Letter from the Chief Executive Of cer Eni Communication on Progress (COP) 2008 HUMAN RIGHTS 1. Businesses should support and respect the protection of internationally proclaimed human rights; and 2. make sure that they are not complicit in human rights abuses. Reference to corporate governance policy Eni Guidelines for the Promotion and Protection of Human Rights; the Code of Ethics; the Indigeneous People Policy of eni Australia and eni Norge (eni Norwegian subsidiary); Security Policy and Guidelines of the Nigerian subsidiary NAOC (Nigerian Agip Oil Company). The inclusion of clauses with reference to the corporate Guidelines on Human Rights in procurement contracts. Speci c actions in 2008 Endorsement of the initiative promoted by the High Commissioner for Human Rights as well as by the Global Compact document at the time of 60th anniversary of the universal declaration of Human Rights. A project was launched for Risk Analysis on the Protection of Human Rights (Human Rights Compliance Assessment HRCA) in some pilot areas (Nigeria and Kazakhstan). Planning of HRCA in Algeria, Congo and Egypt for 2009. Future commitments To extend the implementation of the Guidelines indicated; to upgrade the security system in line with the Voluntary Principles on Human Rights; to expand HRCAs to other operating realities; to implement improvement action plans following the HRCAs already conducted. Evaluation of the eni participation in the Global Compact Working Group on Human Rights. Outcomes Measurability GRI indexes: EC5, LA4, LA6-9, LA13-14, HR1-9, SO5, PR1-2, PR8, HR1-9, SO5 Reference to KPI indicators Sustainability Report 2008 and Annex Suppliers subject to quali cation procedures, including screening on human rights (HR1) pag 78 Percentage of procurement from suppliers subject to quali cation procedures including screening on human rights (HR1) pag 78 Reports the internal audit dept. led by area (HR2) graph pag 31 Reports closed by investigation results 2008 (HR2) graph pag 31 Training of key of cers (executives and corporate communication upper management) through Webseminars and pag 57 virtual forums (HR3) Number of counsultations and negotiations with the trade unions (HR5) pag 45 Number of employees covered by collective bargaining (LA4) Ref to SR pag 45 Percentage of employees covered by collective bargaining (LA4) Ref to SR pag 45 LABOUR STANDARDS 3. Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; 4. the elimination of all forms of forced and compulsory labour; 5. the effective abolition of child labour; and 6. the elimination of discrimination in respect of employment and occupation. 1 < Reference to corporate governance policy Code of Ethics and Guidelines for the Promotion and Protection of Human Rights; agreement of the eni European Workers Committee; the ICEM Agreement; Self-disciplinary Code; Model 231. Speci c actions in 2008 In Italy an Industrial Relations Protocol, signed in 2001 with the leading union organizations and renewed on a regular basis, is in operation; updating of the transnational ICEM (International Federation of Chemical, Energy, Mine and General Workers Unions) agreement and updating of the agreement with the Comitato Aziendale Europeo (CAE). Speci c action plan following the rst corporate culture analysis: internal communication, leadership and work lifebalance programs (including the Nursery School Project). The Diversity Project which aims to evaluate the scale of diversity: cultural, age and gender. For cultural diversity: HR Towards the future and development programs for local employees in operating countries; for gender diversity: eni’s involvement with the European Commission group WIST Women In Science and Technology; Communication Project on parents’ rights and available company’s services. For age diversity, introduction of the professional title of Knowledge owner to recognize a speci c status to senior employees having critical skills and knowledge acquired over a long period of time. Future commitments The de nition of a research project on International Industrial Relations, in order to identify possible critical areas; promotion of an action plan in support of the Diversity Project. Outcomes Measurability GRI indexes: LA4-5, HR1-3, HR5, SO5, HR1-3, HR7, SO5, HR1-3, HR6, SO5, EC7, LA2, LA13-14, HR1-4, SO5 Reference to KPI indicators Sustainability Report 2008 and Annex Number of employees covered by collective bargaining (LA4) pag 45 Foreign locals by professional category 2008 (EC7) pag 45 and Annex pag 3 Turnover rate by gender – Italy and abroad 2008 (LA2) pag 40 Number of indipendent and none executive members in the Board (LA13) pag 30 Number of Minority Members in the Board (LA13) pag 30 graph pag 40 Number of employees by gender and professional category 2008 (LA13) and table pag 41 graph pag 40 Number of employees by age and professional category (LA13 BS 41) and table pag 41 Percentage of women managers (LA13) table pag 41 ENVIRONMENT 7. Businesses should support a precautionary approach to environmental challenges; 8. undertake initiatives to promote greater environmental responsibility; and 9. encourage the development and diffusion of environmentally friendly technologies. 