Corporate responsibility

Transcription

values and practices
Società per Azioni · Piazzale Enrico Mattei 1 - 00144 Rome · Tel +39.0659821 · Fax +39.0659822141 · www.eni.it
Index
Company description
Eni’s distinctive path
Globalization, energy
and sustainable development
50 years of history:
conducting business
in a responsible manner
Principles, values and rules
Code of Practice
Governance model
Compliance with international
standards and guidelines
Market recognition
Boxes, tables and graphs
5
7
8
9
11
12
13
13
14
Health
Principles and objectives
Health controls
Training
Health protection abroad
Health centers
Management of health emergencies
Fight against endemic
and epidemic diseases
Safety
Strategies and guidelines
Identification
and evaluation of risks
Training
Injury rates
Managing emergencies
A common path with trade unions
RESPECT AND DEVELOPMENT
OF THE INDIVIDUAL
Introduction
Human resources
Challenges and principles
Management and development
Internationalization process
Cycle of knowledge
Planning and development
of critical skills
Knowledge management system
Eni Corporate University
Internal communication
Labor standards
Principles
Occupational dimension
Industrial relations model
In Italy
In Europe
On a transnational level
Initiatives in favor
of employees in Italy
Equal opportunities
Acquisitions
and integration processes
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18
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20
20
21
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24
24
25
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27
28
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30
31
31
32
32
33
35
35
36
37
38
38
39
Introduction
41
Responsible conduct
42
42
43
43
Local development
Areas and types of intervention
Overall commitment in support
of communities
Projects
Health
Social development
Education and training
Protection of the environment
Promotion of arts and culture
Environment
Training
Energy consumption
Air
Water
Waste
Soil protection
Remediation
Research & Development
Environmental restoration
Biodiversity
Biomarkers
Biodiversity projects
Transport of products
Marine anti-pollution system
Strategies and initiatives
in response to Climate Change
Implementation of the Kyoto Protocol
Participation in the National Action Plan
Use of Flexible Mechanisms
Participation in the European
Emissions Trading System
Accounting and Certification of Emissions
Development of natural gas
Projects
Combined cycle power plants - co-generation
Development prospects:
sustainable energy and hydrogen
Research and technological
development
Principles and areas of intervention
New technologies
Products
Relations with customers
and suppliers
RESPECT AND DEVELOPMENT
OF THE TERRITORY
Sensitive areas
Human rights
Human rights and security
The need for a more certain
framework of reference
Transparency in payments
Local stakeholders
Evaluation of the impact of activities
Sustainable energy system
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45
46
46
48
48
49
49
49
51
53
54
55
57
57
58
58
59
59
60
60
60
60
61
61
62
62
63
63
Customers
Oil products
Gas and electricity
Suppliers
Principles and guidelines
Selection of suppliers
Scouting, development and training
of suppliers and contractors
Main data and indicators
50 years of history:
conducting business
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64
64
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65
65
65
66
67
67
67
68
68
68
71
72
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73
74
77
78
78
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81
10
Towards sustainable value
11
12
14
15
Eni Principles
Addendum to the Eni Code
Global Compact
Evolution of the financial sector
Human resources
19 Eni International Resources Limited
20 Geographic composition
of Eni personnel 2003
20 Diversity
21 Eni and the academic world
22 Eni and training
Labor standards
23 Employees 2000 - 2003
24 Breakdown of Eni employees
24
24
25
27
2000 - 2003
Hiring 2001 - 2003
The Productivity and Profitability
Premium in Italy
A pilot project to promote
intercultural dialogue
The Lasmo experience
Health
28 Eni’s HSE guidelines
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30
30
30
31
31
32
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34
Management System Model
Health expenditure
Health expenditure breakdown 2003
Examples of health controls
Cooperation with the Italian League
for the Fight Against Cancer
Libya - Specialization
in pediatric cardio-surgery
Developing telemedicine to support
the health of Eni employees
SARS - Saipem’s response
Distribution of malaria 2003
Policies concerning AIDS
The numbers of AIDS
Safety
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International regulations
Safety expenditure
Safety expenditure breakdown 2003
EniTecnologie and safety an example of preventive approach
HSE training
Hours of HSE training
in Italy 1999-2003
HSE training participants
in Italy 1999-2003
Index trends
Injury frequency rate Eni personnel 1999-2003
Injury severity rate Eni personnel 1999-2003
Responsible conduct
42 The BTC oil pipeline
44 Relations with the communities
of the Niger Delta
Environment
57 Environmental protection expenditure
57 Environmental expenditure
breakdown 2003
58 Environmental Declaration
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62
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46 Three different approaches:
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Pakistan, Nigeria and Venezuela
Kazakhstan, Ecuador and Nigeria
Responsibility in Basilicata
Local development
48 Community expenditure types of intervention
48 Trends by type
of intervention 2001-2003
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71
49 Community development:
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expenditure trend 2001-2003
Community development 2003:
breakdown by sector
Selection criteria of projects
Eni’s commitment
in the fight against Aids
Estimated number of people
living with HIV/AIDS 1999-2003
Adults and children estimated
to be living with HIV/AIDS, end 2003
Malaria in Africa
Social infrastructure in Kazakhstan
The Green River Project
The Niger Delta and the areas
involved in the project
Eni’s commitment
for the communities in Venezuela
Sponsorships and Eni operational
sites in Italy
of the Venice Refinery
GHG total emissions 1999-2003
Atmospheric emissions 2003
Waste water - COD 1999-2003
Water management projects
Hazardous waste from production
activities Italy - final destinations
Non-hazardous waste from production
activities Italy - final destinations
Remediation projects
Costs of soil protection 2003
The BioAgri and BioMare projects
Products transported 2003
Mode of transport
The Prestige project
Zero Gas Flaring Programs
The GHG emissions accounting system
Fuel transport
The CCP Project
Major research areas
The Italgas Prize
EniTecnologie
Methane for road transport:
an innovative choice
and suppliers
72 Distribution and marketing
of oil products, gas and electricity
73 Agip Truck Point for a diversified clientele
73 Training programs
for station managers
74 Agip Multienergy
for eco-compatible mobility
74 The LPG business 75
76
76
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78
certification renewal
for the Quality Management System
The gas market and protection
of the consumer
Gas service quality in Turin
Italgas più - recognition
for its commitment to quality
Labor rights in the qualification
process and contracts
An integrated qualification process
Mission
Eni is one of the most important integrated
energy companies in the world operating in the
oil and gas, power generation, petrochemicals,
oilfield services construction and engineering
industries. In these businesses it has a strong
edge and leading international market positions.
Eni’s objective is to create new value to meet its
shareholders expectations through the continuous improvement of cost efficiency and the
quality of its products and services and through
the attention to the needs of its employees and
the commitment to a sustainable growth pattern also encompassing the careful assessment
of the environmental impact of its activities and
the development of innovative and efficient
technologies.
To achieve this objective Eni relies on the managerial and technical capabilities as well as the
continuous development of its workforce, and
on an increasingly lean and entrepreneurial
organization.
Eni’s Way
In recent years Eni has experienced an unprecedented period of growth; today it is one
of the most important
international companies
and it is a leading player
Eni operates in 70 countries around the world in all the new frontiers
and employs over 76,000 people. of the world’s oil industry:
in deep-water hydrocarbon
exploration, in the Caspian
In 2003 daily hydrocarbon production was 1.56 million boe, up 6.1% Sea giant reservoir development
over 2002. Proved hydrocarbon reserves at December 31, 2003 and in natural gas large-scale
reached 7.27 billion boe, with a life index of 12.7 years. transmission infrastructure.
In 2003 Eni generated consolidated revenues of around 51.5 billion euro, with a net income
of 5.6 billion euro and a return on capital employed (ROACE) of 15.6%.
Exploration & Production
Gas & Power
Refining & Marketing
Eni operates in the following 70 countries
EUROPE
Austria, Belgium, Croatia, Cyprus,
Czech Republic, Denmark, France, Germany,
Greece, Hungary, Ireland, Italy,
Luxembourg, Malta, Netherlands, Norway,
Poland, Portugal, Romania, Slovakia, Slovenia,
Spain, Switzerland, Turkey, United Kingdom
Snam Rete Gas S.p.A.
Divisions
Italgas S.p.A.
EniPower S.p.A.
Subsidiaries
Saipem S.p.A. (*)
Snamprogetti S.p.A.(*)
(*) Companies operating in Oilfield Services
Construction and Engineering respectively.
CSI
Azerbaijan, Georgia, Kazakhstan, Russia
AFRICA
Algeria, Angola, Cameroon, Congo, Egypt,
Gabon, Guinea Bissau, Libya, Mauritania,
Morocco, Nigeria, Senegal, Somalia,
South Africa, Sudan, Tunisia
MIDDLE EAST
Iran, Kuwait, Oman, Qatar, Saudi Arabia,
United Arab Emirates
CENTRAL ASIA
India, Pakistan
EXPLORATION & PRODUCTION
Eni operates in hydrocarbon
exploration and production
in Italy, North and West Africa,
the North Sea, the Gulf
of Mexico, Australia
and in high potential areas
such as the Caspian Sea,
the Middle and Far East
and Latin America.
SOUTH EAST ASIA AND OCEANIA
Australia, China, Indonesia, Malaysia,
Papua-New Guinea, Singapore, Taiwan, Thailand
AMERICAS
Argentina, Brazil, Canada, Ecuador,
Mexico, Peru,Trinidad & Tobago,
United States, Venezuela
GAS & POWER
Eni operates in natural gas
supply, transmission,
distribution and sale
in Italy and abroad,
as well as in electricity
generation and sale.
In 2003 natural gas sales
in Italy and in the rest
of Europe amounted
to more than 71 billion
cubic meters, including
internal consumption,
and the electricity production
sold totalled
5.55 terawatthours.
REFINING & MARKETING
Eni operates in oil products
refining and marketing
in Italy, Europe and Latin
America. In 2003, Eni sold
some 50 million tons
of petroleum products
and the refining capacity
of the fully owned refineries
was 504,000 barrels per day.
OILFIELD SERVICES
CONSTRUCTION
AND ENGINEERING
Eni is one of the world’s
leading operators in oilfield
services and construction
for the oil industry.
In particular, the company
is the world leader
in subsea pipeline laying
in deep waters
and in the installation
of offshore platforms.
The company owns a highly
advanced fleet of support
vessels capable of drilling
wells up to 10,000 meters
at a water depth of over
3,000 meters, as well as
laying pipelines on seabeds
over 3,000 meters in depth.
Snamprogetti is a leading
world company in terms
of technological skills
and project development
in engineering
and contracting
for the oil and petrochemical
industries and
in the construction
of hydrocarbon
transportation systems.
Eni’s distinctive path
The concept of sustainable development occupies a central position in the debate concerning the
scenarios and in the definition of growth models for the coming decades. The evolution of our society, of
lifestyles and individual behavior needs to take into account a series of issues - the protection of the
environment, the creation and preservation of wealth, social equity - in a manner that includes and integrates
also the rights of future generations. In a global economy all the principal members of civil society governments, institutions, communities, companies - are asked to commit themselves towards a common effort,
within the necessary and clear differences of identity, role and specific aims of each. In this respect, companies,
which are increasingly under close scrutiny by markets, institutions and civil society, must direct their behavior
towards a path of sustainability.
Given the nature of its business, Eni has significant responsibilities; this means continuing to satisfy
the demand for energy through an operating strategy and business conduct aimed at minimizing the impact
of its extractive activities on the territory, increasing energy efficiency, placing greater attention on the health
of its employees and the population, and developing products and processes that are increasingly compatible
with the environment.
In this context, with the aim of pursuing the success of business, ensuring the license to operate and
promoting sustainable value, in addition to a clear strategic orientation, a strong commitment is needed to
promote and define guidelines and standards in the area of sustainability and corporate responsibility, and to
develop, apply and manage an integrated policy to achieve such goals.
Eni is fully engaged in this process, in the belief that a company committed to sustainable
development as part of a long-term vision based on a shared culture and values, has a a greater capacity to
innovate and manage change, a higher level of internal cohesion and a growing ability to attract and retain
young talent and qualified human resources.
These concepts have always been an integral part of our business culture and way of operating. Over
the years, Eni has always conducted its business in a responsible manner, paying the greatest attention to the
needs and expectations of society and demonstrating a capacity to integrate with different cultures and contexts.
The combination of such distinctive elements represents a real competitive advantage for the
Company in terms of cost reduction, risk mitigation, easier access to financing, creation and defense of
reputation, and also allows to pursue sustainable growth and profitability objectives.
On the basis of its system of values and acquired experiences, Eni continues to promote and
implement socially responsible policies aimed at encouraging exchange and dialogue with its many
stakeholders, within a framework of commitment and constant improvement. The results achieved and the
recognition obtained confirm the soundness of this approach and its sustainability for the years ahead.
7
ENI
CORPORATE RESPONSIBILITY VALUES AND PRACTICES
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The transformations undergone by Eni over the last
decade, along with the changes that have taken place
in the global economic system, have led the Company
towards different and broader levels of autonomy
and institutional responsibility related to its new
structure and - as with the other major oil companies
- towards a greater exposure to international
competition, the scrutiny of the markets and to a
greater level of interaction with civil society: public
opinion, public bodies, institutions, the media and
communities.
In 2003 Eni celebrated its fiftieth anniversary. Since it
was founded on 10 February 1953, the Company has
had in its genetic code the awareness of having to
play a clear business role that also takes into account
society’s expectations for growth and wellbeing.
The search for new business opportunities has,
therefore, always been accompanied by a great
attention to the way in which such opportunities
were pursued.
The profound awareness of the link between energy,
development, the environment and a vision of the
world open to other people’s rights and reasons, have
placed Eni in the forefront of the reflections
concerning the great challenges that face our society
and the sustainability of its development model, and
that in the first place involve the adoption of a
socially responsible business conduct.
Eni’s strategic vision has always been based on the
central role of the individual and on the importance
of human capital, on innovation, on the continuous
improvement of its way of operating and the longterm cooperation with producing countries, as well
as on the full respect for the territory and the
environmental and social contexts in which the
Company operates, as decisive factors for development
and sustainability.
p
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used by countries rich in this resource, such as China
and India. At the same time efforts will continue to
promote the development of alternative energy
sources, even if, for a number of decades, their impact
on energy demand will not be particularly significant.
The challenge that the international community is
therefore facing involves finding a balance between
the requirements for economic growth, increased
consumption, improved standards of living, and the
possibility of development also for the poorest and
most disadvantaged populations, respect for the
territory and environmental quality. In a process
geared towards sustainable growth, the oil industry is
called on to play a leading role and must develop
increasingly innovative technological solutions to
make energy sources with a lower environmental
impact accessible and available.
The globalization of economies and markets, as well
as the imbalances that are often associated with
such a process - along with the growing international
competition, the speed of technological innovation,
the social and environmental problems - require the
oil industry to have an increasing capacity for
dialogue and engagement with those parties affected
by its activities: the stakeholders.
Oil companies supply energy that allows for economic
development and also the possibility to improve the
living conditions of millions of people. The wealth
generated by a balanced use of energy resources can
offer the populations and countries who possess
hydrocarbons enormous growth potential, and oil
companies can - through a responsible business
conduct that respects the laws and the rights of the
populations - make a positive contribution to the
improvement of the quality of life.
Globalization has significantly changed the outlook of
the world economy. The 90s coincided with a period of
expansion for nations and companies that were able
to take advantage of the distinctive factors of such a
process: liberalization of trade and capital markets,
privatizations and deregulation of economic
activities, rapid expansion of new information and
communication technologies.
However, not everyone has benefited from
globalization. Although developing countries, overall,
experienced more rapid growth, reached higher
standards of living and took advantage of new
opportunities, more than a billion people - especially in
Africa - continue to live in extreme poverty.
The model of economic development adopted
thus far has also imposed on the planet and its
resources a very high cost; a cost that may no longer
be sustainable in the future, especially in light of
the growth prospects of developing countries and of
the current levels of production and consumption,
particularly in industrialized countries.
In the coming years the energy demand of
industrialized regions is expected to grow by a further
30% up to 2020, in spite of energy saving and efficiency
efforts, while consumption in developing countries,
particularly in Asia, is expected to increase even more,
with a consequent increase in carbon dioxide
emissions of at least 50% in the same period.
Fossil fuels, which account for around 90% of current
world energy consumption, will continue to play a
fundamental role in meeting energy needs for many
years to come. The mix in the demand will change,
with gas destined to progressively take on, especially
in Europe, a growing role also in the production of
electricity, while coal will continue to be intensively
50 years of history: conducting business
sh
Globalization, energy
and sustainable development
pliers
instit
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9
ENI
This implies extending the concept of value to include
greater commitment and actions towards a sustainable
development process, able to integrate environmental
protection, economic growth and social wellbeing,
and therefore the safeguarding of the rights of future
generations.
From this perspective, the possibility of creating
lasting value requires an ability to combine the need
for flexibility and cost reduction with the assumption
of social responsibilities.
To accomplish this, Eni adopts a conduct and
practices that are inspired by a system of principles
and values which are embedded in its way of
operating: the centrality of the individual and their
professional development, an openness to dialogue
and mutual respect, an attention to the rights and
needs of communities, as well as the socioenvironmental sustainability of its operations on
the territory.
has been activated with
the aim of identifying
the priority measures
required to achieve
the integration of CSR
into the corporate strategies.
In this framework, meetings
and exchanges have been
conducted with the operating
units in the territory
to improve - in the context
of consultation processes the ability to meet
the expectations
of the principal international
and local stakeholders,
as well as to establish more
effective forms of dialogue,
based on ever greater
transparency, with the aim
of increasing the credibility
and the reputation,
and, consequently,
the competitiveness,
of the Company.
In order to support
and improve Eni’s positioning
and Environment, Customer
and Supplier Relations).
The objective is an ever
greater awareness
and integration
of sustainability
and corporate social
responsibility principles
and values within the Eni
Group, with the aim
of enhancing the immaterial
assets that distinguish
the Company from
its competitors;
this through the adoption
of corporate management
and communication
policies and processes
for business sustainability
and the promotion
of a structured dialogue
with its stakeholders.
In recent years an internal
consultation process
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ENI
Corporate social responsibility is an integral part of
Eni’s way of doing business. The goal of the Company
has always been to combine competitiveness with
sustainability. It is a commitment aimed at pursuing
growth, innovation and results, always placing great
attention to the quality of life, human rights and
environmentally compatible development.
It is a commitment reflected in the principles,
policies and managerial conduct which characterize
the Company’s operations, and which are aimed at
promoting a “culture of sustainability ” and at
strengthening the trust in Eni of all its main
stakeholders: shareholders, employees, customers,
suppliers, commercial and financial partners,
institutions, non-governmental organizations and
the wide number of communities with which the
Group interacts.
Eni’s principles are drawn from the values which have
characterized the Company’s activities since the very
beginning and which can be found in Eni’s Code of
Eni Principles
Towards sustainable value
In 2002, Eni created
a Corporate Social
Responsibility (CSR) unit,
which, building
on well-established social
responsibility values,
promotes and extends
the experience acquired
by the Company in its
different sectors of activity.
The dual role of the unit is,
on the one hand,
to guarantee
the management of issues
that cut across different areas,
such as, transparency,
human rights, the local
impact of industrial activities
and the involvement
of the stakeholders
on the territory, and,
on the other, to promote
the sustainability of business
in areas already addressed
by other departments
(Human Resources,
Security, Health Safety
with respect
to its sustainability profiles,
relations have also been
consolidated with the leading
rating agencies specialized
in corporate social
responsibility issues.
Finally, with a view
to a more effective
enhancement and greater
visibility for the measures
taken, sustainability issues
have been progressively
included in a range
of different institutional
communication tools
and products; in particular
by creating a specific area
in the new Eni portal
and dedicating a section
in the Company’s Annual
Report to the actions
and initiatives carried out
in this area.
Business ethics
All Eni business activities
worldwide must be onducted
with honesty, integrity
and in observance of the laws.
Respect of stakeholders
Eni is committed to respecting
all the stakeholders
(employees, shareholders,
customers, suppliers,
communities, commercial
and financial partners,
institutions, civic organizations,
industry associations, labor
organizations, etc.) with whom
it interacts in conducting
its business activities,
in the belief that these
represent an important asset
to the Company.
Worker’s protection
and equal opportunities
Eni respects the universally
accepted principles of labor
rights and the core labor
standards set forth
by the Fundamental
Conventions of the ILO
(International Labour
Organization).
It therefore ensures
the freedom of union
association and the right
to collective bargaining,
rejects any form of forced
and child labor,
and discrimination.
In addition, Eni is an equal
opportunity employer
and ensures its employees
equal treatment based on merit.
Respect of diversity
In its business conduct
Eni respects cultures,
religions, traditions,
ethnic diversities
and the communities
in which it operates
and is committed
to preserving biological,
environmental, socio-cultural
and economic identities.
Respect of human rights
Eni is committed worldwide,
within its sphere
of operations, to supporting
and respecting
the principles contained
Development
in the "Universal Declaration
of professional skills
of Human Rights"
Eni values and promotes
the development of the abilities of the United Nations.
and competences of each
Cooperation
employee and of teamwork
so that the energy and creativity Eni is committed
to actively contribute
of individuals can find full
to the promotion
expression for the fulfillment
of the quality of life
of one’s potential.
and to the socio-economic
development
of the communities where
the Group is present.
Protection of health
and safety
Eni ensures increasingly
higher health
and safety standards
for its employees
and the communities
in all areas of the world
where the Group operates.
Environmental protection
Eni is committed
to paying the greatest
attention to the environment
and ecosystem
affected by its business
activities and is inspired
by the goals established
by international
conventions on sustainable
development ratified
by Italy.
11
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PRINCIPLES, VALUES AND RULES
activities must be performed in full respect of the law, in
fair competition, with honesty, integrity and good faith,
with due respect for the legitimate interests of its
customers, employees, shareholders, commercial and
financial partners and the communities where it is
present.”
Through the Code, updated in 1998, ethical
principles and guidelines were defined to
which the Company personnel must adhere
in conducting activities. Over the years, the Code
of Practice has had the function of directing
the Company’s conduct in a series of key areas:
business ethics, transparency and correctness in
accounting, industrial relations, health, safety and
environmental protection, external relations and
community relations.
Recently, following also the recommendations
of international institutions on corporate
responsibility and the ongoing dialogue with
organizations and associations involved in human
rights and sustainability issues, Eni decided to
reaffirm the values and principles of social
responsibility to which it adheres in performing its
activities.
In July 2003, the Company’s Board of Directors
approved an addendum to the Code of Practice,
which reaffirms Eni’s declarations of principle with
Practice, in the most rigorous standards adopted
in terms of Corporate Governance, in the full
compliance with national laws and international
agreements and guidelines. These principles
are expressed in the search for new technological
challenges, in the adoption of management systems
and operational processes, in the constant commitment
aimed at promoting and developing the professional
skills of employees, in the respect of human rights
and work standards, in the attention paid to the
cultures and traditions of people and communities
with whom the Company interacts, in the protection
of the environment and in the search for increasingly
sustainable energy solutions.
It is a distinctive path of sustainability, based on
the Company’s system of values and experiences
which, as also stated in its mission, aims at the
continuous strengthening of structural capital and the
development of human, relational and social capital as
an investment in competitiveness and longevity.
Code of Practice
Eni has had a Code of Practice since 1994. It was one
of the first, among the major companies in Europe, to
give itself norms of self-regulation stating that “Eni's
Addendum to the Eni Code
Approved by the Eni Board of Directors at the meeting on 31 July 2003
“In conducting its activities
as an international company,
Eni refers to the protection
of human and labor rights,
of safety and the environment,
as well as to the system
of values and principles
concerning transparency
and integrity, energy efficiency
and sustainable development,
as outlined by international
institutions and conventions.
In this respect Eni reaffirms
its commitment to operate
within the framework
of the United Nations Universal
Declaration of Human Rights,
the Fundamental Conventions
to actively contribute
to promoting the quality
of life and the socio-economic
development of the
communities where
the Group operates
and to the development
of their human resources
and capabilities, while
conducting its business
activities in internal
and external markets
according to standards
that are compatible with fair
commercial practice.
All of Eni’s activities are carried
out in the awareness of the
Social Responsibility that the
of the ILO - International
Labour Organization and the OECD Guidelines
on Multinational Enterprises,
with particular reference
to the areas concerning
the protection of labor rights,
freedom of association,
the rejection of all forms
of discrimination, forced
and child labor, corruption,
the safeguarding of dignity,
health and safety
at the workplace, the respect
for natural biodiversities
and the protection
of the environment.
Moreover, Eni is committed
12
ENI
Group has towards all of its
stakeholders (employees,
shareholders, customers,
suppliers, communities,
commercial and financial
partners, institutions, industry
associations, trade unions …),
in the belief that the capacity
for dialogue and interaction
with civil society constitutes
an important asset
for the company.
Therefore, Eni is committed
to spreading an awareness
of its values and principles
both within and outside the
Group and to implementing
adequate control procedures.”
respect to business ethics and responsibility, inspired
by the system of values set forth by the United
Nations’ Universal Declaration of Human Rights, the
Fundamental Conventions of the ILO and the
Guidelines for Multinational Enterprises of the OECD
(Organization for Economic Co-operation and
Development).
remuneration of the Chairman and the Managing
Director, as well as overviewing the remuneration
criteria of the Group.
The OIL & GAS COMMITTEE in entrusted with monitoring
the trends in the oil markets and studying their
different aspects.
The Company’s Directors are elected during the
shareholder meeting on the basis of lists presented
by the shareholders, who make the preliminary
selection of candidates and verify that they possess
the integrity and professional qualifications required
at both legislative and statutory level.
In 2002, in compliance with the provisions contained
in the Regulations of the Italian Stock Exchange,
the Board of Directors approved a “Procedure for the
disclosure of information to the market concerning
Group activities” and a “Code for Internal Dealing”,
which contains the rules that govern public disclosure
obligations and limitations regarding transactions
involving financial instruments issued by Eni and by
its subsidiaries executed on their own behalf by
prominent persons.
In addition, Eni, in compliance with Legislative
Decree 231/2001, which accepts the OECD Directives
concerning the administrative responsibility of
companies for crimes committed or attempted by
employees or directors to the advantage or in the
interests of the companies themselves, has adopted a
specific organizational, management and control
model to protect its position in such circumstances.
These measures, in their entirety, have contributed to
guaranteeing greater clarity and independence in the
conduct of the Company’s top management, a more
effective monitoring of business management and
transparency in the aspects relating to financial
communication and information to third parties.
Governance model
In order to guarantee integrity, transparency and
fairness in its behavior with respect to stakeholders, in
particular shareholders, and to ensure coherence in
adopting a conduct in line with the corporate culture
and vision of sustainability, Eni has adopted a system
of corporate governance that is one of the most
innovative and advanced in Italy and Europe, with
appropriate division of responsibility and powers and
a correct balance between management and control.
The implementation of a system of internal
regulations aimed at creating value for shareholders
and fully in line with the principles established by the
Self-Discipline Code of the Italian Stock Exchange, as
well as, more broadly, with international best
practices, guarantees that all of the Group’s activities,
in addition to being in compliance with current
legislation in the countries of operation, are
conducted with honesty, integrity and fairness in a
frame of fair competition, which respects the
legitimate interests of all stakeholders.
The central body of Eni’s corporate governance
system is the BOARD OF DIRECTORS, with which lies the
responsibility to define, apply and update the
corporate governance rules, to establish Group
strategies and verify their implementation.
In accordance with the internationally accepted
principles of governance, the Board has established
three internal committees with consulting and
proposing functions: the Internal Control Committee
and the Compensation Committee, entirely
composed of independent non-executive directors,
and the Oil & Gas Committee, in which the Managing
Director takes part.
