Eni S p A : for 2023 – Sustainability performance (printable version)

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.

Global goals for a sustainable development

The UN's 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.

2023

SUSTAINABILITY PERFORMANCE

Disclaimer

Eni for 2023 is a document published on a yearly basis that contains certain forward-looking statements related to the different topics covered therein. Forward-looking statements are founded on Eni management's reasonable assumptions and beliefs given the information available to them at the time the statements are made. Nevertheless, by their nature, forward‐looking statements involve an element of uncertainty as they relate to events and depend on circumstances that may or may not occur in the future and which are, in whole or in part, beyond Eni's control and reasonable prediction. Actual results may differ from those expressed in such statements, depending on a variety of factors, including, without limitation: the impact of the Covid-19 pandemic, the fluctuation of the demand, the offer and pricing of oil and natural gas and other petroleum products, the actual operating performances, the general macroeconomic conditions, geopolitical factors and changes in the economic and regulatory framework in many of the Countries in which Eni operates, the achievements reached in the development and use of new technologies, development of scientific research, changes in the stakeholders' expectations and other changes to business conditions. The readers of the document are therefore invited to take into account a possible discrepancy between the forward-looking statements included and the results that may be achieved as a consequence of the events or factors indicated above. Eni for 2023 also contains terms such as, for instance, "partnership" or "public/private partnership" used for convenience only, without a technical-legal implication. "Eni" means the parent company Eni SpA and its consolidated subsidiaries. The reporting of GHG Scope 3 emissions and the related targets is not to be understood as the assumption of any legal responsibility in relation to the actual and/or potential impacts of said GHG emissions.

Photos

All the photos of the covers and the reports Eni for 2023 come from the Eni photographic archive.

Translations

The original text of Eni for - where not otherwise indicated - is in Italian. Translations into other languages are taken from the original text. In case of discrepancies, the contents of the Italian version prevail over those of the translation into any other language.

Why read

Eni for 2023?

Eni for 2023 describes Eni's path to a Just Transition that guarantees access to Just Transition, the just energy transition, with the 2050 target for carbon neutrality, to mitigate costs and share social and economic benefits with workers, suppliers, communities and customers inclusively and transparently. The storytelling is structured according to the three levers of the integrated business model - Carbon neutrality by 2050, Operational excellence and Alliances for development

• which define Eni's scope of action to create long-term value for all stakeholders. In contrast to the Consolidated Disclosure of Non-Financial Information, Eni for delves into stories, concrete cases and testimonies to ensure access to efficient and sustainable energy.

REPORTING PRINCIPLES AND CRITERIA

Eni for 2023 is prepared per the "Sustainability Reporting Standards" of the Global Reporting Initiative, in accordance with the GRI Universal (2021) and Sector Standard Oil & Gas (2021) and in line with the 10 principles of the Global Compact. The Eni for 2023

• Sustainability performance includes the GRI Content Index, as well as the reference tables with: Task Force on Climate related Financial Disclosure (TCFD); Climate Action 100+; Sustainability Accounting Standards Board (SASB); World Economic Forum (WEF); EU Sustainable Finance Disclosures Regulation (SFDR); and Women's Empowerment Principles (WEPs).

EXTERNAL ASSURANCE

In line with previous editions, Eni for 2023 also underwent a limited assurance audit by the independent auditors (PwC), who audited also the Annual Report, which includes the Non-Financial Statement. Scope 1 and Scope 2 Operated (no equity) GHG emissions are subject to reasonable assurance and this report is included in

Eni for Performance.

LEGEND

External Links   Internal links

	Introduction	4
Governance and business ethics	5
Remuneration	6
Economic value	7
Research and Development	8

	Carbon neutrality by 2050	10
Main target indicators	10
GHG Emissions	12
Energy efficiency	14

	Operational excellence	15
People	15
Health	26
Safety	27
Environment	28
Human rights	36
Transparency and anti-corruption	38
Customers and suppliers	40

	Alliances for development	42
Investments for local development	42
Grievance	43
	Annexes	44
Reporting criteria	44
Reference tables with respect to referenced standards and guidelines
- Global Reporting Initiative (GRI) Content Index	51
- Task Force on Climate-Related Financial Disclosures (TCFD)	60
- Climate Action 100+ Net Zero Company benchmark 2.0 Indicators	61
- World Economic Forum (WEF) Core Metrics	62
- Sustainability Accounting Standards Board (SASB) Exploration & Production	64
- Indicators under the EU Sustainable Finance Disclosure Regulation (PAI)	66
- Women's Empowerment Principles (WEP)	67
Statement on ghg accounting and reporting and related audit by the independent
auditors (year 2023)	68
Eni's sustainability reporting	78