2 < Reference to corporate governance policy Guidelines on Health, Safety and the Environment and Public Safety; Guidelines on Environmental, Social and Health Impact Assessment to be applied to all new relevant projects. Norms for the management of emissions as part of the emissions trading arrangement; Operating procedures for the monitoring and reporting of HSE data; Technical Audit and Veri cation of HSE Compliance - Periodic Reporting by Business Units (BUs) to HSE eni corporate; Technical documentation relative to: HSE Data Reporting, the Analysis and identi cation of HSE simulation models of reference for the eni group (with technical enclosures). Speci c actions in 2008 Implementation of emission reduction projects through energy saving and reduction of emissions from aring and venting. Implementation of water injection projects and of actions for groundwater reuse for the re ning and petrochemical sectors, reduction of water withdrawal and increase in water recycling. Introduction of Ecosystem and Biodiversity Protection into the company’s processes. Biodiversity assessments in Italy (Region Basilicata), Ecuador, Kazakhstan and the Arctic Region. Cooperation with MIT and Solar Frontiers Research Program in the development of technologies for the exploitation of solar energy. The eni-Enel agreement for the development of CCS technology and a pilot project for the capture of CO2 and the monitoring of storage safety. A protocol of understanding between eni-Enel-Ministry of the Environment for the spread of CCS and the promotion of renewable sources. Future commitments The de nition of policy and strategies in the area of biodiversity and ecosystem servicies. The establishment of partnerships with relevant NGOs in the area. Achievement of targets set on GHG, energy ef ciency and NOx-SOx emissions. Broaden the realisation of projects for the reduction of oil spills. Achievement of targets set on freshwater consumption and water injection. The de nition of targets for the reduction of the waste and the launch of a system for the continuing monitoring of HSE performance. New offers of eco-compatible products and services, and savings incentives for customers. The de nition of policy on biofuels and participation in initiatives for the sustainability of biofuel production. Outcomes Measurability GRI indexes: EC2, EN18, EN26, EN30, SO5, EN1-30, SO5, PR3-4, EN2, EN5-7, EN10, EN18, EN26-27, EN30, SO5 Reference to KPI indicators Sustainability Report 2008 and Annex Number of plants involved in the ETS (EC2) pag 48 Total emissions from ETS plants (EC2) pag 48 Surplus/de cit of allowances assigned (EC2) pag 48 GHG emissions (EN18) pag 48 Percentage of GHG emission reductions (EN18) pag 48 GHG from aring (EN18) pag 48 and 16 CO2 emissions indexes by divisions (EN18) pag 48-49 Power plant energy performance index and energy intensity index in re ning (EN18) pag 49 Environment al expenditure (EN30) pag 46 Environment al expenditures by type pag 46 Water consumption – fresh water (EN1) pag 47 Water consumption – sea water (EN1) Annex pag 3 Direct energy consumption by primary energy source (EN3) Annex pag 2 and 4 Energy ef ciency performance indexes (EN5) pag 48 and graph pag 49 Biofuel volumes sold (EN6) Annex pag 4-5 Multienergy stations (EN6) Annex pag 4-5 Initiatives to provide energy-ef cient and reductions in energy requirements as a result of these initiatives (EN6) pag 77 Automotive methane sold (EN6) pag 77 Fresh water withdrawls (EN8) Annex pag 3-4 3 < Reference to KPI indicators Sustainability Report 2008 and Annex Percentage of recycled water (EN10) Annex pag 4 Direct and indirect GHG emissions (EN16) Annex pag 2 SOx and NOx emissions (EN20) pag 50 Waste from production (EN22) pag 50-51 Destination of hazardous and non hazardous waste from production (EN22) pag 50-51 Number and volumes of oil spills (EN23) pag 50 Oil spill volumes by cause (EN23) pag 50 Litigations (EN28) pag 33 ANTI-CORRUPTION 10. Businesses should work against corruption in all its forms, including extortion and bribery. Reference to corporate governance policy Code of Ethics, Adherence to the Extractive Industry Transparency Initiative (EITI) since 2005. Speci c actions in 2008 Transparency as governance tool: Adherence to PACI of the WEF by the Brazilian