Consolidated disclosure of non-financial information (NFI)

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In accordance with the Italian Legislative Decree 254/2016

Introduction

Eni’s 2017 Consolidated Non-Financial Information (NFI) has been prepared structuring the report on the three levers of Eni’s integrated business model (Path to Decarbonisation, Operating Model and Cooperation Model) whose objective is to create long-term value for stakeholders, combining financial stability with social and environmental sustainability.

The NFI provides an integrated view on the topics set out in the Italian Legislative Decree 254/2016 (Decree), also by providing references to other sections of the Integrated Annual Report or other company documents prepared in accordance with the regulations in force (Corporate Governance Report)¹, if the information is already contained therein or to provide further explanation.

In particular:

the company organizational and management model is illustrated within the Integrated Annual Report in the “Business model” section, which outlines the main characteristics of Eni’s management and organization models for the following areas: environment, climate, people, health and safety, human rights, supply chain, transparency and anti-corruption, social, research and development;
risk management, implemented through the Integrated Risk Management (IRM) Model is described in the following sections of the Integrated Annual Report: (i) “Integrated Risk Management”, including the IRM model, the control levels, the process and its governance, integration with sustainability and the main activities for 2017; (ii) “Targets, risks and treatment measures”, showing the Top Risks for Eni and the main actions taken by the company to mitigate them; (iii) “Risk factors and uncertainties”, where the main non-financial risks, their potential impacts and treatment actions are described in greater detail;
company policies are described in the Non-Financial Disclosure in the section “Eni’s main regulatory instruments related to socio-environmental areas defined by the Italian Legislative Decree 254/2016” which summarises the main public commitments that Eni has taken. Eni has set-up a regulatory system composed of direction, coordination and control instruments (Policies and Management System Guidelines - MSGs) and instruments which define the operating procedures to be used for performing activities (procedures and operating instructions). The Policies, approved by the Board of Directors, define the principles and general rules of conduct on which Eni’s activities must, without exception, be based. The MSGs are common guidelines for all Eni units for the management of operating and business support processes and cross-cutting compliance and governance processes, including sustainability aspects;
the main performance results are illustrated under the headings “Path to Decarbonization”, “Operating model” and “Cooperation model” which represent Eni’s strategy on the various areas covered, the main initiatives for the year and, in the paragraphs on “Metrics and Comments”, description of the results for the last three years. The contents of the “Path to Decarbonization” are drafted according to the voluntary recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) defined by the Financial Stability Board.

As in previous years, Eni will also publish, on the occasion of the Shareholders’ Meeting, the Sustainability Report (Eni for) which will continue to be a voluntary disclosure document, certified according to the GRI Standards and with its own limited assurance. This report details the three levers of the integrated business model and the most relevant initiatives for the year.

Below is a table showing the correspondence between the information content required by the Decree and its position within the NFI, the Integrated Annual Report and other company documents required by law.

(1) Further information on Eni’s Corporate Governance can be found on Eni’s Corporate Governance Report, published on the Company’s website in the Governance section.

AREAS OF THE ITALIAN LEGISLATIVE DECREE 254/2016	PARAGRAPHS INCLUDED IN THE NFI	THEMES AND FOCUSES IN THE INTEGRATED ANNUAL REPORT (IAR) AND IN OTHER 2017 DOCUMENTS
COMPANY MANAGEMENT MODEL AND GOVERNANCE Art. 3.1, paragraph a)	Path to Decarbonization, pp. 94-97 Operating Model, pp. 98-105 Cooperation Model, p. 106	IAR	Business Model, pp. 18-19 Governance, pp. 28-31 Key sustainability issues and stakeholders’ perspective, pp. 15-17
		CGR	Responsible and sustainable approach, pp. 9-11 Corporate Governance Model, pp. 11-15 Board of Directors: Composition pp. 36-41 and Board induction, pp. 56-57 Board Committees, pp. 57-66 Board of Statutory Auditors, pp. 67-75 Model 231, pp. 102-103
POLICIES Art. 3.1, paragraph b)	Eni’s main regulatory instruments, p. 93	CGR	Eni Regulatory System, pp. 90-112
RISK MANAGEMENT MODEL Art. 3.1, paragraph c)	-	IAR	Integrated Risk Management pp. 24-25; Targets, risks and treatment measures, pp. 26-27; Political Considerations, pp. 81-82; Risks associated with the exploration and production of oil and natural gas, pp. 78-81; Safety, security, environmental and other operational risks, pp. 77-78; Risks related to legal proceedings and compliance with anti-corruption legislation, pp. 86-87; Risks related to climate change, pp. 85-86.

