Case study: How Eni creates economic value for its stakeholders
Eni is an integrated energy company with a global presence, employing over 32,000 people, that aims to achieve Carbon Neutrality by 2050 satisfying the three fundamental energy goals: environmental sustainability, energy security and accessibility. Creating long-term shared value for all its stakeholders, is a top priority for Eni. Tweet This!
This case study is based on the 2022 A Just Transition and Sustainability performance reports by Eni, prepared in accordance with the GRI Standards, that can be found at this link. Through all case studies we aim to demonstrate what CSR/ ESG/ sustainability reporting done responsibly means. Essentially, it means: a) identifying a company’s most important impacts on the environment, economy and society, and b) measuring, managing and changing.
Abstract
In 2022, the economic value distributed by Eni reached € 120,451 million. In order to create economic value for its stakeholders Eni took action to:
- create economic value for employees
- create economic value for capital suppliers
- create economic value for the public administration
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With this case study you will see:
- Which are the most important impacts (material issues) Eni has identified;
- How Eni proceeded with stakeholder engagement, and
- What actions were taken by Eni to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2022 A Just Transition and Sustainability performance reports Eni identified a range of material issues, such as combatting climate change, diversity, inclusion and work-life balance, circular economy, health and safety of workers. Among these, creating economic value for its stakeholders stands out as a key material issue for Eni.
Stakeholder engagement in accordance with the GRI Standards
The Global Reporting Initiative (GRI) defines the Principle of Stakeholder Inclusiveness when identifying material issues (or a company’s most important impacts) as follows:
Stakeholders must be consulted in the process of identifying a company’s most important impacts and their reasonable expectations and interests must be taken into account. This is an important cornerstone for CSR / sustainability reporting done responsibly.
Key stakeholder groups Eni engages with:
| Stakeholder Group | Method of engagement |
| Eni’s people and national and international unions | · Professional and training paths on emerging skills related to business strategies and entrepreneurship development · Training initiatives to support inclusion and recognition of the value of all kinds of diversity · Climate analysis to collect employees’ opinions about the company · International initiatives to support team building, mobility and training to foster internationality · Finalisation and/or signing of agreements with trade unions, including the one for Smart Working in Italy and gradual extension abroad, for Eni people’s well-being initiatives, the 2022-2023 expansion contract and renewal of the sector’s collective bargaining agreements |
| Financial community | · Capital Markets Day (2022-25 Strategic plan and long-term Plan to 2050) and virtual Roadshow on the main financial exchanges · Roadshows with investors and proxy advisors on executive remuneration · Conference call on the quarterly results · Participation of Top Management in thematic conferences organised by banks · Participation in theme conferences and ongoing engagement with institutional investors and leading ESG rating agencies |
| Local communities and community based organisations
| · Consult with local Authorities and communities for new exploration activities and/or the development of new business projects and local development projects · Consult with communities and other stakeholders in Countries where impact studies were conducted, including Social and Human Rights Impact Assessments · Manage requests and grievances from local communities · Regular communication on project progress and workshops on Local Content opportunities · Awareness-raising campaigns in local communities on health issues and the use of improved cook stoves |
| Contractors, suppliers and commercial partners | · Awareness-raising initiatives and supplier involvement in thematic webinars, workshops, and educational and informational events to foster widespread sustainability awareness throughout the supply chain · Expansion of the Open-es community, strengthening the initiative with more development tools and services, and providing a training program open to all companies on ESG priority topics · Human Rights Due Diligence: extending the application of the risk-based model to prevent and mitigate risks in the entire supply chain · Basket bond – Sustainable Energy program, an innovative finance instrument addressing Eni’s suppliers and the energy chain, to provide access to financial resources for projects aimed at sustainable development |
| Customers and consumers
