Energy infrastructure for a sustainable future
May 2024
Snam, a leading pan European gas infrastructure operator
energy
to inspire the world
Italian and International assets (pro-quota) | Key figures | |||||
~37,400 | ~20 bcm | ~20 bcm/y | € 23.8 | ~ € 15.6 | € 2.41 | € 1.17 |
bn | bn | bn | bn | |||
km1 | capacity2 | capacity3 | ||||
Transport | Storage | Regasification | Tariff RAB | Market | EBITDA | Net Income |
20236 | Cap7 | Adj. 2023 | Adj.2023 |
Italian assets
~33,000 | ~17 bcm | ~17 bcm/y |
km4 | capacity | capacity5 |
Transport Storage Regasification
- Including TAG, Desfa, GCA, Terega, Interconnector, TAP, Adnoc gas piples, EMG, Seacorridor pro-quota transport km
- Including also Terega pro-quota storage capacity
- Including also Golar Tundra, BW Singapore and the pro-quota of OLT, Adriatic LNG, Revithoussa and Alexandroupolis
- o/w 10,000 national & 23,000 regional network
- Including also Golar Tundra and BW Singapore
- Italian
- At December 31, 2023
Opening remarks
energy
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Snam's Board od Directors, guided by its robust governance, oversees its long-term strategy while fostering an engaged and accountable culture. We have always
been comprehensive in our approach to sustainability and remain committed to the Paris Agreement.
Oversight of Strategy
Robust Governance
Pay Aligned with Strategy
ENERGY
INFRASTRUCTURE
FOR A SUSTAINABLE
FUTURE
Comprehensive Approach to Sustainability
Committed to the Paris
Agreement
…and Net Positive Biodiversity Impact
Engaged and Accountable
3
Our Ambition: Energy infrastructure for a sustainable future
With two businesses that are synergistic and progressively interconnected, Snam's aim is to become a modular, flexible, and repurposeable infrastructure to secure energy supply across Italy and Europe. To achieve this, Snam will leverage two key strategic levers: sustainability, and innovation.
Integrated Strategic Framework | All-round Sustainable Strategy |
4
2023-2027 Strategic Plan: key figures
Capex | |
Old plan | New plan |
energy
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+15% | EBITDA adj. | Net income adj. | |
€ 10 bn | |||
€ 11.5 bn1 | Cagr | Cagr | |
2022-2026 | 2023-2027 | ||
>7% | ~4% | ||
€ bn | € bn |
Tariff RAB | Net Debt | ||||
€ bn | Cagr | € bn | ~2.4 | ~3.2 | |
>6% | |||||
~ 28.6 bn | |||||
~ 22.4 bn | |||||
2023 | 2027E | ||||
~15.5 | ~19.0 | Guidance | |||
~1.14 ~1.33
2023 2027E Guidance
2023 | 2027E | 2023 | 2027E | |||
Guidance | Guidance | |||||
LNG | Storage | Transport | 1. Net of grants | |||
Total Capex gross of grants: € 12.4 bn |
100 bps higher EPS growth vs Old Plan
5
Snam's Sustainability journey: what we achieved
energy
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1
2
3
1. 2023-2027 Strategic Plan
Methane emissions : -57% vs 2015 and 3 years gold standard by UNEP on methane emissions
Employee inclusion and Well-being:84%
engagement index by employees in 2023
Certifications: recent achievements in energy efficiency, anti-corruption and gender equality
58% of CapEx1 are aligned with the UN SDGs
and 37% to European Taxonomy
4
5
6
Governance: Sustainable value creation introduced in the By-laws, including energy transition businesses and BoD gender balance
Sustainable finance: 80% target on Sustainable Finance already achieved in 2023
Commitments: Net Zero on all emissions by 2050 & first TSO to be part of SBTN engagement program and to commit to net positive impact on biodiversity by 2027
Main impact on SDGs
6
All-round Sustainable Strategy: a 7 pillars framework
energy
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Develop an energy transition platform to reach system's decarbonization and sustainable growth through inclusive pathways of change1
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Decarbonize the core business in line with our path to Net Zero, while partnering with suppliers to promote the sustainability of the whole value chain
Leverage every new infrastructure project to positively impact on Nature and local environment, following a Science Based approach
Embed a culture of innovation within all Snam's People to maximize technology effectiveness, thus enhancing asset safety, reliability, sustainability and value chain capabilities
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Empower all Snam's People worth, fostering professional growth and providing comprehensive care
Keep generating value for local communities, acting as System Operator being attentive to territory needs
1. Pillars 1 and 2 covered in the Strategic Plan | To be conveyed in the upcoming Transition Plan | 7 |
Full scorecard aligned with the 7 pillars framework
energy
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KPIs | 2023 |
Actual |
2024 2027
Target Target
KPIs |
2023 2024 2027
Actual Target Target
Green
transition
Multi-
molecule
infrastruct.