PATH TO DECARBONIZATION

AREAS OF THE ITALIAN LEGISLATIVE DECREE 254/2016		PARAGRAPHS INCLUDED IN THE NFI	THEMES AND FOCUSES IN THE INTEGRATED ANNUAL REPORT (IAR) AND IN OTHER 2017 DOCUMENTS
	CLIMATE CHANGE Art. 3.2, paragraph a) Art. 3.2, paragraph b)	Eni’s main regulatory instruments, p. 93 Path to decarbonization (governance, risk management and strategy), pp. 94-97	IAR	Business Model, pp. 18-19 Integrated Risk Management, pp. 24-27; Safety, security, environmental and other operational risks, pp. 77-78; Risks related to climate change, pp. 85-86 Scenario and strategy, pp. 20-23
			CGR	Responsible and sustainable approach, pp. 9-11

OPERATING MODEL

AREAS OF THE ITALIAN LEGISLATIVE DECREE 254/2016		PARAGRAPHS INCLUDED IN THE NFI	THEMES AND FOCUSES IN THE INTEGRATED ANNUAL REPORT (IAR) AND IN OTHER 2017 DOCUMENTS
	PEOPLE Art. 3.2, paragraph d) Art. 3.2, paragraph c)	Eni’s main regulatory instruments, p. 93 People (employment, diversity, development, training, health), pp. 98-100 Safety, p. 100	IAR	Key sustainability issues and stakeholders’ perspective, pp. 15-17 Business model, pp. 18-19 Integrated Risk Management pp. 24-27; Risk factors and uncertainties: Risks associated with the exploration and production of oil and natural gas, pp. 78-81; Safety, security, environmental and other operational risks, pp. 77-78; Governance, pp. 28-31 (Remuneration Policy, p. 31)
	RESPECT FOR THE ENVIRONMENT Art. 3.2, paragraph a, b, c)	Eni’s main regulatory instruments, p. 93 Respect for the environment (circular economy, water, oil spills, biodiversity), pp. 101-102	IAR	Business model, pp. 18-19 Integrated Risk Management, pp. 24-27; Risks associated with the exploration and production of oil and natural gas, pp. 78-81; Safety, security, environmental and other operational risks, pp. 77-78
	HUMAN RIGHTS Art. 3.2, paragraph e)	Eni’s main regulatory instruments, p. 93 Human rights (security, training, whistleblowing), pp. 103-104	IAR	Business model, pp. 18-19
	HUMAN RIGHTS Art. 3.2, paragraph e)		CGR	Responsible and sustainable approach, pp. 9-11
	SUPPLIERS Art. 3.1, paragraph c)	Eni’s main regulatory instruments, p. 93 Suppliers, p. 104	IAR	Business model, pp. 18-19
	TRANSPARENCY AND ANTI-CORRUPTION Art. 3.2, paragraph f)	Eni’s main regulatory instruments, p. 93 Transparency and Anti-Corruption, p. 105	IAR	Business model, pp. 18-19 Integrated Risk Management, pp. 24-27; Risk related to legal proceedings and compliance with anti-corruption legislation, pp. 86-87
			CGR	Principles and values. The Code of Ethics, p. 8; Anti-corruption Compliance Programme, pp. 104-106

COOPERATION MODEL

AREAS OF THE ITALIAN LEGISLATIVE DECREE 254/2016

PARAGRAPHS INCLUDED IN THE NFI

THEMES AND FOCUSES IN THE INTEGRATED ANNUAL REPORT (IAR) AND IN OTHER 2017 DOCUMENTS

IAR	Integrated Annual Report.			Sections / paragraphs containing the information required by the Italian Legislative Decree 254/2016.
CGR	Corporate Governance Report.			Sections / paragraphs to which reference is made for further details.

LOCAL COMMUNITIES
Art. 3.2, paragraph d)

Eni’s main regulatory instruments, p. 93
Cooperation model, p. 106

IAR

Business Model, pp. 18-19
Integrated Risk Management, pp. 24-27; Political considerations, pp. 81-82; Risks associated with the exploration and production of oil and natural gas, pp. 78-81

Eni’s main regulatory instruments related to socio-environmental areas defined by the Decree 254/2016

Path to Decarbonization

Climate change

Objective

Fight against climate change

Documents

“Sustainability” policy, Eni’s Position on Biomass

Commitment to:

reduce greenhouse gas emissions, improving energy efficiency and increasing the use of low carbon content fuel
develop and implement new technologies for the reduction of climate-altering emissions and more efficient energy production
develop flexible mechanisms and instruments to reduce deforestation
promote sustainable management of water resources
assure a sustainable management of biomass throughout the supply chain
acquire palm oil produced only in a sustainable way, in compliance with social, environmental and safety requirements

Operating model

People, health e safety

Objective

Valorize Eni’s people and protect their health and safety

Documents

“Our people”, “Integrity in our operations” policies

Commitment to:

respect the dignity of each person, valuing diversity, whether related to culture, ethnicity, gender, age, sexual orientation or disability
provide managers with tools and support for the management and development of the people working for them
identify the essential knowledge and skills for company growth and promote their enhancement, development and sharing
adopt equitable remuneration systems that motivate and support the retention of the best people to meet the needs of the business
conduct activities in accordance with agreements and regulations on workers’ health and safety and based on the principles of precaution, prevention, protection and continuous improvement

Operating model

Respect for the environment

Objective

Use resources efficiently and protect biodiversity and ecosystem services

Documents

“Sustainability”, “Integrity in our operations” policies, “Eni biodiversity and ecosystem services policy”