Eni for 2023 - A Just transition

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Introduction

This document, together with Eni for 2023

• A Just Transition, is part of Eni's voluntary sustainability reporting. It aims to illustrate the Group's sustainability performance. The Key Performance Indicators (KPIs) related to the five-year period 2019-2023 are represented, according to the three levers of Eni's integrated business model, Carbon Neutrality by 2050, Operational Excellence and Alliances for Development - that are Eni's foundations for reaching the objectives of creating long-term value for all stakeholders. In fact, Eni is committed to contributing, both directly and indirectly, to the achievement of the 17 Sustainable
  Development Goals (SDGs) by seeing new business opportunities and supporting the Just Transition - a socially just energy transition - to ensure access to efficient and sustainable energy with the goal of achieving net zero emissions by 2050. This commitment calls for sharing social and economic benefits with workers, the value chain, communities and customers in an inclusive, transparent and socially equitable manner, taking into consideration the different level of development of the Countries in which it operates and minimising existing inequalities.

In this context, business management is measured by means of sustainability indicators which direct the processing of future strategies and goals along a path of

continuous improvement. The development of a specific document, and subject to audit activities along with Eni for 2023 - A Just Transition, in the audit activities, that present the non-financial performance and the evolution of its transformation path, reflects the aim of ensuring transparency with regard to Eni's operations to maintain a constructive and proactive dialogue with its stakeholders.

REFERENCE STANDARDS

Eni for 2023 - Sustainability performance, as well as the Consolidated Disclosure of Non-FinancialInformation, is prepared in accordance with the Sustainability Reporting Standards of the Global Reporting Initiative 2021 (GRI) - Universal and Sector Standards (GRI 11 - Oil & Gas) published in 2021. In continuity with previous editions, the document aligns with the "Core" metrics defined by

the World Economic Forum (WEF) in the White Paper "Measuring Stakeholder Capitalism - Towards Common Metrics and Consistent Reporting of Sustainable Value Creation", which defines metrics creation of long-termvalue and to further promote the convergence of ESG standards and principles. In addition, it includes metrics from the Task Force on Climate- related Financial Disclosures (TCFD), the

Sustainability Accounting Standards Board Exploration & Production (SASB), the

EU Sustainable Finance Disclosure

Regulation (SFDR), the Women's Empowerment Principles (WEP) and the Climate Action 100+ initiative. The reference tables for these standards/ guidelines can be found at the end of this document.

ENI'S NON-FINANCIAL PERFORMANCE AND THE SUSTAINABLE DEVELOPMENT GOALS (SDGs)

Aware of the key role the energy sector plays and the development of its business in addressing the current challenges, Eni defines the objectives of the Four-Year and Long-Term Strategic Plan, among others, to actively contribute to the 17 SDGs of the UN's 2030 Agenda for Sustainable Development. These represent common goals for sustainable development of the current complex social challenges and are an important reference for the international community. Eni identifies specific qualitative and quantitative indicators, set out in this document1 to monitor and measure its contribution. Eni directs its business according to these KPIs, providing transparent evidence of both the value generated and the actions to mitigate any negative externalities caused, with the constant objective of seizing new opportunities for improvement.

1 The identification of the KPIs was carried out taking as reference both the document "An Analysis of the Goals and Targets" (published by GRI and UN Global Compact) and the document "Mapping the oil and gas industry to the Sustainable Development Goals: An Atlas" (published by IPIECA).