The INTERNAL CONTROL COMMITTEE has consulting and
proposing functions for the Board concerning the
monitoring of general management issues.
The COMPENSATION COMMITTEE is in charge of proposing
to the Board managerial incentive systems, the annual
Compliance with international
standards and guidelines
Wherever it operates, Eni performs its activities, as
stated in its Code of Practice, in full compliance with
the current legislation and in recognition of the
principal international conventions concerning
human rights, labor standards and environmental
protection, inspired by principles of loyalty, honesty,
transparency and efficiency.
The nature of its business often leads Eni to operate in
countries which may present highly critical political,
13
ENI
social and environmental situations. Therefore, the
Company interacts and cooperates with associations
and organizations engaged in promoting the
protection of human rights and their respect by
governments, with the goal of identifying common
elements and approaches on sustainable development
and corporate responsibility issues. Eni decided to
participate, first among Italian companies, in the
United Nations’ Global Compact initiative and to
adopt its fundamental principles which aim at
promoting a greater awareness of human rights, labor
standards and environmental protection among
members of civil society and, in particular, in business.
In this respect, it has also supported the introduction
of a tenth principle specific to corruption.
Moreover, on these issues, the Company is actively
engaged with a wide number of associations,
participating, at the same time, in initiatives
promoted by the European Commission, the OECD,
the World Bank, as well as industry associations (such
as Oil and Gas Producers, IPIECA, CSR Europe), to
promote good corporate practices, encourage
policies and contribute to defining a framework of
rules and guidelines to allow business development
and equitable and long-lasting growth processes.
Market recognition
The course taken by Eni with respect to Corporate
Social Responsibility and the proven commitment
to defining and implementing strategies in this
field, as well as the dialogue established with the
agencies that include the Company’s stock in their
sustainability ratings, have led in recent years to
important recognition by financial markets.
Eni has been included in E. Capital Partners indices
“Euro Ethical Index” and “Global Ethical Index” for
the third consecutive year, and in the Eurozone ASPI
index (Advanced Sustainable Performance Indices) of
Global Compact
With the Global Compact
initiative, the UN aim
at promoting a pact with
the business community,
governments and civil
society to guarantee
the overall sustainability
of economic growth
processes and to contribute
to the creation of an
equitable global market
through the recognition
and respect of 9 principles
on human rights, labor
standards and environment.
These are universally shared
principles which are drawn
from the Universal
Declaration of Human Rights,
the International Labour
Organization’s Declaration
on Fundamental Principles
and Rights at Work
and the Rio Declaration
on Environment
and Development.
Environment
7. Businesses should support
a precautionary approach
to environmental challenges
8. undertake initiatives
to promote greater
environmental responsibility
9. encourage the development
and diffusion of
environmentally friendly
technologies
Global Compact asks
companies to integrate the 9
principles in their operations
and to commit to projects and
initiatives that support
the Principles and the wider
goals of the UN (Millennium
Development Goals).
The United Nations’ initiative
represents an important
step forward on the course
towards a greater awareness
of the concept of partnership
among business, institutions,
citizens, workers for
Principles
Human Rights
1. Businesses should
support and respect
the protection
of internationally
proclaimed human rights
2. make sure that they
are not complicit in human
rights abuses
Work
3. Businesses should uphold
the freedom of association
and the effective
recognition of the right
to collective bargaining
4. the elimination of
all forms of forced
and compulsory labor
5. the effective abolition
of child labor avoid
employing child labor
6. the elimination
of discrimination
in respect of employment
and occupation
14
ENI
the protection of human
rights and the promotion
of a new idea of corporate
social responsibility.
To date, more than 1,200 large
companies worldwide
have joined and participate
in the initiative.
Through its support, Eni fully
recognizes the principles
promoted by the UN
and confirms its commitment
to guaranteeing their respect
in all areas of activity, fostering
their diffusion in its sphere
of influence. Among the
corporate practices aimed at
encouraging a responsible
business conduct in the
different operational sectors,
the Company has implemented,
as illustrated in the following
chapters, a wide number
of concrete initiatives
to promote the application
of these principles.
the European rating agency Vigeo, which rates the
performance of the 120 European companies listed
on the Dow Jones Euro STOXX according to
sustainability and CSR criteria. Moreover, since 2000,
Eni has been included by the consulting company
Déminor among the major Italian companies which
best adopt and apply corporate governance rules and
standards.
In 2004, Eni obtained, for the third consecutive
year, the highest ethical rating among the companies
listed on the Italian Stock Exchange with respect
to their commitment to a number of ethical principles
set by the United Nations, OECD, ILO and the European
Union in the ranking drawn up by the European
Investment Agency. In 2003, the rating agency Oekom
Research, on the basis of a survey conducted on the
social and environmental sustainability in the oil
and gas industry, indicated Eni among the companies
that have most distinguished themselves in putting
into practice their commitment for a sustainable
growth model.
In the same year, Eni was awarded the “Annual Report
Award” by a jury headed by the Rector of the
University Bocconi of Milan. Among the reasons for
the award, established in 1954, were the attention
given to governance, corporate social responsibility
and sustainability issues. Finally, Avanzi SRI Research -
the Italian partner of the social and environmental
rating agency SiRi Company - awarded Eni the highest
mark with a grade of 9.3 out of 10 for its performance
in corporate governance, within the monitoring of the
major Italian companies listed on the stock exchange
with respect to corporate social responsibility.
Evolution of the financial sector
In light of the growing
awareness of the importance
of sustainability issues,
financial markets are also
paying greater attention
to evaluating business
conduct from the point
of view of a more precise
and accurate investment risk
analysis. In fact, the financial
sector increasingly
rewards companies which,
in addition to achieving
the best economic
and financial results, have
in place an effective
governance system, operate
in full accordance with
the laws, and conduct
business in compliance with
international ethical, social
and environmental standards.
In recent years, many ethical
rating agencies and
sustainability indices
(such as the Dow Jones
Sustainability Group Index,
FTSE4Good, Euro/Global
Ethical Index) have sprung up,
and are multiplying.
Today, they represent
an important instrument
for evaluating the overall
performance of companies
listed on stock exchanges
and a reference for operators
of large international pension
and ethical funds.
In 2003, the ethical
investment market,
or Socially Responsible
Investing, surpassed 2,000
million dollars (more than
10% of the total investments)
in the United States alone
and had a growth rate
of 7% with respect to 2001,
while in the same period
the remaining capital
invested registered
a decrease of 4%.
In Europe, though, also
as a result of the declining
trend of financial markets,
it settled at around
12 billion euros, after
that the capital managed
by responsible funds had
grown by 30% between
1999 and 2001, overtaking
the 14 billion mark.
Currently, in a number
of European countries,
pension funds are required
to disclose the ethical, social
and environmental criteria
adopted when defining their
investment decisions.
15
ENI
Respect
and development
of the individual
Eni takes great care to create a working
environment based on mutual respect
and trust among employees and between
employees and the Company.
It invests in the continuous improvement
of work conditions and standards,
is committed to protecting health and safety
in the workplace, has an open relationship
and constructive dialogue with labor
representatives, promotes the taking
on of responsibility and the professional
growth of individuals, favors group
spirit, intercultural communication
and the development of a homogenous
culture able to support a strong
Corporate Identity.
Human resources
The central role of the individual along with his or her development are a fundamental value
of Eni’s heritage and represent a major commitment in its role as a global company.
The strengthening of knowledge and skills, the reinforcement of motivation and involvement
of human resources, the development of new professional roles, the advancement
of the most talented young people, the management of intercultural differences, are all key elements
in the Company’s growth strategies and in creating the long-term value of its business.
Challenges and principles
competitive businesses, to understand market,
regulatory and normative systems trends in countries
where the Group operates.
The key elements in a sector in which the competitive
edge represented by knowledge, skills and experiences
play a major role, were amplified at the end of the
90s by a number of profound transformations. These
changes involved both the Italian scenario, due to
the effects of new regulations and the liberalization
of the natural gas market, as well as the global
competitiveness which, as a result of the big mergers
in the oil industry, was expected to bring about
the progressive disappearance of medium-sized
operators.
In a world characterized by heightened discontinuity
with respect to the past, Eni has had to face a wide
number of challenges, in terms of both efficiency and
effectiveness (timeliness in decision-making processes,
promptness in operational phases, internal synergies)
and development (identification of critical professional
roles, protection and development of know-how,
internationalization, development of personnel).
In response to these challenges, to maximize
operative results and support the Group’s growth
process at an international level, Eni has focused its
objectives on the core business of oil and gas. This
strategy calls for a culture which combines the
traditional capability of achievement and strategic
choice with an ability to operate in an integrated and
crosscutting manner with respect to the individual
operational areas, to run increasingly complex and
Management and development
Eni’s transformation process into a multidivisional
integrated operating company, has involved the
reorganization of business activities and a profound
redefinition of the organization, decision-making
processes, operating mechanisms, designation and
responsibility framework, planning and monitoring
systems, with the establishment of operating service
companies to support the businesses.
The steps taken required a complete overhaul of the
management and development systems of human
resources, which are seen as strategic factors in
achieving the goals set by the Group. In this respect a
model which allows for the development and
extension of the Group’s internal “best practices” has
been adopted, with the standardization of rules, tools
and management and development methodologies
used in the different business areas.
The implementation of these processes required the
development of an integrated culture and a common
language which can promote a strong identity and
the widest involvement of the personnel with respect
to the Company’s objectives and, as a result, to its
reputation. To this end, Eni has increasingly invested
18
ENI
HUMAN RESOURCES
and integration issues resulting from these processes
require a redefinition of identity, strategies,
organization, management and the development of
human resources. The ability to manage this change,
aimed at promoting a transnational culture,
represents for Eni, as for all companies, a key factor of
competitive advantage.
With the aim of promoting greater effectiveness and
standardization of the actions undertaken at the
international level, Eni has extended abroad the
standards and methodologies on which its human
resources management and development are based. In
light of the evolution of international markets and the
strengthening of Eni’s presence in the world, it has been
necessary to implement a number of additional
initiatives: the definition of new standards for the
management of international personnel; the
introduction of innovative contractual forms and
compensation schemes that are consistent with the
characteristics of the labor markets of the countries
where the Group operates; the creation of ENI
INTERNATIONAL RESOURCES LIMITED (EIRL), center of excellence
for the identification, selection and management of
highly qualified managerial and professional
international resources; the establishment of a central
coordination unit to guarantee a greater integration of
the management initiatives of the personnel of Eni’s
divisions and companies operating abroad.
in the motivation of human resources, as well as in
the recognition of abilities, skills and individual
contributions.
In order to provide adequate responses, the
Company ’s human resources management and
development system was organized according to the
following principles:
• PLANNING, to identify in a timely manner the most
appropriate management and development
measures with respect to the business objectives;
• DECENTRALIZATION to the line managers of the
management and development of staff according to
the Group guidelines;
• INTERNAL MARKETING , based on analysis and
segmentation of personnel (performance,
professional skills, needs and expectations),
differentiation of salary and professional
development opportunities and tools, dialogue
between managers and staff on performance
evaluation, commitment on the part of employees
for their professional self-development;
• CONTROL , necessary for running a complex and
decentralized system, managing the implementation
of plans, standards, methodologies and the
achievement of specific effectiveness targets
(attraction and retention of resources, managerial
and professional development, etc.).
Internationalization process
Cycle of knowledge
The changed competitive scenario in global markets
poses new and continuous challenges: entry into new
and often frontier areas; acquisition of activities
bringing different cultures; internationalization of
the labor market. The development opportunities
In light of the long business cycles and of the
time necessary to develop professional skills, the use
of knowledge as a successful competitive factor
represents for an oil company a strategic value and
Eni International Resources Limited
In 2003, Eni International
Resources Limited (EIRL)
was created in London, the new
reference point of the Group
for the recruitment, integration
and development of highly
qualified international
resources in management
positions and in the different
business areas, as well as
a further step towards
the adoption of standardized
systems for managing
and developing human
resources. EIRL offers global
opportunities to high profile
professionals and young people
with a degree or higher
qualification from an
internationally recognized
institution, and who have
graduated in the last three years.
19
ENI
HUMAN RESOURCES
synergies between the planning and development
processes of professional skills that are critical for the
business and knowledge management processes.
Geographic composition of Eni personnel 2003
number of employees 76,521
Africa 9.4 %
North America 0.8 %
Latin America and Caribbean 9.4%
Asia 9.2 %
Planning and development of critical skills
The strategic programming of professional skills
represents the most effective planning process to
respond to the specific characteristics and long
business cycle of the oil and gas sector, as it includes:
1. the identification for each business area of a list of
“critical” professional roles, which are of particular
importance for the pursuit of strategic objectives;
2. the identification of the needs for resources for
“critical” roles and the medium and long-term
availability of resources to fill such roles;
3. the planning, for highly critical roles, of recruitment,
training, mobility, compensation and internal
communication initiatives needed to attract, retain
and develop suitable resources.
Oceania 0.3 %
Europe 15.7%
Italy 55.2 %
Diversity
Internationalization processes
require that global companies
revise their organizational
culture according
to a multi-centric model,
in which decisions
and responsibilities are
assigned to work groups that
are increasingly multinational.
Therefore, the comprehension
and management of diversity
has become of growing
strategic importance
and is considered as
the basis of the individual’s
identity in its widest sense,
which includes both external
and explicit aspects of the
person - nationality, ethnic
origin, gender, age - as well as
the sum of their inner
components: values, culture,
social norms, behavior.
Eni, with 45% of its employees
of foreign nationality out
of a total of more than 76,000,
is Italy’s most international
company and has always
considered diversity
as an element that generates
value, and the ability to manage
it as an important factor
of its own sustainability.
In all the countries where
it operates, Eni promotes
the development of the skills
of local human resources
and favors their professional
growth and integration
in key positions.
Eni is consistently committed
to harmonizing the different
cultural contexts present
in its structure into a system
which produces beneficial
synergies to build, through
the synthesis of global
and specific values, a shared
common culture and
an open and inclusive working
environment.
In support of this effort, that
has been reinforced in recent
years following the acquisition
of foreign companies, Eni
promotes, among other things,
a wide number of training
initiatives aimed at
understanding intercultural
diversity, favoring intercultural
communication and
multicultural teamwork.
Knowledge management system
Eni has identified in knowledge management the
instrument to take on the challenge to improve
Group performance and to compete in a complex
business within a dynamic market.
Eni’s knowledge management system aims to transfer
knowledge to all operational levels, overcoming old
models which considered it an “owned” asset. It is,
therefore, a tool to support business processes and is
aimed at improving their reliability and efficiency
through the transformation of individual knowledge
into organizational knowledge, thus promoting more
rapid professional development processes. In order to
implement this system, Eni operates on the corporate
culture, both in the area of work processes and
technological infrastructures.
On this issue, a number of initiatives are underway:
• the definition of standard professional models for
staff and business areas (HSE, Administration and
Control, Procurement, Finance, ICT, Personnel and
Organization, Oilfields, Drilling, Refining, etc.), with
the aim of strengthening and structuring the
exchange of ideas and knowledge among employees
engaged in these areas and identifying common
tools for the training, development and mobility of
resources;
• the implementation of pilot projects in the
Company’s Divisions to operationally evaluate the
ability to improve the profitability of operations and
also requires initiatives aimed at developing
technological and professional competences and
knowledge within a mid to long-term time frame.
Eni’s commitment, which over the course of its history
has devoted constant and distinctive attention to the
quality of its resources, is today confirmed by the
presence within the Group of an original knowledge
management system which facilitates effective
20
ENI
HUMAN RESOURCES
the beginning of 2004, a “New Internship Project” was
launched, confirming the previously defined
objectives and content.
The internship starts with a recruitment process
conducted with the same methodology used for
hiring, the assignment of a corporate tutor who
supervises the trainee for the entire period and
assessments after 3 and 6 months. ECU, therefore,
plays a fundamental role in integrating all of the
activities included in the “knowledge cycle” and in
developing, enhancing and sharing the Group’s
managerial and professional knowledge system.
Within ECU, there is the Scuola Mattei, which has
been conducting training and post-graduate research
activities in the fields of economics, energy and
environment since 1957. Over the years, the institute
has trained, in particular through the MEDEA Master
(Management and Economics of Energ y and
Environment), more than 2,300 young people, 55% of
whom from 100 countries, transmitting, in addition
to technical-professional skills, the broader system of
values that inspires Eni’s conduct.
As part of the dialogue with the academic world and
of the interaction with a qualified labor market, Eni
carries out a series of other initiatives, such as the
organization, in association with universities, of
events dedicated to the Group (Eni’s day), workshops
and meetings targeted at graduating and newly
graduated students, participation in the most
qualified national and international events in the
field (career day) and publication of informative
pamphlets in the leading career books.
ECU is at the forefront in the field of corporate
permit the fine-tuning of tools and methodologies
needed for subsequent dissemination within the
Group;
• the development of technological systems in
support of knowledge management: intranet portal
(MyEni) and technical-scientific business portals.
The evolution and diffusion of the concept of
Corporate University in the field of management and
organization has also led Eni to embrace the idea of
creating an internal structure able to guarantee the
best possible match between corporate strategies and
skill development. Eni Corporate University (ECU)
operates according to three fundamental principles:
• comprehensive involvement, which includes, in
addition to employees, all the parts that contribute
to creating value for the Company;
• classroom training integrated with networked
distance learning activities;
• use of ICT tools with a view to promoting “learning
on demand”.
Eni, however, wanted to give its corporate university a
distinctive character, making it responsible for
managing the identification, selection and training of
young people for all business areas. In this respect, an
important role is played by on-the-job training activities.
To this end, Eni Corporate University launched the
pilot phase of the “Internship Project” in May 2003,
with the aim of later hiring suitable trainees. For the
project, the ongoing agreements with the 25 major
Italian universities with which Eni is associated were
utilized. With the completion of the pilot phase at
Eni and the academic world
Through Eni Corporate
University (ECU), Eni maintains
a continuous dialogue with
the leading Italian
and international academic
institutions to promote
the Group’s attractivenes
on the labor market
and contribute to promoting
loyalty among the most
talented resources.
The Company has a long
tradition of commitment
to university and post-graduate
the relationship with
the SCUOLA NORMALE SUPERIORE
OF PISA, with the two-year
specialization course
in “Hydrocarbon Sciences”,
also offered in the 2003-2004
academic year, and with
the POLITECNICO OF MILAN, first
with “Hydrocarbon Energy”
course within the chemical
engineering and mechanical
engineering degree and, from
2003, following the University
Reform, with a Specialized
training, §and of collaboration
with educational institutions
in the fields of energy,
economics and the
environment. Over the years,
in the framework of this
relationship, it has established,
together with Italian
and foreign universities, a wide
number of degree and diploma
programs in scientific-technical
and economic-managerial
disciplines. Among the most
important collaborations,
Degree in the same discipline.
Also, in 2003, ECU promoted
and activated a three-year
program for four second level
University Masters in the field
of engineering with
the Università degli Studi
of Bologna and the Politecnico
of Turin, and in the area
of governance with the
Università Cattolica
del Sacro Cuore of Milan
and the Università degli Studi
of Roma Tre.
21
ENI
HUMAN RESOURCES
responsibility in Europe, having included in the
MEDEA Master program a number of courses on
business ethics and corporate social responsibility,
sustainable development, environmental economics
and policies, environmental impact assessment, etc.
In this respect, ECU adheres to the European Academy
of Business in Society project, promoted by CSR
Europe and aimed at creating a network of business
schools and companies to promote the training of
new managerial skills in the area of corporate
responsibility
Along side the usual COMMUNICATION PROCESS among
colleagues - exchange of information, documents and
knowledge - and between managers and staff on
themes such as performance and career paths, there
is the INSTITUTIONAL COMMUNICATION. This form of
communication revolves around the Company’s
bimonthly magazine “personæ”, which disseminates
and consolidates Eni’s culture, other ad hoc
publications, conferences and workshops dedicated
to particular segments of the employee population identified on the basis of specific communicative
needs - as well as targeted initiatives, which are part of
integrated change management plans, when required
by the complexity of the issue, to support the internal
change processes.
In addition to these initiatives, the intranet portal
MyEni has been completed to improve the integration
between different business areas, support the internal
institutional communication, the sharing and
enhancement of know-how and the normal day-to-day
operations, as well as further encourage the
development of a common Group identity.
Internal communication
Internal communication contributes to the
dissemination and sharing of values, knowledge and
information concerning the Group’s strategies,
policies and activities. Its aim is to support the
individual and sustain motivation throughout their
career path, through the optimization of existing
traditional methods and the use of new technologies.
Labor standards
The main objective of Eni is to create a working environment based
on mutual respect and trust, on the participation, enhancement
and growth of individuals, as well as on the sharing
of corporate values and corporate social responsibility
principles by all employees.
Principles
Eni and training
Eni, through Eni Corporate
University (ECU),
provides for the definition
and implementation
of a training model
to guarantee the consistency
of the knowledge system
of the people who work
in the Group with
the Company’s objectives
and the institutional
development strategies.
Traditional training
is integrated with new
self-study (e-Learning)
and mixed learning
systems, which combine
distance learning with
classroom teaching.
Training activities, which are
held in the different
corporate offices
of the Group (San Donato
Special attention
is given to executives
and managers with
significant responsibilities.
To this end, ECU offers
training initiatives
in response to the needs
which come from an
increasingly dynamic
and complex corporate
reality and as a tool
to constantly improve
professional capacities, skills
and knowledge at all levels
of the organization.
Similar attention
is dedicated to promoting
the involvement of a growing
number of international
resources, with training
being used to transmit
and share values, culture
and knowledge that are
Milanese, Castelgandolfo,
Rome and Cortemaggiore),
are conducted both through
an offer of catalogue courses,
as well as specific initiatives
for the individual companies.
They address themes
in the ECONOMIC-MANAGERIAL
field (managerial behavior and
skills, business management,
project management,
communication, intercultural
relations, negotiation
and marketing, management
and development of human
resources, organization
and information technology)
and the TECHNICAL-SCIENTIFIC
field (health, safety,
environment and quality,
oil exploration, production
and maintenance,
downstream activities).
22
ENI
HUMAN RESOURCES
specific to the Eni Group.
For newly graduates,
in their first 2 to 3 years
in the Company, Eni has
developed a specific
training plan to encourage
a practical and effective
acquisition of the necessary
knowledge and skills, in line
with the expectations,
motivations and personal
and professional characteristics
of the individual.
ENI’S TRAINING NUMBERS
In 2003, 1,240,000 training
hours were completed,
with an increase of nearly
39,500 hours compared
to the previous year (+3,3%).
92% of the hours were dedicated
to technical-professional
training, while 8% to
managerial training.
almost 45% of the total in 2003, thus contributing
to the enrichment of the Company’s international
dimension and knowledge, improving its
competitiveness in international markets and the
ability to face new global challenges.
In its relations with employees, Eni promotes the
respect of the fundamental rights and work standards
established at an international level, by the ILO
Conventions; an approach already contained in the
Company’s Principles and Code of Practice and
reaffirmed with the adherence to the principles of the
Global Compact. Moreover, on the basis of these
elements, and with the aim of effectively managing the
change processes connected to internationalization
and its marked effects on organizational structures, Eni
has consolidated a participative industrial relations
model, directed at recognizing mutual competences
and responsibilities, through a continuous flow of
information, a consultation program and a joint
evaluation and analysis system of the most important
issues for the Company and its employees.
Employees 2000-2003
% Employees
2000
2001
2002
2003
Italy
69.6
62.6
54.2
55.2
Abroad
30.4
37.4
45.8
44.8
100.0
100.0
100.0
100.0
Total
Overall, the number of people employed in the
companies consolidated by Eni on 31.12.2003 was 76,521.
In detail, the number of employees hired in Italy was
42,235 (55.2% of all Group employees) of whom
39,863 operating in the country, 2,178 operating
abroad and 194 on board of vessels, while the number
of employees hired and operating abroad is equal to
34,286 (44.8% of all Group employees). The ongoing
process of improving efficiency and the search for
new skills and know-how has continued these last
years with the implementation of a policy aimed at
investing in a stable and highly qualified workforce
Occupational dimension
In the last few years, following a series of important
international acquisitions, the number of non-Italian
Eni employees has significantly increased, reaching
23
ENI
LABOR STANDARDS
Industrial relations model
number of employees
Breakdown of Eni employees 2000-2003
80,000
Eni’s industrial relations model draws inspiration
from a set of shared values and recognized rules and
is intended to govern the system and manage and
prevent conflicts through an open, transparent and
constructive dialogue with union organizations.
The path to strengthening the industrial relations
system, aimed at participation and collaboration, has
evolved along with the transformation process of Eni
from a holding company to an operative company
and has allowed, even in this particular field, the
implementation of a tool for effectively managing
change.
The relationship of dialogue and communication
with the workers’ organizations received further
impulse from recent labor agreements, through
which a structured and innovative system has been
established in terms of transparency and timeliness
of information.
70,000
60,000
50,000
21,279
27,069
36,973
34,286
48,690
45,336
43,682
42,235
40,000
30,000
20,000
10,000
Abroad
Italy
2000
2001
2002
2003
and at improving the qualitative mix of the human
resources employed in the operative units.
Recruitment has involved mainly personnel with
university and high school degrees.
Hiring 2001 - 2003
2001
2002
2003
Indefinite
of which university
(in engineering)
high school
852
410
264
380
1,203
599
356
487
1,283
678
405
562
Temporary
748
936
772
1,600
2,139
2,055
Total
In Italy
In June 2001, a PROTOCOL ON INDUSTRIAL RELATIONS was
signed with the industry’s national union organizations
based on advance information, consultation and
The Productivity and Profitability Premium in Italy
Eni’s present organization,
less hierarchical, more flexible
and organized according
to processes, assigns the worker
a more central role in
comparison with the past.
As part of its human resources
management policies, Eni aims
to involve the workers
in the targets set by
the corporate plans and
in the operating results, placing
particular emphasis
on the active role and
contribution of each individual
in attaining common goals.
The Productivity
and Profitability Premium,
instituted in 1994 following
the Protocol between
the Italian Government
and Social Parties in July 1993,
Labor Collective Contract,
which has instead the specific
task of safeguarding
the purchasing power
of salaries. For the company,
having a salary system that
can be adapted to the trends
of economic and productivity
results, it represents
a competitive advantage.
The Premium also encourages
transparency in industrial
relations, in that it allows union
organizations the possibility
to access to the company
results in a more participatory
and aware manner.
The current methodological
framework of the Premium
ensures, in general,
a correlation between what
is paid out and business
represents the tool which
in a more significant manner
establishes the direct
association between
the company’s overall results,
linked to the market dynamics
and business risk,
and the remuneration system,
according to a logic, shared
with the union organizations,
which strengthens the tie
between the company
and its employees.
The Premium takes
on an economic significance for
both workers and companies.
For the former, it represents
an opportunity to participate
in the wealth generated
by the company, so much more
significant since it is distinct
from the role of the National
24
ENI
LABOR STANDARDS
sector/area results and,
at the same time, guarantees,
through solidarity mechanisms
(Group profitability,
cross-sector parameters
between sectors in the same
business areas), possible
Premium quotas not directly
linked to the plant/site results.
The Productivity
and Profitability Premium
involved roughly 35,000
workers in the Group, 23,000
in the Energy Sector and 13,000
in the Chemical Sector.
