Eni’s business model targets long-term value creation for its stakeholders by delivering on profitability and growth in each of its businesses, improving efficiency and mitigating risks.
The main capitals used by Eni (financial capital, manufacture capital, intellectual capital, natural capital, human capital, social and relationship capital) are classified in accordance with the criteria included in the “International IR Framework” published by the International Integrated Reporting Council (IIRC).
Our 2013 robust financial results and sustainability performance rely on the responsible and efficient use of our capitals which resulted in operational excellence, asset integrity, handling of operational risk, preservation of health, safety and the environment.
Hereunder is articulated the map of the main capitals exploited by Eni and actions positively effecting on their quality and availability. At the same time, the scheme evidences how the efficient use of capitals and related connections create value for the company and its stakeholders.
For detailed information on results associated to each capital see the Consolidated Financial Statements and the Consolidated Sustainability Statements.
integrated risk management
Integrated risk management model across our businesses
governance
Framework of stringent and clear rules of governance
strategic guidelines
What are the strategic guidelines to use and develop our assets?
- profitable growth
- strict capex discipline
- focus on core areas
- partnerships with NOCs
- reduction of time to market
- operatorship
- gas supply contracts renegotiation
- leadership in the european gas market
- capacity reduction in commodity businesses
- leveraging on asset flexibility
- focus on customers and premium⁄niche segments
assets
What distintive assets for delivering Sustainable Value?
- solid resource base
- giant projects
- high potential exploration portfolio
- low cost position
- diversifed gas supply portfolio
- large and international customer base
- plant effciency
- eni brand
drivers
What principles for delivering Sustainable Value?
- cooperation for host countries’ development
- integration all along the energy supply chain
- excellence in conducting our operations
- innovation in developing competitive solutions
- inclusiveness of eni’s people and diversity promotion
- responsibility in managing the business
financial capital |
stock of capital
- Financial structure
- Liquidity reserves
value creation for Eni
- Going concern
- Lower cost of capital
- Reduction of working capital
- Leverage optimization
- M&A opportunities
- Mitigation of market volatility
- Credit worthiness
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Eni’s main actions
- Cash flow from operations
- Bank loans
- Bonds
- Maintaining strategic liquidity
- Hedging
- Dividends
- Buyback
- Working capital optimization
value creation for Eni’s stakeholders
- Yields
- Share price appreciation
- Social and economical growth
- Satellite activities
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manufacture capital |
stock of capital
- Onshore and offshore plants
- Pipelines and storage plants
- Liquefaction plants
- Refineries
- Distribution networks
- Power plants
- Chemical plants
- Buildings and other equipment
value creation for Eni
- Returns
- Enlarging asset portfolio
- Increase assets value
- Reduction of operational risk
- Energy and operational efficiency
- Reputation
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Eni’s main actions
- Technological upgrade
- Process upgrade
- Investment in new businesses (bio-refinery, Green chemistry, car sharing)
- Maintenance and development activities
- Increase environment Certifications (ISO 14001, ISO 50001, EMAS etc.)
value creation for Eni’s stakeholders
- Availability of energy sources and green products
- Employment
- Satellite activities
- Reduction of direct GHG emissions and responsible use of resources
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intellectual capital |
stock of capital
- Technologies and intellectual property
- Corporate internal procedures
- Corporate governance system
- Integrated risk management
- Management and control systems
- Knowledge management
- ICT (Green Data Center)
value creation for Eni
- Competitive advantage
- Risk mitigation
- Transparency
- Performance
- Licence to operate
- Stakeholders’ acceptability
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Eni’s main actions
- Research and development expenditures
- Partnership with centres of excellence
- Development of proprietary technologies and patents
- Application of procedures and systems
- Audit
value creation for Eni’s stakeholders
- Reduction of environmental and social impacts
- Transfer of best available technologies and know-how to host Countries
- Contributing to the fight against corruption
- Green products
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human capital |
stock of capital
- Health and safety of people
- Know-how and skills
- Experience
- Engagement
- Diversity (gender, seniority, geographical)
- Eni’s thinking
value creation for Eni
- Performance
- Efficiency
- Competitiveness
- Innovation
- Risk mitigation
- Reputation
- Talent attraction
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Eni’s main actions
- Safety at work
- Recruiting, education and training on the job
- Promotion of human rights
- Eni’s people engagement
- Knowledge management
- Welfare
- Leveraging on diversity
- Enhancing individual talents and remuneration in accordance to a merit system
value creation for Eni’s stakeholders
- Create employment and preserve jobs
- Wellness of Eni’s people and local communities
- Increase and transfer know-how
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social and relationship capital |
stock of capital
- Relationship with stakeholders (institutions, governments, communities, associations, customers, suppliers, industrial partners, NGO, universities, trade unions)
- Eni’s brand
value creation for Eni
- Operational & social licence
- Reduction of Time to market
- Country risk reduction
- Market share
- Alignment to international best practices
- Reputation
- Competitive advantage
- Suppliers reliability
- Customers retention
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Eni’s main actions
- Stakeholders’ Engagement
- MoU with Governments and local authorities
- Projects for local development and Local content
- Strategic partnerships
- Involvement in international panel discussion
- Development of programmes on research and training
- Partnerships with trade unions
- Quality of services rendered
- Brand management
value creation for Eni’s stakeholders
- Local socio-economical development
- Customers and suppliers satisfaction
- Share of expertise with territories and communities
- Satisfaction and incentive of people
- Promoting respect for workers’ rights
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natural capital |
stock of capital
- Oil and gas reserves
- Water
- Biodiversity and ecosystems
- Air
- Soil
value creation for Eni
- Hydrocarbon reserves growth
- Opex reduction
- Mitigation of operational risk (asset integrity)
- Reputation
- Licence to operate
- Stakeholders’ recognition
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Eni’s main actions
- Exploration, production, transporting, refining and distributing, hydrocarbons
- Investment in new businesses (bio-refinery, Green chemistry, car sharing)
- Investment in technological and process upgrade
- Remediation activities
value creation for Eni’s stakeholders
- Reduction of gas flared
- Reduction of oil spills and blowout
- Preservation of biodiversity
- Green products
- Containment of water consumption (reinjection and water reuse)
- Energy efficiency
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