		CARBON		OPERATIONAL		ALLIANCES FOR			5
INTRODUCTION		NEUTRALITY		EXCELLENCE		DEVELOPMENT		ANNEXES

Governance and business ethics

For more information	Eni for 2023 - A Just Transition
BOARD OF DIRECTORS AND SUPERVISORY BODIES OF ENI GROUP(a)
			2019	2020(b)	2021	2022	2023(c)	SDGs target
Members of Eni SpA Board of Directors		(number)	9	9	9	9	9	16.7
For role
executive			1	1	1	1	1
non executive			8	8	8	8	8
indipendent(d)			7	7	7	7(e)	7(e)
non indipendent			2	2	2	2	2
For age groups
under 30						0	0
30-50						2	1
over 50						7	8
Representation of Minority Shareholders			3	3	3	3	3
Presence of women on the Board of Directors		3	4	4	4	4	8.5
Eni SpA Board of Directors Annual Meetings		13	15	13	16	15
Average attendance at Eni SpA Board of Directors	(%)	100	100	100	97.9	96.3
Annual board induction sessions/ongoing training of Eni SpA Board of Directors	(number)	1	3(f)	3(g)	2(g)	7(h)
Presence of women on the management bodies of Eni subsidiaries	(%)	29	26	24	24	28	5.5
Presence of women on the supervisory bodies of Eni subsidiaries(i)		37	37	43	38	43	5.5

1. For consistency with the representation in the 2023 balance sheet, the Eni Group is understood to mean Eni SpA and its subsidiaries consolidated by the line-by-line method.
2. For the composition, refer to the Board in office from the 13th of May 2020.
3. For the composition, refer to the Board in office from the 10th of May 2023.
4. Refers to independence as defined by applicable laws, referred to in Eni's By-Laws.
5. Seven (7) Directors are also independent pursuant to the Corporate Governance Code.
6. Further induction sessions open to all Directors and Statutory Auditors were held within the Board Committees and in the Board of Statutory Auditors.
7. Further induction sessions open to all Directors and Statutory Auditors were held within the Board Committees.
8. With reference to the number of sessions conducted overall, of which four sessions open to all Directors and Statutory Auditors were held within the Board Committees.
9. Outside of Italy, only the companies with a supervisory body similar to the Italian Board of Statutory Auditors are considered.

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The Board of Directors (BoD) and the Board of Statutory Auditors (BoSA) are appointed by the Shareholders' Meeting using the slate voting system, to allow the presence of Directors and Statutory Auditors designated by the minority shareholders; their respective Chairmen are appointed by the Shareholders' Meeting with legal majorities. Three directors and two statutory auditors, including the Chairman of the BoSA were appointed by minority shareholders2. The current BoD was appointed by the Shareholders' Meeting held on May 10th, 2023, with term of office until the approval of the financial statements for the year ended December 31st, 2025. For the appointement of the Directors, the Shareholders' Meeting took into account the guidelines, promptly communicated to the market, by the previous BoD on the quantitative and qualitative composition considered to be optimal. For further details on these guidelines and the self-assessment activities performed by the Board of Directors, please refer to the Annual Report 2023. In terms of gender diversity, more than 44% of the members of the BoD and 40% of the BoSA (including its Chair), are women. The number of independent Directors on the BoD exceeds the number required in the By-Laws, by law and Corporate Governance Code. In line with the practice launched several years ago, at the start of the new term of office, Eni provided training programmes ("Board Induction") to support the BoD and the BoSA with training sessions on institutional, business and

sustainability issues, in BoD, Committees and BoSA meetings based on the presentation of Eni's business and organization by top management. For more details on Board Induction please refer to the Annual Report 2023 and the Corporate Governance and Shareholding Structure Report 2023. The internal regulation about the "Corporate Governance of Eni companies", without prejudice to legal obligations, provides that in selecting the members of the management and control bodies of Eni's Italian and foreign subsidiaries, diversity is promoted wherever possible. In particular, this regulation indicates the share (different between Italy and abroad) to be reserved for the least represented gender in the composition of the corporate bodies of Eni's subsidiaries, in the absence of specific legal obligations3. In 2023, the overall percentage of women in the management bodies and supervisory bodies of subsidiaries increased compared to 2022, and is 28% and 43%. For more details on the roles and responsibilities in the Governance of sustainability at Eni as well as the internal control and risk management system, please refer to the Annual Report 2023 and the Corporate Governance and Shareholding Structure Report 2023.

