Eni logo

Annual Report Archive:

3

2

Summary of the

Annual Report 2023

Mission

We are an energy company.

We concretely support a just energy transition, with the objective of preserving our planet and promoting an efficient and sustainable access to energy for all. Our work is based on passion and innovation, on our unique strengths and skills, on the equal dignity of each person, recognizing diversity as a key value for human development, on the responsibility, integrity and transparency of our actions. We believe in the value of long-term partnerships with the Countries and communities where we operate, bringing long-lasting prosperity for all.
Sustainable Development Goals – goal 13 – climate action (icon)Sustainable Development Goals – goal 15 – life on land (icon)Sustainable Development Goals – goal 12 – responsible consumption and production (icon)Sustainable Development Goals – goal 10 – reduced inequalities (icon)Sustainable Development Goals – goal 17 – partnerships for the goals (icon)
Sustainable Development Goals – goal 13 – climate action (icon)Sustainable Development Goals – goal 15 – life on land (icon)Sustainable Development Goals – goal 12 – responsible consumption and production (icon)Sustainable Development Goals – goal 10 – reduced inequalities (icon)Sustainable Development Goals – goal 17 – partnerships for the goals (icon)
Global goals for a sustainable development

The 2030 Agenda for Sustainable Development, presented in September 2015, identifies the 17 Sustainable Development Goals (SDGs) which represent the common targets of sustainable development on the current complex social problems. These goals are an important reference for the international community and Eni in managing activities in those Countries in which it operates.

Sustainable Development Goals – goal 10 – reduced inequalities (icon)Sustainable Development Goals – goal 11 – sustainable cities and communities (icon)Sustainable Development Goals – goal 12 – responsible consumption and production (icon)Sustainable Development Goals – goal 13 – climate action (icon)Sustainable Development Goals – goal 14 – life below water (icon)Sustainable Development Goals – goal 15 – life on land (icon)Sustainable Development Goals – goal 16 – peace, justice and strong institutionsn (icon)Sustainable Development Goals – goal 17 – partnerships for the goals (icon)Sustainable Development Goals (logo)

ActivitiesActivities

Eni activities:
our value chain

Eni is an energy tech company engaged in the entire value chain: from the exploration, development and extraction of oil and natural gas, to the generation of electricity from natural gas and renewable sources, traditional and bio refining and chemical activities, and the development of circular economy processes. Eni extends its reach to end markets, marketing gas, power and products to local markets and to retail and business customers also offering services of energy efficiency and sustainable mobility. Consolidated expertise, technologies, geographical and energy sources diversification, alliances for development, as well as new business and financial models are Eni levers to effectively meet the challenge of a just energy transition, balanced and economically sustainable, while also maintaining a strong focus on value creation for shareholders. Along this path, Eni is committed to become a leading company in the production and sale of progressively decarbonized energy products, increasingly customer-oriented.

Eni’s strategy to reach carbon neutrality by 2050 leverages on an industrial transformation to be implemented by strengthening available and economically sustainable technologies able to immediately contribute to emission reduction, among which:

  • gas component as a bridge energy source in the transition, flanked by investments to reduce CO2 and methane emissions;
  • development of biomethane and biofuels, by increasing feedstocks of bio and renewable raw materials, waste and residues and of an integrated agri-feedstock production chain and contributing to transport decarbonization with no sudden changes to existing infrastructures;
  • renewables through increased installed capacity and integration with the retail business leveraging on large customer base;
  • carbon capture utilization and/or storage (CCUS), currently available to reduce emissions in hard-to-abate sectors, through the development of hubs for the storage of the CO2 from emissions generated by Eni’s and third parties’ industrial plants;
  • progressive development of the production of new energy carriers, including low carbon and renewable hydrogen.

The scale use of these solutions together with research and development of breakthrough technologies, such as magnetic confinement fusion, can support the revolution of the energy sector. Residual emissions, i.e. those that cannot be reduced due to technical and economic constraints, will be offset through high quality carbon offsets.

Eni's activities in the world

61 countries where we operate

5 2 6 8 12 3 7 12 13 3 9 2 19 5 10 12 18 22 Exploration & Production Enilive, Refining and Chemicals Global Gas & LNG portfolio Plenitude & Power AMERICAS AFRICA ASIA AND OCEANIA EUROPE 5 2 6 8 12 3 7 12 13 3 9 2 19 5 10 12 18 22 Exploration & Production Enilive, Refining and Chemicals Global Gas & LNG portfolio Plenitude & Power AMERICAS AFRICA ASIA AND OCEANIA EUROPE

Our value chain

Our 2024 Capital Markets Update in short

Business ModelBusiness Model

We are an integrated energy company committed to a socially fair energy transition that, through tangible and economically sustainable solutions, aims to address the crucial challenges of our time: combating climate change and providing access to energy efficiently and sustainably for all. Our business model is aimed at creating long-term value for all stakeholders through an established presence along the entire energy value chain. Our corporate mission integrates the Sustainable Development Goals (SDGs) of the United Nations 2030 Agenda and our distinctive approach permeates all our activities. Eni continues its commitment ensuring energy security, continuing to guarantee value creation while advancing its transition strategy with a technologically neutral and pragmatic approach aimed at maintaining the competitiveness of the production system and social sustainability.

These objectives leverage a diversified geographic presence and a portfolio of technological solutions which will enable the creation of a decarbonized energy mix. Essential to the achievement of these goals are partnerships and alliances with stakeholders to ensure active involvement in defining Eni’s activities and transforming the energy system.

Our model combines the use of proprietary technologies with the development of an innovative satellite model, which involves the creation of dedicated companies capable of independently accessing the capital market to finance their growth while bringing out the real value of each business. This integrated business model is supported by a Corporate Governance system, inspired by the principles of transparency and integrity, an Integrated Risk Management process ensuring, through the assessment and analysis of the risks and opportunities of the reference scenario, informed and strategic decisions, as well as materiality analysis to examine the most significant impacts generated by Eni on the economy, environment and people, including those on human rights.

