Managing the complexity
of a sustainable development

Why sustainability? The world energy scenario
The world energy scenario, that is the “future of energy”, is extremely complex:
Energy world needs growth: + 29% between 2005 and 2020;
Need to gain access to hydrocarbon reserves sited
• in extreme natural environments and at the same time to reduce the impacts
of the activities;
• in difficult geopolitical contexts (presence of wars, corruption, security
problems regarding people and installations, international terrorism);
Focus on “global issues”: climate change, renewable energies, biodiversity and use of
resources, promotion and protection of Human Rights;
Growing competition among energy companies to find and keep “new talents”, that is
people with high technical and managing skills.
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Sustainability to operate worldwide
Listening to the communities
Strategic assessment Partnership models
of the impacts of the activities
with producer countries
Participating in the
independent and sustainable
Protection of ecosystems
development of the territories
Development of the people, Philanthropic strategies
health and security protection and interventions
Transparent relationships Protection and Promotion
with national and local of Human Rights
institutions
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Market requests
Sustainability, seen as an answer to the challenges of the industry and an element of
risk managing, is playing a role of increasing importance in the evaluations of the
financial analysts and in those of the capital managers. The main “Sustainability
Indexes” are the following:
FTSE4Good Index
The companies are selected twice a year: all the companies of the FTSE
Global which follow specific sustainability criteria (more or less 800) are
included. Eni’s presence has just been confirmed.
Dow Jones Sustainability Index World
Each year the companies are selected by following a best-in-class
approach, 320 overall in 2008. Eni was admitted in the index in 2007 and
this year is worldwide leader in the Oil&Gas area.
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FTSE4Good Indexes - Overview
The FTSE4Good index was launched in 2001 by FTSE in order to include the
companies in the FTSE Global that excel for their sustainability performances
The selection of companies in the FTSE4Good is based on environmental
criteria, stakeholder engagement, human rights, good standards in the supplier
chain, anti bribery and corruption, climate change
The selection excludes companies of the following sectors: tobacco, armaments,
nuclear power generation and uranium extraction
The selection is done through public information, web site, questionnaire and an
analysis managed by Eiris a rating agency
The selection is conduced two times per year
Fonte: FTSE4Good
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Dow Jones Sustainability Indexes - Overview
Dow Jones Sustainability Index (DJSI) World was launched in 1999 by Sam,
an investment company in the field of sustainability, in collaboration with “Dow
Jones Indexes” and includes common stocks of companies leaders in
sustainability
In 2001, SAM, in collaboration with STOXX, launched DJSI STOXX in order to
include common stocks of the most relevant companies which excel in
sustainability in the European context
Currently beyond 5 billion dollars are managed through DJSI indexes
The screening of the companies included in DJSI is based on economic,
environmental and social aspects with a particular focus on sustainability trend
over time such as climate change
The screening methodology is based on the selection of the “Best in Class
Companies” of each of the 58 sectors through a questionnaire filled in by
companies and the analysis of public information. the selection process is
verified by PriceWaterhouseCoopers
The DJSI selection is annual (it starts in may and the proclamation of the
companies included in the indexes is in September)
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DJSI World 2008: Economic dimension
Sub-area Punteggio Best Peso % Evaluation area
Eni % %
Corporate Corporate Governance: Composizione del board relative
91 93 5.6
responsabilità e remunerazione, policy di Corporate
governance
Governance, donne nel board, valutazioni di
Risk & crisis situazioni di crisi con impatto sulla reputazione;
96 96 6
management Risk & Crisis Management: Sistema di gestione del rischio,
metodologia di valutazione e mappatura del rischio,
Codice di condotta analisi di sensitività;
96 96 6
Codice di condotta: Aree tematiche coperte dal codice di
condotta, meccanismi per verificare il rispetto del
Exploration and
63 100 8.6 codice, aspetti coperti dalla politica di anticorruzione
Production
e concussione, disclosure su casi di concussione e
corruzione;
Gas Portfolio 84 100 5.7
Exploration & Production: Reserve Life Index, F&D costs,
Customer rel. emissioni di CO2/produzione;
83 98 2.9
Management Gas portfolio: Reserve Life Index, % di gas sulla produzione
di idrocarburi, revenues da LNG;
Brand Management
60 114 2.9 Customer relation Management: Target sulla sod-
disfazione dei clienti, gestione dei feedback;
Trasparenza Brand Management: Sistemi di gestione del brand e di
100 100 1.1
finanziaria definizione del valore del brand;
Trasparenza finanziaria: Partecipazione all’EITI.