| · Meetings and workshops with Presidents, General Secretaries and Energy Managers of national and local Consumer Associations (CAs) on energy transition issues and business initiatives · Territorial meetings with regional Consumer Associations of the National Council of Consumers and Users and sponsoring of the CAs initiatives on various sustainability topics · Listening to consumers, customers and involving CAs for product insights, service evaluation and monitoring to improve satisfaction, quality and corporate positioning · Presentation to the CA of results, objectives and future strategies for developing and implementing customer centricity |
| National, European and international institutions | · Participation in joint commissions, meetings and round tables with local, national, European and international institutions and organisations on business, geopolitical and energy scenarios, including decarbonisation, agribusiness, sustainable development, etc. · Representation of Eni’s position on energy transition and decarbonisation in public events and the main international multilateral fora (e.g. G20, B20, COP27) · Institutional engagement and dialogue within the context of partnerships and memberships with national, European and international think tanks and associations and with international bodies and/or European institutions on energy transition, environment and sustainable mobility · Presentation of projects, visits by associations and national institutional and political delegations at industrial plants, operational sites and research centres |
| Universities, research centres and innovation hubs
| · Research agreements with the Universities of Milan – Bicocca and Pisa, and ENEA for energy transition and decarbonisation · Continuation of cooperation activities with a) Politecnico of Milan and Turin; Universities of Bologna, Naples, Pavia, Padua, and Pisa; MIT, CNR, INSTM Consortium, ENEA and INGV; b) with CNR for four joint research centres for environmental and economic development. Training collaborations with: LUISS University, IULM University, Rome Tre University, and University of Florence · Establishment of a Joint Laboratory with the University of Bologna for new energy transition technologies · Participation as a founding member within the PNRR in four National Research Centres and two Innovation Ecosystems · Present in major national and international innovation hubs, agreements with innovation brokers, start up incubators and accelerators |
| Voluntary advocacy and category organisations and industry associations
| · Membership and participation in OGCI, IETA, WEF, IPIECA, IOGP, WBCSD, UN GLOBAL COMPACT, EITI, The Council for Inclusive Capitalism, Energy Compact and collaborations with international human rights institutions · Conferences, debates, events and training initiatives on sustainability topics; development of guidelines and sharing of best practices, capacity building for carbon credit generation and use · Meetings with regional and professional business associations for the sustainable Supply Chain and energy topics, and supporting lines of business by verifying common positions and decarbonisation studies · Collaboration agreement with Confindustria for the 4th Circular Economy Best Performer Competition and the 2nd Circular Bootcamp |
| Organisations for development cooperation
| · Consolidate the development activities conducted in Countries with cooperation organisations through collaboration/partnership agreements. Agreements were signed with UNIDO and UNESCO; national cooperation bodies and agencies such as AICS, EGPC, the Nabeul Governorate (Tunisia) and SETAB; civil society organisations; and private sector organisations such as Centro Cardiologico Monzino IRCCS, CNH Industrial and Iveco Group. · Collaborations continued with UNDP, USAID; financial institutions such as World Bank, CDP and Standard Bank; ministries of health of host Countries; and civil society organisations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Eni engaged with its stakeholders through a questionnaire.
What actions were taken by Eni to create economic value for its stakeholders?
In its 2022 A Just Transition and Sustainability performance reports Eni reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- In 2022, Eni paid € 3,015 million for employee wages and salaries.
- Creating economic value for capital suppliers
- In 2022, Eni paid € 6,419 million to capital suppliers.
- Creating economic value for the public administration
- In 2022, Eni paid € 8,488 million to the public administration.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 201-1 Direct economic value generated and distributed
Disclosure 201-1 Direct economic value generated and distributed corresponds to:
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.1, 8.2
- Sustainable Development Goal (SDG) 9: Industry, Innovation and Infrastructure
- Targets: 9.1, 9.4, 9.5
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References:
This case study is based on published information by Eni, located at the link below. For the sake of readability, we did not use brackets or ellipses. However, we made sure that the extra or missing words did not change the report’s meaning. If you would like to quote these written sources from the original please revert to the following link:
https://www.eni.com/en-IT/just-transition/business-model.html
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