The operation of the business model is focused on the best possible use of all the resources (inputs) the organization disposes and on their transformation into outputs, through the implementation of its strategy.

Eni also organically integrates its business plan with the principles of environmental and social sustainability, deploying its actions along three levers:

  1. Carbon neutrality by 2050
  2. Operational excellence
  3. Alliances for the promotion of development

Value creation for stakeholders

Through an integrated presence all along the energy value chain

STRATEGY AND TARGET INPUT (*) OUTPUT (*) 516.2 mln total GJenergy consumption33,142employeesover300,000 km 2 oil & gas exploration/developmentlicencesAgri-feedstock from 7Countries10.1 mlncustomers€70 blncapital employed~9,900patentsStrategicacquisitions€95 mlninvestments forlocal development €9.2 blncapex -10% Net Carbon footprint upstream (Scope 1+2) 0.40 TRIR (recordableinjuries/hoursworked)~900 mln boenew resources3.1 GWEni Group renewable capacity1.65 mln ton/ybiorefinery capacity€4.8 blnshareholders remuneration€16.5 blnadjusted cash flow€17.8 blnproforma adj. EBIT1.66 mln boe/d hydrocarbon production~450 thousand people involved in local development projects (**) R I S K M A N A G E M E N T C O R P O R A T E G O V E R N A N C E MISSION ENERGY EVOLUTION NATURAL RESOURCES I N T E G R A T E D V A L U E C H A I N F I N A N C I A L D I S C I P L I N E PROPRIETARYTECHNOLOGIES AND BREAKTHROUGH SATELLITEMODEL DEEP PORTFOLIOOF OPPORTUNITIES ENERGY SOURCES DIVERSIFICATION Products andprocessesdecarbonization CARBON NEUTRALITY BY 2050 Products andprocessesdecarbonization CARBON NEUTRALITY BY 2050 Approach to leadthe transformation OPERATIONALEXCELLENCE Approach to leadthe transformation OPERATIONALEXCELLENCE Value creation shared with host countries ALLIANCESFORDEVELOPMENT Value creation shared with host countries ALLIANCESFORDEVELOPMENT

(*)As of December 31, 2023 or in 2023, unless stated otherwise.

(**)People involved in local projects could have benefitted from more than one initiative in different areas of opportunity.

Carbon neutrality by 2050

Eni’s business model envisages a decarbonization path towards carbon neutrality by 2050 based on an approach oriented to emissions generated throughout the life cycle of energy products. This path, achieved through existing and under development technologies, will allow Eni to totally reduce its carbon footprint, both in terms of net emissions and net carbon intensity. On the back of this scenario, Eni believes natural gas having a role as a bridge energy source in the transition by virtue of its accessibility, reliability, versatility and reduced carbon footprint compared to other fossil fuels.

Operational excellence

Eni’s business is aimed to operational excellence through the continuous commitment in the enhancement, health and safety of people, assets integrity, environmental protection, respect for human rights, resilience and diversification of activities and financial soundness. These elements allow Eni to seize the opportunities deriving from the possible developments in the energy market and to progress its transformation path.

Alliances for the promotion of development

Eni is committed to reduce energy poverty in the countries where it operates through the development of infrastructures linked to traditional business but also to the new frontiers of renewables with the aim of generating value in the long-term by transferring its know-how and skills to local partners (so called “Dual Flag” approach). In these countries, Eni promotes initiatives to support local communities accessing to energy, to diversify economy, training and health of community, access to water and sanitation, and protection of the territory, in collaboration with international players and in line with the National Development Plans and the United Nations 2030 Agenda.

The Energy Trilemma

Eni at a glanceEni at a glance

Capital Markets Update

€ 16.5 bln

adj. CFFO

strong cash generation

€ 17.8 bln

adj. PROFORMA EBIT

robust performance

20 %

LEVERAGE

financial solidity

AVERAGE BRENT DATED PRICE

($/BL)

AVERAGE EUR/USD EXCHANGE RATE

STANDARD ENI REFINING MARGIN

(SERM) ($/BL)

PSV

(€/MWh)

€ 8.3 bln

adj. NET PROFIT

second best performance in the last ten years

€ 9.2 bln

CAPEX

strict financial discipline

€ 1.7 bln

PROFIT FROM ASSOCIATES

relevant contribution from our satellite model

Adjusted net profit (€ bln)
Leverage and net borrowings
8 4 0 2 6 10 12 2019 2020 2021 2022 2023 14 24 31 20 13 20 Net borrowings (€ bln) Leverage (%) 11.5 11.6 9.0 7.0 10.9
Robust cash generation (€ bln)
16.5 7.3 (3.9) CFFO Capex Workingcapital Portfolio Dividends Lease liabilities Buy-back Other ORGANICCASH FLOW CHANGE IN NET BORROWINGS
Shareholders remuneration (€ bln)

Financial highlights

 

 

2023

2022

2021

Sales from operations

(€ million)

93,717

132,512

76,575

Operating profit (loss)

 

8,257

17,510

12,341

Adjusted operating profit (loss)(a)

 

13,805

20,386

9,664

Exploration & Production

 

9,934

16,469

9,340

Global Gas & LNG Portfolio

 

3,247

2,063

580

Enilive, Refining and Chemicals

 

555

1,929

152

Plenitude & Power

 

681

615

476

Adjusted net profit (loss)(b)

 

8,322

13,301

4,330

Net profit (loss)(b)

 

4,771

13,887

5,821

Net cash flow from operating activities

 

15,119

17,460

12,861

Capital expenditure

 

9,215

8,056

5,234

of which: exploration

 

784

708

391

development of hydrocarbon reserves

 