The historical series
of the amounts paid out shows
a significant variability
in the percentage effect
of the Premium on the gross
annual salaries, with an
increasing trend over the years.
experimentation of new participative models. In order
to reach the objectives, a number of joint industrial
relations committees were set up at the national and
division/company level with regular meeting dates, in
line with key moments in the definition of corporate
strategies (presentation of the annual report and
investment plans, of the economic, energy and
legislative scenarios and of the four-year strategic
plan), to allow unions to be informed in a timely
manner about the Company’s strategies and choices.
This process of an ever greater involvement of unions
in the Company’s life has led to important results also
in terms of the reorganization which a complex
system like that of Eni has had to implement in
response to the ongoing globalization processes and
the liberalization of the energy markets. As a result,
in December 2003, it was also possible to sign, even
before its expiry, the two-year renewal agreements
concerning the compensation side of the National
Collective Labor Contract (CCNL) for the Energy and
Petroleum and the Chemical Industry, which involves
about 80% of the Group employees in Italy.
the economic and financial situation, the programs
of activities and investment plans, employment
conditions and opportunities, the organizational
dynamics of the Group, training, the introduction of
new work methodologies and of new production
processes, health and safety concerns. Again at the EU
level, the European Observatory for the Safety and
Health of Workers was set up in 1996, representing
the first consultative European body with the unions
on these issues.
In 2001, the EWC agreement, which was reassessed
and updated in light of the new corporate
framework, was integrated with the institution of
a restricted Committee, which meets with the
Company with the same frequency as the Eni
Industrial Relations Committee in order to make the
information and consultation of the EWC more
effective and frequent.
A web page was created on Eni’s portal to disseminate
the information concerning the Committee’s
activities to the Group’s workers and to facilitate
the exchange of information and relations between
workers of different countries and their representatives.
In June 2004, the agreement on the EWC was renewed
for an additional three-year period (2004-2007),
taking into account the organizational changes that
have occurred in Eni and in the new European Union
following its recent expansion. On the same occasion
the European Observatory for the Safety and Health of
Workers agreement was also renewed, with the aim of
strengthening and consolidating, also through new
initiatives, the role and competences of this body.
In Europe
In line with its international expansion process and
anticipating the implementation at a national level of
the European Directive 94/45/CE on the information
and consultation of workers in companies operating
in the European Union, Eni instituted the EUROPEAN
WORKS COUNCIL (EWC) in 1995. The representative body
for the Group workers at the European level is
informed and consulted on a range of issues, such as:
A pilot project to promote intercultural dialogue
In July 2002, Eni
and the European labor
representatives reached
an agreement in Munich
to implement a continuous
training experiment
at the European level.
The Company, along with
Eni Corporate University,
and in collaboration with
the EWC, prepared, therefore,
an articulated training
program aimed
and development
of differences, and is aimed
at promoting the growth
of the individual’s abilities
to undertake suitable actions
within a multicultural
organization and, on the part
of the company, to create
the environment
and the adequate conditions
to support these actions.
The pilot project involved
140 people in 9 European
at harmonizing behavior
and the system of values
and promoting intercultural
communication
and integration within
and outside the company
organization.
The goal of the training
activities is to encourage
the understanding
of the roles played
by the different cultures,
acceptance of their features
downstream subsidiaries
in Austria, Benelux,
Germany, Switzerland,
Czech Republic, Slovakia,
Slovenia, Hungary,
Romania, whose matrix
organization represents
an important context
to promote the integration
and work groups
in intercultural organizational
conditions characterized
by strong differences.
25
ENI
LABOR STANDARDS
On a transnational level
The industrial relations model was completed
in November 2002 with the AGREEMENT ON TRANSNATIONAL
INDUSTRIAL RELATIONS AND CORPORATE SOCIAL RESPONSIBILITY,
which extends the consultation with labor
representatives to a global level. The agreement,
signed by Eni and the industry union organizations at
the national and international level, is part of the
Company’s growing internationalization process, as a
result of which the difference between the number of
employees abroad and that of those in Italy is
expected to decrease significantly in the coming years.
Eni is one of the few companies in the sector, on a
global level, to have signed this type of document
with labor representatives. The purpose of the
Agreement is to promote labor “best practices” and
reinforce the methods of union information and
consultation in the different contexts in which Eni
operates, often also characterized by critical social
and environmental conditions.
The agreement, with which Eni confirms its
commitment to respecting the Principles and the
international Conventions on human rights
and labor standards, contributes to pursuing a
sustainable growth model, in that it provides forms
of monitoring and measures on possible violations
of the principles and offers opportunities for
developing and disseminating best labor practices.
On the basis of the agreement, Eni and the unions
meet annually to discuss the following:
• economic and financial issues concerning Eni’s
evolution and the progress of its operational
activities;
• evolution of industrial relations in the different
countries where Eni operates;
• implementation of programs in the areas of
Corporate Social Responsibility and safety at work.
During the first annual meeting, in July 2003, the
guidelines for an effective implementation of the
agreement in partnership with the unions were
outlined.
contributions for workplace and extra-professional
accidents. They also include health policies and
integrated pension funds, preventive medicine
initiatives, facilitated access to credit and solidarity
initiatives.
Moreover, all of the main contracts, acknowledge the
right to study, and provide support in the form of
paid leave for working students. Eni applies all of the
measures that protect working mothers, in
accordance to what is set forth by current legislation.
In addition, as a further support to maternity, the
main labor contracts adopted in the Group provide,
for mandatory maternity leave periods, an
integration from the Company that allows employees
to receive the full salary, instead of the 80%
guaranteed by law.
Equal opportunities
In accordance with national laws and in line with the
recommendations of the European Union protecting
the dignity of the individual, Eni, in agreement
with the social parties, is committed to promoting
initiatives aimed at identifying and removing
possible situations hindering effective equal
opportunities in terms of access to employment and
career development paths. In this respect, the
National Collective Labor Contract in Italy provides
for the institution of a national joint Commission on
the condition of women’s work and on equal
opportunities in the Energy and Petroleum sector.
The aim of the commission is to promote initiatives
to create real equal dignity for people and, above all,
to prevent cases of sexual harassment and harm to
the personal freedom of individual employees,
according to what is set forth on this matter by the
European Parliament resolution of 11.2.1994.
To this end Eni and union organizations are committed
to implementing a prevention and information policy
against all forms of sexual discrimination and
harassment in order to guarantee the rights of all
workers to enjoy a work environment that is secure
and favorable to human relations.
As part of an effective equal opportunities policy,
Eni abides to all of the legislative requirements
that protect disabled personnel and other socially
disadvantaged categories and promotes initiatives to
support their placement in the company.
Initiatives in favor of employees
in Italy
The main contracts adopted in the Eni Group (Energy
and Petroleum, Chemical Industry, Water-Gas)
provide for company contributions that guarantee
insurance coverage, in addition to the mandatory
26
ENI
LABOR STANDARDS
The Company is also committed to favoring the
reintegration of women at the end of the period of
maternity leave through adequate training activities.
programs to integrate the different companies in Eni.
After a preliminary phase in which priorities and
critical areas were identified, these programs
provided for the integration of human resources, the
definition of activities, competences and efficiency
targets and, finally, the monitoring and verification of
the results.
With the objective of favoring mutual understanding,
accepting the respective strengths and weaknesses
and gaining opportunities from the differences,
the teams in charge of the integration programs
focused on the development of cultural and identity
diversities. In the field of human resources and
organization, in particular, activities have been aimed
at utilizing, integrating and developing skills in the
best possible manner and optimizing the competence
management system. Effective communication
initiatives have been conducted for all employees to
support such activities.
Acquisitions and integration
processes
In the recent years, a distinctive feature of Eni’s
strategy has been the pursuit of growth through
targeted acquisitions, which have allowed the
Company to achieve its development objectives
ahead of schedule: the UK based companies British
Borneo in 2000 and Lasmo PLC in 2001, the
Norwegian oil company Fortum Petroleum AS and
the Spanish company Union Fenosa Gas, both in
2002. In 2002, Saipem also acquired Bouygues
Offshore from the French Bouygues Construction.
These acquisition processes have involved appropriate
The Lasmo experience
Eni’s acquisition of Lasmo’s
assets and plants,
in addition to generating
important synergies
on a business level,
have led to the creation
of a closely integrated team.
After the take-over
in February 2001,
the activities and personnel
in the countries of operation Venezuela, Algeria,
Libya, Turkmenistan were transferred into the
organizations of the
respective Geographic Areas
of Eni’s E&P Division.
Lasmo’s assets in the UK
and Netherlands were
integrated with those
of Eni UK and a regional office
To encourage integration
and allow for a better
and faster understanding
of Eni, the group established
in London was enhanced
with personnel from
the head office or from
E&P Division Geographic
Units, placed at all levels
of the organization.
The key competences
and experiences
acquired by Lasmo in
the fields of geology,
geophysics and reservoir
engineering were therefore
incorporated and enhanced
in the Eni system.
The Milan integration
team also conducted
an initial assessment
was set up in London
to manage the North Sea
operations and the transition
of Lasmo Indonesia
and Lasmo Pakistan into
the Company.
In parallel with the regional
organization, a Technical
Activity Center was
established in London
to acquire a significant part
of Lasmo’s exploration
and production technical
knowledge, which were
brought together
in the “London E&P Services”
group, which was made up
by the London Technical
Exchange - LTE, sub-surface
technical staff, HSE specialists;
regional IT personnel.
on the ICT Lasmo system,
recognizing its soundness,
and initiated a process to
introduce new technological
solutions in this part
of the organization,
on the basis of a close
collaboration between
the regional IT group
and the head office.
The work groups
were made up of Eni
and former Lasmo personnel,
each with different
competences and ideas.
This diversity and willingness
to recognize and use each
others’ strengths was
the key success factor
for what has become a closely
integrated team.
27
ENI
LABOR STANDARDS
Health
Eni is strongly committed to promoting
and guaranteeing the protection of the health
of its employees, of the people and communities
that live near its plants and of all those
who come into contact with the different phases
of the Company’s production, distribution
and marketing processes.
In conducting its activities, Eni draws
health, safety and the environment, which is
integrated by an audit system that assesses the
effectiveness of the management aspects in the
business areas.
In ITALY , at industrial plants and in production
activities, health protection is guaranteed by a wideranging system of checks and the planning of
monitoring campaigns on the risks related to the
main physical, chemical and biological agents, within
the context of the health management system
adopted at the production sites.
ABROAD , Eni provides healthcare to its employees
through its own facilities as well as international
agreements aimed at improving the quality,
effectiveness and efficiency of services.
the strictly operating context. In fact, over the years,
as well as implementing actions in favor of the health
of its employees, contractors and customers, Eni has
promoted a wide range of initiatives specifically
aimed at improving the health and hygiene
conditions and strengthening the local healthcare
systems of the communities and countries in which it
is present (see the chapter Local development page
50). It is a commitment that stems from the awareness
that improvements in health is an essential condition
for a sustainable development process and, therefore,
also for industrial growth and the creation of value
for business. The management of health protection
activities is based on the Group’s HSE Guidelines and
falls within the Management System Model (MSG) for
on its proven technical competences
and openness to dialogue on these issues with its main
internal and external stakeholders to promote
the identification and minimization of any possible
impact on public health.
THE MANAGEMENT SYSTEM
MODEL (MSG)
agreed upon also with trade union organizations.
Eni’s activities in the field of health are based on three
guiding principles:
• prevention
• protection
• promotion
The tools used for the application of these principles
are: healthcare and controls, training and information.
The Company’s commitment to health goes beyond
Eni adopts the principles, standards and solutions
that comply with international health best practices.
The Company elaborates and updates its procedures
in relation to the specific business operating needs
and to the health situations in the countries where it
operates, and pursues improvements in health
conditions according to contents and methods
Management System Model
The completion of Eni’s
multi-divisional structure
involved the re-examination
of the entire Health, Safety
and environment (HSE)
organization, with the aim
of harmonizing systems
and management procedures.
To this end, in line with Eni’s
Health, Safety, Environmental
Guidelines, the Management
System Model was defined
to identify the fundamental
requirements to make the HSE
of new objectives.
An audit system procedure
has also been implemented
(Eni’s HSE Evaluation System)
to verify the completeness,
functionality and consistency
of the business units’
management systems,
and in particular their
compliance with the MSG.
In 2003 business areas began
a process of alignment of their
own management systems
with the MSG and,
at the same time, launched
the first system audits.
management of the different
business areas - regardless
of the type of activity
or operating context homogeneous, coordinated
and inspired by the principles
of sustainability.
The MSG, which is aimed
at continuous improvement,
is based on a management
cycle that includes
planning of objectives,
implementation, control
and corrective measures,
re-examination of the system
and the definition
CERTIFICATIONS
Eni is committed
to the certification
of operative management
systems according to the
most advanced international
standards (such as ISO 14001,
EMAS, OHSAS), giving priority
to the operating units
and productive sites most
exposed to risks for health,
safety and the environment,
as well as public safety.
The number of certifications
obtained in 2003 totalled 110,
an increase of 29% on 2002.
TECHNICAL AUDITS
Eni’s HSE guidelines
When carrying out its activities,
the aim of Eni SpA and
its controlled companies
is to guarantee the health and
safety of its employees, local
communities, contractors
and customers, to protect the
environment and ensure public
safety on the basis
of the following principles:
• industrial and commercial
activities must be managed
in strict compliance
with regulations and operating
of environmental protection
and energy efficiency and the
objective must be pursued
of improving health and safety
conditions according
to practices and procedures
which are also agreed with
trade unions; operational
management must be subject
to constant auditing
in all sectors;
• research and technological
innovation must aim
at promoting products
procedures established
for the sectors of activity;
• the adoption of principles,
standards and solutions that
constitute international “best
practices” in business for the
protection of health, safety, the
environment and public safety;
to this end the companies
must implement systematic
“benchmarking” processes;
• operational management
must be based on
state-of-the-art criteria in terms
28
and processes which are increasingly
compatible with the environment
and whose content reflects
the constant attention paid
to the health and safety of customers
and employees;
• personnel training and the exchange
of experience and information must
be considered fundamental tools
in order to achieve HSE objectives,
with a view to the continuous
improvement of prevention
and protection standards;
• employees, when carrying out their
duties, must be actively involved
in the process of HSE safeguards;
this, in the interests of their
colleagues and the public at
large, as well as in their own
interests;
• employees and trade unions,
authorities and the general
public must be informed
periodically about the results
achieved in terms
of environmental protection,
health and safety;
• an active part must be played
in scientific-technical circles
and business associations
to promote scientific
and technological developments
aimed at protecting
the environment
and safeguarding resources;
• when requested, cooperation
must be ensured with
competent authorities regarding
the preparation of technical
regulations guidelines
concerning HSE issues;
• the foregoing principles must
be reviewed constantly
and their application monitored
periodically. Besides considering
the protection of health, safety
and the environment as a
priority corporate objective,
the companies are actively
engaged in contributing, with
their respective technological
know-how and professional
skills, to the well-being
and improvement of the quality
of life of the communities
in which they operate.
The Company carries out
auditing activities to evaluate
the reliability and effectiveness
of its management systems.
The business areas
are constantly engaged
in verifying the conformity
of the activities conducted by
the operating units with HSE
policies and procedures
and the regulations and best
practices in the sector.
In 2003, 2,089 audits
were carried out,
involving both internal
and external auditors.
29
ENI
ENI
HEALTH
HEALTH
Health controls
In 2003 Eni intensified health protection for its
employees, both in Italy and abroad. In many cases,
Eni’s healthcare centers abroad provide medical
care to local communities, contributing to the
improvement of health standards.
In order to guarantee the protection of its employees’
health, Eni mainly invests in prevention activities that
are based on: identification and evaluation of risks
aimed at defining mitigation measures; information
and active participation of trade unions and individual
workers; environmental surveys to evaluate the
exposure of personnel in the workplace to the risks
related to physical, chemical and biological agents;
close integration of the continuous monitoring of
workplace and health controls of workers exposed to
risks; development of healthcare facilities, in terms of
medical competences and monitoring systems.
Particular attention is paid to prevention activities at
the most critical operating sites with reference to
exposure to risk (refineries, petrochemical plants,
storage depots, incinerators, etc.), where advanced
analytical techniques with high resolution power are
employed in order to obtain early diagnostics tests.
Health expenditure
While expenditure for health
remained more or less stable
in 2001 and 2002 (around
26 million euros), in 2003
there was a 23.4% increase
to 32 million euros; a figure
that represents around 3.4%
of Eni’s total annual HSE
investment and expenditure.
The largest share
(28.8 million) was for current
expenditure, such as
management of industrial
Cooperation with the Italian League
for the Fight Against Cancer
health and hygiene
and health checks.
The average per capita
expenditure in 2003 was
around 418 euros per
employee, a marked increase
on the previous year (310).
At an industrial sector level,
differences in expenditure
depend on the type of activity
and the socio-economic
conditions in which such
activities are conducted.
In cooperation with the Italian
League for the Fight Against
Cancer, Eni launched
an EARLY DETECTION PLAN
for its employees aimed
at the secondary prevention
of some of the most common
forms of cancer. The plan,
launched in September 2002
in Milan, Rome and Naples,
will gradually be extended
to the rest of Italy, involving
all employees who wish
to be part of the initiative
and providing the opportunity
of medical examinations
at the clinics managed by the
Italian League, located
around the country.
The Company has also
implemented a NO SMOKING
POLICY for the Group
and adopted a series
of measures, such
as conferences, information
campaigns using internal
communication media
as well as, when requested,
specific counseling
opportunities, to increase
employee awareness
and support the efforts
of those wishing
to give up smoking.
Training
Health expenditure
breakdown 2003
Health training includes distance learning programs
for medical staff abroad using e-learning tools,
the organization of specialist stages and conferences
at hospitals and universities as well as specialized
training aimed at the award of the internationally
recognized emergency medical qualification
(“Advanced Trauma Life Support”). In addition, specific
campaigns have been launched to disseminate
information to promote among employees a behavior
Equipment and tools 8.9%
Environmental surveys 7.4%
Health & hygiene management 43.8%
Sanitary surveillance 24.4%
Legislative requirements 0.5%
Training 1.4%
Other 13.6%
Examples of health controls
The E&P Division conducts
health risk surveys to monitor
the EXPOSURE TO HYDROCARBON
VAPORS (benzene, polycyclic
hydrocarbon aromatics
and volatile organic
substances), cancerogenic
substances and noise.
The R&M Division makes
use of the SMIL IT SYSTEM
(a Work Health and Hygiene
System) that makes
it possible to gather
and elaborate data pertaining
to health controls
and environmental
monitorings. Environmental
surveys evaluate the exposure
of substances and hazardous
preparations present
in the production cycle
has been completed.
The Petrochemicals sector
continuously updates
its SAMPLING AND ANALYSIS
METHODS for chemical agents
and the guidelines
on the monitoring of
biological risks. Studies are
conducted,
in cooperation with leading
universities, to evaluate
the noxious effects
on humans of exposure
to chemical substances;
in particular, investigations
to the risks related
to chemical, physical
and biological agents.
In particular, new survey
methods are being
developed, based on specific
biological indicators
to monitor exposure
to a number of chemical
agents, such as the levels
of trans-trans muconic acid
as an indicator of exposure
to benzene.
The G&P Division monitors
EXPOSURE TO CHEMICAL AGENTS,
ionizing radiation
and soldering dust and fumes.
In this respect, an inventory
30
aimed at the maintenance of their wellbeing
(nutritional information, no smoking policy and
early detection).
The Company’s commitment can also be seen in the
promotion of training and specialization of doctors and
paramedics in the countries where it operates, through
on-site training activities, distance learning and more indepth and specialized courses (for an overall picture of
Eni’s commitment to HSE training see page 37).
are made into the specific
biological indicators
of exposure to low doses
of chemical substances such
as butadiene, benzene, etc.
Saipem has further
developed its computerized
management system
for individual health
performance (GIPSI) linked
to the STRATEGIC HEALTH PROGAM
(PSS) to record direct
and indirect costs
in the medical area.
In 2003, the system was
strengthened with a quality
control program of the
Company’s health activities.
Health protection abroad
Libya - Specialization
in pediatric cardio-surgery
A cooperation project
in the field of specialized
medical training and highly
specialized healthcare
assistance between the CNR
in Pisa and the Central Hospital
in Tripoli was launched
in 1999, with the aim
of establishing a link to provide
medical training
and specialized assistance
in cardiology and pediatric
cardio-surgery. The project
has led to the specialization
The protection of health in activities abroad is marked
by specific problems related to local situations and is
provided through the medical support of Eni
Corporate, the Divisions and operating companies. It
is organized to ensure the health and safety of
employees, their families, contractors and customers
and the local communities through:
• information for personnel working abroad or
conducting their job abroad for long periods,
• a wide-ranging network of local health centers, as
well as agreements with health and hospital facilities;
• permanent training and updating programs for
Eni’s healthcare personnel and support to training
and specialization initiatives for local doctors;
• implementation of permanent structures to
of Libyan doctors, the recovery
and treatment of 120
Libyan children suffering
from serious heart problems
at the Childrens’s Cardiosurgery Center in Massa.
Moreover, in 2003, an entire
team of Italian child heart
specialists from
the Massa Center operated
at the Tripoli Hospital
with the help and assistance
of previously trained
Libyan colleagues.
31
ENI
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HEALTH
HEALTH
provide prompt and effective responses to new
global health emergencies, such as Sars;
• partnerships with international organizations in
the fight against endemic/epidemic diseases with
severe social impact such as malaria, AIDS and
tuberculosis.
Medical Emergency Response Plan has been developed
to guarantee adequate standards of medical support,
manage health emergencies and the transfer of
patients to the most appropriate medical facilities.
Management of health emergencies
Eni has developed a strategy for dealing with severe
health crises resulting from epidemics, biological
contamination and poisoning. This strategy is based
on preventive and protective actions for both chronic
(e.g. HIV/AIDS, TB, malaria, etc.) and acute emergencies
(such as Ebola and SARS).
It is a strategy that has seen the Company define, among
other things, a series of internal procedures to facilitate
access to essential drugs, therapies, prophylaxes,
clinics and associated health services; reinforce
the network and integrated telecommunication
systems with information technology in support of
company programs for the protection of health
and safety; implement the continuous assessment
of coordination procedures for evacuation and
repatriation for health reasons.
Health centers
Medicine abroad guarantees health care to personnel
in North and West Africa, the North Sea, the Gulf of
Mexico and in a number of areas of Latin America, the
Caspian Sea, Australia, the Middle and Far East.
Medical assistance is provided to over 20,000 people,
90% of whom represented by local employees and
their families, and the remaining by expatriates and
their families.
In 13 countries Eni has established 75 medical
centers, managed by expatriate and local personnel
that meet the healthcare needs of employees. In other
geographical areas services are provided by associated
local structures or centers managed by other oil
companies. In all the areas in which Eni operates a
SARS - Saipem’s response
In 2003 Saipem operated
in countries affected
by the SARS epidemic,
such as China, Hong Kong
and Thailand.
In order to deal with
this emergency the Company
implemented the SARS
PREVENTION PROGRAM,
extending it to all the sites
exposed to the epidemic
and carrying out careful
profound effect not only on the growth prospects of
developing countries, but also on the business results
of companies operating in those countries.
In recent years, most oil companies have started
implementing verification, prevention and control
measures and promoting policies and actions to
effectively tackle the spread of these diseases. To this
end they also cooperate with local health authorities,
international agencies and humanitarian organizations
in order to contribute to improving efficiency in the
local public health sectors and health conditions, and,
therefore, the quality of life of the populations of the
countries in which they operate.
Eni has always paid particular attention to health
problems and the control of infectious diseases in the
countries where it is present. Over the years the
Company has carried out initiatives aimed at promoting
a greater level of protection for its employees, their
families and the populations with which it interacts. A
recent example is the Malaria Control Program
implemented by Saipem, which was extended in 2003 to
90% of the personnel at risk in areas of endemic malaria.
surveillance and detailed
tests for workers living in
or passing through affected
countries.
Through the program
the basic information
on the viral agent that causes
the disease, methods
of transmission, systems
of non-specific protection,
adequate prophylaxes
and treatments were provided.
Fight against endemic
and epidemic diseases
Diseases such as AIDS, TB and malaria, and more
generally inadequate hygiene and health conditions
and the lack of basic healthcare facilities, have a
Distribution of malaria 2003
Developing telemedicine to support the health of Eni employees
In 1998, Eni, in cooperation
with the CEFRIEL Consortium
of the Milan Polytechnic,
launched the INCAS
TELEMEDICINE PROJECT
(INteractive teleConsultation
network for worldwide
healthcAre Service),
which over the years
has become one of the most
effective systems
for providing long-distance
health services
and assistance, especially
in remote or disadvantaged
areas lacking adequate
healthcare services.
health conditions of the local
communities.
In 2003, the INCAS
system was replaced
by MEDFORGE, a new
and more powerful
telemedicine software.
The new system
will provide long-distance
permanent training and
specialization courses for the
Company’s local doctors
and paramedics, with
the aim of continuously
improving the quality
of healthcare services
in the countries where
By linking Eni’s health
centers abroad with Italian
universities and hospitals
(the Sacco Hospital in Milan,
the E. Mattei Hospital
in Matelica, the Ancona
Hospital), the system
provides the doctors
with timely support
in diagnostic and treatment
activities, guarantees high
quality medical assistance
to employees and their
families in disadvantaged
sites, experiments new ways
of handling emergencies,
contributes to improving
Eni is present.
To date, two telemedicine
terminals are operating,
one at Port Harcourt
in Nigeria and the other
at the Eni Medical Center
of Pointe Noire
in the Republic of Congo,
which have become
reference points for
distance diagnosis
and therapy, as well as
for local populations
and medical staff.
MEDFORGE will be extended
to Libya, Kazakhstan
and Pakistan.
Areas where malaria transmission occurs
Areas with limited risks
No malaria
Source: WHO, 2003
33
32
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HEALTH
and control (Azerbaijan and Nigeria) and for the
prevention of the transmission of the HIV virus from
mother to child, the extension of access to antiretroviral programs and the strengthening of
information campaigns (in Nigeria and the Republic
of Congo, see page 50).
At the same time, the Company supports the efforts
of the international community to fight a number
of these diseases, as can be seen from the support
provided for Roll Back Malaria, Unicef, and the Global
Fund to Fight AIDS, Tuberculosis and Malaria for the
implementation of projects for malaria prevention
Safety
Business sustainability and the safety of operating
activities are strategic objectives for Eni.
It is a commitment that the Company has in the first place
towards its employees, but also towards all the people
Policies concerning AIDS
The fight against
all forms of discrimination
in the workplace, including
the one concerning the health
of the employee, is a constant
commitment at Eni, especially
in contexts where patient
rights and protection
of privacy are not guaranteed
by the legislation as they
are in industrialized countries.
The Company, which operates
abroad in countries
where there is the greatest
diffusion of the HIV/AIDS
infection, is committed
to implementing company
policies aimed at fighting
the disease through
prevention, training
and information
and the constant respect
for human rights.
The initiatives promoted
abroad, through the Group’s
subsidiary and affiliated
companies, include:
the organization
of information and awareness
campaigns, the diffusion
of rapid diagnosis systems
and protocols for the early
treatment of sexually
transmitted diseases,
the distribution of condoms,
programs for preventing
the transmission
of mother-fetal HIV
infection, the supply
and administration
of anti-retroviral drugs
according to the most
involved in its operating activities.
advanced therapeutic
indications.
Among the most significant
initiatives:
• in Congo, in addition
to promoting community
information and awareness
programs (especially
among women, the most
affected by the virus)
through courses, conferences
and publications,
the distribution
of contraceptives
at the workplace
and meetings with
employees, Eni has, since
1988, initiated and carried
out EFFECTIVE MEASURES
IN THE FIGHT AGAINST AIDS, such
as: diagnostic tests
for the epidemiological study
of the spread of the infection
in the local population;
diagnostic-therapeutic
protocols for HIV-related
illnesses; the free distribution
of essential drugs.