REMUNERATION

The strategic commitment to decarbonization and to peoples' safety is part of the essential goals of the Company and, therefore, is reflected in Variable Incentive Plans for the CEO and the

Eni management. In particular: (i) the Short-Term Incentive Plan includes, in continuity with the previous year, a target concerning incremental capacity installed from renewable sources (weight 12.5%) as well as targets of sustainability, environmental and of human capital relating to the reduction in GHG net emissions Scope 1 and 2 Upstream (weight 12.5%) and to personnel safety (weight 12.5%) in terms of Severity Incident Rate (SIR), focusing management commitment on the reduction of the most serious incidents. Thus, the overall weight of the sustainability goals is 37.5% for the CEO, while it varies for the company management according to the responsibilities assigned; (ii) the Long-Term Incentive Plan, in line with the previous one, supports the implementation of the strategy also through a specific objective concerning environmental sustainability issues, broken down into a series of goals related to the processes of decarbonization, energy transition and the circular economy, with an overall weight of 35%, for the CEO and all Eni management recipients of the plan. The following table shows, for the current and previous term of office: (i) the percentage of variable remuneration associated with the objectives on long-term, with respect to total remuneration; (ii) the percentage of the variable remuneration linked to short- and long-term sustainability objectives associated with the total variable remuneration, calculated at target and maximum sustainability performance level within a target overall performance level.

		Policy Mandate 2020-2023	Policy Mandate 2023-2026
		Target		Maximum	Target		Maximum
% of CEO remuneration linked to long-term objectives	(%)	55	65	55	65
% of CEO variable remuneration linked to sustainability objectives		36	55	36	55

2 Eni's company By-Laws ensure that the number of representatives of minorities (i.e. non-controlling shareholders) exceeds the number required by law.

3 In particular: a) in Italian subsidiaries, at least two fifths of the members of each corporate body must belong to the least represented gender; b) in foreign subsidiaries, where possible, at least one fifth of the members of each corporate body must belong to the least represented gender. In the case of subsidiaries with minority shareholders, unless otherwise agreed, compliance with the quota of the least represented gender is ensured by Eni, as parent company.

		CARBON		OPERATIONAL		ALLIANCES FOR			7
INTRODUCTION		NEUTRALITY		EXCELLENCE		DEVELOPMENT		ANNEXES

CEO PAY RATIO

The table below shows the pay ratios between the CEO/DG remuneration and the median remuneration of employees in Italy (main operating location) and of all employees, calculated with

reference to fixed remuneration and to total remuneration4. The average total remuneration of all employees compared to 2022 varied by 2.5% while that of the CEO/DG varied by 32% mostly due

to the change in the Long-Term Share Incentive awarded in 2023, due to the increase in Eni's share price compared to its issue value (EUR 15.27 vs. EUR 8.21).

	2020	2021	2022	2023
Employees in Italy
Ratio between the CEO/DG fixed remuneration and the median fixed remuneration of employees	37	36	35	35
Ratio between the CEO/DG total remuneration and the median total remuneration of employees	97	138	137	172
Ratio between the annual percentage change in the CEO/DG annual total remuneration and the annual percentage change			0.83	7.00
in the median total remuneration of employees
All employees
Ratio between the CEO/GM fixed remuneration and the median fixed remuneration of employees	36	36	35	36
Ratio between the CEO/GM total remuneration and the median total remuneration of employees	97	141	140	180
Ratio between the annual percentage change in the CEO/GM annual total remuneration and the annual percentage change			0.91	12.86
in the median total remuneration of employees

ECONOMIC VALUE

		2019	2020	2021	2022	2023	SDGs target
Economic value generated	(€ million)	71,565	45,638	78,092	134,232	95,594	8.2 9.1 9.4 9.5
Economic value distributed(a)		63,103	41,437	66,138	120,451	89,878
of which: operating costs		50,874	33,551	55,549	102,529	73,836
of which: wages and salaries for employees		2,996	2,863	2,888	3,015	3,136
of which: payments to capital suppliers		4,165	2,974	3,975	6,419	6,623
of which: payments to the Public Administration		5,068	2,049	3,726	8,488	6,283
Economic value retained		8,462	4,201	11,954	13,781	5,716

(a) For the economic value distributed relating to Community Investment, please refer to the Investments for Local Development section.

In 2023, Eni generated an economic value of €96 billion, of which €90 billion was distributed, in particular: 82% are operating costs, 7% payments to the Public Administration, 7.5% payments to capital suppliers, and 3.5% wages and salaries for employees. In 2023, the Eni Group received

approximately €286 million in financial assistance from the Public Administration. This amount includes about €140 million in tax credits recognised in Italy for energy and gas-consuming companies to meet the higher expenses incurred for purchasing natural gas and electricity and around €30 million in

European public contribution to the Plenitude sector for developing the electric supply network. Over the year, investments net of depreciation amounted to €7,413 million, and the total to share buy-backs and dividend payments amounted to €4,885 million, €6,283 million in taxes were paid.