6,293

5,238

3,364

Dividend to Eni’s shareholders pertaining to the year(c)

 

3,106

2,972

3,055

Cash dividend to Eni's shareholders

 

3,046

3,009

2,358

Total assets at year end

 

142,606

152,130

137,765

Shareholders' equity including non-controlling interests at year end

 

53,644

55,230

44,519

Net borrowings at year end before IFRS 16

 

10,899

7,026

8,987

Net borrowings at year end after IFRS 16

 

16,235

11,977

14,324

Net capital employed at year end

 

69,879

67,207

58,843

of which: Exploration & Production

 

51,534

50,732

47,949

Global Gas & LNG Portfolio (GGP)

 

1,119

672

(823)

Enilive, Refining and Chemicals

 

9,627

9,302

9,815

Plenitude & Power

 

7,728

7,486

5,474

Share price at year end

(€)

15.4

13.3

12.2

Weighted average number of shares outstanding

(€ million)

3,303.8

3,483.6

3,566.0

Market capitalization(d)

(€ billion)

50

48

44

(a)

Non-GAAP measures.

(b)

Attributable to Eni’s shareholders.

(c)

The amount of dividend for the year 2023 is based on the Board’s proposal.

(d)

Number of outstanding shares by reference price at year end.

Interactive Charts

GovernanceGovernance

Eni Corporate Governance model

Eni’s Corporate Governance structure is based on the traditional Italian model, which – without prejudice to the role of the Shareholders’ Meeting – assigns the management of the Company to the Board of Directors, supervisory functions to the Board of Statutory Auditors and statutory auditing to the Audit Firm.

Appointment and composition of corporate bodies

Eni’s Board of Directors and Board of Statutory Auditors, and their respective Chairmen, are elected by the Shareholders’ Meeting. To ensure the presence of Directors and Statutory Auditors selected by non-controlling shareholders a slate voting mechanism is used. Eni’s Board of Directors and Board of Statutory Auditors, whose term runs from May 2023 until the Shareholders’ Meeting called to approve the 2025 financial statements, are made up of 9 and 5 members, respectively. Three directors and two Standing Statutory Auditors, including the Chairman of the Board of Statutory Auditors, were elected by non-controlling shareholders, thereby giving minority shareholders (i.e. shareholders other than the controlling shareholder) a larger number of representatives than that provided for under law. For the composition of the Board, the Shareholders’ Meeting of May 10, 2023, which appointed the current Board of Directors, drew on the guidance provided to investors prior to the Shareholders’ Meeting by the previous Board of Directors on the quantitative and qualitative composition considered to be optimal.

In drafting this guidance, which takes into account the results of the self-assessment, the previous Board was assisted by the Nomination Committee and supported by the same independent external consultant that assisted the Board in the self-assessment. This enabled consideration of the perspective of external stakeholders (filtered on the basis of the consultant’s experience), the relevant best practices and the indications of the leading proxy advisors and organisations of reference (in particular the Italian Corporate Governance Committee). The guidance highlighted the central role of sustainability, ESG and energy-transition expertise, also underlining the importance of ensuring that Eni’s Directors have knowledge of topics related to sustainability and climate and environment risk control, gained in managerial or business roles and in industrial contexts comparable to those in which the Company operates. The outcome is a balanced and diversified Board of Directors, as also confirmed by the results of the annual self-assessment conducted by the Board, which resulted in a positive judgement on the level of professional expertise within the Board in terms of knowledge, experience and skills and on the individual contribution made by Directors to the Board, based on their areas of expertise, motivation and sense of belonging.

Similarly, in 2023, the Board of Statutory Auditors expressed guidelines for shareholders providing indications on the composition of the body in relation to the tasks it is called upon to perform. 

The composition of the Board of Directors and of the Board of Statutory Auditors is also more diversified in gender terms, in accordance with the provisions of applicable law and the By-laws. The latter was promptly amended to be compliant with the law in February 2020 in view of the renewal of the corporate bodies. In particular, for 6 consecutive terms the management and control bodies shall be composed of at least 2/5 of the less represented gender. 

Furthermore, based on the assessments most recently carried out on February 15, 2024, the number of independent directors on the Board of Directors (71 of the 9 serving, of whom 8 are non-executive Directors including the Chairman) remains greater than the number provided for in the Bylaws and by Corporate Governance Code. 

(1) Independence as defined by applicable law, to which the Eni By-laws refer, and by the Corporate Governance Code.

Composition of the board of directors

SLATE GENDER DIVERSITY 6 Minority 3 5 male 4 female 56% 44% 67% 33% Majority
AGE (b) 30-50 1 > 50 8 INDEPENDENCE (a) Independent 7 Non-independent 2 TENURE 0-3 FY 7 4-6 FY 1 >9 FY 1 78% 22% 78% 22% 77.8% 11.1% 11.1%
(a) Independence as defined by applicable law and Corporate Governance Code.
(b) Figures at December 31, 2023.

Macro-organizational structure of Eni SpA

(a)The Board Secretary and Counsel reports hierarchically and functionally to the Board of Directors and, on its behalf, to the Chairman of the Board of Directors.

(b)The Internal Audit Director reports hierarchically to the Board and, on its behalf, to the Chairman of the Board of Directors, without prejudice to its functional reporting to the Control and Risk Committee and the CEO, and without prejudice to the provisions concerning the appointment, revocation, remuneration and allocation of resources.

Remuneration Policy

Eni’s Remuneration Policy is defined in line with the corporate governance model adopted by the Company and with the recommendations of the Corporate Governance Code, providing that remuneration of Directors, members of the Board of Statutory Auditors, General Managers and other Managers with strategic responsibilities is functional to the pursuit of the sustainable success of the Company, taking into account the need to dispose, retain and motivate people with competence and professionalism required by the position held in the Company (Principle XV of the Corporate Governance Code).