• Saipem has developed
a PREVENTION PROGRAM
The numbers of AIDS
This commitment translates into the adoption of the most
advanced methods and sophisticated tools to ensure
Number of people
living with AIDS
Total
40 million (34-46 million)
Adults
37 million (31-43 million)
Children under 15 years
2.5 million (2.1-2.9 million)
Total
5 million (4.2-5.8 million)
Adults
700,000 (590,000-810,000)
AIDS death in 2003
Total
3 million (2.5-3.5 million)
Adults
500,000 (420,000-580,000)
Source: UNAIDS/WHO - AIDS Epidemic Update: December 2003
DISEASES (STDs) aimed
at workers, with a view
to improving the individual’s
capacity in managing
information, motivation
and behavior as
a fundamental moment
in the prevention
of pathologies that are
essentially related to lifestyles.
In developing and
implementing the program
the Life Skills Method was
used, a psychological support
technique that helps people
adapt their behavior
to life’s needs and challenges
in order to identify the most
effective solutions, avoiding
risky behaviors.
• In Nigeria, in collaboration
with international
organizations, Eni
is conducting INFORMATION
AND EDUCATION PROGRAMS
ON HEALTH AND HYGIENE
34
management and verification systems focused on minimizing
them, conducting technical audits, applying rigorous
People newly infected
with HIV in 2003
FOR SEXUALLY TRANSMITTED
an aware and informed management of risks, by activating
PROBLEMS oriented
to the prevention and training
of medical staff as well as
supplying healthcare services
and facilities for laboratory
tests.
• Agip Kazakhstan Caspian
Operation (KCO) has carried
out in Kazakhstan an
INFORMATION CAMPAIGN
ON HIV/AIDS that focuses
on building awareness,
producing and distributing
bilingual guides to all
employees and their families.
and effective procedures, and taking all measures to minimize
the possible exposure of workers.
Strategies and guidelines
In this respect, the Company is engaged in improving
workplace conditions through prevention and
protection programs aimed at the progressive
reduction of the number of injuries to employees and
contractors and, more generally, the protection of
public health and safety.
With the creation in 2002 of the Health Safety and
Environment Department, aimed at organizing an
HSE management consistent with its new divisional
structure, Eni has defined and implemented a
Management System Model which is a point of
reference for all the business units and allows for the
prompt elaboration of response plans for the main
Eni pursues the objective of developing and applying
methodologies and techniques that are in line with
international best practices and aimed at strengthening
the management of Safety, Prevention and Hygiene at
Work in its fundamental aspects and above all:
• the identification, evaluation and mitigation of
risks connected with all the productive activities;
• the development and implementation of performance
monitoring methods;
• the thorough planning of actions for the management
of possible emergencies.
International regulations
According to the International
Labour Organization (ILO), work
related accidents and diseases
are a serious problem both in
developed and developing
countries, since every year
workers are involved in 250
million accidents which cause
at least 335,000 deaths.
The ILO’s action in the sphere
of occupational safety and
The action of the European
Union, on the other hand, mainly
takes the form of directives
that have to be implemented
at the national level.
The program for health
and safety in the workplace
has recently been the issue
of a new debate, especially
in relation to the countries
which joined the Union in May
health is based
on a twofold approach:
the creation of alliances
and partnerships with
the launch of pilot activities that
can be used by governments,
social parties and NGOs,
and actions at the national level
through direct technical
assistance, focused in particular
on dangerous occupations.
2004, and to the ever-increasing
competition of non-Community
companies.
The European Commission
is committed to simplifying
the entire legislation on safety
and the environment by the end
of 2005 with the objective
of creating a clear, simple
regulatory framework that
combines safety with flexibility.
35
ENI
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HEALTH
SAFETY
sustainability challenges (for more details see the box
on page 29).
Three main approaches have been adopted for the
management of health and safety in the Company:
• the TECHNICAL approach which begins when selecting
engineering solutions and reliable processes and
continues during planning, where it is necessary to
adopt the best risk analysis methods to ensure that
plants are as safe as possible in keeping with the
risks related to industrial activity;
• the REGULATORY approach, whereby safety is the
result of the application of laws and regulations;
• the CULTURAL approach, which sees safety as the
result of an attitude based on respect for oneself
and for others.
Identification and evaluation of risks
Training
The management of safety is carried out through the
identification, evaluation and mitigation of risks
associated with plants, transport and products. It is a
continuous process that begins with the planning and
construction of plants and ends with their
decommissioning.
In order to do this the Company conducts analyses of
HSE risks which are recorded and periodically reviewed
with a view to keeping account of accumulated
experience and new scientific knowledge. On this basis
it is possible to identify possible accidental events and
to define, for each of them, the response plan that is
most in line with the best practices.
A safety oriented culture must be accompanied and
reinforced by an adequate and effective training policy.
This is the key element and the unifying feature of the
growth process of the system of knowledge that is
directly related to competitive quality and thus with
Eni’s performance.
The objective is the dissemination of an HSE culture, by
also training persons who work in complementary
areas with respect to the operational activities, in
such a way as to stimulate a process that sees the
safeguarding and protection of the individual in the
workplace and of the territory as an asset to be
protected, improved and enriched.
HSE training
Hours of HSE training in Italy
350,000
HSE training participants in Italy
hours
80,000
number
280,000
60,000
210,000
40,000
140,000
EniTecnologie and safety an example of preventive approach
Safety expenditure
Safety expenditure
mainly depends on
the intrinsic risks associated
with productive activities
and the consequent prevention
and protection activities.
Safety expenditure in 2003
came to 288.7 million euros,
of which 54% was for current
expenditure.
The amount represents
31.2% of the total HSE
investments and expenditures.
As for health and environment,
also in the area of safety
there was an increase
compared with
the previous year (6.7%).
The prevention and control
of risks have a direct effect
on both investments
and management activities.
More than 74% of expenditure
concerned the implementation
of safety management
systems (118.4 million euros)
and investments for plants
and equipment (95.8 million).
Safety expenditure breakdown 2003
Safety management 41.1 %
Legislative requirements 1.5 %
Equipment & tools 33.2 %
Communication 0.2 %
R&D 8.3 %
Training 1.7%
Insurances 5.1 %
Other 3.8 %
Individual protection
devices 5.1 %
36
Eni is strongly committed
to adopting a preventive
approach to safety in order
to reduce the probability
of accidents and the related
effects. Over the years it
has invested in the
identification, analysis
and evaluation of all safety
issues, starting with
the preliminary planning
phase of plants.
In this respect, since 2000,
EniTecnologie has increased
its capacity to conduct
fluid-dynamic accident
simulations using
the KAMELEON FIRE EX CODE.
This has led to the development
of core competences
to investigate
the consequences of a number
of accidents (e.g. blow-outs
at oil wells) in different
weather conditions,
at industrial plants
and offshore platforms.
The applications implemented
so far have involved
the platform of the West Libya
project and the oil
and gas treatment plants
at Kashagan.
Again with a view to reducing
the risks connected
to industrial activities,
the Company has also
developed the SOIL ALERT
probes to monitor soil
in environments with risk
of explosion.
These have been installed
at the fuel storage depot
at Ortona, to monitor
the 4 tanks containing
gasoline and gasoil.
Environmental
protection
Safety
70,000
1999
2000
2001
The HSE Training Project,
managed by Eni Corporate
University, aims to disseminate
and integrate the HSE culture
into company strategies,
extending this culture also
to areas and professional
roles that are not directly
involved in HSE but whose
activities may affect
the Group’s HSE performance.
Training is organized
for professional figures
and is oriented at enriching
their competences and fine
tune their systematic vision
of HSE aspects of productive
activities and their impact
on the areas in which Eni
operates. In order to support
and facilitate the sharing
of knowledge and experience,
the HSENET Portal
2002
Environmental
protection
Safety
20,000
2003
1999
was launched, which
can be accessed through
the Group intranet.
HSE training is based
on programs of knowledge
management involving
all of Eni’s organization
and the cooperation of national
and international research
centers (the Milan Politecnico,
the University of Genoa,
the Fondazione Mattei,
Bath University).
Among the innovative aspects,
methods for monitoring
the effectiveness of training
activities are included.
In 2003 the total hours
of training provided amounted
to more than 479,000
with about 75,000 people
participating. HSE training
in ITALY recorded a total
2000
2001
of almost 282,000 hours, 88%
of which concerned safety,
which represents 22.5%
of Eni’s total training.
The number of HSE training
hours increased by 6%, a figure
that is even more significant
since there was a reduction
in the number of Eni personnel
in Italy of more than 1,000
people. The number of
employees involved in HSE
courses was over 72,000, 64%
of the Group total.
Training is conducted mainly
in the classroom, although 30%
is on the job and concerns
accident and fire prevention
and first aid, for which a specific
knowledge of the workplace is
required. Training commitment
ABROAD is also significant.
In 2003 around 197,000 hours
2002
2003
of HSE training were provided,
88% of which for the engineering
and construction sector.
Over 2,500 people were involved
in these training activities,
most of which were carried out
at operating sites.
In terms of content, training
modules aim to provide a more
in-depth understanding
of both cross-sector issues
(e.g. HSE prevention
and protection, legislation,
reporting and internal
and external communication,
preparation for audits of the HSE
management system, improved
knowledge for suppliers
and sales people of contractual
clauses that involve carrying
out safety, environmental and risk
analyses) and specific topics
for the individual sectors.
37
ENI
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SAFETY
SAFETY
Training in the area of safety deals with topics such as
the communicative effectiveness in auditing activities,
the vision underpinning management systems, the
identification and strengthening of safety/security
synergies, the organization, in collaboration with
qualified bodies, of advanced driving courses aimed at
professionals who make intensive use of automobiles.
Training is also organized for CONTRACTORS , thus
confirming the fact that safety is the result of a complex
process and a series of interdependent behaviors.
Equally significant are the training activities provided for
through progressive and marked improvements
over recent years.
Thanks to these activities, in 2003 there was a
continuing improvement in the results achieved in
the area of safety management. Frequency and
severity rates for Eni employees around the world
improved further, as did those for contractors. In
this context, training has played a fundamental role.
emergency response, in addition to continuously
training the personnel involved, periodic drills are
also held. Response plans that may require the
involvement of public emergency services are shared
with them in order to ensure the organization of
actions also through simulations and joint drills. For
more serious emergencies - the so-called Level 3
emergencies - Eni headquarters are also involved.
Managing emergencies
A common path with trade unions
Eni has defined Group-level regulations for the
management of serious emergencies that include, at
the corporate level, a Crisis Unit with emergency
rooms in Rome and Milan, that becomes operative
according to the nature and scale of the emergency,
and cooperates with the business units in order to
contain damages to the environment, health and the
safety of people.
The business units manage emergencies on a site
basis, with their own resources. They define, for each
possible emergency, the response plan that identifies
and pre-arranges actions necessary to limit damage
and the positions that are responsible.
In order to maintain a high level of preparedness to
Early information, participation, transparency in
decision making processes and results, as well as
joint planning of specific initiatives, particularly in
the area of training, play a fundamental role in
achieving common HSE objectives shared with the
trade unions. Eni’s current industrial relations model
is the result of a common path, characterized over
the years by continuous and profitable relations with
trade union representatives, and which is testified by
the PROTOCOL ON INDUSTRIAL RELATIONS of 2001 and the
many agreements on HSE reached at different levels.
The company/territorial level is the key place where
to carry out a proactive policy and is characterized
by a high level of information exchange and
involvement between management and the
managers of prevention and protection services,
Workers Safety and Environmental Representatives
(RLSA) and local trade unions.
It is precisely thanks to the Protocol that methods
have been agreed for the analysis and evaluation of
industrial risks adopted in planning, plant
management and in the preparation of emergency
plans to reduce area risks and the consequences for
the territory. Particular importance is given to the
safety of third-party personnel through a series of
initiatives, including: information about generic
and specific risks by area of activity, inclusion in subcontracting agreements of clauses concerning a
commitment to respect existing legislation and
implementation of verification procedures for the
correct application of safety regulations.
At a European and transnational level, THE EUROPEAN
WORKERS’ SAFETY AND ENVIRONMENTAL REPRESENTATIVES
(RLSA) which are defined with the trade union
organizations (in 2003 basic training and updating
courses were organized for 56 representatives).
Injury rates
The type of activities, the location of the workplace
and the task performed determine the intrinsic hazard
of the activities carried out. The results obtained by
individual sectors are closely related to such factors
and reflect different levels of exposure to risk.
The constant attention paid to safety in conducting
productive activities has led to satisfactory results
OBSERVATORY ON OCCUPATIONAL HEALTH AND SAFETY
established in 1996, in the framework of the European
Works Council, and THE AGREEMENT ON TRANSNATIONAL
INDUSTRIAL RELATIONS AND CORPORATE SOCIAL RESPONSIBILITY
of 2002, have defined the context in which the
Company and workers’ representatives can discuss
issues relating to prevention and the improvement of
health and safety conditions in the workplace.
Index trends
In 2003, the frequency rate,
that is the ratio between
the number of injuries
with absences of more
than one day and millions
of work hours, was 3.71,
a reduction of 22%
on the previous year.
The severity rate, defined
as the ratio between
days of absence due
to injuries and thousands
of hours worked, was 0.09,
a 22% drop compared
with 2002.
The improvement
of performance in this area
was recorded in all
the productive areas,
even if differences between
Injury frequency rate - Eni personnel
them remained on account
of the different levels
of intrinsic hazard involved
in the activities.
As far as injury rates
for contractors are
concerned, a frequency rate
of 4.12 (4.71 in 2002)
and a severity rate of 0.07
(0.08 in 2002) demonstrate
a good level of safety
management by third party
companies.
Notwithstanding a clear
commitment to prevention,
2003 recorded 8 mortal
accidents involving
Eni personnel (2 in 2002)
and 22 involving contractors
(12 in 2002).
10
8
6
4
2
1999
2000
2001
2002
2003
2001
2002
2003
Injury severity rate - Eni personnel
0.25
0.20
0.15
0.10
0.05
1999
38
2000
39
ENI
ENI
SAFETY
SAFETY
Respect
and development
of the territory
Eni conducts its activities in Italy and around
the world respecting the human, social
and cultural rights of the populations,
their territory and environment,
and is committed to promoting
the fundamental factors of sustainable
development at a local and global level.
To this end, the Company transfers
its experience and know-how, cooperates
with the communities concerned,
promotes the research and development
of innovative technologies, adopts energy
solutions and products with a lower
environmental impact and runs
its commercial activities in a loyal,
fair and transparent manner.
Responsible conduct
Eni is committed to establishing mutually beneficial relations with oil producing countries,
transferring knowledge, respecting the global rights of indigenous peoples, safeguarding
the environment, and cooperating with the local communities so that they may develop over time
autonomous capabilities and specific competitive advantages.
in critical political, social or environmental conditions,
must pursue a growth process that integrates respect
for human rights - in their widest sense - with a
vision that recognizes the issues of sustainability and
respect for the individual as being interdependent and
complementary. In conducting its activities, Eni, as
stated in its Code of Practice, bases its activities on
the system of values set forth by the UN Declaration
of Human Rights, the Fundamental Conventions of
the ILO, the Guidelines for Multinational Enterprises
drawn up by the OECD and is committed to
promoting their adoption by its main stakeholders:
from employees to institutions and local authorities and
from associations, suppliers and customers to
commercial and financial partners. Even when
operating in countries where the protection of the
fundamental rights - human and social - of citizens
appears to be weak, Eni is committed to providing the
communities with concrete prospects of sustainable
development, in terms of employment opportunities,
increase in incomes, improvements in living
conditions, availability of infrastructure, energy and
drinking water. In following the principles set forth
by the UN, Eni pursues this commitment in the belief
that for billions of people in the world the issue
of human rights inevitably includes, as a priority,
the right to development and to the satisfaction of
basic needs.
This commitment can be seen in the implementation
and management of all of the operating activities
conducted directly by Eni, but also when participating,
as a non-operator partner, in joint ventures and
consortia. For example, in the now-completed OCP oil
pipeline in Ecuador or for the Baku-Tbilisi-Ceyhan
(BTC) oil pipeline project, Eni is constantly committed
to ensuring that all measures are adopted to guarantee
the responsible management of the operations.
This is naturally a long term process requiring constant effort and commitment, also in view
Human rights
of the impact that Eni’s activities can have on the territory.
To this end, the Company acts promptly and rigorously to verify and correct any possible problem
in the corporate management systems and, also in critical situations, acts responsibly
and correctly, cooperating with the authorities and maintaining a constant dialogue
with the communities and its main stakeholders.
Sensitive areas
Eni is fully aware of the complexity of the scenarios,
the scale of the problems and tasks to be faced, as
well as of the growing expectations of stakeholders.
As a responsible multinational oil company, Eni
believes that it can nevertheless play, even in the
most difficult situations, a positive role by providing
populations with concrete opportunities for
sustainable development, while respecting their
rights at a global level.
The energy industry is frequently called upon to
conduct its activities in countries that, despite
substantial natural resources, have not been able to
promote a satisfactory growth process and which can
therefore present a series of problems: widespread
poverty, armed conflicts, presence of refugees, low
level of protection of citizens’ fundamental rights.
While the responsibility for ensuring certainty in
the legislative framework and the protection of
fundamental rights lies in the first place with
governments and the competent international
institutions, companies certainly have an obligation
to conduct their activities in the full respect of
existing laws and in recognition of the principal
international conventions concerning human rights,
labor standards and environmental protection,
adopting principles of fairness, transparency and
efficiency.
A legal framework of reference that is as clear as
possible, as well as conditions of social and political
stability and guarantees, are in the interest of the
companies themselves. This is even more the case
for the energy industry that, by the nature of its
business, cannot but take account of the geographical
and territorial limitations related to the location
of hydrocarbon reserves and is characterized by
significant investments and long-term operations.
An oil company, therefore, especially when operating
Human rights and security
One of the most important aspects revolving around
human rights’ issues is undoubtedly that of security.
The need and obligation to protect human resources,
company property, information and know-how is a
fundamental element of the Eni Group strategy, even
in light of increased international tension and local
political and social conflicts.
To this end, the Company has put in place a global
security system that reflects a commitment to avoid
and prevent risks, in the full respect of laws and the
fundamental rights of populations. With a view to
promoting and spreading a responsible corporate
culture on these issues, information and training
activities are organized to increase employee
awareness and responsibility, also through specific
meetings focusing on security-related issues.
Eni believes that an essential element in an effective
security policy is the promotion and consolidation of
relations with the local communities that are based
The BTC oil pipeline
The project will create
a transport system
with a capacity of 1 million
boe/d from the offshore BP
reservoir of Azeri Chirag
Guneshli, near Baku
in Azerbaijan and, through
Georgia and Turkey,
to the Ceyhan terminal
on the Turkish Mediterranean
coast. The legal framework
of reference is the one
relevant to infrastructure
projects that cross different
countries. In conducting
the activities, the project
managers are committed
to ensuring best practices
to minimize social
and environmental impacts.
So far, this has been achieved
by adopting a number
of instruments (including
impact studies, emergency
plans, monitoring
and mitigation activities)
and the implementation
of a wide-ranging consultation
process with the main
stakeholders to illustrate
the development programs
for the communities.
Eni joined the BTC
consortium after
the negotiations had been
completed and,
42
ENI
RESPONSIBLE CONDUCT
while not having responsibility
for the construction
and management of
the oil pipeline, nor employees
involved in the project,
as a sensitive partner,
it is committed to ensuring
that attention be given
to a number of aspects
of particular importance
and sensitivity and that
the greatest openness
in the consultation with all
stakeholders be maintained.
Precisely in order to respond
to a series of concerns
that had been raised
by humanitarian
and environmental
associations, in 2003
the operator BP
and the three Governments
involved signed a joint
statement that reaffirms
the commitment to respect
international codes
of conduct and the highest
standards in terms
of the environment and work
conditions. At the same
time, a positive process
of dialogue and consultation
was initiated with Amnesty
International, concerning
a series of critical issues raised
by the organization.
43
ENI
RESPONSIBLE CONDUCT
on transparency and consultation, and, even in
critical situations, pursues its objectives through
constant dialogue conducted in the context of
development and cooperation agreements reached
with the communities themselves.
Eni is also committed to keeping transparent
relations with private and state security services;
moreover it pays particular attention to the training
of its employees, prohibits all forms of corruption,
and avoids relations that may generate rivalry among
communities.
the operating context: violation of fundamental
individual rights, uncertainty in the legislative
framework, corruption and dishonest practices,
inadequate transparency in the management of
commercial transactions.
This is why Eni has welcomed with interest and favor
the UN project for Norms on the Responsibilities of
Transnational Corporations with Regard to Human
Rights, which it considers an important point
of reference for business, as well as an incentive for
Governments, with which first of all lies the
responsibility to ensure the respect for fundamental
rights and to adopt the necessary legislative framework.
As a responsible company that has already developed
an internal approach to such issues, Eni has publicly
expressed its willingness to engage in a dialogue
aimed at the continuous improvement of the
framework of reference. In this respect, the Company
hopes that the implementation and control procedures,
envisaged by the Norms and in the process of being
defined, are put in place taking full account of the
companies’ specific operational circumstances and
that the relations between these and the bodies
The need for a more certain framework of reference
In addition to its industrial responsibilities in
operating areas, Eni also interacts and exchanges
information with the main Italian and international
associations operating in the field of the protection
of civil rights and the environment, as well as with
international bodies and industry associations of
which it is a member. This approach is the result of
the belief that only a process of multi-stakeholder
consultation can lead to policies and initiatives to
effectively tackle some of the most critical aspects in
monitoring their conduct be based on a spirit of
cooperation focused on shared objectives. Moreover,
on this issue, Eni is actively involved in in-depth
discussions with business associations.
Transparency in payments
The transparent management of financial flows
resulting from the income generated by oil and gas
resources and, at the same time, the fight against
corruption in all its forms, are aspects that have a
significant impact on the sustainable development
potential of producing countries.
In its Code of Practice, Eni expressly forbids not only
bribes, but also illegitimate favors and collusion of any
kind, and among the Principles of Sustainability has
included one on business ethics, according to which “all
activities worldwide must be conducted with honesty, integrity
and in observance of the laws”. In 2003, in compliance with
Legislative Decree 231/2001 that implements the OECD
directive concerning the administrative responsibility
of companies with reference to a series of criminal
offences committed or attempted by employees or
Relations with the communities of the Niger Delta
Eni has been operating
in Nigeria since 1962,
through its subsidiary
the Nigerian Agip Oil
Company Ltd (NAOC),
in the region of the Niger
Delta which, despite
considerable natural
resources, is socially
and economically less
developed than the rest
of the country.
The discovery of oil created
expectations of growth
among the local population
that have only partially been
met and, therefore, this has
led to requests for a more
equitable distribution
of the benefits generated
from extractive activities.
Eni has always contributed
however, have not affected
the Company’s commitment
to promoting continuous
dialogue nor its constant
efforts aimed at consolidating
its relations with the various
local stakeholders.
Within the framework of the
cooperation agreements,
criteria and methods
are established to resolve
possible disagreements,
including the creation
of a specific committee
and the regular programming
of meetings aimed
at extending the consultation
process with the communities.
NAOC is constantly
and actively engaged
in strengthening the dialogue
with the populations
to improving the living
conditions of the local
populations.
Over the years, this has led
to the creation of significant
relations of cooperation with
the region’s almost 300
communities and the
implementation of hundreds
of development projects.
However, due to the critical
factors outlined above
and the complex socio-ethnic
context, Eni, like a number
of other companies, has,
over the years, been
subjected to acts of sabotage
against plants and productive
sites. These episodes,
44
ENI
RESPONSIBLE CONDUCT
of the Delta, avoiding any
involvement in local conflicts
and ensuring, also through
the prompt and effective
management of security
issues, that the Company’s
presence does not in any way
contribute to feeding
tensions and lead to, even
indirectly, the violation of
human rights.
In 2004, the Company
adopted its own Security
Policy and guidelines, whose
contents were drawn from
the principles and application
criteria of the Group’s general
regulations on security, as
well as Eni’s Code of Practice
and CSR principles.
The document reaffirms
the obligation to combine
the effectiveness of actions
with the respect for local
laws, international
standards in human rights,
as well as the customs
of the communities.
It also emphasizes
the need to manage risks
in a responsible manner,
through the internal
dissemination of an adequate
level of awareness, specific
prevention activities
and the training of personnel,
and extends the set
of principles and regulations
concerning the Company’s
conduct to the security forces
and services involved
directors, Eni adopted an organizational model and
management and control system and appointed a body
to protect its position in this respect.
Moreover, Eni supported the consultation process
launched by Global Compact among participating
companies for the inclusion of a tenth principle on
corruption, which it considers consistent with both
its principles and conduct.
With respect to the relationship between the use of
oil revenues by producer countries and their
sustainable development, Eni is involved, both
directly and through industry associations, in the
Extractive Industries Transparency Initiative (EITI),
launched in 2003 by the British Government
following commitments taken at the World Summit
on Sustainable Development in Johannesburg.
This initiative establishes among the interested
parties - governments, businesses, NGOs, international
institutions - a multi-stakeholder consultation process
aimed at analyzing all the legal and contractual
aspects of transparency and the forms of disclosure
for the figures concerning oil proceeds, in order to
in protecting employees
and Company assets.
Particular emphasis is given
to the management
of potential situations
of tension through
the constant dialogue with
local authorities, communities
and associations
and the obligation to restore
security conditions, in case
of crisis, always operating
with the full respect
of human rights.The Policy’s
principles and application
criteria will be included in all
supply and service contracts,
signed by NAOC, thus
amplifying their effects.
45
ENI
RESPONSIBLE CONDUCT
verify the effective use of such resources for the
development of the populations.
strong ties with the local communities bears witness to
the Company’s commitment to improving their living
conditions and growth prospects, as can be seen from the
wide number of development programs carried out with
the involvement of local beneficiaries, authorities and
associations. Similar attention is also given to evaluating
the impact that productive activities may have on the
territory and, therefore, on the relations to be promoted
and developed, with all the local stakeholders, for the
definition of business activities in all the different phases.
The manner in which individual industrial projects are
implemented are also the result of a systematic and often
extensive consultation process that the Company
conducts involving the different stakeholders.
Local stakeholders
In conducting its operating activities, Eni has always
made efforts to maintain an open and transparent
approach with respect to local populations and
authorities, to promote mutual understanding and
avoid conflict, as well as to establish areas of profitable
and lasting cooperation.
The attention given to developing and consolidating
Three different approaches:
Pakistan, Nigeria and Venezuela
With the objective
of encouraging an autonomous
capacity for growth and
development, in line with
national plans and in cooperation
with local authorities,
Eni assigns a fundamental role
to the communities that
is manifested through a process
of dialogue, exchange, proposal
and implementation of concrete
initiatives. The relationship varies
according to the local culture,
customs and habits and takes
on different operative forms:
from the signing of agreements
with the communities,
to the promotion of new forms
of local representation, such
as development committees,
as well as the cooperation
with NGOs operating in the area.
In Nigeria, where Eni has
a consolidated presence,
the direct involvement
and participation of communities
and stakeholders in defining and
executing projects is established
by the signing of Memorandums
of Understanding with
the different local communities
and authorities. Such
agreements usually involve the
creation of a control committee
made up of community
representatives, the setting up
Evaluation of the impact of activities
of a committee for conflicts
resolution, thanks to which
community representatives
can have direct access
to Company personnel
and discuss specific problems,
the scheduling of regular
meetings to promote a wider
consultative process with
the communities. In Pakistan,
in the Kirthar region, Eni
promotes local development
committees through
the assistance of a local NGO.