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DJSI World 2008: Environmental Dimension
Sub-area Punteggio Best Peso % Evaluation area
Eni % %
Operational ecoefficiency: Oil spill, Emissioni di metano,
Operational eco 85 89 2.9
Emissioni dirette di GHG, consumi di energia,
efficiency
consumi di acqua, produzione di rifiuti, emissioni di
NOx, SOx, VOC;
87 93 3
Environmental
Environmental Reporting: Trasparenza, affidabilità e
Reporting
completezza dei dati ambientali pubblicati;
97 97 2.9
Environmental Environmental policy: Policy e linee guida ambientali,
sostanze tossiche bandite nelle operazioni,
Policy
copertura delle certificazioni edegli audit ambientali,
Renewable Energy 50 100 4.6 situazioni di crisi ambientale con impatto sulla
reputazione;
77 87 8.6 Renewable Energy: Potenza istallata, energia prodotta,
Climate strategy
capex;
Climate strategy: Indice di emissione di CO2, Target di
Refining/ 90 100 4.6
riduzione dei gas serra, Emissioni di GHG nella
Cleaner Fuel
catena di approvvigionamento e dei consumatori
90 98 2.9 finali, analisi di sensitività finanziaria dell’impatto del
Biodiversity
prezzo della CO2;
Refining / Cleaner Fuel: Capacità di raffinazione, volumi di
vendita di biofuel;
Biodiversity: Casi studio su biodiversità, EIA, SIA e
pubblicazioni dei relativi risultati;
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DJSI World 2008: Social Dimension
Sub-area Punteggio Best Peso % Evaluation area
Eni % %
Labor Practice: Diversità, remunerazione uomo/donna, libertà
Labor Practice
di associazione, turnover, salute e sicurezza, sistema di gestione
80 90 5.2
delle lamentele, adesione a convenzioni sui Diritti Umani;
Human capital development: Skill mapping e relativi indicatori;
Human Capital 64 100 5.6
Talent attraction and retention: Remunerazione legata alla
development
performance, comunicazione ai dipendenti, survey di
Talent Attraction & soddisfazione del personale, benefit aggiuntivi a quelli previsti per
71 86 5.6
Retention legge;
Corporate Citizenship: Monitoraggio delle ricadute degli
Corporate
investimenti sul territorio, contributi volontari;
83 96 3
Citizenship
Social reporting: Giudizio sul reporting sociale;
Social reporting Standards for Suppliars: Standard di selezione dei fornitori e
93 100 3
misure di verifica, trasparenza su approvvigionamenti;
Standards for Occupational Health & Safety: performance di salute e
80 80 2.9
Suppliers sicurezza, programmi e audit di salute e sicurezza;
Stakeholder engagement: Principi, linee guida e procedure per
Occupational
78 88 2.9 il coinvolgimento degli stakeholder;
Health & Safety
Social Impact on communities: Metodologia di coinvolgimento
Stakeholder delle comunità locali, traduzione di politiche e linee guida nelle
100 100 1.1
engagement lingue locali, casi di relocation/resettlement.