For this purpose, the remuneration of Eni’s top management is established with due consideration given to market benchmarks for similar positions in national and international companies similar, also in relation to the reference sector and company size. The Remuneration Policy of Directors and top management also contributes to the company’s strategy, through incentive plans connected to the fulfilment of preset, measurable and complementary targets that fully represent the essential priorities of the Company, in line with the Strategic Plan and the expectations of shareholders and other stakeholders, in order to promote a strong focus on results and combine the operating, economic and financial soundness with social and environmental sustainability, coherently with the long-term nature of the business and the related risk profiles.

In particular, relating to social and environmental sustainability, the Policy defined for 2024 provides the confirmation:

  • in the Short-Term Plan of Incentive of Short-Term with deferral, of a target related to environmental sustainability and human capital (weight 25%), focused on safety and reduction of GHG emission intensity (Scope 1 + Scope 2), as well as, from 2021, a specific target related to the increase of renewables installed apacity (weight 12.5%);
  • the 2023-2025 Long-Term Equity Incentive Plan includes a target related to environmental sustainability and energy transition (overall weight 35%), articulated on a series of goals linked to the processes of decarbonization and energy transition and to the circular economy.

The Remuneration Policy for 2024 maintains the remuneration levels defined in the previous Policy unchanged and provides for the introduction of a Widespread Share Ownership Plan (PAD) for all Eni employees, pursuing the following targets: (i) strengthening Eni's sense of belonging and participation in the objectives and growth of corporate value, promoting alignment with shareholders' interests and a culture of financial investment, also with co-investment mechanisms; (ii) income support, in relation to the erosion of the purchasing power of wages due to inflation. For the Chief Executive Officer, the General Managers, the Managers with Strategic Responsibilities and the Executives participating in the ILT Share Plan, the assignment will be purely symbolic.

The Remuneration Policy described in the first section of the Remuneration Report, available on the Company’s website www.eni.com, is prepared taking into account the orientations of shareholders and institutional investors, through the implementation annual engagement plans, is presented for a binding vote at the Shareholders’ Meeting, with the adence required by its duration and in any case at least every three years or in the event of changes to it2. The results of the hareholders’ meeting are reported in the Summary of the mentioned relation.

(2) In accordance with Art. 123 ter, paragraph 3 bis of the Italian Decree Law No. 58/98.

Performance of the yearPerformance of the year

Key data

Summary financial data

 

 

2023

2022

2021

Net profit (loss)

 

 

 

 

per share(a)

(€)

1.40

3.95

1.60

per ADR(a)(b)

($)

3.03

8.32

3.78

Adjusted net profit (loss)

 

 

 

 

per share(a)

(€)

2.47

3.78

1.19

per ADR(a)(b)

($)

5.34

7.96

2.81

Cash flow

 

 

 

 

per share(a)

(€)

4.58

5.01

3.61

per ADR(a)(b)

($)

9.90

10.55

8.54

Adjusted Return on average capital employed (ROACE)

(%)

12.3

22.0

8.4

Leverage before IFRS 16

 

20

13

20

Leverage after IFRS 16

 

30

22

32

Gearing

 

23

18

24

Coverage

 

17.5

18.9

15.7

Current ratio

 

1.3

1.3

1.3

Debt coverage

 

93.1

145.8

89.8

Net Debt/EBITDA adjusted

 

74.4

43.0

83.7

Dividend pertaining to the year

(€ per share)

0.94

0.88

0.86

Total Share Return (TSR)

(%)

23

16

52

Dividend yield(c)

 

6.2

6.5

7.1

(a)

Fully diluted. Ratio of net profit/cash flow and average number of shares outstanding in the period. Dollar amounts are converted on the basis of the average EUR/USD exchange rate quoted by Reuters (WMR) for the period presented.

(b)

One American Depositary Receipt (ADR) is equal to two Eni ordinary shares.

(c)

Ratio of dividend for the period and the average price of Eni shares as recorded in December.

Employees

 

 

2023

2022

2021

Exploration & Production

(number)

8,785

8,689

9,409

Global Gas & LNG Portfolio

 

669

870

847

Enilive, Refining and Chemicals

 

14,092

13,132

13,072

Plenitude & Power

 

3,018

2,794

2,464

Corporate and other activities

 

6,578

6,703

6,897

Group

 

33,142

32,188

32,689

Innovation

 

 

2023

2022

2021

R&D expenditure

(€ million)

166

164

177

First patent filing application

(number)

28

23

30

Climate(a)

 

 

2023

2022

2021

Net carbon footprint upstream (Scope 1+2)(b)

(mmtonnes CO2eq.)

8.9

9.9

11.0

Net carbon footprint Eni (Scope 1+2)(b)

 

26.1

29.9

33.6

Indirect GHG emissions (Scope 3) other than those due to purchases from other companies(c)

 

174

164

176

Net GHG Emissions (Scope 1+2+3)(b)

 

200

194

210

Net GHG Lifecycle Emissions (Scope 1+2+3)(b)

 

398

419

456

Net Carbon Intensity (Scope 1+2+3)(b)

(gCO2eq./MJ)

65.6

66.3

66.5

Direct GHG emissions (Scope 1)

(mmtonnes CO2eq.)

38.69

39.39

40.08

Indirect GHG emissions (Scope 2)

 

0.73

0.79

0.81

Methane direct emissions (Scope 1)

(ktonnes CH4)

39.1

49.6

54.5

(a)

KPIs refer to 100% of the operated/cooperated assets, unless stated otherwise.

(b)

KPIs are calculated on an equity bases.

(c)

GHG Protocol Category 11 – Corporate Value Chain (Scope 3) Standard. Estimated on the basis of the upstream production (Eni’s share) in line with IPIECA methodologies.

