the Convention biodiversity provides. 20 years launched by the World Business and negative effects. The pilot projecton Biological Diversity (CBD), later, the principles set in the CBD Council for Sustainable Development has led to a first field assessmentratified at the UN conference on are still used as an important (WBCSD, is an international business of the value increase in some ofenvironment and development reference and are the basis for association that eni joined, which the ecosystem services identifiedheld in Rio in 1992, which defines further progress made by the includes more than 200 leading as relevant (availability of water,the concept of biodiversity as international community. businesses in sustainability) recreational value, climate regulationmain eni operating and together with the International and vegetal production) followingenvironmental data Union for the Conservation of Nature the mitigation and cleanup activities 2001 2010 VARIATION (IUCN, an international organisation implemented. eni’s experienceHydrocarbons production 1.369 boe/d 1.815 boe/d +33% comprising Countries, government and that of 13 other companies,Gas transport 16.8 mld m3 83.32 mld m3 +400% agencies, non-governmental has enabled the field test of theElectricity generation 6.5 TWh 25.63 TWh +300% organisations and companies for the Corporate Ecosystem Valuation, theGHG emissions (co2eq) 51 mln tons 61 mln tons +19% conservation of biodiversity) and methodology used for the economic the Fondazione Eni Enrico Mattei. evaluation of the ecosystemSO2+NOx emissions 141 ktons 163 ktons +14% The project aim is to evaluate the services published in April 2010 byFreshwater used 275 mln m3 186 mln m3 -32% correlations between the ecosystem the WBCSD.eni’s experience in identifying, evaluating, and reducing An example of this commitment is the performance recorded inenvironmental impacts together with the progressive the last 10 years, which show a reduction in emissions and waterdevelopment of a culture of eco-efficiency have enabled consumption per unit of energycontinued improvement. produced, to levels of excellence in the sector. GHG emissions from flaring SO2 emissions - eni e&p NOx emissions - eni e&p and venting - eni e&p mln ton kton kton 25 50 80 45 70 20 40In the face of progressive 60business expansion, 35particularly in Africa, eni 15 30 50e&p emissions show 25 40a progressive trend ofimprovement. If compared 10 20 30with the continued growth 15in the production of 20hydrocarbons , even the 5 10increase in NOX emissions is 5 10contained. 0 0 0 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010
  • 42 eni for development43 The new eni approach integrates the conservation of use in assessing the potential impact of petroleum activities biodiversity with the conservation of ecosystem services. on fish and invertebrates; the This approach combines evaluation of the operating activities’ Arctic Sea Biodiversity project has shown that the approach interaction with the surrounding area, using biodiversity as used onshore in Val d’Agri and in Ecuador is also applicable in indicator, as well as the awareness of the global and local value an offshore context (Barents of the natural resources in order to preserve and enhance it. Sea). The Biodiversity Risk Assessment and Action Plan in the North Slope has revealed the eni has started mapping the a relatively short period through technology and practices right ecologically sensitive elements operating sites according to areas the application of appropriate from the outset of the project is (such as the polar bear, the with a high biodiversity value procedures. The results have fundamental to limit and contain whale, migrating birds and fish) in and the presence of ecosystem highlighted the impact of the local the effects of petroleum activities relation to the operating context services in order to classify socio-economic changes on the on the surrounding environment of the Nikaitchuq block, and has operating areas on the basis of environment and have enabled (virgin forest). Also in this case, defined a specific BAP for their their relevance to identify priority a specific BAP to be defined the project recommendations will management. areas for Biodiversity Action Plan (currently in place), which is be implemented through a specific eni is also a partner in the Joint (BAP) implementation. designed to mitigate the identified BAP, drawn up in collaboration Industry Programme “E&P The eni pilot project on applying impact and to monitor the with the local University and Sound and Marine Life” aimed the Energy and Biodiversity effectiveness of the interventions with the involvement of the local at studying the possible impact Initiatives (EBI) guidelines, Agri carried out. communities. of the offshore activities on the Biodiversity Project, was carried A similar project has just been Biodiversity projects were also surrounding marine environment. out in Val d’Agri (Basilicata, concluded in Ecuador (Villano