The members of these
committees, after receiving
specialist training
and support, become
the leaders of a development
process that involves the entire
community, highlighting
potential areas for action
and actively participating
in all the phases of the defined
programs. Even in Venezuela
the aim has always been
to promote the full involvement
of local communities
in such a way as to intervene
in the most effective
and concrete manner;
this generally occurs through
the collaboration of mainly local
NGOs, each of which
is responsible for a specific
activity (see page 54).
With a view to encouraging an energy system and a
social and economic development process based on
sustainability in the countries where it operates, Eni
adopts a series of measures to evaluate the overall
impact of its activities at a local level. At the same time,
the Company supports initiatives aimed at promoting
the respect for and the adoption of international
standards and guidelines and participates in the
processes involving industry associations for the
definition and diffusion of policies and best practices
concerning socially responsible conduct.
Eni contributes to the environmental protection across
the entire energy cycle by adopting innovative technical
solutions focused on sustainable development. With its
technologies and professional competences, it
promotes programs aimed at protecting the delicate
balance between the current needs of society and the
responsibility of preserving the environment for the
future. Wherever it operates, Eni undertakes advanced
projects to reduce the environmental impact, reducing
to a minimum deforestation and always restoring the
original forest conditions. In particular, when operating
in complex and vulnerable ecosystems, it adopts
solutions to guarantee the full respect for the existing
balance and biodiversity.
In particularly sensitive areas, wide-ranging specific
studies are carried out to identify and analyze all the
positive and negative impacts of the Company’s
activities from a social, economic and environmental
point of view, with the aim of maximizing the
benefits for all the stakeholders.
46
ENI
RESPONSIBLE CONDUCT
Kazakhstan, Ecuador and Nigeria
In Kazakhstan,
in the exploration
and production project
in the offshore Kashagan field
in the northern Caspian Sea,
where Eni is the single
operator, the use of the most
advanced technologies
is combined with methods
which allow the evaluation
of the interactions and
the strategic potential
of the Company’s presence,
from an economic, social
and environmental point
of view. The results are used
to develop adequate
measures to mitigate
the impacts and prepare
an action plan on the basis
of consultations with
the main stakeholders.
In Ecuador, in the Oriente
region, as part of the current
service contract
with Petroecuador for the
development of the Campo
Villano field, Eni is conducting
exploration and production
activities while paying the
greatest attention
to the protection
of the environment;
this through specific measures
aimed at reducing
the impacts of activities,
such as the reduction
of deforestation,
the transport of materials with
helicopters to avoid
the construction of new roads,
and the constant monitoring
of the land, rivers and streams.
Operations has been
constantly subjected by
the Ecuadorian authorities
to environmental audits,
also with the involvement
of external consultants,
and always with positive results.
In Nigeria, in the Niger Delta
region, the commitment
to environmental protection
and human development
is an integral part of the
Company business activities.
In the environmental field,
in addition to conducting
operating activities in full
respect of existing norms
and highest international
standards and promoting
activities to reduce the impact
of the activities themselves
(for example the Zero Gas
Flaring Program), Eni also
implements specific initiatives
to reduce environmental risks
for local communities, such
as the integrated management
plan for solid urban waste
in the city of Port Harcourt
and the coastal protection
program in the city of Brass.
The evaluation of the operational
impact and the definition of social
development programs
are carried out, as already
mentioned, following systematic
consultation with the stakeholders
and analyses aimed at identifying
the most important needs
of the local communities, also with
a view to promoting
a more open dialogue concerning
possible critical issues.
at the University of Potenza
in the fields of economics,
environment, resource
management, energy and
new technologies.
Also in cooperation with
the Region, a study
of the local biodiversity has
been launched that will
involve important
international research
institutes and the University
of Basilicata (see page 62).
The project will make
it possible to acquire a more
detailed knowledge about
the territory to guide
and improve remediation
activities and promote
the conservation of local flora
and fauna, their genetic
profiles, the habitat in which
they live and the ecosystems.
With the objective
of encouraging an in-depth
study of the area, Eni has
promoted specific activities
at schools in the Val d’Agri
area to promote a dialogue
between classes and schools
through the use of new
computer-based tools.
Responsibility in Basilicata
Through the use of the most
advanced technologies,
Eni is committed to ensuring
that all of its operating
activities in the Val d’Agri
are carried out with
the greatest respect
for the environment
and contribute
to generating value
for the local economy.
In addition to promoting
employment in activities
induced by the oil business,
the Company signed
a Protocol of Intent with
the Regional Authority
of Basilicata that provides for:
the carrying out of recovery,
restoration and re-forestation
activities in the areas affected
by extraction; the creation
of a monitoring network
for oil activities supported
by an Environmental
Observatory set up
by the Region; the award
of a financial contribution
for the completion
of a regional methane
distribution network;
the setting up of scholarships
47
ENI
RESPONSIBLE CONDUCT
Local development
Eni’s involvement in the sustainable growth process of communities is aimed at contributing
to the creation of the conditions for their greater self-sufficiency and is based on the Company’s
firm commitment to removing the obstacles to local aspirations, on the exchange of technical
sustainability processes - particularly through the
completion of infrastructure, given that many of the
countries where Eni operates are characterized by
serious deficiencies in this area - and the enhancement
of the cultural heritage. Initiatives in the field of
health have mainly concerned operative projects,
such as the support in the fight against critical diseases,
like Aids and malaria.
the support for basic education and technicalscientific, economic and managerial training.
ENVIRONMENT: to contribute to the protection of the
environment through the adoption of innovative
energy solutions and the promotion of measures
aimed at conserving and safeguarding the ecosystems.
CULTURE : to encourage cultural exchanges and the
enhancement of local artistic heritage through the
support of the main institutions and events in the
sector.
and scientific know-how as well as the support for autonomous initiatives.
It is a commitment that, in taking into account the real needs of the populations, is directed
at satisfying widely differing expectations, according to the different level of development
of the countries in which Eni is present.
It is a continuously evolving process that rests upon a steady dialogue with all the stakeholders
and aims at encouraging a climate of trust in the Company.
Areas and types of intervention
The initiatives promoted by Eni are carried out in
cooperation with local governments and authorities,
local, national and international NGOs, and with the
active participation of the beneficiary communities
who play a key role in such efforts.
In its strategy of intervention in support of the
communities, Eni implements programs and
Community expenditure - types of intervention
Eni divides its initiatives into
three types:
Community involvement
initiatives - financial and/or
in-kind support (by providing
know-how, facilities
and equipment) for
projects addressed to
the communities;
Institutional support collaboration or financial
contributions in favor of
national or international
institutions, such as NGOs,
United Nations agencies, etc.,
with the aim of establishing
long-term relations on key
issues at a global level;
Donations - allocation
of small amounts of money
or in-kind support in response
to occasional requests from
local associations/institutions.
Overall commitment
in support of communities
of intervention
Health
Aware of the importance of improving the health
conditions of the communities with which it interacts,
Eni is committed to strengthening healthcare systems,
providing basic healthcare and improving hygiene
conditions, infrastructure and local training in the
area of health.
For example, in the REPUBLIC OF CONGO, the TALANGAÏ
HOSPITAL at Brazzaville, following the restructuring
project carried out by Eni and completed in 2000, is
now able to provide healthcare assistance to more
Eni’s commitment in favor of local communities in
these last years has resulted in an overall expenditure
that has increased from 47.5 million euros in 2001 to
more than 50 million in 2003. These are figures that
also reflect the development of business activities and
the recent acquisition of new operative areas, and
represent on average 0.8% of the Company’s net profit
(The London Benchmarking Group, the prestigious
international organization that carries out comparative
analysis of companies’ social performance, has set the
ideal ratio between 0.5% and 1%).
in 2003, expenditure by sector was as follows: SOCIAL
DEVELOPMENT 63%, ENVIRONMENTAL PROTECTION 19%,
CULTURAL PROMOTION 11%, EDUCATION & TRAINING 5%
HEALTH 2%. These figures indicate the greater
attention paid to projects that aim at promoting both
Community development
Selection criteria of projects
Most initiatives are generated
at the local level following
consultation processes
with the communities.
An initial analysis
of the proposals is made
by the Company structures
operating in the country
in order to assess their
consistency with the real
needs of the population.
Proposals are then sent
to headquarters
for an overall evaluation
that must also take account
of the availability of resources
in the budget.
In evaluating requests, special
attention is given, among
other things, to the following:
• relation of the project
to Eni’s corporate
mission and its
commitment priorities
to the communities;
Expenditure trend 2001-2003
50,000
(k euro)
initiatives in the following areas:
HEALTH : to strengthen healthcare systems, provide
primary healthcare, infrastructure and training and
tackle the spread of life-threatening diseases.
SOCIAL DEVELOPMENT: to create social infrastructure
and promote projects that can develop autonomously
and be integrated with the local socio-cultural fabric.
EDUCATION AND TRAINING : to contribute to the
educational development of young people through
Projects
40,000
30,000
20,000
10,000
,
2001
2002
2003
,
,
,
Community development 2003
y
p
Breakdown by sector
,
Health 2%
Training 5%
Culture 11%
Environment 19%
Social 63%
48
ENI
LOCAL DEVELOPMENT
• capacity of the
project/organization
to make a concrete
contribution to the general
wellbeing of the community
in response to specific needs;
• sustainability
of the project in terms of the
development/improvement
of the local competences
needed to continue
the activities autonomously;
• evaluation of the results
already achieved by the
proponent and possible
recognition received;
• integration of the project
with initiatives of other
organizations and agencies
with a view to avoiding
duplication and overlapping;
• measurability of the expected
results;
• availability of additional
financial resources.
49
ENI
LOCAL DEVELOPMENT
than 300,000 people. The subsequent promotion of a
cooperation agreement between the Congolese
facility and the Sacco Hospital in Milan, specialized in
tropical diseases, has made it possible to launch an
assistance program, which started in 2001. On the
basis of the program, the Sacco Hospital provided
assistance and training for local personnel aimed at
guaranteeing the operational and functional
management of the hospital. With the same aim, Eni
donated an emergency generator and other
equipment.
In INDONESIA, as part of the Vico Indonesia petroleum
consortium, a number of initiatives have been
promoted in the East Kalimantan Region including:
participation in a basic healthcare assistance
program, execution of a blood donor project, supply
of medical materials for a public clinic and
construction of a medical center. Thanks to these
initiatives and to other social and infrastructure
projects carried out in the region, in May 2003 the
Consortium received the Padma Community
Development Award from the President of the
Republic of Indonesia.
In ITALY , Eni has contributed to launching and
establishing the activities of the THEÓDORA FOUNDATION,
an international association that organizes in Italy
and in other European countries entertainment and
shows for children in pediatric wards. Every week the
young patients meet the so-called “Clown Doctors”,
selected and trained to work in hospitals. Thanks to
Eni’s contribution, the Theódora Foundation has for
years organized free shows at a number of hospitals,
such as the Gaslini Institute in Genoa.
In recent years the Company has also been strongly
committed in the less developed areas of the world
to supporting international efforts in the fight
against the spread of life-threatening diseases
that also represent an obstacle to the prospects for
development and wellbeing of populations. As a result,
and as part of an ongoing interest in cooperating
with research institutes and supporting initiatives
launched by international organizations, Eni
participates in a number of programs at a global
level, aimed at tackling the spread of critical diseases.
Eni is one of the leading private partners in the ROLL
BACK MALARIA initiative, launched by the WHO in
1998, with the World Bank, the United Nations
Development Programme and UNICEF, with the aim
of assisting national health systems to be more
effective in their fight against malaria and adequately
respond to the problems facing the poorest sections
of the affected populations. Through the creation of a
network that includes governments, development
agencies, non-governmental organizations and the
private sector, the program aims to half the incidence
of the disease by 2010.
Bayelsa, in the Ologoama community, where malaria
is the principal cause of death. The initiative has led
to the completion of a healthcare center, the supply
of an ambulance boat, the distribution of medicines
and mosquito nets treated according to WHO
standards, the completion of awareness campaigns
and the restructuring of Ologoama’s water system.
The project, which in 2003 involved around 4,000
people, will be extended, with particular attention for
the most vulnerable groups in the population.
Malaria in Africa
Social development
The social development initiatives that Eni carries out
in the communities with which it interacts include a
range of projects: the completion of infrastructure,
the promotion of rural development projects, the
setting up of small businesses also through the
supply of micro-credits.
For example in Kazakhstan, a country that from an
operating point of view represents a crucial area for
the Company, Eni is strongly engaged in the setting
up of infrastructure.
In NIGERIA, in the Niger Delta region, Eni has promoted
a range of agricultural development programs: the
GREEN RIVER PROJECT which, through appropriate
farming and product transformation techniques,
promotes a more efficient and environmentally
compatible use of natural resources and a greater self-
Duration of malaria
transmission seasons
Duration of malaria
no transmission
ransmission
seasons
1-3 months
no transmission
4-6 months
1-3
7-12months
months
4-6 months
Source: WHO
In this framework Eni has implemented two projects,
the first for the control of malaria in AZERBAIJAN
(1999-2001), thanks to which both the number of
cases and the areas effected by the disease were
drastically reduced. The second is currently being
carried out in NIGERIA in the Niger Delta. Eni, as part
of the national plan for the fight against malaria
launched by the Federal Government, takes part with
its own healthcare facilities and know-how in the
prevention and control program in the State of
Eni’s commitment in the fight against Aids
is required by governments,
international institutions,
businesses and associations
as well as the involvement
of the affected communities.
It is in this framework
of cooperation that Eni’s efforts
have been aimed at supporting
initiatives for the fight against
Aids promoted by the main
international organizations
and also at implementing
a workplace policy oriented
at greater awareness
and prevention.
Thanks also to the donation
provided by Eni in 2002,
the Global Fund to Fight Aids,
Tuberculosis and Malaria
contributed in Nigeria
to support the measures
adopted by the Government
for the prevention
of the transmission of the virus
from mother to child,
the expansion of access
to antiretroviral programs
and the strengthening
of information campaigns.
Also in Nigeria, Eni decided
to support UNICEF
in carrying out a PROJECT
OF MOTHER-INFANT TRANSMISSION
FOR THE PREVENTION
OF THE HIV/AIDS AND SEXUALLY
OF TRANSMISSION OF THE HIV VIRUS
TRANSMITTED DISEASES,
in cooperation with
the Clinic for Infectious
Diseases of the San Martino
Hospital and the University
FROM MOTHER TO CHILD
in the rural areas of the Niger
Delta through the setting up,
at 4 health centers, of a series
50
ENI
LOCAL DEVELOPMENT
of healthcare and counseling
services directed to at least 20%
of the pregnant women
attending prenatal clinics.
The project is expected to
involve around 15,000 pregnant
women and almost 300,000
people in the community where
the initiative is being conducted.
In the Republic of Congo as well,
the Company plans to launch
a project for the PREVENTION
of Genoa. Finally, in Indonesia,
through the Vico Indonesia
joint venture, Eni has
conducted AWARENESS
CAMPAIGNS in the Muara Badak
and Muara Java communites,
concerning HIV/AIDS
and drug abuse.
Adults and children estimated to be living with HIV/AIDS, end 2003
In terms of building public
awareness, Eni has joined
the Global Business Coalition
on HIV/AIDS, which aims
to promote among businesses
a greater awareness
and a concrete involvement
in the fight against Aids.
Eastern Europe
& Central Asia
50
45
40
35
30
25
20
15
10
5
1.3-1.8 milioni
Western Europe
North America
520,000-680,000
East Asia & Pacific
790,000-1.2 milioni
700,000-1.3 milioni
350,000-590,000
North Africa
& Middle East
470,000-730,000
Latin America
Sub-Saharan Africa
1.3-1.9 milioni
25.0-28.2 milioni
Caribbean
Estimated number of people living with HIV/AIDS
millions of people
With more than 40 million
people affected by the HIV
virus and more than 3 million
deaths last year, of which more
than 75% in Sub-Saharan
Africa, Aids represents one
of the world’s most dramatic
health and social emergencies
and constitutes, especially
for the poorest and less
developed areas, a major
obstacle to the possibility
of growth and wellbeing
for the populations.
In order to fight the disease,
in addition to drugs
and effective awareness,
prevention and care policies,
an active commitment
South
& South East Asia
4.6-8.2 milioni
Australia
& New Zealand
12,000-18,000
indicates the range
around the estimate
1999
2000
2001
2002
2003
Source: UNAIDS/WHO – AIDS epidemic update: December 2003
Source: UNAIDS/WHO – AIDS epidemic update: December 2003
51
ENI
LOCAL DEVELOPMENT
sufficiency in the communities; the BURMA RICE FARM
PROJECT , which has developed rice cultivation on a
large-scale in the State of Bayelsa, through the
creation of a model farm with an annual production
of 30 tons; the REHABILITATION AND EXPANSION PROGRAM OF
THE OGUTA FISH FARM , in the State of Imo, which will
become the main fish production center in south-east
Nigeria and contribute to meeting the demand of the
region, following the development of fish production
by the local government.
Through the DISTRIBUTION OF MICRO-CREDITS , Eni
provides incentives for the development of small
autonomous business activities that effectively
respond to local needs:
• In PAKISTAN, the Company is working in cooperation
with the NGO TRDP (Thardeep Rural Development
Program) to create local development organizations
called Village Development Committees (in 2003
alone, 154 committees were created with a
significant representation of women). Through
these bodies, in 2003, micro-credit initiatives were
activated for a total of US$17,000, benefiting more
than 90 operators in areas such as agriculture,
fishing, and small commercial and crafts activities.
• In NIGERIA, as part of the already mentioned Green
River Project, micro-credit projects (Green Card
Scheme) have been given a particular impulse,
as has management training, both carried out
in partnership with the Nigerian Central Bank
and the United Bank for Africa. These programs have
led in 2003 to the creation of 34 cooperatives in the
agricultural, livestock and fishing sectors, producing
a net improvement in the living conditions of the
beneficiaries. The project development plan provides
for its extension to other areas, incentives to diversify
production, the introduction of other components,
such as the credit extension to individuals, farmers,
young people and groups of women.
Social infrastructure in Kazakhstan
The initiatives carried
out in the country are agreed
with local authorities
on the basis of specific needs
and a number of them fall
within the terms
of the production sharing
agreements.
In the Caspian region,
among the many projects
implemented by Eni
with the other partners
in the KASHAGAN PROJECT,
of particular significance
have been the construction
of a rural hospital,
three schools, an opera
house, the Science Museum,
the restructuring of public
and residential buildings,
the construction
of the Wedding Palace,
a building also used
as a registrars office.
A program is also
being carried out
for the remediation
and improvement
of the coastline, as well as
initiatives to extend access
to drinking water.
In the area around the new
capital Astana, a vast public
works and social structures
program has been
implemented with
the direct support of Eni.
Some have already
been completed, such
as the restructuring
and expansion of a children’s
recreational center
in Baldauren,
while others are nearing
completion, such
as the construction
of the national library.
Within the framework
of the KARACHAGANAK
PROJECT, the most important
initiatives carried out
in the Uralsk-Aksai region
involved the construction
of an orphanage,
the completion of sports
facilities - a swimming
pool and a stadium the restructuring
of the Regional Philharmonic
Hall and the old Russian
Drama Theater.
The Kazakh Drama Theater,
two buildings with 350 seats,
designed to host theatrical
events as well as congresses
and conventions,
has also been completed.
Even in this area a number
of hospitals have been
restructured and constructed.
In both regions of the country
involved in oil activities
action has been taken
to supply natural gas in urban
and rural areas not reached
by the distribution network.
number of projects, from the construction and
restructuring of schools to the supply of equipment
and teaching materials.
In BRAZIL , Eni supported an educational program
called “ALFABETIZAÇÃO SOLIDARIA”, in cooperation with
the universities, the Ministry of Education, the local
municipalities and a number of Brazilian and foreign
companies. Launched in 1997 on the basis of an
innovative partnership among these institutions, the
program - which is targeted mainly at adolescents in
the Brazilian provinces with the highest rates of
illiteracy - was aimed at preventing the abandonment
of school, as well as at promoting professional
orientation. To this end, a number of specific training
courses were set up and made available to students
who had completed the literacy module. Eni’s
contribution was concentrated in the states of Bahia
and Amazonas through the support of the Bonito and
Ipixuna districts respectively.
In ECUADOR, in the Pastaza province, support for the
primary school system has been provided through the
supply of teaching and artistic materials, traditional
musical instruments, as well as meals to integrate the
diet of students. At the secondary school level, the cost
of teachers’ salaries is supported in order to allow
students to attend local schools and university
scholarships have been established to facilitate the
integration of young people in the community. Finally,
• In VENEZUELA, in the Dación region, the integrated rural
development project carried out by the NGO FUNTAG
(Fundación Técnico Agropecuaria de Guanape) with
the support of Eni, provides for the credit allocation
through a Rotating Community Fund that has been
set up for this purpose. Since the beginning of the
project, 39 agricultural and zoo-technical initiatives
have been promoted which have contributed to the
strengthening of the productive capacity and
development opportunities of the region.
Education and training
In the field of education and training, Eni’s efforts are
addressed to promoting both basic education and the
preparation of young people and adults for jobs,
through vocational training courses.
In NIGERIA , for example, Eni runs wide-ranging
educational and training programs, that are
integrated with scholarships at various levels. In this
way, the Company contributes to increasing school
attendance and improving the level of professional
qualification of the community. As part of its literacy
program, Eni has launched specific projects called
ADAPTIVE SKILL ACQUISITION for groups of women and
young people, aimed at promoting their inclusion in
productive activities and sectors. In the framework of
governmental programs, Eni is also involved in a
The Green River Project
The Niger Delta and the areas involved in the project
52
ENI
LOCAL DEVELOPMENT
Rivers
Delta plains
Mangrove forest
States
Lower flood plains
Western coastal plain
Coastal sandy plains
Flood plain
Beaches and barrier islands
Among the most important
rural development projects
promoted by Eni is the Green
River Project, an integrated
agricultural program launched in 1987 in Nigeria
in the Niger Delta area for the development
of a food production system
that is sustainable from
the technical, socio-economic,
organizational and
environmental point of view.
Through the adoption
of appropriate farming
techniques, the development
management training
programs. With the aim of
further increasing productive
yields and the income
of the beneficiaries, agricultural
development programs
have been strengthened
through the involvement
of the communities
and institutional development
for the promotion
of the following activities:
• development of fish farming
in areas of fresh and brackish
water and the introduction
of new fishing techniques;
of fish farming,
the introduction of small
mechanical farm tools
and the transport of foodstuffs,
since its launch the project has
improved the living conditions
of around 200,000 people
(more than 28,000 families),
who have been able to double
crop yields and, consequently,
their incomes, and has
contributed to a significant
improvement in relations with
the communities involved.
Recently, an impulse has been
given to micro-credit and
• extension of existing
agricultural production;
• development of livestock
breeding, especially goats
and poultry;
• establishment of agroprocessing cooperatives
and development
of small businesses;
• promotion of youth
employment;
• mechanization and support
of river transport;
• introduction of management
and conservation plans
for mangrove forests.
53
ENI
LOCAL DEVELOPMENT
Protection of the environment
Eni has a significant commitment also to environmental
protection. As well as conducting its activities in full
respect of current legislation and the highest
international standards, the Company promotes
initiatives aimed at the conservation and protection
of ecosystems.
In this sector, the activities of the FONDAZIONE ENI
ENRICO MATTEI in the fields of sustainable development
and environmental impact of economic activities are
of considerable importance. Established in 1989 by
the Eni Group with the aim of promoting interaction
between the academic world, industry and public
institutions, the Fondazione plays a proactive role in
the search for solutions that combine economic
development with environmental protection.
In ITALY Eni has been cooperating for around ten years
with the Ravenna Municipal Council and the
Regional Authority of Emilia Romagna on issues
concerning the harmonization of industrial activities
with environmental protection, with the aim of
courses in management, finance and administration
have been set up for community leaders to promote a
higher level of autonomous development.
In PAKISTAN Eni pursues its commitment to education
and training in three main areas: basic education,
vocational training and specific training in the field of
information technology. As to primary education, to
date efforts have included the construction of 5 new
schools and support for the school management
committees to guarantee teaching also in remote
areas. Training courses for women have been organized
at centers already set up in cooperation with the WHO,
aimed at the acquisition of specific skills, above all in
the textiles sector, as well as for primary education.
With a view to encouraging community development,
courses in management and finance have been
organized in order to empower local development
representatives. Finally, thanks to the activities of the
Computer Training Center established in the city of
Jhangara, around 100 students in 2003 gained a
diploma in computer studies.
In NIGERIA, the Company’s commitment, in addition
to the responsible management of the environmental
impact of its productive activities, also includes
specific protection and conservation initiatives
aimed at reducing risks for local communities and
improving their living conditions. Such initiatives
include the financing of the INTEGRATED URBAN SOLID
WASTE MANAGEMENT PLAN FOR THE CITY OF PORT HARCOURT,
whose population has trebled in the last ten years,
and activities for the CONTROL OF COASTAL EROSION IN THE
CITY OF BRASS, subject to periodic flooding, through the
construction of protection barriers against the
encroachment of the sea.
promoting and conducting studies, monitoring
and protection activities of the territory through
the use of the most advanced technologies. This
collaboration consists in: survey of the coastline to
monitor changes; collection of meteo-marine data
together with the Civil Protection Agency for the
forecast of extreme events; planning of studies and
specific initiatives to protect coastal areas.
Also in Italy, Eni has been supporting for a number of
years “Puliamo il Mondo”, the Italian version, organized
by Legambiente, of the “Clean up the World” campaign,
the leading international voluntary environmental
initiative. The campaign, which runs in 124 countries
with the support of the United Nations Environmental
Agency, UNEP, aims to recover urban green areas and
respond to the needs and willingness of citizens to take
care of their territory. During the most recent edition
of the event in Italy, 1,700 municipal authorities, 1,000
schools, 1,000 associations and around 650,000
citizens, were directly involved in the recovery of
around 3,800 areas.
Promotion of arts and culture
Eni has close and continuing relations with the world of
the arts and culture, a fundamental expression of the
communities in which it operates. The Company
encourages cultural exchange and the enhancement of the
artistic heritage, promotes the organization of exhibitions,
supports musical institutions, and participates in
restoration projects and archaeological digs.
A substantial part of this commitment is carried out
in ITALY, even if over the years an increasing number
of initiatives have been promoted in the countries
where the Company operates.
Support for the main cultural institutions in areas
where Eni operates is part of the Company ’s
objectives in terms of image. The involvement with a
number of Italian musical foundations underlines
the desire to tie the Company’s image to a prestigious
area of the arts. In particular, Eni, as a founding
member, supports the FONDAZIONE TEATRO ALLA SCALA in
Milan, the FONDAZIONE DEL TEATRO LA FENICE in Venice and
the ACCADEMIA DI SANTA CECILIA in Rome.
Moreover, the Company has a consolidated record of
collaboration with other prestigious musical
institutions that involves the sponsoring of single
events, such as the FESTIVALS OF RAVENNA AND SPOLETO, the
concerts organized by FAI (the Italian Environmental
Fund), the support for the opera and concert season
at the TEATRO DELL’OPERA in Rome, the FONDAZIONE DEL
TEATRO REGIO in Turin, the CARLO FELICE in Genoa, as well
as the sponsorship of the OPERA AND CONCERT SEASON OF
THE TEATRO COMUNALE of Ferrara.
Eni is engaged in the enhancement of the cultural
and artistic heritage of the country by supporting
important institutions in the sector and the
sponsorship of art exhibitions and events.