Commitment to:

consider, when evaluating projects and in operational practices, the presence of protected areas and biodiversity valuable areas
identify potential impacts of Eni operations on biodiversity and implement mitigation actions
ensure connections with environmental aspects (climate change, BES^(a) and management of water resources) and social issues such as the sustainable development of local communities
promote dialogue with stakeholders and partnership with governmental organisations and NGOs
promote efficient use of resources and reduce emissions into the air, water and soil

Operating model

Human rights

Objective

Protect human rights (HR)

Documents

“Sustainability”, “Our people”, “Our Partners in the Value Chain”, “Integrity in our operations” policies; Code of Ethics; Eni Guidelines for the Protection and Promotion of Human Rights

Commitment to:

respect Human Rights in Eni operations and to promote similar respect by Business Partners and stakeholders
contribute to the creation of the socioeconomic conditions necessary for the actual enjoyment of Human Rights
take into account Human Rights issues, from the very first feasibility evaluation phases of new projects and respect the distinctive rights of indigenous populations and vulnerable groups
select partners who meet Eni’s requirements in terms of professionalism, ethics, honesty and transparency, monitoring their performance over time with the aim of continuous improvement
minimize the necessity for intervention by state and/or private security forces to protect employees and assets

Operating model

Transparency and anti-corruption

Objective

Combat anti-corruption and bribery

Documents

“Anti-Corruption” Management System Guideline, “Our partners in the value chain” policy

Commitment to:

carry out business activities with fairness, correctness, transparency, honesty and integrity in compliance with the law
prohibit bribery without exception
prohibit: offering, promising, giving, paying, directly or indirectly, benefits of any nature to a Public Official or a private person (active corruption)
prohibit: accepting, directly or indirectly, benefits of any nature from a Public Official or a private person (passive corruption)
ensure that all Eni’s employees and partners comply with the internal anti-corruption regulations

Cooperation model

Local communities

Objective

Promote relations with local communities and contribute to their development

Documents

“Sustainability” policy

Commitment to:

create growth opportunities and enhance the skills of people and local companies in the territories where Eni operates
involve local communities in order to consider their concerns on new projects, impact assessments and development initiatives
identify and assess the environmental, social, economic and cultural impacts generated by Eni activities, including those on indigenous populations
promote free, prior and informed consultation with local communities
cooperate in initiatives to guarantee independent, long-lasting and sustainable local development

PPath to decarbonization

Eni intends to play a leading role in the energy transition process, supporting the objectives of the Paris Agreement.

Eni has been committed for a long time to promoting full and effective disclosure on climate change and is the only company in the oil&gas industry to take part in the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board. In June 2017, the latter published its voluntary recommendations to encourage effective disclosure of the financial implications of climate change; Eni is committed to a gradual implementation of these recommendations.

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OOperating model

Eni’s operating model pursues excellence with its constant commitment to managing risks and creating opportunities along the whole cycle of activities while respecting people, human rights and the environment.

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CCooperation model

The sustainable approach is one of Eni’s distinctive characteristics and supports the creation of long-term value for stakeholders. In order for this approach to be effective it needs to be systematic and applicable at all stages of the business in all operating contexts.

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RReporting principles and criteria and independent auditors' report

The Non-financial information is drafted in accordance with the Decree 254/2016 and the “Sustainability Reporting Standards”, published by the Global Reporting Initiative (GRI Standards), which represent the reporting standard adopted, “In accordance core” level and had undergone a limited assurance by the independent company which provided assurance to Eni’s Annual Report as of December 31^st, 2017. The performance indicators used are those required by the GRI Standards and are representative of the various areas of the Decree, as well as being in line with the activities carried out and the impacts made by Eni.

Key Performance Indicators, selected according to items identified as the most relevant, are collected on an annual basis and relate to the 2015-2017 period. They concern Eni SpA and its consolidated subsidiaries.

The detection of the information and data is structured in a way to ensure comparability of data across several years. All data refer only to consolidated companies based on the line-by-line method. The data on whistleblowing reports, anti-corruption training and community investment show those received only from fully consolidated entities. To this representation, an additional view was added, in line with other company documents and in continuity with the past. The safety, environment and climate change data are collected from companies with relevant HSE impacts. These data have been represented in two ways: the data only for the fully consolidated entities as required by the Decree and also the data including companies under joint operation or joint control or associates in which Eni has control of operations. The aim is to provide continuity with respect to past publications, consistency with the objectives that the company has set itself, and represent the potential impacts of the activities managed by Eni.

The data related to the fully consolidated perimeter alone are exposed for the first time for the purposes of this NFI and in compliance with the requirements of the Decree. Some data related to the total perimeter of the operated companies have been restated in relation to what is published in the voluntary document “Eni for 2016”.

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Independente auditors’ report on the consolidated disclosure of non-financial information in accordance with article 3, par. 10, of Legislative Decree December 30, 2016, n. 254 and with article 5 of Consob Regulation adopted with Resolution 20267

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