Health, safety and environment(a)

 

 

2023

2022

2021

TRIR (Total Recordable Injury Rate)

(total recordable injuries/worked hours) x 1,000,000

0.40

0.41

0.34

employees

 

0.45

0.29

0.40

contractors

 

0.38

0.47

0.32

Total volume of oil spills (> 1 barrel)

(barrels)

12,822

6,139

4,408

of which: due to sabotage

 

5,094

5,253

3,053

operational

 

7,728

886

1,355

Freshwater withdrawals

(mmcm)

124

116

117

Re-injected production water

(%)

60

59

58

(a)

KPIs refer to 100% of the operated/cooperated assets, unless stated otherwise.
Exploration & Production

Exploration & Production

 

 

2023

2022

2021

Hydrocarbon production

(kboe/d)

1,655

1,610

1,682

Net proved reserves of hydrocarbons

(mmboe)

6,414

6,614

6,628

Reserve life index

(years)

10.6

11.3

10.8

Organic reserve replacement ratio

(%)

69

47

55

Profit per boe(a)(c)

($/boe)

14.5

9.8

4.8

Opex per boe(b)

 

8.6

8.4

7.5

Finding & Development cost per boe(c)

 

26.3

24.3

20.4

(a)

Related to consolidated subsidiaries.

(b)

Includes Eni’s share in joint ventures and equity-accounted entities.

(c)

Three-year average.

~ 900 mmboe
discovered resources

the Geng North-1 discovery,
one of the top in the industry in 2023

finalized Neptune acquisition

synergestic portfolio growth with over 100 kboe/d net
to Eni and low emissions profile

€ 13.3 bln

proforma adjusted EBIT

Baleine and Congo LNG start-ups

fast-track development on time and budget

- 10 % vs. 2022

Net Carbon footprint upstream

Key performance indicators

 

 

2023

2022

2021

Total recordable incident rate (TRIR)(a)

(total recordable injuries/worked hours) x 1,000,000

0.30

0.35

0.25

of which: employees

 

0.24

0.12

0.09

contractors

 

0.32

0.42

0.30

Profit per boe(b)(c)

($/boe)

14.5

9.8

4.8

Opex per boe(d)

 

8.6

8.4

7.5

Cash flow per boe

 

19.4

29.6

20.6

Finding & Development cost per boe(c)(d)

 

26.3

24.3

20.4

Average hydrocarbon realization

 

59.35

73.98

51.49

Production of hydrocarbons(d)

(kboe/d)

1,655

1,610

1,682

Net proved reserves of hydrocarbons

(mmboe)

6,414

6,614

6,628

Reserves life index

(years)

10.6

11.3

10.8

Organic reserves replacement ratio

(%)

69

47

55

Employees at year end

(number)

8,785

8,689

9,409

of which outside Italy

 

5,592

5,497

6,045

Direct GHG emissions (Scope 1)(a)

(mmtonnes CO2eq.)

22.92

21.50

22.30

Methane Intensity(a) (m3CH4/m3 gas sold)

(%)

0.06

0.08

0.09

Volumes of hydrocarbon sent to routine flaring(a)

(billion Sm3)

1.0

1.1

1.2

Net carbon footprint upstream (Scope 1+2)(e)

(mmtonnes CO2eq.)

8.9

9.9

11.0

Oil spills due to operations (>1 barrel)(a)

(barrels)

143

845

436

Re-injected production water(a)

(%)

60

59

58

(a)

KPIs refer to 100% of the operated/cooperated assets, unless otherwise stated.

(b)

Related to consolidated subsidiaries.

(c)

Three-year average.

(d)

Includes Eni’s share of equity-accounted entities.

(e)

Calculated on equity bases and included carbon sink.

Download the full chapter as a pdf

Global Gas & LNG Portfolio

Global Gas & LNG Portfolio

 

 

2023

2022

2021

Natural gas sales

(bcm)

50.51

60.52

70.45

of which: Italy

 

24.40

30.67

36.88

outside Italy

 

26.11

29.85

33.57

LNG sales

 

9.6

9.4

10.9

€ 3.4 bln

Proforma adjusted EBIT, record result

50.51 bln cm

natural gas sales

6.5 bln cm/y

additional LNG volumes contracted
in Congo, Indonesia and Qatar

ensured stable and
reliable supplies to
European markets

Key performance indicators

 

 

2023

2022

2021

TRIR (Total Recordable Injury Rate)(a)

(total recordable injuries/worked hours) x 1,000,000

0.00

0.00

0.00

of which: employees

 

0.00

0.00

0.00

contractors

 

0.00

0.00

0.00

Natural gas sales(b)

(bcm)

50.51

60.52

70.45

Italy

 

24.40

30.67

36.88

Rest of Europe

 

23.84

27.41

28.01

of which: Importers in Italy

 

2.29

2.43

2.89

European markets

 

21.55

24.98

25.12

Rest of world

 

2.27

2.44

5.56

LNG sales(c)

 

9.6

9.4

10.9

Employees at year end

(number)

669

870

847

of which outside Italy

 

390

588

571

Direct GHG emissions (Scope 1)(a)

(mmtonnes CO2eq.)

0.69

2.09

1.01

(a)

KPIs refer to 100% of the operated/cooperated assets, unless stated otherwise.

(b)

Data include intercompany sales.

(c)

Refers to LNG sales of the GGP segment (included in worldwide gas sales).

Download the full chapter as a pdf

CCUS, carbon offset initiatives & agri-feedstock

Eni recognizes and supports economy transition towards a low carbon model and on this basis, Eni developed a decarbonization strategy of the Group's products and industrial processes to target Net Zero Scope 1+2+3 emissions by 2050. Proprietary technologies matured within our traditional businesses are one of the drivers of our decarbonization Path and are being used to CCUS projects and the development of innovative and distinctive models related to agri-business and carbon offset initiatives.