• | Avoided CO | emissions (ktCO e)1 | 102.9 |
2 | 2 | ||
• H2 readiness length of network certified (km) | 1,513 | ||
• | Gas Transportation operational availability2 (%) | >99 | |
• Production of biomethane (Mscm) | 24.4 | ||
• Invest. related to the CCS Ravenna Project Phase 1+2 (€M)3 | 65 |
-
500 1,900 3,000
>99 >99
20 160
- 370
• Employees engagement index (%) | |
• Women in exec. and middle-mgmt. roles (%)* | |
People | • IpFG (Combined Frequency and Severity Index)5* |
• Gender pay gap (%)6 | |
• Participation in welfare initiatives (%) | |
• Training hours delivered to employees (h/capital) |
84
25.9
0.47
-
57.9
37
>80
26
- min. 3y5
-
75
36
>80
27.5
-
min. 3y5
+/- 5
80
40
• Reduction of total natural gas emissions (%)* | ||
Carbon | • | Introd. ESG criteria in scoring models (% of contracts)* |
Neutrality | • | RES4 on total electricity consumption (%) |
• Tot. procurem. Spending on suppliers w/decarb. Plan (%)
• Zero Net Conversion by 2024
Biodiversity | • Net Positive impact by 2027 |
& Regener. | |
• Vegetation restored in areas of pipes constr. (%) | |
Financial | • ESG Finance over total funding available (%)* |
• CapEx EU Taxonomy-aligned (% of total) | |
& CO2 | |
• Revenues EU Taxonomy-aligned (% of total) | |
-56.67
35
63
23
99.9
81
29
26
-57.5
35
52-55
25
99.9
-64.5
65
100
35
99.9
85
Local
Communit.
Transform. Innovation
• Benefits for local communities over reg. revenues (%) | 0.4 | |
• Value released at local communities (€M) | ||
1,451 | ||
• Avg customer satis. rate for service quality (1-10)7 | 8.1 | |
• Investments in Innovation as % of revenues | ||
3.3 | ||
• Start-ups accelerated after PoC (#)8 | ||
11 (22) | ||
• Process digitalized and processes with AI (% of total) | 100/10 |
- Projects covered by Security by Design cyber approach (%) New KPI
• | CapEx SDG-aligned (% of total) | 61 |
• | Scope 1 and 2 CO2 emissions reduction (% v. 2022)9 | |
-10 |
~1 | ~1 | |
>1,000 | >1,000 | |
>8.1 | >8.17 |
3 3
15(25) 27(30) 100/12 100/20
100 100
-25
Sustainable
principles
- ESG matters discussed at BoD meetings (>40% of BoD discussions with ESG topic discussed)
- 3rd parties subject to procure. Process on which reputational checks are performed (100% of suppliers with reputational checks performed)
- Italian territory covered by cyber resilience field tested scenarios (100% of Italian territory covered)
1. Emissions avoided to 3rd parties thanks to the Group's activities and investments in the infrastructure. 2. Previously called "Reliability levels on gas supply". 3. Cumulated figure 2023-2027. 4. Renewable Energy Source computed on | |
regulated perimeter 5. Snam targets to have an index lower than the minimum of the latest 3 years. 6. For equivalent organizational positions. 7. The target indicated refers to a spontaneous initiative by Snam to measure service quality | 8 |
through the annual survey, using a scale of values from 1 to 10, however, we are expecting a change in the service quality assessment methodology in the coming years. In this case, the annual target will have to be modified accordingly. |
8. KPI represents both the number of startup accelerated and the number of Proofs of Concept (PoC). 9. Reduction computed on regulated perimeter. (*) Numbers subject to final approval by committees involved in the remuneration process.
Agenda
Governance
Road to Carbon Neutrality
Biodiversity & Regeneration
Snam People
Engagement & Local Communities
Key Data
Robust Governance
Appointed on April 27, 2022
Monica de | Stefano | Massimo | Laura | Augusta | Piero | Rita | Qinjing | Alessandro | |
Board of Directors | Virgiliis | Venier | Bergami | Cavatorta | Iannini | Manzoni | Rolli | Shen | Tonetti |
Chair | CEO | Non-Executive | Non-Executive | Non-Executive | Non-Executive | Non-Executive | Non-Executive | Non-Executive | |
Director | Director | Director | Director | Director | Director | Director | |||
Independent Director1 | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ | (2) | (2) | |
Gender | Female | Male | Male | Female | Female | Male | Female | Male | Male |
First appointment | 2016-2019 | 2022 | 2022 | 2019 | 2022 | 2022 | 2019 | 2022 | 2016 |
2022 | |||||||||
Committee3 Roles | N&R | Audit | Audit | Audit (C) | N&R (C) | ESG | N&R | ||
ESG | ESG (C) | ESG | |||||||
Skills: | Effectiveness: | |||||
Induction & | Joint Cross- | Strategy | ||||
Training | Committee | |||||
Workshop | ||||||
Strategy | Sustainability | Sector | Corporate | Programs | Meetings | |
Governace |
- In accordance with the Italian Corporate Governance Code
- Officers of the jointly controlling shareholders who have been elected to the Board upon proposal of such shareholders
- N&R = Nomination & Remuneration (67% independent), Audit = Audit, Risk and Related Parties Transactions (100% independent), and ESG = ESG and Energy Transition Scenarios (75% independent)
energy
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67%
Independent
44%
Female
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SNAM S.p.A. published this content on 20 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 May 2024 12:28:10 UTC.