Social Impacts on
2.9
92 100
Communities
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The O&G companies in the Dow Jones Sustainability
and FTSE4Good Indexes
DJSI World 08 FTSE4Good Global 08
Eligible Oil&Gas companies: 109 Selected: 13 Eligible Oil&Gas companies: ND Selected: 14
DJSI STOXX 08
Eligible Oil&Gas companies: 15 Selected: 4
DJSI World 08 DJSI STOXX 08 FTSE4Good 08
BG Group UK *
*
BP UK *
*
Cairn Energy UK Fallen out of the FTSE4Good in March 08
Cosmo Oil Japan *
EnCana Canada *
Leader in the O&G scetor of the DJSI World
Eni Italy *
*
* Admitted in the DJSI STOXX
NesteOil Finland *
Nexen Canada *
Norsk Hydro Norway *
(a)
(a)
Origin Energy Australia *
Petrobras Brazil *
Premier Oil UK *
Repsol YPF Spain *
*
*
Fallen out of the DJSI STOXX
Royal Dutch Shell UK *
*
Sasol South Africa Admitted in the DJSI World
*
Showa Shell Sekiyu k.k. Japan *
StatoilHydro Norway *
*
*
Suncor Energy Canada Fallen out of the DJSI World
*
Sunoco USA *
Total France *
*
*
Woodside Petroleum Australia *
(a) Norsk Hydro is in the aluminium sector of the Dow Jones indexes
Fonte: SAM - Dow Jones and FTSE
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Eni’s sustainability path
Eni DJSI World Sector Leader
2006 2007 2008
“Standardized” sustainability
Standardization of the
organizational / operational
machine
Sustainability project and
identifying areas for Value creation through
improvement Sustainability
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The Milestones
First Sustainability Report published (April ‘07)
Sustainability guidelines and procedures issued (December ’07)
Admission into the DJSI World, FTSE4Good indexes, Carbon Disclosure Leadership
Index 2007 (CDP 5) and better ranking in the Goldman Sachs Sustain ranking
(September 2007)
Sustainability Areas of Improvement approved (October ‘07)
Sustainability Report 2007 published (March ‘08)
Ranking in the FTSE4Good confirmed until December 2008
Questionnaire for the evaluation DJSI World 2008 forwarded
Areas of Improvement 2008 approved and formulation of the Sustainability section of the
Strategic Plan 2009-2012
Leader in the Oil & Gas sector in DJSI 2008
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Eni’s Sustainability Model
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The Sustainability Processes: integration & commitment
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2009 Areas of Improvement: Environment
Climate change: Monitoring and overall target Eni
Biodiversity and water resources: Strategies and assessment
Atmospheric emissions: Monitoring and target on sector emissions
Eco-efficiency (effluents, waste, soil): Monitoring and target on unloading and waste
Eco-efficient products: New solutions and products for clients
Environmental management systems: Coverage of the certifications
Sustainable management of buildings: Mobility, efficiency and renewable sources
(Renewable sources: Production of renewable energy)
2009 Areas of Improvement: Communities and territories
Cooperation model: Extension Eni model
Human Rights: Implementation of the Guidelines
Engagement of stakeholders: Engagement of local stakeholders and
NGOs
Interventions for the communities: Promotion of local development
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2009 Areas of Improvement: Governance
Brand management: Brand value & corporate image
Risk management: Integrated risk management
Customer relationship management: Customer satisfaction monitoring
Supply Chain Management: Suppliers control in critic areas
Business Ethics: Code of Ethics dissemination
Corporate Governance: Definition of the Board’s role for Sustainability
2009 Areas of Improvement: People
Safety: Fatalities and injuries rates reduction
Human capital development: Extension of the HR management system in
all operative contexts
Diversity & Inclusion: Diversity’s valorisation
Talent attraction & Retention: Employees’ engagement
Health: Application of Health Man. System worldwide
Industrial relations and labour standards: Improvement of industrial relations worldwide
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Managing the complexity for a sustainable development
Eni defines its commitment for a sustainable
development: “People who operate with thirty years
contracts on a territory, in any area of the
Bearing in mind a a more and more complex
world, cannot think as pirates.
landscape of the energy, social and economic
In the Italian language the extraction
scenario;
activities are called “cultivation of
Listening to its interlocutors which have hydrocarbon deposits”. In English, the
multiple expectations; term used is “exploitation”. There’s a big
difference.
Keeping into consideration the contexts in
What we call today sustainability, Eni’s
which it operates, in a constant dialectic
men and women, which work worldwide
between local realities and global realities; alongside with people with different
Managing topics and aspects deeply languages and cultures, have always
simply called work.”
intertwined: each issue regarding
environments regards people, each
From the statement of a geologist who
technological innovation impacts on the quality
works for Eni for the book “Abitare il
of the environment and on the life of the Mondo”
communities, each economic decision must be
analyzed in its implications on the natural
environment and on the society…
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