2009 Sustainability Report Preview

*00091* *00091* Sustainability Report 2009 message from the Chief Executive Offi cer In 2009, by strengthening and increasing confi dence from its stakeholders, Eni succeeded in mitigating the downturns of the economic crisis that heavily affected markets. In 2009, Eni was confi rmed as the fi rst oil and natural gas producer in Africa, taking on yet another important role at the global level. These results stem not only from a strategy that increasingly promotes research and the exploitation of the Continent reservoirs but also and above all from our approach: Eni historically aims at developing resources primarily to the benefi t of the producing Countries and then to its own benefi t. This role gives the company a great responsibility towards its stakeholders: Governments and citizens of its operation countries, civil society and international institutions. First and foremost, Eni is responsible for contributing to sustainable development through concrete actions and shared projects that are an integral part of its business activities. Safeguarding people’s rights and helping them to achieve professional and personal growth, contributing to the conservation of the environment and natural resources for the generations to come, cooperating with the Governments in their commitment to transparency, are both the goals and the means of a the long-term covenant between the company and each of the Countries where it operates. These choices lead to tangible results in different areas and in a multitude of African communities, as we illustrate in every section of this Sustainability Report including through the acknowledgments of those who work side by side with us. Those are the same choices that inspire us to participating, promoting and actively applying the principles of the Global Compact, a United Nations initiative that gathers companies, institutions and civil society organizations in cooperating for sustainable development. It is our responsibility to help build the future of Africa and of the rest of the world. a global cooperation for sustainable development Eni’s activities commitments, results and objectives building the future of energy the context and the energy scenarios 4 the heritage of a crisis 4 the green economy 4 current and future energy scenarios 6 securing supplies 8 the security of supplies 8 the support to non-profi t 8 current technologies 10 future energy 11 building the foundations for a global equilibrium 12 the stability of hydrocarbons prices 12 a global agreement to reduce greenhouse gas emissions 12 the carbon management strategy 14 energy effi ciency 14 sustainable transport 15 enhancing trust 16 creating value with people 16 the importance of sustainability for the supply chain 16 transparency and integrity of the Corporate Governance system 17 corporate identity and trust between company and consumers 17 strengthening partnership with countries 18 leadership in promoting principles 18 the Global Compact 18 relationships with countries and the Cooperation and Development Model 19 the protection and preservation of human rights 20 the fair use of resources 20 energy for development the value of relationships 24 the system of relations 24 managing relations 26 relations with territory 28 Cooperation and Development Model 28 strategic and integrated agreements 28 the communities’ engagement and the knowledge of territory 30 contribution to local development 32 relations with suppliers 34 the promotion and development of local content 34 protection and enhancement of biodiversity and ecosystems 36 main initiatives for the development of territories 38 the culture of sustainable development 40 relations with research and educational institutions 40 the promotion of culture 42 relations with customers and consumers 44 enhancing sustainability for customers and consumers 44 relations with Consumer Associations 46 managing sustainability sustainability: from principles to business processes 50 a renewed commitment to the fi ght against corruption 50 the activities of the Team for the Promotion of the Code of Ethics and the innovations to Model 231 51 activities for the Human Rights Compliance Assessment project 51 Corporate Governance system and monitoring tools for ensuring correct corporate management 52 initiatives benefi ting the shareholders 55 the diversity among corporate bodies within Eni’s Group 55 the support of non-profi ts within the corporate management 56 people 58 safety 58 health 60 the international dimension 62 enhancing the value of everyone’s work 64 change management and people wellness 68 environment 70 water as primary resource 70 climate change and energy effi ciency 72 atmospheric emissions 73 oil spills 74 reclamation of contaminated sites 76 waste management 77 technological innovation 78 technological innovation serving the business 78 the value of intellectual capital 80 References to the 10 Principles of the Global Compact (GC) appendix are included. methodology note 82 The quotes at the beginning of the Sustainability Report comparison table GRI - Global Compact 84 sections are from the CEO of Eni, Paolo Scaroni. assurance statement 86 The photos show the El Borma oilfi eld in Tunisia: an homage index 88 to the 50th Anniversary of SITEP, the National Oil Company in acronyms 88 joint venture with Eni. Sustainability Indicators (separate detailed section) a global cooperation for sustainable development Conversation between Paolo Scaroni and Jeffrey D. Sachs (Columbia University, 8th March 2010) We are living an intensely interconnected world: production, energy, technology systems are linked, but also the risks related to them are global phenomena now. This does not mean that we can forget about local realities – one of the aspects of an interconnected world is that even local problems spread everywhere – but unless we take these problems on a global scale and cooperate globally we can’t solve them. An international company such as Eni is global by defi nition: the product we make – essentially oil and gas – has a global market and it has been so for many years. Now the issue is how do we cope with the new threats of the world today looking globally at them. Of course we cannot make choices that belong to politics or to international organization, but certainly we can play a role in facing major issues like poverty, Jeffrey D. Sachs, like climate change, like sustainable development of the Countries The Earth Institute Director, Columbia University we work in. We consider these issues at the center of our strategy, in order to give answers from a global point of view. I have read an article of Professor Sachs a few days ago in which he suggests that the crisis shows that we should re-write the macroeconomic theory in which we live. I am not sure that we really have to re-write all of it, but certainly a large part must be rethought. Just an example related to what we do: last summer at the G8 we suggested Paolo Scaroni a mechanism to control oil prices. To keep oil prices ranging between 60 and 80 dollars means that prices are Eni Chief Executive Offi cer high enough for the oil producing companies to survive, low enough for the economies of the world to start again being prosperous. At the same time, this range is high enough to allow renewable energies to be developed, stabilizing investments on them. This is just one area in which we need a global intervention, because certainly nobody can decide alone on it. This kind of mechanism and this is just one example of how we should be thinking globally if we want to fi nd complex and concrete solutions for major problems. It’s sure that this crisis, which spread globally with extraordinary speed from Wall Street, is a good example of the negative effect of globalization phenomenon. What I wrote in the article is that there are other aspects to this crisis that we should take note of and that are not considered enough by traditional economic theories. This is actually a crisis of fi nances, but also of energy market, of environment, of food supplies – all wrapped into one. In this interconnected world where we have a resource crisis, we have a global social crisis. We are focusing on fi nance to try to stabilize every aspect of it, but in fact unless we take a holistic view we are not really going to get out of it in a reliable way, as the example of oil prices stabilization shows. If we want to solve problems for the longer term an integrated global view that goes from fi nance to energy, to food, to climate is required. Actually the major companies in the world, like Eni, are more global than the Governments of the world. I think this kind of players are not just necessary to make business more sustainable, they are a sine qua non for the world, before and after the crisis. I really believe that companies justify their existence only if they are looking for the long-term benefi t of the society which they operate. Everything we do in terms of Sustainability is aimed at giving to the Countries where we operate more than what we take. This means keeping an adequate level of spending in good times and in bad times. Eni is a relatively young company – it has been founded after the second world war – and it had to fi nd its way into the oil market in which other giants were already operating. The founder of the Company, Enrico Mattei, thought that the best way to enter into new Countries, particularly in Africa, was to fi nd a different approach, in which we have been sitting to the side of the Governments, trying to fi nd solutions for the Country in many different areas which have nothing to do with oil, including infrastructure, agriculture, electricity. This has been extremely successful, because we have been the fastest growing oil company of the world by far and we still are.

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