4 Total remuneration includes variable monetary remuneration components and enhanced benefits.

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Research and Development

For more information	Eni for 2023 - A Just Transition
			2019	2020	2021	2022	2023	SDGs target
R&D expenditures		(€ million)	194	157	177	164	166	9.5
of which: related to decarbonization			102	74	114	114	135
renewables			23	10	18	17	17
energy storage(a) and magnetic confinement fusion		5	9	13	16	15
capture, storage and conversion of CO2		13	9	17	21	23
chemistry from renewable sources		20	15	20	23	39
hydrogen and new energy carriers		12	12	23	14	14
environment(b)			5	5	9	5	7(c)
biorefining			8	10	9	13	12
efficiency and energy recovery			16	4	5	5	8
of which: safety and risk reduction			20	11	8	4	5
of which: others (e.g. operational efficiency)		72	72	55	46	26
Tangible value generated by Research and Technological Innovation		1,126	951	1,253	1,432	1,517
Patent application first filings(d)		(number)	34	25	30	23	28	9.5
of which: related to renewable energy sources		15	7	11	13	14
Existing patents			7,686	7,471	7,290	8,029	9,893
Average age of patents(e)		(years)	9.8	9.2	8.9	9.2	9.6
Number of partnerships on R&D(f)		(number)	1,221	733	766	930	839	9.5
of which: with Universities and Research Centers		362	204	193	156	137

1. Includes technologies for the accumulation of thermal or electrical energy for its subsequent use.
2. This includes technologies aimed at monitoring, protecting and maintaining the environment as well as remediation.
3. The environment item includes technologies to reduce water consumption or reuse, even though the removal of any pollutants (about €3 million in 2023) and technologies to monitor, protect and maintain the environment, as well as possible remediation (about €4.2 million in 2023).
4. The 2023 figures for new first filing patent applications, total and from renewable sources, include Novamont's contribution for a total of 9, all from renewable sources.
5. The average age of the patent portfolio does not include Novamont and Finproject's contributions, as the consolidation of the relevant data has not yet been completed.
6. Partnerships consider purchase orders relating to goods and services that are functional to R&D activities.

Research and technological innovation are essential pillars for Eni in its commitment to make access to energy resources more efficient and effective, with the aim of reducing the Net Carbon Footprint. This vision is based on the synergetic utilisation of the skills present in all areas of the company, oriented towards the challenges of an ever-changing energy landscape. The strategic directives, which serve as guidelines for Eni's technological endeavours, are divided into the following points:

• Decarbonization of processes: this objective focuses on various strategies to reduce the environmental impact of industrial processes.
  Eni is committed not only to reducing CO2 emissions directly, but also to developing

technologies to capture and store CO2. By adopting more efficient processes and introducing energy carriers with a lower carbon footprint, the company aims to improve energy efficiency overall and promote the adoption of

more sustainable solutions in the entire energy production chain;

• circular economy and bio-products:to embrace a circular approach, favouring the transformation of waste and by-productsinto useful resources. Through the promotion of biorefining and the use of bio-basedproducts, the company aims to reduce its dependency on non-renewablesources and contribute to a more sustainable mobility. Furthermore, Eni is committed to investing in the production of chemical products from renewable and more sustainable raw materials, with the aim of reducing the environmental impact of its activities;
• renewable energy and new technologies: to develop sustainable energy solutions, with a special focus on renewable energy and energy storage technologies. The company invests in innovative projects that make the most of the potential of such sources as solar, marine and

wind power. In addition, Eni is pioneering the development of cutting-edge technologies such as magnetic confinement fusion, which could revolutionise the global energy landscape;

• operational excellence: to achieve even higher levels of efficiency and safety by adopting state-of-the-art technology. The company invests in automated and digital systems to optimise operational processes while reducing environmental impact and operating costs. Through constant improvement of safety practices and protocols, Eni aims to ensure a safe working environment and to promote a corporate culture focused on excellence and more sustainable.

The expenditure on research and development is in line with the previous Strategic Plan, amounting to about €868 million over the period 2024-2027. The investment priorities reflect the historical distribution of expenditure over the past five years.