carried out in Arctic coastal areas, The new data and results of Italy) from 2003 to 2007. The Biodiversity Project). The project such as in Norway (Biosea and the project were included in a results have shown that the has shown the transferability Arctic Sea Biodiversity Projects) standard, that has already been impact of petroleum activities of the model developed in Val and in Alaska (Nikaitchuq block). implemented in the offshore on biodiversity are limited and d’Agri and how the adoption The Biosea project has enabled seismic activities in Mozambique, localised and can be mitigated in of environmentally sound the effective testing of bio-marker Angola and Gabon. eni has implemented many of gave its support to the Italian Conference. One of the two the indications that emerged Delegation, offering a scientific topics of Rio+20 will be “green Through its contribution from the 1992 Rio Summit, to contribution to economic, growth” that is the possibility of to the preparation of the which it took part both directly environmental and social topics. promoting growth adequate to and through the research centre It was the starting point for reduce inequality and guarantee United Nations Conference founded in 1989, the Fondazione continuous collaboration with sustainable development on a Eni Enrico Mattei (FEEM). eni was the United Nations Sustainable global scale. Access to energy will on Sustainable Development the only Italian company involved Development Committee, be a crucial aspect for obtaining (UNCSD) to be held in Rio in in the conference preparation: which was carried out during concrete and shared objectives. already in 1991 an organisational the negotiations for the Kyoto Through the Global Compact and 2012, eni is confirming the committee was founded, known Protocol. Today eni is still offering the WBCSD, eni takes part in the as “Eni Eco ‘92” and the company its scientific contribution to the Business Action for Sustainable commitment of the private played a role of dissemination activities of the Intergovernative Development, an initiative tosector in promoting sustainable and promotion with an advertising Panel for Climate Change. Both bring the voice of business to the campaign on environmentally eni and FEEM are actively Conference and to demonstrate development. sound technologies. FEEM involved in the new Rio+20 its contribution to development.
  • eni is aware that access to water is a relevant issue for the social and economic development of the operating Countries and is committed to optimising its use in the production cycle, in order not to limit its availability to the local communities. eni has carried out mapping on a global scale to identify the business activities located in areas classified as of high “water stress”. eni monitors its risks of impact 10% of the production sites are on water resources using the located in water stress areas Global Water Tool developed by (Algeria, Egypt, Libya, Tunisia, the WBCSD. The criticality of water Pakistan and the UAE) and 20% consumption is determined through in critical for health areas such the comparison of specific water as Angola, Congo, Indonesia, consumption data with distinct Nigeria and Pakistan. The lack data per geographical area or of distribution infrastructures is per drainage basin from external critical for Angola, Congo and Nigeria. databases (FAO, WHO), such as Based on the results of the survey, number of inhabitants, water eni intends to assess in detail the availability, sample entities for local water risk on any activities domestic, agricultural and industrial carried out in these Countries and use, and the possibility of access to to implement, and in some cases, quality drinking water. to support projects designed to The survey has shown, that around optimise water resources.L’ACCESSO ALLE RISORSE IDRICHEPopulations with no access to drinking water >50% 30-50% 10-30% <10% n.a. Around 20% of the world population does not have access to drinking water, this causes poverty and under- development. Access to water resources is critical, particularly in Countries in Sub-Saharan Africa, such as Nigeria and Angola, where 40% and 50% of the population respectively has no access to water.Source UNDP
  • 44 eni for development45 Transparency and the commitment to fight against corruption Transparency, a key element in eni’s organisations, fosters solid and lasting business model, is pursued in the relationships and enables eni to relationships with all the stakeholders maximise its efforts on local economic and is a factor in sustainable value and social development. creation. In carrying out its activities, eni The adoption of a transparent approach guarantees maximum transparency with the various counterparts, who, and clarity through a continuous and from time to time, are represented by proactive dialogue and through the communities, institutions, industrial application of measures to safeguard a partners and non-governmental healthy and inclusive business.
