Managing the complexity
of a sustainable development
Why sustainability? The world energy scenario



   The world energy scenario, that is the “future of energy”, is extremel...
Sustainability to operate worldwide


                                 Listening to the communities

             Strategi...
Market requests
Sustainability, seen as an answer to the challenges of the industry and an element of
risk managing, is pl...
FTSE4Good Indexes - Overview



         The FTSE4Good index was launched in 2001 by FTSE in order to include the
        ...
Dow Jones Sustainability Indexes - Overview


     Dow Jones Sustainability Index (DJSI) World was launched in 1999 by Sam...
DJSI World 2008: Economic dimension

    Sub-area        Punteggio   Best   Peso %   Evaluation area
                     ...
DJSI World 2008: Environmental Dimension


  Sub-area        Punteggio   Best   Peso %   Evaluation area
                 ...
DJSI World 2008: Social Dimension

Sub-area         Punteggio   Best   Peso %   Evaluation area
                   Eni %  ...
The O&G companies in the Dow Jones Sustainability
and FTSE4Good Indexes
   DJSI World 08                                  ...
Eni’s sustainability path
                                                              Eni DJSI World Sector Leader




 ...
The Milestones

 First Sustainability Report published (April ‘07)
 Sustainability guidelines and procedures issued (Decem...
Eni’s Sustainability Model




                             13
The Sustainability Processes: integration & commitment




                                                         14
2009 Areas of Improvement: Environment

Climate change:                            Monitoring and overall target Eni
Biodi...
2009 Areas of Improvement: Governance

Brand management:                            Brand value & corporate image
Risk man...
Managing the complexity for a sustainable development

Eni defines its commitment for a sustainable
development:          ...
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Eni: Managing the complexity of a sustainable development

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Eni: Managing the complexity of a sustainable development

  1. 1. Managing the complexity of a sustainable development
  2. 2. 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. 2
  3. 3. 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 3
  4. 4. 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. 4
  5. 5. 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 5
  6. 6. 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) 6
  7. 7. 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. 7
  8. 8. 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; 8
  9. 9. 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 9
  10. 10. 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 10
  11. 11. 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 11
  12. 12. 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 12
  13. 13. Eni’s Sustainability Model 13
  14. 14. The Sustainability Processes: integration & commitment 14
  15. 15. 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 15
  16. 16. 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 16
  17. 17. 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… 17

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