CCUS PROJECTS

Within the CO2 capture and storage solutions, Eni's distinctive model is based on technologies and expertise of the gas reservoir and storage matured in the past, in synergy with depleted or near to depletion gas fields and partial use of existing infrastructures. Eni targets to achieve before 2030 a CO2 gross storage capacity of over 15 mmtonnes/year and increase to approximately 40 mmtonnes/year after 2030. Eni's portfolio CCUS project is large and in different Countries.

AGRI-FEEDSTOCK INITIATIVES

Eni’s development model for the agri-feedstock initiatives represents a distinctive feature on vertical integration of the biofuels supply chain and is based on the vegetable oil, to be used as feedstock, from raw materials produced by the cultivation of marginal areas and the valorization of waste and residues from the agro-industrial and forestry supply chain. This model with end-to-end approach targets to ensure volumes of vegetable oil at competitive cost to support the expansion of Eni’s biorefining activities with significant positive impacts on local development and employment.

CARBON OFFSET INITIATIVES

These initiatives are expected to achieve a carbon credits portfolio to offset residual emissions for less than 25 million tons of CO2 in 2050.

agreement
in principle

with the UK government on the
economic model of the HyNet CCS project

awarded a
carbon storage

licence for the depleted Hewett field
operated by Eni

hub CCS Ravenna
- the Callisto's project

has been included in the European
list of Projects of Common Interest

new agri-feedstock
initiatives

in Kenya, Congo, Côte d'Ivoire,
Italy and Mozambique

Download the full chapter as a pdf

Enilive, Refining and Chemicals

Enilive, Refining and Chemicals

 

 

2023

2022

2021

Capacity of biorefineries

(mmtonnes/year)

1.65

1.10

1.10

Sold production of biofuels

(ktonnes)

635

428

585

Average bio refineries utilization rate(a)

(%)

72

58

65

Retail market share in Italy

 

21.4

21.7

22.2

Retail sales of petroleum products in Europe

(mmtonnes)

7.51

7.50

7.23

Service stations in Europe at year end

(number)

5,267

5,243

5,314

Average throughput of service stations in Europe

(kliters)

1,645

1,587

1,521

Average oil refineries utilization rate

(%)

77

79

76

Production of chemical products

(ktonnes)

5,663

6,856

8,496

Average chemical plant utilization rate

(%)

51

59

66

(a)

For 2023 and 2022 the rates are redetermined based on the effective biorefinery capacity.

€ 1.0 bln

proforma adjusted EBIT of
Enilive, Refining and Chemicals segment

1.65 mln ton/y

biorefining capacity

Enilive second HVO producer
in Europe

€ 1 bln

Enilive proforma adjusted EBITDA

finalized Novamont acquisition
by Versalis

Key performance indicators

 

 

2023

2022

2021

TRIR (Total Recordable Injury Rate)(a)

(total recordable injuries/worked hours) x 1,000,000

0.75

0.81

0.80

of which: employees

 

0.96

0.95

1.13

contractors

 

0.50

0.69

0.49

Bio throughputs

(ktonnes)

866

543

665

Biorefining capacity

(mmtonnes/year)

1.65

1.10

1.10

Average biorefineries utilization rate(b)

(%)

72

58

65

Conversion index of oil refineries

 

47

42

49

Average oil refineries utilization rate

 

77

79

76

Retail sales of petroleum products in Europe

(mmtonnes)

7.51

7.50

7.23

Service stations in Europe at year end

(number)

5,267

5,243

5,314

Average throughput per service station in Europe

(kliters)

1,645

1,587

1,521

Retail efficiency index

(%)

1.19

1.20

1.19

Production of chemical products

(ktonnes)

5,663

6,856

8,496

Sale of chemical products

 

3,117

3,752

4,471

Average chemical plant utilization rate

(%)

51

59

66

Employees at year end

(number)

14,092

13,132

13,072

of which: outside Italy

 

4,257

4,146

4,044

Direct GHG emissions (Scope 1)(a)

(mmtonnes CO2 eq.)

5.69

6.00

6.72

Direct GHG emissions (Scope 1)/Refinery throughputs (raw and semi-finished materials)

(tonnes CO2 eq./ktonnes)

232

233

228

(a)

KPIs refer to 100% of the operated/cooperated assets, unless stated otherwise.

(b)

For 2023 and 2022 the rates are redetermined based on the effective biorefinery capacity.

Download the full chapter as a pdf

Plenitude & Power

Plenitude & Power

 

 

2023

2022

2021

Renewable installed capacity at period end

(GW)

3.0

2.2

1.1

Energy production from renewable sources

(TWh)

3.98

2.55

0.99

Retail and business gas sales

(bcm)

6.06

6.84

7.85

Retail and business power sales to end customers

(TWh)

17.98

18.77

16.49

Retail and business customers at period end

(mln pod)

10.11

10.07

10.04

EV charging points

(thousand)

19.0

13.1

6.2

Thermoelectric production

(TWh)

20.66

21.37

22.31

Power sales in the open market

 

19.88

22.37

28.54

3 GW

installed capacity from renewables
>35% vs. 2022

10.11 mln

retail and business customers for gas and electricity

~ 19,000

installed EV charging points

entry of EIP

into the share capital of Plenitude

Key performance indicators

 

 

2023

2022

2021

Total recordable incident rate (TRIR)

(total recordable injuries/worked hours) x 1,000,000

0.83

0.31

0.29

of which: employees

 

0.21

0.26

0.49

contractors

 

1.96

0.39

0.00

Plenitude

 

 

 

 

Retail gas sales

(bcm)

6.06

6.84

7.85

Retail power sales to end customers

(TWh)

17.98

18.77

16.49

Retail/business customers

(milion of POD)

10.11

10.07

10.04

EV charging points

(thousand)

19.0

13.1

6.2

Energy production from renewable sources

(TWh)

3.98

2.55

0.99

Installed capacity from renewables at period end

(GW)

3.0

2.2

1.1

Power

 

 

 

 

Power sales in the open market

(TWh)

19.88

22.37

28.54

Thermoelectric production

 

20.66

21.37

22.31

Employees at year end

 

3,018

2,794

2,464

of which: outside Italy

 

788

698

600

Direct GHG emissions (Scope 1)(a)

(mmtonnes CO2eq.)