  • eni adopts a transparent approach in effective. The community support Ecuador “Foro de Buena Vecindad” initiatives are designed and and in Basilicata “Missione di its relations with stakeholders and local implemented within an inclusive Comunità”. communities, with the double advantage of intervention strategy that aims to Different names, but common directly and frequently involve objectives that is to say the reducing the business risks, and local populations, also through open participation of the local the signing of partnerships and communities in identifyingmaximising the benefits of its activities for the agreements. At the local level, solutions to improve their local communities. community relations management living conditions and to secure systems that often provide for the development. This approach favours At the local level, eni promotes a assessment evaluations carried creation of ad hoc multi-stakeholder the ethical distribution of the policy of upfront, free and informed out, in order to make the transfer bodies are set up. In Pakistan, benefits derived from eni’s presence consultations with stakeholders of value generated through its these bodies are called “Village in those Countries in which social on its operations and impact investment more efficient and Development Organisations”, in inclusion can be more at risk. eni promotes maximum transparency in A poignant example is the process may participate in the Memorandum of Understanding, signing of the MoU, such as the its relations with the Countries in which it which is a preparatory act for Italian Ministry for Foreign Affairs, operates, not only through a continuous entry into negotiations with a Country. It contributes to international and local NGOs. The MoU represents a formal act proactive dialogue with the central and rendering the base parameters, on of transparency that gives rise which a true and proper contract to the tangible actions that eni local institutions but also through adopting can be signed and the terms for commits to bringing to fruition, a negotiation strategy that brings tangible future collaboration are founded, clearly and transparently. Players either directly themselves or with the support of partners chosen benefits in the long term. not directly involved in the for this purpose. LOREM IPSUM Corruption index The World Bank DOLOR SIT AMT LOREM IPSUM DOLOR 9.0-10.0 8.0-8.9 7.0-7.9 6.0-6.9 5.0-5.9 4.0-4.9 3.0-3.9 2.0-2.9 1.0-1.9 assesses that corruption generates losses in gross domestic product varying from 5% to 50% in the more critical Countries. The corruption index is an indicator published annually by Transparency International based on levels of perceived corruption among public officials and politicians. There is a 1 to 10 rating system, where 10 represents the lowest level of perceived corruption. Source Transparency International
  • 46 eni for development47 According to the assessments of eni adopts transparency principles and promotes their international organisations, such as Transparency International, dissemination among its stakeholders, governments, local corruption phenomena are more communities and business partners, also thanks to an excellent perceived in Countries with a low rate of development. anti-corruption management system that safeguards and The issue of corruption is of fundamental importance to the guarantees the efficiency of its activities in the Countries in energy industry, both in terms of which it operates. localising activities and for the investment entity. eni hydrocarbons production The majority of eni’s In Africa, a continent in which Transparency in payments with regards to to the a high percentage of the GDP of along with a relationship corruption perception index investment is made producing Countries comes as model built on long-term abroad and many of eni’s an income from the oil sector, eni is the leading International partnerships, including real and effective investment 40% 36% 35% 33% production activities are Oil Company with a production in the local market, is 30% of more than 1 million barrels a key to guaranteeing carried out in Countries per day and an investment of continued socio-economic 25% with a high level of over 14 billion euro in the last three years alone. development in the hosting Countries for eni. 20% 17% 15% perceived corruption. 6% 7% 10% 5% 3% eni subscribes to the Extractive NO DATA >40 30-40 20-30 10-20 <10 Industries Transparency Initiative (EITI) Area, eni has contributed to the production of the first EITI report, % of people who witnessed a corruption and since 2005 has been promoting its as a founding member of the situation in a year “Multi-stakeholder Working Group” implementation in the Countries in which it and is involved in an agreement operates, playing a facilitating role in those to set out the guidelines for reporting and templates Countries in which the governments have produced by EITI. eni regularly publishes payments made to not yet formally signed up to the initiative. the governments of subscribing Countries. Also thanks to this the royalties paid to regions and In East Timor, for example, since 2006 through five offshore commitment, Countries such as municipalities in Italy, making a Country with a Corruption exploration blocks and the Nigeria, Norway and East Timor them available and updated Perception Index of 2.5 in 2010, participation in two permits in have ensured compliance with on the Ministry for Economic in which eni has been operating the Joint Petroleum Development the initiative. eni also publishes Development website.