Eni’s commitment for the communities in Venezuela
Eni has been present
in Venezuela since 1967
and the numerous initiatives
in which it is involved concern
both the area of operations
of Dación and the activities
carried out through
the Humanitarian Aid Fund,
established to deal with
the flood emergency
in December 1999.
The Fund completed
development projects
aimed at contributing
to the reconstruction
of an autonomous economic
and social system
in the affected areas.
On the basis of the results
attained and the experience
gained, the Integrated Social
Investment Fund was
subsequently established,
Educación Sexual Alternativa),
Eni supports, in cooperation
with the UNDP and the Italian
Red Cross, a HEALTHCARE
ASSISTANCE PROGRAM focused
on the re-education of young
people, in particular on
adolescent sexual problems
(unwanted pregnancy,
non-responsible paternity,
sexual abuse) indicated
by the National Council
for Rights and by UNICEF
as urgent priorities
in the country.
The project, which
is conducted in the Dación
region, as well in other
areas of the country
(the municipality of Pedro
Gual in the State of Miranda
and numerous districts
in the State of Vargas),
to provide support
for sustainable development
projects through
the involvement of local
NGOs. In this effort the
Company is supported by
SOCSAL (Servicio de Apoyo
Local) which assists the NGOs
involved in carrying out
the projects.
The initiatives that have been
promoted have mainly
involved primary education,
vocational training, microcredits for the start up of
small businesses
and healthcare.
The Company has recently
promoted a number
of different initiatives.
In the field of health, through
the NGO AVESA (Asociación
Venezolana para una
54
ENI
LOCAL DEVELOPMENT
has led to the training
of 133 counselors
and 250 young people
engaged in preventive actions
and the promotion
of responsible behavior.
In the field of social
development, in the Dación
area, Eni supports
an INTEGRATED RURAL
DEVELOPMENT PROJECT, through
the NGO FUNTAG (Fundación
Técnico Agropecuaria
de Guanape). The project
aims at increasing rural
development through
the strengthening of
individual and community
skills in the agricultural
and livestock areas,
the creation and
consolidation of productive
units, training activities,
the distribution of credit
through a Rotating
Community Fund and
environmental protection.
Thanks to the project,
technical assistance has been
provided to 56 productive
units, bringing direct
and indirect benefits
to some 2,000 people.
In education and training,
in the Dación area,
the Company, through IRFA
(Instituto Radiofónico de Fe y
Alegría), has supported since
2002 an INTEGRATED TRAINING
PROGRAM for adults aimed
at providing both basic
educational and occupational
skills, as well as elements
of health education and
environmental protection.
Moreover, in the Caracas area
and in the State of Vargas,
Eni supports PROJECTS AIMED
AT DISSEMINATING NEW
INFORMATION TECHNOLOGIES
to which large parts
of the population still have
no access, by supplying
computers for schools,
training young people
and teachers and financing
micro businesses.
Finally, the Company
has promoted, through
the NGO Fundación OGA
and in cooperation with
the Ministry of Education
and the National Council
for Culture, THE NATIONAL
DIFFUSION OF KNOWLEDGE
ABOUT PRE-HISPANIC CULTURE
in primary schools, financing
the distribution of educational
materials to 800 schools.
55
ENI
LOCAL DEVELOPMENT
Sponsorships and Eni operational sites in Italy
sites, mainly necropolis and Enotrian and Greek
settlements. In the Crotone area, at the Archaeological
Park on the Capo Colonna promontory, Eni is working
with a number of national institutions for the
implementation of protective measures to safeguard
the last remaining column of the Hera Lacinia
temple.
Among the most significant artistic heritage
restoration and protection initiatives carried out in
recent years, it is worth mentioning the Company’s
involvement, with its know-how and technicalscientific and financial skills, in the imposing efforts
for the RESTORATION AND CONSERVATION OF THE FAÇADE OF
ST PETER’S BASILICA at the Vatican, on the occasion of
the 2000 Jubilee Celebrations. Eni’s technological
and scientific support consisted in making available
the necessary knowledge and skills, carrying out
research, analyses and laborator y activities,
elaborating data, training personnel and providing
all the necessary support for the work itself, as well
as monitoring the conservation state of the façade
and the dome.
Milan
Venice
Mantua
Ferrara
Bologna
Ravenna
Genoa
Turin
Pavia
Livorno
Florence
Ancona
Spoleto
Rome
Potenza
Naples
Cagliari
Brindisi
Taranto
nal site
hip site
Operational site
nal Sponsorship site
sorship site
Operational
and sponsorship site
Gela
In the framework of the cooperation with Palazzo
Ducale in Genoa, Eni sponsored the exhibitions “EL
SIGLO DE LOS GENOVESES ” and, more recently, “ GRANDE
Environment
In an increasingly informed and aware society, institutions and operators
are requested to pay growing attention to environmental prevention and protection issues
related to industrial production.
The most recent European legislation (e.g. Integrated Pollution Prevention and Control,
Water Directive, Emissions Trading, etc.), subsequently ratified at the national level,
provides a clear example of this trend. Moreover, environmental issues progressively incorporate
new aspects and require companies to continuously extend and refine methods
for monitoring and controlling the environmental impact of productive activities, in a framework
of global sustainability.
PITTURA GENOVESE DALL’ERMITAGE: DA LUCA CAMBIASO A
MAGNASCO”,
which reconstructed, through paintings,
drawings and documents the relationship between
Genoa and the court of Petersburg during the
eighteenth century.
Also in Genoa, Eni, as an official partner of “GENOA
2004, EUROPEAN CAPITAL OF CULTURE”, participates in an
important event involving a city where for many
years the Company has been conducting successful
and strategic operations. Among the many
performances planned, Eni is the main sponsor of the
“Paganiniana”, the fifth edition of an event organized
by the Municipality of Genoa, in cooperation with the
Fondazione Teatro Carlo Felice, the Giovane
Orchestra Genovese and the Conservatorio Niccolò
Paganini.
In 2002, the Company was one of the sponsors of the
exhibition “GONZAGA. LA CELESTE GALERIA”, which brought
together in Mantua for the first time in four hundred
years, from museums around the world, tens of
masterpieces that once were part of the now
dispersed Gonzaga collection.
In Potenza, in the Basilicata region, the Company
cooperated with the regional Archaeological Sites
Agency on an exhibition to enhance the archaeological
remains uncovered during work on the oil pipeline
that connects Viggiano with Taranto; more than 100
In this context Eni’s fundamental objectives are:
• develop technologies that are increasingly safe and
with a lower environmental impact;
• strengthen the capacity to prevent risks of soil
contamination;
• guarantee high environmental standards in
activities carried out in extreme environments;
• improve energy efficiency and the sustainable
management of water at all plants;
In conducting its activities Eni is committed to
limiting the environmental footprint in both its
upstream and downstream activities. To this end, it
adopts advanced risk assessment procedures during
the entire operative cycle in order to prevent and
control its impact on the territory and to protect and
conserve biodiversity.
Environmental protection expenditure
In 2003, environmental
protection accounted
for 65.4% of Eni’s total HSE
expenditure and amounted
to 605.3 million euros,
an increase of 5.5%
on the previous year. Current
expenditures accounted
for 73% (443 million euros)
of the total and were affected
in particular by intense
56
ENI
LOCAL DEVELOPMENT
and 10.2% for the protection of
the air and climate (61.7 million).
remediation activities carried
out by the Group in recent
years. A breakdown
of expenditure in this area
shows that around 34%
is for soil protection
and environmental restoration
(205 million euros), 21.2%
for waste treatment (128.1
million), 14.2% for waste water
management (85.8 million)
Air 10.2 %
Environmental expenditure
breakdown 2003
Water 14.2 %
Waste 21.2 %
Soil and remediation 27.3 %
Noise 0.2 %
Environmental restoration 6.5%
R&D 3.1 %
Environmental management 6.0 %
Communication 0.7 %
Training 0.1 %
Other 10.5 %
57
ENI
ENVIRONMENT
of the impact of operating activities on the
environment and territory.
Courses are held to prepare personnel to carry out
audits on environmental management systems,
spread knowledge of authorization procedures
(Environmental Impact Assessment and Strategic
Environmental Assessment) and introduce the
methodological principles of Life Cycle Analysis.
Special attention is also paid to global environmental
problems (sustainable development, climate change,
the Kyoto Protocol) and the response of Eni to these
issues. (For an overall picture of Eni’s commitment to
HSE training, see page 37).
• increase the level of oil spill prevention in transport
and distribution and response plans for possible
emergencies;
• promote end-uses with a low environmental
impact.
With a view to achieving a coordinated, homogeneous
and integrated management in HSE issues, Eni has
developed a Group Model Management System
inspired by the most advanced international
standards and which refers to the Group’s HSE
Guidelines (for more information see page 28).
The model is an evolution of the management systems
created in the 90s and aims to be a reference point for
HSE management systems for Eni’s Divisions and all
its subsidiaries, in Italy and abroad. It also aims to
spread a standard management cycle for the
consolidation and evaluation of HSE performance and
for the definition of new objectives focused on
continuous improvements and sustainability.
Energy consumption
The Eni Group consumes primary energ y both
directly, in its plants for the conversion of fuel into
final energy, and indirectly, through the purchase
from third parties of electricity and steam.
In 2003 the direct consumption of primary energy
by Eni in all its operations, both in Italy and
abroad, amounted to 10,112 ktep, an increase of
7.6% compared with the previous year. This increase
was the result of two factors: greater consumption
connected to the expansion of hydrocarbon
production (+6.1%), particularly abroad, and the
ageing of oil and gas reserves; the expansion, on the
part of EniPower, of electricity production for use in
the national grid. On a national level, however, the
consumption of primary energy was substantially
unchanged.
Eni pays considerable attention to energy conservation
at its plants and where the concomitant demand for
electricity and steam has made it possible - in
particular at the refineries and petrochemical plants cogeneration plants have been installed with very
high-energy efficiency rates of even more than 80%.
Such plants play a major part in EniPower’s plans
to expand its electricity generating capacity and
contribute to increasing the average efficiency of
electricity generation of the plants.
Even in the gas transport and distribution sector, Eni
has implemented important energy saving measures.
In the gas compression stations, high-efficiency
turbines, coming from the field of aeronautics, have
been installed to reduce the energy consumption of
gas transport.
the staff involved.
It also represents
an important breakthrough
in the demanding
environmental process
developed over recent years
at the Venice Refinery,
in line with Eni policies
and aimed at optimizing
environmental performance
through the adoption
of specific improvement
objectives, consistent with
its role and size as well as
the demands
of the surrounding territory
and environment.
Training
Within the HSE training activities promoted by Eni,
the Company’s commitment in the environmental
field aims to promote knowledge and improvements
in the functioning of environmental management
systems, as well as the identification and mitigation
58
ENI
ENVIRONMENT
reclassified. In 2003 total GHG emissions amounted
to 52.6 Mt CO2 eq, a slight increase (1.3%) compared
with the figures for the previous year, which have
been updated using the Eni Protocol method.
The greater environmental impact on the atmosphere
resulting from Eni’s activities concerns the emission
of greenhouse gases (GHG) and acid (oxygenated
sulphur and nitrogen compounds) combustionderived emissions.
In 2003 emissions of the main pollutants and
greenhouse gases were substantially stable. With
reference to acid emissions, Eni obtained a reduction
of 4.1% of NOX and SO2, while emissions of particulates
Water
The sustainable management of water requires
industry to pay attention to the possible savings in
the use and treatment of waste water in order to
reduce concentrations of pollutants.
In 2003 total water consumption fell by 21.1%. This
reduction concerned the chemical and refining
activities; the R&M division, in particular, reduced its
water consumption by 30%, also as a result of specific
projects aimed at recycling treated process water.
92% of the water used in industrial activities is
seawater. The volume of treated water amounted to
190 Mm 3 , which represents a reduction of 42.6%
compared with 2002 as a result of a contraction in the
activities of some sectors. In Italy the COD parameter,
an index of the global content of pollutants,
decreased by 27% compared with the previous year.
GHG total emissions
60
Environmental Declaration
of the Venice Refinery
In compliance with
the EU Regulation CE 761/01
of 2001 that introduced
the European
eco-management and audit
system EMAS, the Company
in 2003 published
the first edition
of the Environmental
Declaration of the Venice
Refinery.
The attainment of the EMAS
registration, the first for
a refinery in Italy and among
the first in Europe,
was the result of a common
commitment of all
Air
Mt CO2 eq
45
30
15
CO2 from combustion
CO2 eq from flaring,
venting and methane
1999
2000
2001
2002
2003
(SPM) were reduced by 33.9%; reductions due mainly to
the use of a fuel mix based on natural gas.
Emissions of volatile substances (NMVOC), however,
increased compared with the previous year (+14.8%)
as a result of increased production of hydrocarbons,
with exploration and production activities being
responsible for more than two thirds of these
emissions.
As for greenhouse gases (GHG), in 2003 the
application of the Eni Protocol for accounting GHG
emissions resulted in an improvement of reporting
both in terms of completeness and accuracy.
Consequently, the data for previous years has been
Waste water - COD
30
kt
24
18
12
6
1999
2000
2001
2002
2003
SPM
NMVOC
Atmospheric emissions 2003
GHG
Acidification potential
(MtCO2eq)
(tSO2eq)
30.11
58,729
CO
(t)
(t)
64,245
4
(t)
44,830
Gas & Power
7.55
25,859
5,198
912
2,772
7.68
39,886
2,568
1,528
11,924
196
5,604
Petrochemicals
4.07
6,602
3,407
Engineering & Construction
0.64
10,208
7,567
Other activities
Eni total
% change compared with 2002
2.53
9,503
253
160
220
52.58
150,787
83,238
2,800
65,350
1.3
(4.1)
1.4
(33.9)
59
ENI
ENVIRONMENT
14.8
Water management projects
In the upstream sector
water management
is dealt with in various ways,
including: the development
of technologies and products
to reduce the production
of water at the bottomhole;
the treatment and/or
recycling of extracted water
in gas and oil fields;
the exploitation of water
produced as a resource;
environmental monitoring.
Many projects have been
launched to achieve this aim.
The objective of DOWNHOLE
WATER/OIL SEPARATION
TECHNOLOGY is to build a
water-oil separation system
at the bottomhole, with
the re-injection of water
produced at a level lower
than the production level.
This results in a reduction
of the production of waste
and less energy consumption.
The ENVIRONMENTAL RISK
MANAGEMENT SYSTEM project is
aimed at setting up
Hazardous waste from productive
activities Italy - Final destinations
Non-hazardous waste from productive
activities Italy - Final destinations
an integrated system
for the analysis
and management
of the environmental impact
of the offshore discharge
of waste from drilling
and production.
The ADVANCED WATER
Reused 26.1 %
Reused 26.7 %
AND OIL TREATMENT PROCESSES
Incinerated 14.7 %
Incinerated 0.8 %
project has the objective
of validating new
technologies
for the treatment
of well fluids that allows
to remove the hydrocarbons
present in stratum water
up to a concentration
of 10 ppm and to obtain
water with an oil content
of less than 5 ppm from
semi-oleous water.
Disposed of in landfills 27.2 %
Disposed of in landfills 47.0 %
Other 32.0 %
Other 25.5 %
Soil protection
Many industrial sites have a production history of
many decades and, consequently, soil contamination is
the cumulative impact of the various activities over
time. With the exception of accidental spills, current
productive activities are marginally responsible for site
contamination, given that soil protection is an integral
part of the planning and management of plants.
Eni’s commitment to soil protection is based on three
principles: remediation of contaminated sites, research
and development of new monitoring, prevention and
intervention technologies, and environmental
restoration.
Remediation projects
of polluted sites. Eni Ambiente, Snamprogetti and
EniTecnologie are directly involved in the
decontamination of soil and groundwater, with
operations that range from the characterization of
the contamination level of the site to the evaluation
of health and environmental risks and, where needed,
remediation of the site. The experience gained in this
field has led to specific research projects to develop
innovative soil remediation techniques. In order to
increase its ability and competence in carrying out
experiments in remediation treatments, EniTecnologie
has built a laboratory specialized in developing and
using simulation instruments for validating
remediation treatments.
The Eni Group is engaged
in an intensive remediation
program.
In 2003 Eni’s budget
for remediation projects
increased again - 169.6
million euros, an increase
of 20% compared with
the previous year due both to the expansion
of the project portfolio
and to the many
projects that reached
the implementation phase.
The E&P sector has launched
new re-qualification projects
for mining areas in Italy
and abroad and has
conducted environmental
examinations in former
mining areas.
It plans to continue with
this activity in Italy
and to intensify it abroad
in the coming years.
Remediation activities
in the R&M sector concerned
Environmental restoration
When a work project is finished - closure of an oil well
or site, or when the laying of a pipeline is completed Eni dedicates great care to the restoration of the land
and, if possible, to its rehabilitation.
In particular, when constructing gas pipelines special
attention is paid to safeguarding the ecosystem by
carrying out coordinated mitigation and environmental
restoration interventions. Forest and agricultural
restoration interventions include all the operations
aimed at restoring the area to its original state.
refineries, active depots,
decommissioned sites
and the fuel distribution
network, for which subsoil
checks are made following
the removal of the structures.
In 2003, the definitive
projects for the remediation
of the Priolo, Gela
and Sannazzaro refineries,
the characterization plans
for the Venice and Livorno
refineries and the preliminary
project for the remediation
of the Taranto refinery
were presented.
In the petrochemical sector,
Syndial is involved
in important environmental
re-qualification projects
in production areas such
as Porto Marghera, Priolo
and Porto Torres
and in decommissioned
areas such as Gela,
Manfredonia, Mantua
and Crotone.
Costs of soil protection 2003
Remediation
In the majority of cases remediation projects are
complex and are developed, in accordance with the
current regulations, by means of a sequence
of planning and operational phases that include:
PROJECT DEFINITION , by means of a preliminary
environmental analysis, the characterization plan
and the elaboration of the preliminary and definitive
project; AUTHORIZATION from government authorities
for the above mentioned activities; PROJECT EXECUTION,
taking into account the instructions received during
the preliminary procedure; CERTIFICATION of the
completed remediation; REPORTING AND CONTROL
during all phases of the process.
Waste
In 2003 the production of waste (both hazardous and
non-hazardous) amounted to 2,867 kt. This
significant increase in the amount of waste produced
is related to the launch of numerous remediation
projects and safety measures for contaminated areas
and sites in Italy, in line with Ministerial Decree
471/1999, given that such operations generate a large
quantity of liquid waste, classified as waste, that are
primarily subjected to biological treatment. This
growth will continue in the coming years following
the development of remediation projects that are
increasingly focused on the recovery of contaminated
areas. Of the waste not coming from remediation,
around 27% is re-used, 42% disposed of in landfills, 4%
incinerated, while the rest is subjected to other types
of treatment.
Research & Development
The Company has launched numerous projects to
develop innovative technologies designed both to
avoid land pollution and to carry out the remediation
60
ENI
ENVIRONMENT
(K euro)
Remediation
Restoration
Total
32,231
3,510
35,741
6,733
30,765
37,498
59,713
469
60,182
Petrochmicals
12,299
409
12,708
Gas & Power
Engineering & Construction
Other activities
Eni total
329
186
515
58,315
0
58,315
169,620
35,339
204,959
Biodiversity
The technical solutions adopted for creating the
infrastructure and planning the restoration mean
that the impact on the territory is temporary, in
relation to the time necessary for the growth of the
species and vegetation employed. In order to reduce
this period to a minimum, interventions are carried
out immediately after the pipeline has been laid,
taking into consideration the most opportune period
for carrying out sowing and planting.
As part of Eni’s commitment to guaranteeing the
protection of the environment and the territory,
the conservation of biodiversity is of particular
significance, also in view of the wide variety of
contexts in which the Company operates.
With the aim of ensuring that operations are carried
out with minimum environmental impact, it is
61
ENI
ENVIRONMENT
Biodiversity projects
important to develop ways of obtaining early
warnings of possible stress to the environment and to
the species that inhabit it.
In the E&P sector a number of initiatives have been
launched to define best practices for safeguarding
the biodiversity in the core business. Such initiatives
also envisage the identification of stakeholders
with technical-scientific competences and an interest
in the territory to involve in the definition of
biodiversity protection strategies.
AGRIBIODIVERSITY
The biodiversity project underway in the Val d’Agri,
developed in an oil production area that is partly
inside protected areas, is aimed at defining a
methodological instrument for characterizing and
monitoring flora-fauna biodiversity which can be
validated in similar contexts so that an immediately
applicable methodology can be developed.
The project will last for around three years and is
sponsored by Eni and Shell. EniTecnologie, Fauna and
Flora International and the University of Basilicata
are scientific partners in the project, while the Italian
National Park Authority, the Basilicata Region and the
International Petroleum Industry Environment
Conservation Association (IPIECA) are observers.
Biomarkers
When evaluating biodiversity, an indicator of the
level of contamination of an area is represented by
biomarkers, which indicate the eco-toxicological risk
levels, that make it possible to evaluate the biochemical response generated by an organism when in
contact with a chemical agent.
Monitoring based on the use of biomarkers provides
more information about the effective biological
damage, evaluating in vivo the environmental impact
on the autochthonous organisms present in the
ecosystem being studied, even in situations where the
pollution is chronic. Thanks to the continuous
progress made in this field an ever increasing range of
biomarkers able to act as sensors of the state of the
ecosystem will soon be available.
BIODIVERSITY IN THE ADRIATIC
This project is concerned with characterizing
biodiversity and monitoring the impact on ecosystems
of offshore platforms in the Adriatic; the aim being to
define a methodological approach to characterize
biodiversity and to prepare a specific protocol of
analysis. The study is designed to understand the effects
an offshore structure has on the local marine species, as
platforms have an attractive effect on other species of
fish, known as a FAD (Fish Aggregation Device), as well
The BioAgri and BioMare projects
Eni has launched two
projects, one onshore
and the other offshore, based
on the use of biomarkers.
The BIOAGRI Project
has been developed
for the use of biomarkers
in the eco-toxicological
monitoring of the area
of the Val d’Agri Oil Center.
The project, which was
completed in December
2001, defined
an applicative protocol
for monitoring onshore
hydrocarbon exploration
and production areas.
Thanks to the project it was
possible to identify
The BIOMARE Project
was developed to monitor
the environment in offshore
activities by using biomarkers.
The objective is to create
an innovative and integrated
environmental bio-monitoring
technology by identifying
both the biomarkers
of the pollutants that
are produced by the oil
industry and that represent
the autochthonous marine
species potentially
endangered by oil activities.
The project is expected
to produce a simplified
model for classifying
the levels of exposure
the bio-indicator
and biomarker organisms
that respond best
to the hypothetical impact
of oil activities, and to define
and draw up a method
for monitoring Eni onshore
areas based on the use
of biomarkers.
The results obtained from
the study on the Monte Alpi
Oil Center area in Viggiano
showed that in the areas
surrounding the plant there
was no biological alteration
due to the oil activities.
The protocol has then been
applied at the Trecate
Oil Center.
62
ENI
ENVIRONMENT
and eco-toxicological risk
for marine organisms
exposed to compounds
deriving from hydrocarbon
extraction activities.
It is also designed
to verify and validate
the methods used
in the eco-toxicological
monitoring of offshore
activities based on the use
of animal biomarkers.
The project is due to last
for three years.
The partners are Norsk Agip,
RF-Rogaland Akvamiljø
Research Center
and the Universities
of Siena and Bologna.
research of planned dispersion and replacement
of pipes and cathodic protection against the corrosion
of the pipes are carried out. For laying and maintenance
activities, all measures are taken to minimize the
impact on the urban environment and inconveniences
to traffic. As far as the transport of products BY SEA is
concerned, when leasing tankers, Eni adopts specific
selection procedures and carries out inspections to
verify that all environmental and safety requirements
are met. With reference to transport by ROAD ,
Intermode, the company responsible for distributing
petroleum products to Agip and IP service stations,
provides training programs, awareness building and
health screening initiatives for drivers to prevent
accidents connected with the transportation of
dangerous goods.
as of protection. The project is due to last for three years
and the scientific partners are ICRAM (the Central
Institute for applied sea research of the Ministry of the
Environment and of Protection of the Territory) and the
Universities of Siena, Bologna and Lecce.
Transport of products
Eni’s transportation system is organized on the basis
of logistics and the business units involved.
Transportation methods are constantly monitored
and include the adoption of the best technologies in
order to guarantee lower environmental impact and
maximum security of the means of transport and
plants. The Company distributes around 60% of its
products through the pipeline network (oil and gas),
considered the safest means of transport with higher
energy efficiency and lower environmental impact.
The most significant environmental impact of GAS
PIPELINES concerns the use of the soil during the
construction phase and the atmospheric emissions
deriving from the gas turbines installed in the
compression stations. The route of the pipeline is
planned in order to reduce to a minimum the crossing
of areas of particular natural or cultural interest, and
the design and implementation of the construction
work requires ground stabilization followed by, after
excavation and pipeline laying, restoration of the
original state. With reference to emissions, Eni has
replaced the gas turbines in the compression stations
with high-performance gas turbines, thus reducing
both emissions into the atmosphere and energy
consumption. In order to contain emissions into the
atmosphere connected to secondary distribution, the
Products transported 2003
Marine anti-pollution system
Loading and unloading activities at coastal or river
terminals, sealine transport, the operation of offshore
platforms and the transport of petroleum products
and petrochemicals can involve risk of spills to the sea.
To deal with the risk of sea spillage Eni has formulated
its own response capacity, with various severity levels,
based on the use of both its own equipment and thirdparty equipment. In particular, it is a member company
of Oil Spills Response Ltd (OSRL), a consortium that
guarantees rapid response to any type of oil-spill
emergency anywhere in the world.
Moreover, in order to optimize antipollution
activities, Eni has also signed a framework agreement
concerning emergency services with Castalia
Ecolmar, an Italian company specialized in the sector.
The Prestige project
Mode of transport
Natural gas 41.8 %
Gas pipelines 41.8 %
LNG 2.4 %
Tankers 31.3 %
Crude oil 26.5 %
Oil pipelines 16.7 %
Petroleum products 23.6 %
Road 9.9 %
Chemical products 5.7 %
Rail 0.1 %
In 2003 Sonsub, a Saipem Group
company, was entrusted
with the project of extracting
oil from the wreck of
the Prestige tanker, which sank
off the coast of Spain in 2002.
In the summer of 2003 an
operation to recover a small
quantity of oil from the wreck
was carried out, in order
to test the innovative system
and techniques.
The test operation was
Intermodal 0.2 %
successfully concluded
and the project to recover
the rest of the oil contained
in the wreck began.
The difficulty of the initiative
is not only that this is the first
time such an operation
is attempted, but that
the wreck is located at a depth
of around 4,000 meters.
The project to extract
the entire quantity of oil will
be carried out in 2004.
63
ENI
ENVIRONMENT
In the coming decades traditional fossil fuels,
including in an increasing measure natural gas, will continue
to satisfy the growing demand for energy, which will
expand at a rate that will tend to be higher than that
of the population. The energy industry will therefore need
to discover and develop new resources in areas increasingly
difficult and far from consumption markets.
The challenge for the future will be the transition
towards an energy system which, with new methods
of discovery, utilization and recovery, will be able to supply
sufficient quantities of energy to the world’s population,
contributing to narrowing the gap between rich and poor, and mitigating the local
and global environmental impact, in particular with respect to potential climate changes
caused by the emission of greenhouse gases.