9.36

9.76

10.03

Direct GHG emissions (Scope 1)/equivalent produced electricity (Eni Power)(a)

(gCO2eq./kWh eq.)

389.0

392.9

379.6

(a)

KPIs refer to 100% of the operated/cooperated assets, unless stated otherwise.

Download the full chapter as a pdf

Environmental activities

The Group’s environmental activities are managed by Eni Rewind, Eni’s subsidiary engaged in the valorization of land, water and waste resources, industrial or deriving from reclamation activities, to give them new life leveraging on the circular economy principles, through sustainable reclamation and revaluation projects, both in Italy and abroad. Eni Rewind, through its integrated end-to-end model, guarantees the supervision of every phase of the process reclamation and waste management, planning projects from the early stages to enhance and reuse resources (soils, water, waste), making them available for new development opportunities.

Strategically relevant initiatives

On June 30, 2023, Eni Rewind acquired 30% of the share capital of Labanalysis Environmental Science, a leading company in the field of environmental analysis, with the aim of strengthening the integrated offering of environmental services to be proposed in the foreign market and consolidating its presence in a fundamental sector for the correct direction of environmental remediation solutions and waste management.

In July 2023, Eni and Edison signed an agreement establishing collaboration between the two companies for the management of environmental remediation projects at all industrial sites transferred in 1989 from Montedison to Enimont. The agreement will regulate the equal economic contribution for remediation interventions, already initiated by Eni Rewind and Versalis, in execution of the projects decreed by the Ministry of the Environment. The implementation of the agreement on a site-by-site basis, along with the related planning activities, cost sharing, and relations with institutions, will be coordinated by a joint technical-legal committee between the two companies.

around 1.5 mln/ton

total waste managed

Eni Rewind,
Eni global contractor,
operating in over
 100 sites

of regional and national priority

9.0 mln cm

reused water for industrial
and environmental use

over 35 mln cm

treated water

around 75 %

recovered waste vs. total recoverable waste

Download the full chapter as a pdf

Consolidated Disclosure of Non-Financial InformationNFI

Eni’s 2023 Consolidated Disclosure of Non-Financial Information (NFI) has been drafted in accordance with Legislative Decree 254/2016 and the “Sustainability Reporting Standards” published by the Global Reporting Initiative (GRI) included in the GRI dedicated to the Oil & Gas sector. The NFI includes the disclosure requirements for listed companies as stipulated in Article 8 of EU Regulation 852/2020. In continuity with previous editions, the document is structured according to the three levers of the integrated business model, Carbon Neutrality by 2050, Operational Excellence and Alliances for Development, which aim to create long-term value for all stakeholders The contents of the “Carbon neutrality by 2050” chapter have been organized according to the voluntary recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) of the Financial Stability Board.

Carbon neutrality by 2050

Combating climate change

Commitments

Eni has defined a medium/long-term plan to take advantage of the opportunities offered by the energy transition and progressively reduce the carbon footprint of its activities, committing to reach net zero GHG emissions for all its products and processes by 2050.

Sustainable Development Goals – goal 12 (icon)Sustainable Development Goals – goal 13 (icon)Sustainable Development Goals – goal 15 (icon)Sustainable Development Goals – goal 17 (icon)

Main results 2023

  • -40% Net Carbon Footprint UPS and -30% Net Carbon Footprint Eni vs. 2018
  • -21% Net GHG Lifecycle Emissions vs. 2018
  • -4% Net Carbon Intensity vs. 2018

Main targets

  • Net Zero Carbon Footprint Upstream in 2030 and Eni in 2035
  • Net Zero GHG Lifecycle Emissions and Carbon Intensity in 2050
Operational excellence

People

Commitments

Eni is committed to supporting the Just Transition process by consolidating and developing skills, enhancing every dimension (professional and otherwise) of its people and recognizing the values of diversity and inclusion.

Sustainable Development Goals – goal 10 (icon)

Main results 2023

  • +0.5 p.p. female population vs. 2022
  • Women’s turnover rate is higher than men’s
  • +0.7 p.p. female personnel in positions of responsibility vs. 2022
  • +1.2 p.p. population under 30 vs. 2022
  • +23% training hours vs. 2022

Main targets

  • +4 p.p. vs. 2020 of the female population by 2030
  • +3.8 p.p. female personnel in positions of responsibility vs. 2020
  • +6.5 p.p. population under 30 by 2030 vs. 2020
  • +2 p.p. in 2030 presence of non-Italian employees in positions of responsibility vs. 2020
  • +20% training hours by 2027 vs. 2023

Health

Commitments

Eni considers protecting the health of its people, workers, families and communities in the Countries where it operates a fundamental human right and promotes their psycho-physical and social well-being by placing Health at the centre of its operating models.

Main results 2023

  • €57.9 million for Health activities, including expenditure on Community Health initiatives
  • 70% employees with access to psychological support service
  • 49 sensors tested at Italian on-shore sites for digital monitoring of indoor healthy working environment

Main targets

  • ~€279 million for Health activities 2024-2027
  • 85% of employees with access to psychological support service by 2027
  • 100 sensors tested by 2027, including Italian off-shore sites and abroadfor digital monitoring of indoor healthy working environment

Safety

Commitments

Eni believes that safety at work is a basic right and an essential value shared by employees, contractors and local stakeholders to prevent accidents and protect the integrity of assets.

