Business model

Eni’s business model targets long-term value creation for its stakeholders by delivering on profitability and growth, efficiency and operational excellence and handling operational risks of its businesses, as well as environmental conservation, and local communities relationships, preserving health and safety of people working in Eni and with Eni, in respect of human rights, ethics and transparency.

The main capitals used by Eni (financial capital, productive 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).

2014 financial results and sustainability performance rely on the responsible and efficient use of our capitals.

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 and to the way by which each strategic target is achieved see the (PDF:) Integrated Performance tables.

(Mouse over or click on the image for more information.)

(PDF:) continue reading (PDF P. 18)

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 and selective upstream growth
  • focus on core areas
  • partnership with NOCs
  • reduction of time-to-market
  • operatorship
  • gas supply contracts renegotiation
  • development of green fuels and chemical products
  • trading in energy commodities
  • customer retention in gas and fuel markets
  • efficiency and cost control
  • reduction of capacity in downstream businesses

assets

What distintive assets for delivering Sustainable Value?

  • solid and competitive resource base
  • conventional oil&gas assets with low breakeven
  • skills in exploration activities and upstream operations
  • gas supply portfolio aligned to market conditions
  • large and loyal customer base
  • bio-refineries and green chemical plants
  • eni brand

drivers

What principles for delivering Sustainable Value?

  • integrity in business management
  • support Countries development
  • excellence in conducting operations
  • innovation in developing competitive solutions to face complexity
  • inclusiveness of Eni's people and development of know-how and skills
  • integration of financial and non-financial issues in the company's plans and processes

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

Eni’s main actions

  • Cash flow from operations
  • Bank loans
  • Bonds
  • Maintaining strategic liquidity
  • Hedging
  • Dividends
  • Working capital optimization

value creation for Eni’s stakeholders

  • Yields
  • Share price appreciation
  • Social and economical growth
  • Satellite activities

productive 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

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

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

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

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
  • Job enhancement

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

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

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

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

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 spill
  • Reduction blow out risk
  • Preservation of biodiversity
  • Green products
  • Containment of water consumption (reinjection and water reuse)
  • Energy efficiency