Strategies and initiatives in response
to Climate Change
• the identification of a portfolio of possible projects for
the reduction of GHG emissions in its installations;
• an analysis of the possibilities of utilizing the
Flexible Mechanisms of the Kyoto Protocol, based on
projects for the reduction of GHG emissions abroad;
• the possible options of a management strategy for
carbon emissions, aimed at reducing emissions and
promoting, in perspective, a sustainable energy
system.
Eni’s action plan is based, in the short and medium-term,
on an increased use of natural gas, the fossil fuel with the
lowest carbon content, and on its own potential to
reduce GHG emissions both in Italy and abroad, using
the Flexible Mechanisms provided by the Protocol.
In spite of the obstacles to the implementation of the
Kyoto Protocol, it is likely that in the coming years
there will be a heightened commitment to achieve
real, measurable and long-term reductions in the
emission of greenhouse gases (GHG), and in particular
CO2. In this view, the European Union and its Member
States have decided to implement a program for the
reduction of CO2 emissions, independently of whether
or not the Protocol comes into force.
Eni has adopted a proactive strategy of response to
Climate Change, by favoring the development, both
in Italy and abroad, of sources with the lowest
possible carbon content and of the most efficient
technologies. In order to be prepared for the coming
commitments in a rigorous and consistent manner,
the Company has conducted a series of activities
concerning:
• the accounting and certification of emissions;
• the participation in the European Emissions
Trading System through the certification of its
operating units;
Implementation
of the Kyoto Protocol
Participation in the National Action Plan
Eni has contributed to the definition of the National
Action Plan for the reduction of greenhouse gases,
with which Italy, following the ratification of the
Kyoto Protocol, is committed to reducing its
64
ENI
SUSTAINABLE ENERGY SYSTEM
development with the reduction in greenhouse gas.
The recognition of such initiatives as CDM and JI
projects will allow to obtain emission credits and
help to achieve Italy’s national emission reduction
targets.
In the context of a specific Gas Flaring Reduction
program, the Company has implemented in Nigeria
and the Republic of Congo - and is planning to do
the same in other countries - a series of projects
aimed at the industrial use of the associated gas, that
will contribute to economic development and
improvements in living conditions in the local
communities. Moreover, the E&P division has adhered
to the Global Gas Flaring Reduction Initiative
promoted by the World Bank, which aims to contribute
to removing barriers that hinder the implementation
of projects for the elimination of gas flaring.
emissions in the period 2008-2012 by 6.5% compared
with 1990. Such reductions may be achieved both
through internal measures and through the so-called
“Flexible Mechanisms”. The latter make it possible to
implement projects in developing countries (CDM Clean Development Mechanism) and in industrialized
countries or with economies in transition (JI - Joint
Implementation) and, consequently, to acquire
emission reductions that are considered equivalent to
internal reductions.
The “National Action Plan for the reduction of GHG:
2003-2010” has provided for the extensive use of the
Flexible Mechanisms in order to meet Kyoto targets.
Thanks to its presence in some 70 countries, Eni is an
ideal partner for carrying out CDM and JI projects and
thus contribute to the national program for GHG
emissions reduction. In view of this objective, during
the COP9 - the Conference of the Signatories to the
Kyoto Protocol - held in Milan in December 2003, the
Ministry of the Environment and of the Protection of
the Territory and Eni signed a Voluntary Agreement
for the use of the Flexible Mechanisms of the Kyoto
Protocol. This agreement aims to promote the
development of CDM and JI projects and contribute
to the sustainable development of host countries.
Participation in the European
Emissions Trading System
A further commitment on the part of Eni in the
framework of the Protocol concerns the future
participation in the European Emissions Trading
System to be launched in January 2005. The plants
involved - most of the Group’s industrial sites - will be
assigned an emissions allowance by the National
Allocation Plan. Since exceeding the allowance will
lead to significant costs - the sanctions during the
first period will be 40 euros/ton CO 2 - there is a
powerful incentive for companies to identify and
implement programs to reduce emissions.
Use of Flexible Mechanisms
Significant opportunities for reducing emissions
derive from Eni’s extracting activities in a number of
countries where, given the lack of a local market,
associated gas from oil production is flared. The
elimination of flaring - which is responsible for
approximately 36% of the Group’s total emissions and the use of the gas to support local economic
development make it possible to combine sustainable
Accounting and Certification of Emissions
In addition to developing a range of projects for the
reduction of GHG emissions, Eni has introduced a
Zero Gas Flaring Programs
In Nigeria, since the 80s,
Eni and its partners NNPC
and Phillips have built plants
for the re-injection
of gas previously flared.
This commitment has
continued over the years
and in 2001 the Zero Gas
Flaring Project was launched.
In this context,
the construction of a 480 MW
electric power station
in Kwale, in the Niger Delta
region, is underway, which
at full capacity, will allow an
annual reduction of CO2
emissions of 1.5 million tons
of methane and NO2,
for a total of more than
4 million tons per year of CO2
equivalent. As well as fueling
the power station, the gas will
also be used to produce NGLs
for export. The project will
contribute to stabilizing
electricity supplies
in a region where only 40%
of the population has access
to electricity, thus improving
living conditions of the local
communities and creating
the conditions for sustainable
development. In the Republic
of Congo, Eni has carried out
a significant project
that is the first example
in the country
for the development
of this resource.
The associated gas from
the offshore fields
of Kitina, Djambala
and Foukanda, after onshore
separation treatment
at the Djeno terminal, fuels
the nearby 25 MW power
station built in 2002 by Eni
and ChevronTexaco.
65
ENI
complete and transparent accounting and reporting
protocol for GHG emissions, an essential requisite
for the “certification” of emissions, that will make it
possible to support the strategic management of
risks and opportunities related to greenhouse gases,
the definition of objectives and an evaluation of
progress made.
Emissions of sulphur compounds, particles, aromatic
hydrocarbons and the noxious metal compounds produced by the combustion of natural gas are marginal,
while emissions of nitrogen oxides are generally lower
than those of coal and liquid fuels.
On a comparable energy use level, the carbon dioxide
produced by the combustion of natural gas is 25-30%
less than for oil products and 40-50% less than coal. The
reduction of emissions per energy unit produced is
even more amplified by the possibility of using natural
gas in highly efficient applications and technologies.
The environmental advantages are considerable compared with other fossil fuels if one considers that natural gas has a lower environmental impact not only in the
production phase, but also in storage and transport.
Eni has given particular attention to natural gas since
the 1950s and has elaborated increasingly advanced
exploration, production and supply strategies.
The GHG emissions accounting system
When the ET system will
be operative in Europe,
the environmental
externalities of GHG
emissions will be internalized,
in that they will be assigned
a market price and therefore
GHG emissions,
and in particular CO2
emissions, will immediately
become an item to be
included in the Company’s
financial statements.
Should emissions exceed
the assigned limit set
by the National Plan they will
have a financial cost, while
reducing these emissions
will produce economic
advantages.
The implementation
of projects based
on the Flexible Mechanisms
of the Protocol will allow
the acquisition of carbon
credits in proportion
to the reduction of the GHG
emissions produced.
Consequently, companies
will have to integrate
the control of GHG
emissions into their
operations, calculating
these emissions both
in physical (quantity)
and economic terms (value).
In this respect, Eni has
adopted an accounting
system for GHG emissions
to be applied to all
the Group’s operating units,
in order to: monitor
environmental performance
and intensity of carbon with
respect to GHG emissions;
identify
and evaluate the possibility
of reductions in its
operations; support
the strategic management
of the risks and opportunities
presented by GHG; define
performance objectives
and monitor progress
on the basis of accurate data;
facilitate the evaluation
of the impact of future
regulations on the Group.
Fuel transport
In order to supply the same
quantity of energy of 190
million cubic meters of gas
per day, which is transported
by the Snam Rete Gas
underground gas pipeline
network in a year, it would be
necessary to use an incredibly
Fuel transport
large number of tankers for oil
products or train wagons
for coal - as can be seen in the
chart below - with consequent
problems resulting from
the lack of adequate transport
infrastructure and the related
high environmental impact.
(energy transported 6.6 - 106 GJ per day)
FUEL
QUANTITY
MODE OF TRANSPORT
Natural
gas
190 - 106
m3/day
1 underground
network
Development of natural gas
Natural gas is considered the fuel of the future, both
on account of its availability and its industrial
sustainability: the possibility of transport by
underground networks, its chemical-physical
characteristics and the possibility of using it in highly
efficient technologies with low emissions, not only in
fixed plants, but also as a fuel for motor transport, all
provide a significant contribution to improving the
quality of the environment.
66
ENI
Oil
products
190,500
tons/day
4,340
tankers
per day
Coal
251,600
tons/day
4,930
train wagons
per day
Projects
In support of a more general commitment to
reducing emissions of greenhouse gases, in recent
years the Company has launched an imposing
development plan for natural gas, making it one of
the leading suppliers for Europe.
In a framework in which technological solutions for
conveying gas to consumption areas are highly
strategic, Eni has a number of leading edge projects
underway, in particular:
• the BLUE STREAM GAS PIPELINE, completed in 2002,
links Russia and Turkey across the Black Sea and is with its pipes laid at a maximum depth of 2,150
meters - the world’s most technologically advanced
project in ultra-deep waters;
• the GREENSTREAM GAS PIPELINE between Libya and
Sicily, recently completed, is the most important and
innovative project in the future energy network
between the two sides of the Mediterranean.
• the SAKHALIN PROJECT, which will allow the transport
of natural gas from remote areas of Siberia to the
new energy markets in East Asia through LNG
pipelines and plants in extreme climatic and critical
environmental conditions.
Development prospects:
sustainable energy and hydrogen
With a medium to long-term perspective, work is
underway on the development of technologies for the
separation of carbon dioxide, its permanent
confinement in geological formations and the
production of hydrogen.
In fact hydrogen is an energy carrier that ideally meets
sustainability requisites: reduced local and global
environmental impact, production possibilities
from various sources and the possibility of network
distribution. While already being used in a number of
production processes - in particular in the enhancement
of heavy crudes and the upgrading of refined products the biggest challenge for the future of hydrogen
concerns its use as a possible energy carrier.
Hydrogen can be produced from fossil sources, with
the possibility of reducing or eliminating the
environmental impact, if the CO2 that is produced is
separated and permanently and safely confined. The
current most suitable primary source for the
production of hydrogen is natural gas and studies are
underway for new and more efficient technologies to
combine hydrogen production with the safe storage
and confinement of CO2.
The CCP Project, an international research and
development program led by Eni in collaboration with
other important oil companies, is focusing on the
issue of “capturing” CO2.
In terms of end uses, Eni’s commitment is concentrated
on the study and development of a hydrogen production
process from gas or liquid charges that is low cost and
highly flexible, with potential applications that range
Combined cycle power plants - co-generation
Alongside traditional industrial and civilian uses, in
recent years methane is being increasingly used in
electricity generation on account of its high yields
and lower level of GHG emissions. These economic
and environmental benefits are even more evident
when methane is used in the technological process
that is currently a reference point in the generation of
electricity, combined cycle power stations and
cogeneration plants, that simultaneously generate
electricity and heat, allowing for significant energy
savings and reduced environmental impact.
Following the gradual liberalization of the energy
market in Italy, in 1999 EniPower was created,
integrating all of the Group’s experience to become a
leading player in the production and marketing of
electricity. EniPower has a demanding development
program for the construction of combined cycle
cogeneration plants in industrial sites where traditional
productive activities are already operational. By 2006,
this program will provide an additional 5,000 MW of
installed capacity, with lower overall emissions,
compared with conventional plants, of around 12
million tons of CO2.
The CCP Project
The CCP Project (CO2 Capture
Project) is the most important
industrial initiative dedicated
to the development of Carbon
Sequestration technologies
and involves international
organizations and some of the
world’s leading oil companies
(in addition to Eni, BP, Shell,
ChevronTexaco, etc.), working
together to identify
technologies for capturing
and sequestering CO2.
By applying these technologies
to energy production units
based on the combustion
of hydrocarbons it will be
possible to reduce
the emission of CO2 into
the atmosphere by between
80% and 90%. Moreover,
the development of cheaper,
more efficient capturing
processes will make it possible
to achieve the objectives
of the Kyoto Protocol while
minimizing the need
to increase energy costs.
67
ENI
from industrial and domestic use to motor transport.
For this last sector, the Company is involved in a pilot
project aimed at creating a multi-energy service
station for the distribution of a series of fuels,
including hydrogen produced locally from natural gas.
Overall investment in research has seen a marked
increase in recent years, rising from 175 million euros
in 2002 to 235 in 2003, and the 2004-2007 Plan
allocates total expenditure of almost one billion
euros, with a further increase in the ratio between
R&D expenditure and total revenues, a ratio that
already places Eni in the leading positions among
the major oil companies. Every year the Company’s
research activities are completed with the registration
of a high number of patents: 50 in 2002, 51 in 2003.
In recent years Eni has increasingly focused on the
integration of research and development competences
with the application phase and has concentrated
its innovation efforts on strategic projects. Currently
many technologies have been transferred at the
industrial level, while others are in the development
phase.
Research and technological
development
Principles and areas of intervention
Eni promotes technological excellence, based on the
exchange of experience, expertise and know-how, as
essential factors in competitiveness and economic
and industrial sustainability.
In the energy sector, technologies that can supply the
market with products of increasingly high quality
are becoming ever more important. In this context
the distinctive processes and know-how are not
available on the market but represent a key factor in
competition and are therefore subject to negotiations
and exchange between the leading companies.
Consequently, Eni has renewed its technological
development policy, focusing corporate, divisional
and company research, which involves around 1,400
people, on the most important areas for its core
business and with a view to pursuing sustainable
development.
New technologies
EXPLORATION & PRODUCTION OF HYDROCARBONS
Eni has attained important industrial applications in
the innovative CRS (Common Reflection Surface)
Stack technology which allows for a more accurate
evaluation of the subsoil, thus reducing project timing
and the risk associated to the definition of the
geological model in the exploration and development
phase. In particular, the use of CRS has led to improved
results, compared with conventional technologies,
both in terms of processing of seismic imaging
and definition of the velocity model. Among the
most significant results has been the Cross-Well
Seismic Technology which allows for an improved
characterization of fields, with a substantial impact
on their development, and the Expandable Screen
Technology, which makes it possible to control
sand production in wells.
Eni has achieved major developments in the
characterization of fractured reservoirs, by beginning
the field application of a methodology for the 3D
modeling of the network of fractures in the reservoir
and the simulation of fluid flows within the fractures.
Furthermore, the Company has an ongoing project for
the development of technologies to be employed in
ultra deep waters with low or nil visibility by means of
3D technologies and advanced acoustic navigation
systems. It has also launched an integrated program of
technological innovation, called “H2S management in
E&P Operations”, that aims at identifying innovative
solutions for reducing the impact of sour gases on assets
Major research areas
Reduction of hydrocarbons
exploration and development
costs
• Geosciences
• High resolution prospecting
techniques
• Field simulation models
• Field productivity
enhancement methods
• Advanced drilling systems
• Production in hostile
environments
Product performance
and differentiation
• Advanced process control
• Innovative polymerization
catalysis
Feedstocks enhancement
• Long distance gaslines
• Conversion of gas into
liquid products
• Conversion of heavy crudes
into light products
Environmental protection
• New formulas for fuels
and lubricants
• “Clean” catalytic processes
• Air quality monitoring
• Remediation of polluted
areas
• Hydrogen and renewable
energy (solar, photovoltaic)
68
ENI
(Fluid Catalytic Cracking) unit has been installed at the
Sannazzaro refinery. In order to complete the project,
lasting 36 months (October 2001-September 2004), Eni
received a contribution from the EU LIFE Environment
Fund, a financial instrument of the Community
promoting sustainable development and elaborating
and implementing the EU environmental policy.
The primary goal of the RefinARS project is to
demonstrate the feasibility of an innovative
technology for the flue gas desulphurization using an
absorbing buffer, which allows the sulphur recovery
and can be regenerated.
From this general goal a series of environmental
targets follow:
• SO2 emissions of around a third of those currently
set by regulations;
• no impact on soil;
• no impact on the transportation of the waste
generated by absorption reactions;
• extremely limited impact on water.
As a result, the global environmental impact is,
overall, lower if compared to the best existing
technologies used for the flue gas desulphurization.
In addition to the environmental objectives, there are
savings in the cost of energy and of the absorbing
chemicals compared with the best available
technologies.
operated by Eni, with particular reference to the safe
and eco-compatible management of hydrogen sulphide
and sulphur, co-produced with hydrocarbons.
GAS TRANSPORT - THE TAP PROJECT
The project, launched in 2003 and expected to last
three years, aims at enabling Eni to become
competitive in the Gas-to-Market segment through
the High Pressure transport option, by developing
reliable technologies to make the transport of gas in
large quantities by pipeline, from production areas to
the consumption markets, economically viable.
Activities are aimed at developing the most advanced
technological LD, HC, HP, HG (Long Distance, High
Capacity, High Pressure, High Grade) solutions with
reference to the following targets: (i) distances of
more than 3,000 kilometers; (ii) volumes of
transported gas of 20-30 billion cubic meters per
year; (iii) pressure of 15 Mpa or more; (iv) use of high
and very high grade steel.
GTL - THE LIQUID CONVERSION OF NATURAL GAS
In this area a cooperation project is currently
underway between EniTecnologie and the Institut
Français du Pétrole (IFP), in which Eni has set up a pilot
plant at its Sannazzaro refinery for the transformation
of natural gas into liquid hydrocarbons. The aim of the
project is to encourage the future exploitation of huge
volumes of natural gas not being extracted due to the
great distances from consumption areas - with
prohibitive transport costs - or of associated gas,
usually re-injected into wells, flared or vented. The
project has already achieved excellent results and is
protected by the registration of 44 patents. Following
the completion of the experimental phase at the pilot
plant, a feasibility study is planned for further
development. The transformation of gas makes it
possible to obtain high quality petroleum products
such as gasoline, kerosene and, above all, a diesel fuel
completely sulphur and aromatics free.
The Italgas Prize
In 1987, to mark
the 150th anniversary
of its foundation, Italgas,
an Eni Group company
operating in Italy, Europe
and Latin America
in the distribution
and marketing of gas
for civilian use, instituted
the “Italgas Prize for Research
and Technological
Innovation”.
The prize is awarded every
year to research projects
or initiatives in the fields
of science and technology
for energy, the environment
and information.
The aim of the prize
is to promote research
THE REFINARS PROJECT (REFINERY ABSORPTION
RECOVERY SULPHUR)
In line with the environmental policies of the
European Union, Eni has developed the RefinARS
project aimed at promoting the sustainability of
refinery conversion processes.
The new process for the regeneration of the absorbing
buffer used to scrub the flue gas coming from the FCC
and technological innovation
as factors of economic
and social development.
Since 1987 46 European
researchers have been
awarded the Prize, some
of whom have also reached
worldwide recognition.
In 2003 a new three-year
cycle of the Prize was
inaugurated, with an
emphasis on environmental
issues, in particular energy
and its relationship with
the environment.
Participation, previously
limited to researchers
from the European Union,
has now been extended
to the whole world.
69
ENI
ENISOLVEX - TECHNOLOGY FOR THE TREATMENT
OF POLLUTED SOIL
Research and Development activities conducted by
EniTecnologie have produced an innovative process
called EniSolvex, for the remediation of land
contaminated by organic compounds. EniSolvex is a
“soft” and economical technology with a low
environmental impact, a pollutant extraction solvent
which is easily recyclable, non-toxic and biodegradable.
It makes it possible to remediate soils that could
otherwise not be treated by other currently available
processes, thus avoiding the use of “hard” technologies
or confinement.
The process has been successfully piloted on different
soil/pollutant combinations. Following these results
a first industrial plant has been built at the former
AgipPetroli refinery site at Rho-Pero, which is due to
become the satellite site of the new Milan Exhibition
Center.
the growing demand for the upgrading of heavy
crudes and the transformation and enhancement of
refining residues. The strategic interest in this sector
derives from the need of the oil industry to: (i)
enhance important reserves of heavy crudes; (ii) requalify the productive structures of most refineries;
(iii) reduce the environmental impact of refining
activities, contributing indirectly to the increase in
demand for natural gas and to reductions in CO 2
emissions. Over the next four years the development
and pre-marketing phase will continue through the
management of a Commercial Demonstration Plant
(CDP), currently being built at the Eni refinery in
Taranto.
GHG RESEARCH PROGRAM
Focused on the geological sequestration of CO2 is the
integrated GHG (Greenhouse Gases) Research
Program, which aims to examine the aspects
concerning the confinement of CO2 in saline aquifers
or exhausted reservoirs and to develop long-term
monitoring systems (see also page 67).
ENI SLURRY TECHNOLOGY
Eni is currently implementing a series of important
cross-sector projects, including the development
of Eni Slurry Technology (EST), jointly carried out
by Snamprogetti and Eni Tecnologie, and which
is also an example of effective cooperation between
business areas and Corporate research.
The technology, of significant strategic value both at
the upstream and downstream level, aims at meeting
EARLY WARNING PROJECT
An advanced Early Warning Monitoring System
(EWMS) project is being developed with the aim of
establishing a single computerized platform for the
real time survey of the physical and chemical profiles
of Eni’s production and environmental activities.
Products
QUALITY AND ECO-COMPATIBILITY OF FUELS
AND LUBRICANTS
Eni pays particular attention to the quality and ecocompatibility of its fuels and lubricants. Eni’s Refining
& Marketing Division was the first company to have
distributed in the 80s unleaded gasoline on the
market, and in the following decade low sulphur diesel
fuel and low benzene gasolines.
The Company has always assigned substantial
resources for research and capital investment to
improve fuel quality. Product development is more
and more aimed at improving performances,
efficiency in consumption and reduction of the
environmental impact.
Following this strategy, in recent years, Eni has
launched on the market new high performance
products with a low environmental impact years
ahead of national and European regulations.
In 2001 it SINT 2000 EVOLUTION , a new generation,
entirely synthetic lubricant, innovative not only for
its technical characteristics, but also for its response
to environmental challenges.
In 2002 the Company marketed AGIP BLU DIESEL , a
sulphur-free fuel suitable for all types of diesel engines
that drastically reduces polluting emissions and
improves engine performance. The availability of this
product, which anticipates by seven years European
regulation, may encourage car manufacturers to
anticipate the introduction on the market of Euro 4
vehicles, with emission levels that are more than 10
times lower than the vehicles of the early 90s.
In 2003 “IP PLUS 98” was launched. This is a fuel with
innovative characteristics that improves engine
performance while maintaining a high level of
efficiency. Plus 98 is formulated with components
that limit emission levels and, consequently, reduce
the environmental impact.
With the IP “TOP QUALITY” brand of lubricants, Eni aims
at responding to the needs of a car industry that
produces increasingly sophisticated engines and
technologies. Moreover, a new category of lubricating
oils for direct injection diesel engines has been
introduced as sales for these motors have grown
because of their high performance and reduced
consumption.
The innovative line of fuels BLUAGIP, launched in 2002
with Blu Diesel, was completed in 2004 with the new
98 octane BLUSUPER, which improves engine efficiency
and performance thanks to a higher octane level
compared with other brands of gasoline on the
market and a special range of additives that prevent
the formation of deposits in the injection system.
Moreover, BluSuper is sulphur-free and, anticipating
European Union regulations that will come into
effect in 2009, practically eliminates the emission of
sulphur dioxide and sulphates and improves the
efficiency of catalysts in ecological terms.
Methane for road transport:
an innovative choice
EniTecnologie
EniTecnologie, Eni’s Corporate
Technology Company,
whose mission is to create
value through innovation,
is a center of excellence
for industrial research.
The Company operates
in the field of energy
from hydrocarbons
and from alternative
sources in the respect
of the environment
and with an innovative
outlook focused
on sustainability.
It also develops cutting edge
innovation in the oil & gas
Since January 1st 2004
EniTecnologie has
incorporated Eurosolare,
the Group’s company
operating in the photovoltaic
field, thus strengthening
its position also in this sector.
Services for the cultural
heritage
Thanks to its scientific
know-how in the fields
of chemistry, metallurgy,
the science of materials
and environmental
monitoring, EniTecnologie
can also tackle
complex restoration
upstream and downstream,
renewable energy, fuels
and derivates.
EniTecnologie holds some
700 patents, collaborates
with other centers
of excellence, institutes
and universities to develop
joint projects in the energy
and environmental fields.
It plays an active role
in the main international
research networks and fosters
scientific communication with
articles in specialist journals
and by organizing
international conferences.
70
ENI
and conservation projects
of the artistic heritage.
In fact, the Company
has cooperated, as the single
scientific and technological
partner, with the Fabbrica
di San Pietro for the
restoration and conservation
of the façade of St Peter’s
Basilica, completed
in 1999 on the occasion
of the Jubilee.
Since 2002, it has been
working with the Fabbrica
del Duomo of Milan
on the conservation
of the façade of the cathedral.
Methane represents an effective
response to the problems
of mobility as it allows
for economic, environmental
and energy advantages.
Italgas signed an agreement
with ATAC, Rome’s public
transport company,
for the supply of a series
of works and consultancy
services to begin the conversion
to methane of the Capital’s fleet
of buses. The project, that
envisages the introduction
of 800 buses running
on methane by 2008, will result
in a significant reduction in air
and acoustic pollution - a bus
running on methane produces
on average 20% less noxious
fumes than a bus running
on diesel - and will contribute
to improving the quality
of life in the city.
On the basis of feasibility
studies conducted with all
the interested parties, Italgas
will build, at its own expense,
around 6 kilometers
of pipelines, prepare the plans
for refueling stations within
transport depots and provide
the necessary assistance
for obtaining any public
financing that might be
available for such projects.
71
ENI
and suppliers
The quality of the relations with customers and suppliers is for an oil company
one of the most important aspects of a responsible business conduct.
The behavior adopted by Eni in the sale and distribution of products
and in the procurement of goods and services is inspired by “principles of fairness,
loyalty, transparency, efficiency and an open market”, as laid out in the Company’s
Code of Practice, and is carried out, as has been recently reiterated
by the Addendum to the Code, “according to standards that
are compatible with fair commercial practice”.
Customers
In this sense, the Company is committed to supplying
- through its distribution channels, sales outlets and
communication products - clear and complete
information concerning its products and services,
to enable customers/consumers to make aware
decisions which meet their expectations and needs, as
well as to be informed of the rights and instruments at
their disposal.
The pursuit of lasting and, therefore, sustainable
success for Eni is also achieved through the ability to
offer products and services that are increasingly
innovative, with a lower environmental impact and
of high quality, and to meet consumers expectations,
within a framework guaranteeing fair competition
and the respect of costumer rights and safety.
Through the subsidiaries that market products and
services, Eni is therefore committed to continue
optimizing policies and guidelines for customer
relations and improving systems implemented in the
context of customer relationship management
(CRM), with the aim of developing, keeping and
consolidating relations with both loyal and new
customers.
The Company ’s efforts are also designed at
reinforcing supervision of the operators that hold
Eni’s brand, in particular of the Refining & Marketing
Division, and at improving the standards of customer
satisfaction systems, aimed at the development of
quality relations with customers and their
subsequent loyalty.
Distribution and marketing
of oil products, gas and electricity
Eni, through its Agip,
IP and Agip Gas brand
names (merged
in the Refining & Marketing
Division), operates
in the marketing
and distribution of oil
products mainly in Italy,
Europe and America.
Through Snam Rete Gas,
the Gas & Power Division
and Eni Power, Eni transports
72
ENI
RELATIONS WITH CUSTOMERS AND SUPPLIERS
and markets gas
and electricity
to industries, wholesalers
and producers of electricity;
through Italgas
and its subsidiaries
in Italy, as well as in Europe
and Latin America,
it operates respectively
in the distribution
and sale of methane gas
for domestic uses.