  • local currency Amounts in Amounts in (in thousands) (in thousands) Currency Year (*)Payments made to governments of Countries that subscribe to the US$EITI initiative Country 13,964,745 KZT 96,496 Kazakhstan (KPO) 2009 407,162 USD Kazakhstan (KCO) 2009 1,611,151 KZT 11,133 Norway 2009 7,583 NOK 1,336 East Timor 2009 185,853 USD Nigeria 2008 514,659 USD Congo 2009 129,014 USD Mozambique 2008 84,575 MTN (MZN) 271,945 (*) Last local financial year in which the data is referenced and in which the EITI disclosure has been made Amounts in production (in thousands) Year of euroRoyalties paid by eni in Italy in 2010 Geographic area Italy (*) 2009 90,219 - including Basilicata 2009 41,410 (*) this amount includes EniMedSince 2001 eni has been a Global Compact eni favours the adoption of a transparentmember and is part of the working group approach when conducting business insideon the 10th Principle that defines the the energy sector and actively promotescommitment of business to thwart corruption initiatives that aim to reduce corruption inin all forms, including extortion and bribery. the Countries in which it operates.This way, eni is committed In 2010, eni was involved With regards to the activities with regards to the otherto respecting and promoting in sharing and comparison carried out in the Gulf of Mexico, eni participants, used to makethe United Nations Convention activities at the United Nations has become a promoter of a round conducting negotiations aimedAgainst Corruption, the OECD on Anti-Corruption issues and table discussion between the at accepting the anti-corruptionConvention on Combating has promoted thematic seminars sector operators in the area, with clauses considerably difficult.Bribery of Foreign Public Officials within the Italian Network. eni the objective of sharing the anti- The initiative promoted by eniin International Business publishes its own report on the corruption standard clauses and to has been well-received and hasTransactions and the Business 10th Principle on its company facilitate business. The contractual involved the main companiesPrinciples for Countering Bribery website (www.eni.com/en_IT/ and non-business characteristics operating in the area, includingproduced by Transparency sustainability/sustainability. of the joint ventures signed in the Chevron, Maersk, Exxon Mobil,International. shtml) on an annual basis. area, where the operator is given Statoil, BP, Total, Anadarko and complete management autonomy Ecopetrol.
  • 48 eni for development49 eni ensures that the principle of eni’s commitment to transparency and the transparency is adhered to in fight against corruption has been recognised its own business model, including its on an international stage by Transparency organisational and regulatory structure. International and Revenue Watch Institute. The Anti-Corruption Legal Support services procurement; The “Promoting revenue from 30 Countries from around Unit has been created inside reimbursement of expenses; transparency - 2011 Report on the world, representing 60% the Legal Affairs Division, and the sponsorship contracts; notifications Oil and Gas companies” was of the global production of Anti-Corruption Guidelines were (even if anonymous). Existing published in March 2011. The aim hydrocarbons. issued along with a set of procedures have therefore been of the report was to promote good The results positioned eni among procedures for the sectors at integrated into Anti-Corruption governance in Countries with the top eight companies in this greatest risk: provisions in reference to accounting rich mining resources, making sector with above-average results the appointment of outside procedures. governments and businesses in all three areas covered in lawyers; donations; contractual Through educational initiatives, eni aware of the importance of the study: level of disclosure of clauses on “administrative promotes its internal mandatory transparency in terms of their information on anti-corruption responsibility”; gifts, trips, training programmes aimed at the own revenue. programmes, level of disclosure hospitality and expenses paid to management staff and also handles The research targeted 44 of information on the organisation third parties; brokerage contracts; relations in order to promote anti- companies in the oil and of the business and level of joint-venture contracts; bribery and regulatory initiatives for gas sector, 20 of which were information on economic consultancy and professional potential partners. international and 20 national, operations in each Country. eni was invited to present its work groups, eni has subscribed own testimony as the first to the sub-working group on eni participated in the company to adopt the reporting Public-Private Dialogue and guidelines on this principle Collective implementation and revision of the on an international level at the Actions, focusing on five UNCAC Convention and participates, Work Group meeting at the Global Countries, including Nigeria. The Compact Leaders Summit 2010. company was a promoter in the often as a leader, in the Global It was then asked to participate creation of a sub-working group in the Private Sector Track of on anti-corruption for oil and gas Compact Working Group on the the UN Conference on the Least companies, officially launched in tenth principle both at national and Developed Countries on the Copenhagen during the UN Governance and Fight against Global Compact Week, in international level. Corruption. Still in the area of May 2011.