Sustainable Development Goals – goal 11 (icon)Sustainable Development Goals – goal 14 (icon)

Main results 2023

  • Total Recordable Injury Rate = 0.40
  • Five applications of the THEME model on-site
  • Digitalization of HSE processes
  • >2K resources trained on the “Process Safety in Eni” course

Main targets

  • Maintenance of the TRIR ≤0.40 in the four-year period 2024-2027
  • Extension of the Smart Safety initiative to 60 contractors
  • Implementation of technical behavioural safety coaching initiatives

Respect for the environment

Commitments

Eni promotes the protection of the environment and biodiversity through the identification, prevention and mitigation of potential impact, as well as through efficient management of resources with actions aimed at improving energy efficiency and adopting the principles of a circular economy.

Sustainable Development Goals – goal 11 (icon)Sustainable Development Goals – goal 12 (icon)Sustainable Development Goals – goal 14 (icon)Sustainable Development Goals – goal 15 (icon)

Main results 2023

  • 90% reuse of freshwater
  • +25% waste generated from production activities vs. 2022
  • 60% re-injection of produced water from the E&P sector

Main targets

  • Commitment to minimise freshwater withdrawals in water-stressed areas
  • Reuse of freshwater in line with the trend of the past 5 years
  • Re-injected produced water in line with the trend of the last 5 years, considering the same area of consolidation
  • Development of new technologies for waste recovery and implementation on an industrial scale
  • Commitment, in remediation works, to implement sustainable technological solutions inspired by the principles of a circular economy

Human rights

Commitments

Eni is committed to respecting human rights in its activities and to promoting such respect with partners and stakeholders. This commitment is based on the dignity of every human being and on companies’ responsibility to contribute to the well-being of individuals and of local communities.

Sustainable Development Goals – goal 10 (icon)Sustainable Development Goals – goal 16 (icon)

Main results 2023

  • 100% of new projects with human rights risk assessed with specific analysis
  • 170 participants from Security Forces in the Security & Human Rights workshop in Iraq

Main targets

  • 100% of new projects with human rights risk assessed with specific analysis
  • 100% on-time completion of the actions outlined in the Action Plans
  • Maintain position in the 10th decile of the Corporate Human Rights Benchmark
  • Update of Eni’s salient issues

Suppliers

Commitments

Eni is committed to sustainably develop its supply chain, involving and supporting companies with concrete tools to facilitate growth and improvement on ESG dimensions.

Sustainable Development Goals – goal 10 (icon)Sustainable Development Goals – goal 12 (icon)Sustainable Development Goals – goal 13 (icon)Sustainable Development Goals – goal 16 (icon)Sustainable Development Goals – goal 17 (icon)

Main results 2023

  • 100% of new suppliers assessed according to social criteria
  • 100% of strategic suppliers’ headquarters assessed on sustainable development path
  • Procurement processes with ESG assessment for 85% of Italian awarded contracts and 20% of foreign awarded contracts value
  • 1,600 foreign local suppliers on Open-es platform

Main targets

  • Keep 100% of new suppliers assessed according to social criteria
  • 100% of worldwide strategic suppliers assessed on the sustainable development path by 2025
  • Procurement processes with ESG assessment for over 90% of Italian awarded contracts and 50% of foreign awarded contracts value by 2024
  • 65% of the total value of active contracts awarded to suppliers registered on Open-es by 2025
  • 2,000 foreign local suppliers involved on Open-es by 2024

Transparency, anti-corruption and tax strategy

Commitments

Eni carries out its business activities with loyalty, fairness, transparency, honesty, integrity and in compliance with the laws.

Sustainable Development Goals – goal 16 (icon)Sustainable Development Goals – goal 17 (icon)

Main results 2023

  • Passing the ISO 37001:2016 recertification audit
  • Obtaining ISO 37301:2021 certification of Eni SpA’s Compliance Management System
  • Start delivery of the new e-learning course on the Anti-Corruption Compliance Programme to medium and high-risk employees

Main targets

  • Delivery of the Anti-Corruption Compliance Programme course to the entire medium-high risk population
  • Maintain ISO 37001:2016 and ISO 37301:2021 certification
Alliances for development

Alliances for development

Commitments

The Alliances for Development represent Eni’s commitment to an equitable transition with a broad portfolio of community-based initiatives.

Sustainable Development Goals – goal 10 (icon)Sustainable Development Goals – goal 13 (icon)Sustainable Development Goals – goal 15 (icon)Sustainable Development Goals – goal 17 (icon)

Main results 2023

  • 35.5K new students supported with access to education; 19K people supported with professional development for economic empowerment(a); 62K people supported with access to drinking water; and 330K people supported with access to health services

(a)The beneficiaries include only those trained and/or supported for the start-up or strengthening of specific economic activities, not beneficiaries of the construction of infrastructure (roads, civil buildings, etc.) or new agri-business activities being started. In some cases, beneficiaries are not trained but receive input, funding or other support to start businesses.

Main targets

  • 2030 beneficiaries by sector: 103K access to education; 15.9M access to clean cooking; 86K access to electricity(b); 21K economic development; 590K access to drinking water; 1M access to health services; 85K environmental and biodiversity protection activities

(b)Access to electricity provided through local development initiatives is considered, not through Eni’s energy supply to the local market.

Transversal themes

Technological innovation

Commitments

For Eni, research, development and rapid implementation of new technologies are an important strategic lever to drive business transformation.

Sustainable Development Goals – goal 12 (icon)Sustainable Development Goals – goal 13 (icon)Sustainable Development Goals – goal 16 (icon)

Main results 2023

  • 70% of R&D expenditure is dedicated to decarbonization activities

Main targets

  • Maintaining 70% of R&D expenditure on decarbonization issues each year for the four-year period 2024-2027

Consolidated Disclosure of Non-Financial Information (NFI)