Oil products
Eni is committed to producing and marketing oil
products that are increasingly high performance and
with lower environmental impact; a commitment
that the Company pursues by adopting criteria of
excellence in terms of standards of service stations
and quality of service offered to the client.
Thanks to an extensive distribution network in Italy
with the AGIP and IP brand names and service stations
in Europe (mainly in Germany, Spain, France,
Switzerland, Austria, the Czech Republic and
Hungary) and in America, the Company sells fuels
both through commercial networks and direct
supplies and, with the AGIP GAS brand name, markets
LPG for domestic, industrial and agricultural use
in Italy and Ecuador.
In recent years Eni has restructured its distribution
network in Italy by rationalizing, re-qualifying and
developing sales outlets with a view to offering
customers, in addition to the traditional automobile
maintenance and assistance services, a wide range
of innovative non-oil products and services. To
support this process, as part of a strong client focus
strategy, a number of new large-size service areas MULTIFUNCTIONAL CENTERS - have been opened,
equipped with modern plants and offering a greater
range of services, goods and products of different
kinds to respond with greater effectiveness to
automobiles’ technical requirements and the needs
of drivers.
In this frameworks, the Company is committed to
implementing initiatives to improve the quality of
service offered by providing incentives to the sales areas,
agents and service stations managers for the attainment
of objectives and by promoting training courses
that also include aspects of business ethics. Precisely
to make standards of service offered in its network
more uniform, Eni has also launched an articulated
process of selection, management and control of outlet
managers which allows the regular evaluation of
their activities, intervening when necessary to improve
their performance and thus ensure a consistent
standard of service across the network.
Training programs for station managers
As a result of the market
liberalization in Italy
and the growing competition,
it has become fundamental to
communicate
in a correct manner
and adopt a behavior
which conveys to customers
the quality of the products
and services offered.
Consequently, training
activities of the R&M Division
aim to train managers
to run sales outlets efficiently,
have a strong knowledge
of products and services,
communicate and adopt
a conduct appreciated
by customers.
Agip Truck Point for a diversified clientele
In order to meet the needs
of a wide range
of customers, in 2003
the Refining & Marketing
Division opened in Italy,
in San Donato Milanese
and Asti, the first two
of the ten specialized service
stations for heavy load vehicles
which have been planned
for the country’s main highway
routes. The initiative aims
to provide assistance, as well
as to vehicles, also to drivers,
with particular attention
to heavy load vehicle drivers,
by offering a growing range
of innovative services
and products to improve
safety and comfort.
The service areas are
equipped with advanced
plants and have extensive
refueling points, spacious
parking areas with fire
hydrants and closed circuit TV
surveillance, restaurants, as
well as specific facilities
(satellite TV, fax
and computer services,
showers, power supply posts
for refrigerated trucks,
and differentiated car wash
services, etc.).
The training courses,
which are designed
for the different professional
positions in the sales area
(network assistants, service
area managers, sales outlet
operators) are developed
and implemented with
and are aimed at improving
the understanding
and management of the issues
relating to sales outlets,
communicating values,
objectives and strategies,
reinforcing identity
and a sense of belonging,
as well as facilitating
the exchange of experiences.
Among the measures taken by Eni to promote greater
customer loyalty is the “Fai da Te” (Do it Yourself )
initiative, introduced in 1997 and implemented over
the years at around 3,000 AGIP and IP service stations.
The initiative promotes new ways of refueling that go
beyond the traditional self service formula, allowing
drivers to make substantial savings through prices
that are lower than those available on the road and
highway networks. In support of the “Fai da Te”
policy, in March 2002 the Company launched the
“Alta Fedeltà” (High Loyalty) campaign, thanks to
which drivers who refuel at the “Fai da Te” islands
accumulate discounts that vary according to the
amounts purchased. At the end of 2003, more than
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ENI
The LPG business - certification renewal
for the Quality Management System
3.5 million of the initiative’s cards had been
activated. Finally, in 2004 the “Club Fai da Te” was
launched, which allows holders of the “Fai da Te Card”
to use their accumulated points not only for
discounts but also for fuel prizes.
The particular attention paid to the quality and
environmental compatibility of its products, in a
perspective of sustainable mobility, has led in recent
years Eni to market increasingly high performance and
less polluting products (such as the Agip BluDiesel,
BluSuper and IP Plus 98 fuels and the Sint 2000 Evolution
and IP Top Quality lubricants) and, therefore, meet more
effectively the needs of both customers and society.
This commitment is testified not only by the offer of a
growing range of fuels and lubricants at its service
stations, but also by the creation in Italy, near Milan, of
an AGIP MULTIENERGY solar energy powered service
station that distributes, in addition to fuels with a strong
environmental value for all kinds of engines, “on site”
energy for electric cars by using photovoltaic panels.
In December 2003,
the LPG sales area attained
the renewal of certification
for its Quality management
system according to the new
UNI EN ISO 9002 standards,
previously obtained in 1997.
It is a result that represents
the consolidation
and formalization
of the essential values
of the Company’s operating
and commercial tradition,
such as the relationship
with the customer, which
is based on the quality
of the product and service,
and that aims at guaranteeing
the following: client
Gas and electricity
Eni is present in this market with a range of operators:
SNAM RETE GAS manages the natural gas transport
system in Italy; GAS & POWER and ENIPOWER supply,
respectively, gas and electricity to industry, wholesalers,
producers of electricity and motor transport in Italy
and Europe; ITALGAS and its subsidiaries and associated
companies in Italy (ITALGAS PIÙ, NAPOLETANAGAS CLIENTI
and FIORENTINAGAS CLIENTI), Europe (Hungary, Slovenia
and Greece) and Latin America (Argentina) operate
respectively in the distribution and sale of methane gas
for civilian use (households, shops, offices, small
enterprises, residential buildings and the public sector,
as well as large clients).
The natural gas and electricity sector has in recent
years been subjected to new regulations at both
national and European level, as a result of the policy
of liberalization and of the creation of a single
European market.
Unlike what occurs in other European countries, the
Italian gas system is characterized by the presence
of a range of operators. The natural gas transport
system is organized in two main levels. The first level
of primary distribution concerns the transport of
methane on a national scale through large pipelines.
Further downstream, an extensive secondary
distribution system provides gas at the local level.
Agip Multienergy
for eco-compatible mobility
In September 2003
the first Multienergy service
area was opened at Assago,
on Milan’s western beltway.
This structure, which utilizes
solar energy, offers
an integrated energy
distribution system
aimed both at low impact
mobility and the use
of alternative fuels.
In addition to conventional
Agip fuels, the station also
supplies Blue Diesel the new high performance
sulphur free diesel low aromatic content
gasolines and gaseous fuels
such as methane
and LPG, ideal products
for a more environmentally
aware mobility, especially
in large urban areas where,
on account of the high
satisfaction, prompt
and rapid delivery,
technical assistance
and consulting, supply
of services according
to established requisites.
The quality system includes
all the activities carried out
by the sector, such
as the management
and development of human
resources, the protection
of health, safety
and the environment
and is oriented towards
innovation and continuous
improvement, with
the objective of creating
value for all the stakeholders.
concentration of motor
vehicles, air quality
is at greater risk.
Among the innovative
aspects of this new plant
are the photovoltaic panels,
produced by Eurosolare,
that are integrated
in the building and that
utilize the sun rays to supply
the service station with part
of the energy required
for its operation
and produce energy
to recharge electric cars.
74
ENI
Primary distribution is guaranteed by a pipeline
network of more than 30,000 kilometers (belonging
almost entirely to Snam Rete Gas), covering almost the
entire country. The network supplies gas directly to
more than 700 local distribution companies, 3,500 large
industrial end-users, as well as producers of electricity
and distributors of methane for motor transport. Of all
the gas consumed in Italy, almost 40% is destined to
civilian use, while thermoelectricity production and
industry account for the remaining part.
Secondary distribution is managed by a range of
operators, such as municipal companies, the
municipalities themselves or private companies. The
companies to which methane is supplied provide for
its distribution through their own networks at more
than 5,000 municipalities, reaching households,
commercial operators and small industries.
Eni, in respect of the limits established by legislation,
aims at satisfying its customers through the
segmentation of the market, the development of an
ever greater integration between gas and electricity, as
well as broader and customized services characterized
by excellence and reliability over time.
In the area of GAS TRANSPORT, Eni, through Snam Rete
Gas, operates within the criteria defined by the
Regulatory Authority for Electricity and Gas. The
allocation of the network’s transport capacity and the
scheduling of dispatch are based on principles of
transparency and impartiality. In this respect, the
Company guarantees transport programming
procedures that guarantee clients non-discriminatory
conditions of access to the service and the highest
confidentiality concerning commercial data.
In the MARKETING OF NATURAL GAS AND ELECTRICITY
TO MEDIUM TO LARGE INDUSTRIES AND WHOLESALERS ,
Eni’s commitment (Gas & Power Division) is focused
on greatest flexibility and the continuous evolution
of the commercial offer, with an extended availability
of services, according to a marketing policy aimed
at constantly improving the relationship with
customers. With a view to placing consumer
satisfaction at the forefront of its efforts, the Company
promotes direct and personalized relations, by
focusing on their needs and on the identification of
the best solutions, through a diversified offer of value
added services and a range of contact channels.
In the RETAIL SALE AND DISTRIBUTION OF GAS, Eni is the
leading operator in Italy, with more than 5.8 million
customers in more than 1,200 municipalities
(including Rome, Naples, Florence, Turin and Venice)
and an urban gas pipeline network of 46,780
kilometers. Abroad the number of customers served
(in Hungary, Argentina and Slovenia) is around 1.5
million. In Italy, the marketing of gas and the
management of customers is carried out by Italgas Più,
Napoletanagas Clienti and Fiorentinagas Clienti,
established in 2002 by Italgas, ahead of new
legislation that establishes the separation between
distribution and sales activities.
In order to seize the opportunities offered by the
liberalization of the market, Italgas has focused on
the satisfaction of and attention to the client by
The gas market and protection
of the consumer
In the gas and electricity
market, unlike that of fuels,
the relationship with
the consumer is continuous.
Therefore, as far as a correct
and responsible conduct
of the operators is concerned,
great importance
is attached to the quality
of the service, the protection
of consumer rights
and, given the characteristics
of the product itself,
to safety.
In recent years the market,
in Europe in general
and in Italy in particular,
has undergone profound
changes following
a process of liberalization
that established
a series of restrictions
on the companies operating
in the transport, distribution
and sale of gas and electricity.
In the context of the new
legislative framework,
regulations have been
defined, or are being defined,
to promote greater
competition in the structure
of the offer and in the price
and tariff conditions
for the distribution of gas
and the supply of electricity.
The protection of consumer
rights, in terms of the quality
of services provided
and the prices practiced
in the distribution for domestic
use, is guaranteed by a series
of specific standards defined
by the regulatory and control
bodies - in Italy the AUTHORITY
FOR ELECTRICITY AND GAS that have replaced the quality
standards autonomously
set by the “service cards”
adopted over the years
by individual operators.
Today, companies may
adopt their own quality
standards, but only if they
are higher than those defined
by the Authority.
Such standards establish
the principles that must
govern the supply
of services, define the tools
for their implementation
and indicate how consumers
can be protected, particularly
in terms of service quality
and contractual conditions
for the supply of electricity
and gas, transparency
of billing documents
for the supply of services
and claims, complaints
and reports from consumers.
75
ENI
offering quality services and technical-operative
excellence. In this respect, the Company is engaged in
creating a set of integrated activities within the
energy sector with the aim of offering its clients,
together with the regulated activities of gas
distribution and sales, more services, advice and
assistance.
Future development of the activities envisage the
progressive coverage of new market segments and the
promotion of innovative services to provide incentives
for uses that encourage energy efficiency with a view to
improving environmental compatibility, such as
climate-control and co-generation at small industrial
plants.
In an effort to improve and extend its services, Italgas
Più, leader in the sale of methane gas in Italy with
more than 4.8 million customers, has:
• increased and improved its contact channels with
customers;
• introduced new services, such as the Energy Service,
for the planning and global management of plants
with “turnkey solutions” and the Post Meter Service
for the scheduled and extraordinary maintenance of
autonomous heating systems;
• launched an interactive site, www.italgaspiu.it, a
real online desk that can provide a range of services
to customers.
The Company gives considerable attention to
operating criteria and the quality standards that
distinguish its service. The relationship between the
Company and its customers has always been
characterized by transparency and on its web site,
in a section dedicated to Customer Rights, it is possible
to consult all the documentation concerning quality
levels, consumer protection and the relations
between the Company and Consumers’ Associations,
in such a way that the dialogue with customers
is always open and clear. In this respect, the Company
pays particular attention to the CONSUMERS’ ASSOCIATIONS
and maintains constant and ongoing relations
with them, organizing meetings on both specific
issues and general matters regarding the supply of
the service, as well as responding to complaints
submitted on behalf of their customers.
Italgas più - recognition
for its commitment to quality
In March 2004 Italgas Più
became the first Italian
company to receive
the prestigious “Committed
to Excellence” award that
the European Foundation
for Quality Management
(EFQM) and the Associazione
Italiana Cultura Qualità (AICQ)
assign to European companies
on the basis of a comparative
evaluation and verification
of results achieved
in conducting their activities.
For Italgas Più this important
result confirms its leading role
in a sector now open
to competition and rewards
a commitment to meeting
the needs and interests
of all the stakeholders.
Italgas Più, which in 2002
had obtained the CERTIFICATION
Gas service quality in Turin
From a survey conducted
in 2003 on a sample of 4,000
Turin households by the
Department of Social
Sciences of the University
of Turin, concerning the level
of satisfaction of the city’s
population with municipal
services, it emerged that
the majority of the sample
expressed a widely positive
opinion on the gas supply
service provided in the city
by Aes, the company set up
in 2000 by Italgas and Aem
Torino. The study, which was
presented in November 2003
at a congress entitled,
“The market of local public
services, the role of companies
and the prospects
for consumers”, organized
by Local Public Services Agency
of the Turin Municipality,
highlighted the particular
appreciation expressed
by citizens for the continuity
of supply service provided
(97.2%), the “Customer
Relations” service (73.5%),
the transparency in billing
(70.1%) and the level of tariffs
in relation to the quality
of service offered (55.4%).
OF QUALITY MANAGEMENT SYSTEM
in compliance with
international regulation
UNI EN ISO 9001/2000,
started its improvement
process at the beginning
of the following year
in the framework of a pilot
project coordinated
by the Agency for Local Public
76
ENI
Services of the Turin Municipality
and in cooperation with AICQ,
an organization that pursues
the goals of spreading a culture
of quality in Italy.
Through this process,
the Company aims at completing
the steps needed to further
improve its performance
to the benefit of its customers
and personnel.
Again in connection with
its commitment to continuous
improvement, in 2003
Italgas Più received
the FRANCHISING AWARD,
a recognition given to the three
companies that distinguish
themselves during the year
in the franchising sector.
The prize, already in its third
edition and promoted by AZ
Franchising, an Italian specialized
magazine in the sector, was
awarded to the Company
for the innovative capacity
demonstrated by a former
State-owned company in
creating, with the market being
liberalized, its own retail
network able to meet
the changing needs
and expectations of customers.
Suppliers
Eni is also present in the market for the GENERATION
AND MARKETING OF ELECTRICITY in Italy with EniPower
and operates within the framework of a liberalization
process of the sector started in 1999, which
established criteria and rules for a gradual opening
of the market, as well as for the protection of the
end consumer. The Company supplies electricity
to clients, providing a complete and integrated
service, aimed at satisfying energy needs, in terms of
quality of the product and of its related services.
Among the services available, is the possibility to
check daily electricity consumption and optimize the
management of the supply contract.
Eni deals with a wide range of suppliers on the market
in procuring goods, services and works necessary
to manage its operating activities in an effective
and profitable manner. Every year, on average,
the Group issues some 500,000 orders to around
16,000 suppliers, a significant part of which - around
40% - from abroad. For an articulated and complex
industrial Group such as ours, it is therefore of
fundamental importance to be able to obtain, in line
with specific business requirements, the best possible
conditions in terms of quality, timing and costs.
Labor rights in the qualification process and contracts
As a company that procures
from suppliers in a wide range
of contexts, Eni pays particular
attention to the protection
of labor rights by suppliers
and contractors. In this respect,
the Company has established
that the principles contained
in the Agreement on
Transnational Industrial Relations
and Corporate Social
Responsibility - signed
in November 2002 with
in the Group’s list of suppliers
be committed to observing
the principles contained
in its Code of Practice,
and to ensuring a number
of measures testifying to their
respect of labor rights,
as established by current
legislation and outlined
in the Fundamental
Conventions of the ILO.
The standards defined
by Eni for the general
the International Federation
of Chemical, Energy, Mine
and General Workers' Union
(ICEM) and the Italian trade
unions for the sector - be
extended also to suppliers,
from whom the Company will
seek adequate guarantees
against possible violations.
In fact, from the earliest stages
of the qualification of suppliers,
Eni requires that companies
interested in being included
conditions of contracts provide
that the personnel of the
supplier/contractor be regularly
hired, paid and insured and that
the legal and salary conditions
applied are not lower than those
established by national labor
contracts and the related
integrated agreements. In the
case of violations, the Company
reserves the right to terminate
the contract for being in breach
of the essential requisites.
77
ENI
Principles and guidelines
The Company bases its relations with suppliers and
contractors on their adherence to the principles
contained in Eni’s Code of Practice as well as to a system
of guidelines that regulate procurement activities for
works, goods and services and the administration of
suppliers, according to criteria of cost-effectiveness,
transparency and internal control.
Such guidelines are aimed at ensuring:
• non-discrimination among suppliers, guaranteeing
equal opportunities for qualification based solely
on the possession of the necessary requirements;
• fairness in relations and clearly stated and
transparent qualification procedures;
• objective global evaluations of offers, according to
standard methodologies.
In light of the indications contained in the guidelines
and in the full respect of current legislation, Eni
adopts general and detailed procedures for regulating
operating processes. From an organizational point of
view, procurement, in addition to being monitored by
internal reviews to verify the respect of Eni’s standards
by suppliers and contractors during qualification
processes and the execution of contracts, is also
subject to the supervision of the Company’s Internal
Audit Department.
Selection of suppliers
In general terms, in selecting its suppliers, Eni takes
into account their capacity to guarantee, in addition
to a series of economic, technical, productive and
organizational requisites, adequate measures
concerning occupational safety, health protection,
quality management and environmental safeguard,
as well as the respect, in line with current legislation,
of international labor rights standards.
Precisely with a view to optimizing, in terms of
quality and cost, the Group’s relations with the pool
of suppliers, in December 2003 the Company
approved an internal regulation for the qualification
and management of the supplier system. The
document contains the elements regulating market
interface activities, supplier qualification and
development, feedback evaluation, with a view to
example, in collaboration with local authorities and
the other oil companies operating in the country, a
Joint Qualification project has been launched aimed
at defining the requirements and management and
development procedures in order to establish a
common pool of suppliers.
For some activities, Eni also organizes training
courses for suppliers and contractors. This is the
case, for example, of HSE issues, where contractors’
staff - before being given access to platforms - take
part in a course on safety measures and procedures,
or third party company drivers are involved in safe
driving courses and have the opportunity of training
also with multimedia courses.
Saipem, Snamprogetti and the E&P Division organize
courses for the personnel of contractor companies
operating on sites or on offshore installations, such as
survival at sea courses for technicians working on
offshore platforms, with the aim of obtaining the OLFOPITO (Offshore Life Survey - Offshore Petroleum
Industry Training Organization) certification and
courses for site safety coordinators.
creating a base of high profile suppliers and reducing
the risks associated with supplies.
Eni’s new regulation also provides for the
implementation of a rigorous, documented and
retrievable qualification process allowing for the
transfer of accreditation among the operating
Divisions and between them and the Group
companies, as well as for the creation of a supplier
profile to track the development and behavior of
suppliers with respect to the entire Group.
Scouting, development and training
of suppliers and contractors
Given the geographical reach of the Group, it
is particularly important to identify the subjects
which can supply locally a series of quality goods,
works and services. Therefore, in addition to
scouting activities focused on geographic areas of
interest for the business, the Company has also
provided for the definition of development plans
that indicate to suppliers improvement steps aimed
at obtaining full accreditation. In Nigeria, for
An integrated qualification process
With tens of thousands
of suppliers selected for groups
of products in widely differing
markets, the management
of procurement and relations
with suppliers by the Company’s
different procurement units
has often involved for Eni both
a significant exposure - in terms
of costs and reputation - to risks
deriving from suppliers not
in compliance with prevailing
standards as well as a widespread
overlapping and duplication
of qualification procedures.
To reduce such risks and seize
the opportunities
for implementing a Group-wide
management of the pool
of suppliers (i.e. better
contractual conditions, increase
in the number of suppliers
and therefore of competition,
transfer and exchange
of experiences and solutions)
a project for an integrated
qualification process
to be extended to all the Divisions
and companies of the Group has
been launched. In this framework
Eni has defined the parameters
and operative steps
for a qualification process
that can satisfy the different
needs of the various businesses.
The process is structured keeping
in mind the importance
the specific supplies have
for the Company, in terms of both
impact on the Group’s activities
and cost. It is interesting to note
that almost 90% of the value
of Eni’s supply contracts
are assigned to some 800
suppliers, who therefore must
be subjected to structured
monitoring as part of a set
of compulsory controls.
For suppliers of small tenders
or contracts, for whom such
78
ENI
procedures would be too
onerous, checks and controls
are nevertheless carried out,
even if not on a strictly
systematic basis.
The start of the qualification
process depends first of all
on the acceptance by candidates
of the main elements
contained in the Group’s Code
of Practice and on their
declaration stating
the compliance with social
security and insurance
requirements for their
employees. The checks on the
requisites - economic and
financial aspects; organizational,
managerial and technical
and productive capacities;
environmental, health and
occupational safety protection;
quality - are carried out by means
of a detailed questionnaire that
candidates must fill out and, in
the case of more critical supplies,
with an inspection at production
sites conducted by a team made up
of people from the supplier
qualification, technical,
environmental, quality,
health and safety areas
(supplier pre-qualification).
Qualification certification
is obtained after the award
of the first order or following
receipt of positive feed-back
by the procurement unit and,
with the exception of sectors subject
to European regulations, is valid
for 30 months. When candidates
are found not to be fully compliant
with the requisites, qualification
is subjected to the definition
of specific development plans
and subsequent verification,
in an established timeframe,
of effective improvements.
The qualification department may,
in any case, request additional
000
Submissions
100
Process initiation
300
Documentation Verification
200
Questionnaire compilation
400
Planning of on site verification
500
On site verification of management
and organizational capacities
700
On site verification of productive capacities
600
On site verification of technical capacities
800
Intermediate evaluation/pre-qualification
900
Completion of prototype / trial order
Items evaluated in the questionnaire
1000
Qualification
information from suppliers
or decide, following negative
feed-back or information
received, to conduct further
on-site visits. Finally, with
the aim of recording supplier
performance and creating
a Supplier Capability Profile
accessible to all the departments
whether discrepancies
or problems encountered fall
within the normal contract
standards, or whether they reflect
inadequacies on the part
of the supplier in supplying goods
or providing works and services.
In these cases, the supplier will
first be monitored and, should
of the Company, the units
utilizing the goods, services
and works procured outside
the Group are required
to provide feed-back
concerning the quality,
promptness and conduct
of the supplier. Thanks to such
records, it is possible to check
• General information
• Commercial, financial data
• Planning and production
• Management systems
• Transport and delivery
• Conformity requirements
On site verification check list
• Environment (ISO 14001)
• Procurement
• Technical capacity
• Contract management
• Logistics
• Organization
• Process
• Quality (ISO 9000)
• Health & safety (BS 8800)
• Information systems
problems persist, subsequently
be withdrawn from the list
of suppliers and subjected
to a series of controls
to determine the timing
and method of a possible
future reintegration, or,
in extreme cases, re-activation
of the qualification process.
79
ENI
Main data and indicators
Operative and financial data
Proved reserves of hydrocarbons at period end (M boe)
Reserve life index (years)
Daily production of hydrocarbons (K boe)
of which: oil (K bbls/d)
natural gas (k boe)
Total sales of natural gas to third parties (G m3)
Sales of refined products (Mt)
Net sales from operations (M euro)
Operating income (M euro)
Net income (M euro)
Capital expenditure and Investments (M euro)
of which: capital expenditure (M euro)
2001
6,929
13.7
1,369
857
512
65.87
53.24
49,272
10,313
7,751
11,270
6,606
2002
7,030
13.2
1,472
921
551
63.36
52.02
47,922
8,502
4,593
9,414
8,048
2003
7,272
12.7
1,562
981
581
69.56
49.91
51,487
9,517
5,585
13,057
8,802
72,405 (*)
62.6
37.4
45,336
27,069
4,354
643
6,207
5,.395
9,951
20
1,600
852
748
410
380
1,250,140
125,726
80,655
54.2
45.8
43,682
36,973
6,844
749
6,334
5,993
16,972
81
2,139
1,203
936
599
487
1,213,855
113,574
76,521
55.2
44.8
42,235
34,286
7,231
640
7,164
7,006
12,041
204
2,055
1,283
772
678
562
1,251,210
111,963
Health, Safety and Environment (HSE)
HSE expenditure (M euro)
HSE expenditure/revenues (%)
Certifications
Audits
HSE training in Italy (hours)
Participants
Health expenditure/employee (euro)
Health personnel
898.3
1.82
84
1,015
312,087
75,767
364
602
870.4
1.82
85
1,245
279,446
68,155
322
667
926.05
1.80
110
2,089
281,539
72,223
418
792
Injury frequency rate
Injury severity rate
Fresh water consumption (M m3)
Net energy consumption (Mtoe)
NOx emissions (kt)
SO2 emissions (kt)
Greenhouse gas emissions (Mt of CO2 eq)
6.47
0.15
300
8.98
75.7
103.2
50.1
4.74
0.12
307
8.76
80.3
101.0
51.9
3.71
0.09
268
9.31
88.5
88.9
52.6
47,256
76.7
18.1
65.8
16.1
0.6
49,574
80.6
3.4
84.8
11.8
1.1
50,203
83.8
2.1
87.2
10.7
0.9
Human resources
Employees at period end
of which: Italy (%)
abroad (%)
Hired in Italy and operating in Italy and abroad
Hired and operating abroad
of which: Africa
North America
Latin America and Caribbean
Asia
Europe
Oceania
Hirings
of which: indefinite term
temporary
of which: university
high school
Training hours
Participants
Local development
Overall expenditure (k euro)
of which community development (%)
of which (%): Health
Social-environmental (including training)
Culture
Overall expenditure/net income (%)
(*) The total amount of employees for 2001 has been updated to include Enichem Polimeri; the following calculations are based on the original number (70,948).
81
ENI
MAIN DATA AND INDICATORS
Società per Azioni
Headquarters: Rome, Piazzale Enrico Mattei, 1
Capital Stock at December 31, 2003: € 4,004,419,376 fully paid
Branches:
San Donato Milanese (MI) - Via Emilia, 1
San Donato Milanese (MI) - Piazza Ezio Vanoni, 1
Gela (CL) - Strada Provinciale, 82
For more information contact:
Eni SpA
DIRIC-CSR
Piazzale Enrico Mattei, 1 - 00144 Rome
Tel. +39 06 598 25441 - Fax +39 06 598 22832
e-mail: csr@eni.it
Printed in September 2004
Design: Orecchio acerbo
Illustration by: Lorenzo Mattotti
Printing: Ugo Quintily SpA - Roma
Printed on eco-friendly paper: Fedrigoni Symbol Freelife Vellum

Corporate responsibility

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