  • The Blueprint ofeni’s business modelIn June 2010 during the third Global Compact Leaders Summit, the “Blueprint for CorporateSustainability Leadership” was drawn up, a document aimed at starting a new era in thecompanies’ commitment towards sustainable development, combining the adherence toGlobal Compact principles with a comprehensive action plan to achieve the MillenniumDevelopment Goals (MDGs).eni, given its participation in the LEAD initiative, which is open only to companies that,according to Global Compact, have strong leadership skills, is committed to applying theBlueprint to its business model, mainly through the participation in the initiative “Access tosustainable energy for all” launched in September during the UN Private Sector Forum. International Partnerships Access to sustainable energy for all eni Business Model GC Principles Strategies MDGs Human Rights: Projects guarantee the respect of eradicate poverty Relationships with stakeholders and hunger by o ering human rights in business and and communities engagement energy to people encourage the conditions for Monitoring, controlling and companies these to be exercised and reporting Labour standard: create quality create conditions for employment opportunities the development of women Environment: guarantee guarantee sustainable use of the protection of resources and their natural resources and safety of operations safe and sustainable use Anti-corruption: commit to ghting corruption create conditions to access to remove the main obstacles universal education and protect health to development
  • 50 eni for development51 Reporting Principles and Criteria This year, eni has adopted a new view of the company results. commitment to sustainable Sustainability Performance 2010, development. The company strategy sustainability reporting system that available in both static and interactive and actions are highlighted in relation formats on eni.com, reports all to the results obtained and consists of three publications, each with the key sustainability indicators the opportunities generated to different communication objectives. and projects at a consolidated, contribute to the sustainable Division and Company level. eni for development of the community to The Annual Report 2010 presents development is intended to which eni belongs, the Countries the economic and financial communicate the strategic relevance in which it operates and of society information, along with the key of sustainability in eni’s operations, as a whole. Analysis of the highlights performances in sustainability, as well as to describe the main contextualises the relevance of the offering a unified and more complete significant features of the themes tackled. eni for development opens with an introduction The eight themes correspond to development driving force, the main global issues that the renewable energy, secure that describes eni’s business model and the collective have to approach in management of all resources, distinctive characteristics that guarantee order to resolve inequality in social and economic development on a opportunities for people and local businesses, local development competitive advantage for the company and global scale and the contribution and Millennium Development that a company in the energy Goals, the improvement of natural contribute to sustainable development. Eight sector can offer. In particular, the resources, transparency and more in-depth points then follow with tangible themes tackled are: access to energy, natural gas as a commitment in the fight against corruption. examples of the most significant aspects of eni’s sustainable operations. Contextual analysis is carried out The main sources from which accordance with the the contextual data have been sustainability reporting process, on the basis of the data collected from drawn are: International Energy which includes all the business Agency (IEA), World Bank, United functions. The eni basis of data the main databases in international Nation Development Programme consolidation is the same as that Organisations or Agencies, compared with (UNDP). The data sources have used to draft the Commitment to been cited from time to time in Sustainable Development section the main company results. the document. eni’s qualitative included in the Annual Report and quantitative information 2010 and the Sustainability have been collected in Performance 2010. Balance, comparability, accuracy, timeliness, As regards the definition Global Reporting Initiative. Please of the subject matters and note that the standard information reliability and clarity, as defined by the Global indicators disclosed in the required by Global Reporting Reporting Initiative, guarantee quality and document, the programmatic nature of the document also made Initiative is widely disclosed in the other two documents constituting adequate representation of the information it possible to partially follow the eni’s sustainability integrated principles recommended by the reporting system. regarding eni for development.
  • Collective actions External actions Internal actionsReporting on the 10th Principle in accordance with theGlobal Compact guidelinesThe eni commitment Level of enforcement of the action: completedB1 Publicly stated commitment to work against corruption in all its forms, including bribery and extortion ongoingB2 Commitment to be in compliance with all relevant laws, including anti-corruption laws to be startedD2 Statement of support for international and regional legal frameworks, such as the UN Convention against CorruptionD3 Carrying out risk assessment of potential areas of corruption The chart shows the attainmentD4 Detailed policies for high-risk areas of corruption level of eni’s reporting on the 10th Principle according to three levelsD5 Policy on anti-corruption regarding business partners of analysis:Implementation of the business processes 1. internal level:B3 Translation of the anti-corruption commitment into actions describes how eni deals withB4 Support by the organisation’s leadership for anti-corruption transparency and corruptionB5 Communication and training on the anti-corruption commitment for all employees through policies, procedures and programmes;D6 Actions taken to encourage business partners to implement anti-corruption commitments 2. external level:D7 Management responsibility and accountability for implementation of the anti-corruption commitment or policy describes the initiatives carriedD8 Human Resources procedures supporting the anti-corruption commitment or policy out by eni to share its experienceD9 Communications (whistleblowing) channels and follow-up mechanisms for reporting concerns or seeking advice and good practices with itsD10 Internal accounting and auditing procedures related to anti-corruption stakeholders; 3. collective level:D11 Participation in voluntary anti-corruption initiatives describes eni’s commitmentMonitoring process in joining forces with otherB7 Monitoring and improvement processes companies and stakeholders inD12 Leadership review of monitoring and improvement results order to promote transparencyD13 Dealing with incidents and fight corruption.D14 Public legal cases regarding corruptionD15 Use of independent external assurance of anti-corruption programmesThe document also incorporates the ideasthat emerged from the UN Global CompactLeaders Summit in June 2010, in accordancewith the spirit of the Advanced Level of the The document is subject to an auditingDifferentiation Programme, according to process carried out by an independentwhich, companies that, like eni, participate auditor, who carried out the analysis inin the LEAD programme are obliged to report. accordance with the principlesThe document correlates some describing the operations and and the recommendations contained in theaspects of eni’s activity with the methods that will contributeUnited Nations objectives and to alleviating the gravity of the “International Standards on Assurancehighlights their effects on problem; (3) the availability of Engagements 3000- Assurancethe operational contexts. relevant impact data; (4) theUnderstanding how the description of contexts Engagements other than Audits or Reviewsactivities fit into the operational that outline the problem both at acontext is defined as follows: global and a local level, in order of Historical Information” (ISAE3000),(1) identifying an operational to restore the order of magnitude issued by the International Auditing andcontext problem in which eni of the activities associated to thecan effectively intervene; (2) problem identified. Assurance Standard Board.
  • 52 eni for development53 Independent auditors’ report
  • eni for development is one of the threedocuments that constitute theSustainability reporting system adoptedby eni in 2011.Alongside the sustainability information:the Annual Report 2010 presents theeconomic and financial informationand the overall sustainabilityperformance in a single document.Sustainability Performance 2010,offered in both static and interactiveformat contains all the key sustainabilityindicators and projects.eni has, since 2010, beenentrusting its communication toyoung talent from around the world,active in different disciplines.Jan Feliks Kallwejt, freelancegraphic designer and illustrator,lives between Barcelona andWarsaw.He collaborates with a variety ofcompanies in Europe and NorthAmerica and his work is currentlyfocused on illustration, fashiondesign and personal artisticprojects.Simple yet at once pleasingforms are the essence of hiswork. Jan superimposes andmultiplies these to createfascinating compositions that areembellished with accuracy anddetail.He generally uses no more thanthree colour tones in his workthat come to life throughsuperimposing symbols andunexpected distortions of reality.
  • Registered OfficePiazzale Enrico Mattei, 1 - Rome - ItalyShare capital: € 4,005,358,876.00 fullypaid-upBusiness Register of Rome,taxpayer’s code 00484960588Other BranchesVia Emilia, 1 - San Donato Milanese(MI) - ItalyPiazza Ezio Vanoni, 1 - San DonatoMilanese (MI) – ItalyPage layout and supervisionKorus Srl – RomePrintLithographic PrintworksUgo Quintily SpA – RomePrinted on environmental friendlypaper: XPer Fedrigoni
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