Case study: How Eni promotes human rights among its suppliers
Eni is an energy company operating in 66 countries and engaging in oil and natural gas exploration, fields development and production. Eni, aware of the significant role of its supply chain in the fulfilment of its social responsibility commitments, has implemented a management model aimed at promoting its own values with suppliers and to involve them in the risk prevention process.
This case study is based on the Eni for 2019 Report by Eni published on the Global Reporting Initiative Sustainability Disclosure Database 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 2019, approximately 6,000 suppliers were subjected to screening and assessment on sustainability issues by Eni Tweet This!: in 15% of the cases, potential critical issues/areas of improvement were identified, but in 89% of them they did not compromise the possibility of working with them. In order to promote human rights among its suppliers Eni took action to:
- engage suppliers
- implement a code of conduct for suppliers
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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 promote human rights among its suppliers
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What are the material issues the company has identified?
In its Eni for 2019 Report Eni identified a range of material issues, such as climate change and energy efficiency, integrity and transparency, economic and financial value creation, asset integrity and emergency management. Among these, promoting human rights among its suppliers 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:
To identify and prioritise material topics Eni engaged with its stakeholders through the following channels:
| Stakeholder Group | Method of engagement |
| Eni’s people and national and international trade unions
| · Professional and training paths on emerging skills related to business strategies and expansion of skills mapping · Training initiatives to support inclusion and recognition of the value of all kinds of diversity and international initiatives supporting team building and innovation (Hackathon) · Fourth edition of the climate analysis · Initiatives for parenthood (smart working and school nursery) and family members with disabilities · Meeting with national and international trade unions (renewal of the Global Framework Agreement) to discuss the different social and trade union realities of the Countries where it operates |
| Financial community
| · Presentation of the 2019-22 strategic plan, followed by Road-Show of the CEO and top management at the main stock exchanges · Eni’s President Governance Road Show · Dialogue with the market, in particular on the 2019 remuneration policy, in view of the 2019 Shareholders’ Meeting · Meeting in Abu-Dhabi for investors and financial analysts on the expansion strategy in the Arabian Peninsula · Meetings on quarterly results · Participation of top management in thematic conferences organised by banks |
| Local communities and community based organisations | · Involvement of about 650 communities (including indigenous ones) close to plants · Consultation of local authorities and communities for new exploration activities and/or the development of new projects as well as for the planning, management and improvement of social projects (Angola – economic diversification, Iraq – education, Pakistan – access to water, Mozambique – access to energy, Italia/Basilicata – CASF Project) · Mapping of community relations, requests and grievances and definition of local engagement content |
| Suppliers and commercial partners | · Suppliers involvement with human rights Assessment · Communication, feedback and improvement plans · Participation in IPIECA WG: Forum on O&G Sustainability best practices · Green Sourcing Project: identification of supply chain levers to reduce environmental impacts · Discussion of human rights clauses in upstream joint venture contracts |
| Customers and consumers
| · Meetings and workshops with Presidents, Secretaries General and Energy Managers of national and local Consumers’ Associations (CAs) on issues such as sustainability, circular economy, reclamation and environmental remediation · Sponsorship of CA initiatives on sustainability and circular economy · Territorial meetings with the regional CA of the Italian National Council of Consumers and Users · Survey of national and regional CA representatives on circular economy, sustainability and energy transition |
| National, European and international institutions
| · Dialogue with the Inter-Ministerial Committee on Human Rights (CIDU) and the National Contact Point (Italy) for OECD Guidelines · Meetings with Italian political representatives and institutions, both central and local, on energy, climate and environmental issues, circular economy and sustainable development · Active participation in institutional technical round tables, joint committees, WGs and other meetings promoted by Italian Government and Parliament · Visits by Italian institution delegations, central and local, to Eni industrial plants, sites and research centres |
| Universities and research centres
| · Meetings with Universities, Research Centres and third-party companies with which Eni collaborates or interfaces in the development of innovative technologies · Agreements and collaborations with the Polytechnic of Milan and Turin, the Universities of Bologna, Naples and Pavia, MIT, CNR, Italian National Inter-University Consortium for Materials Science and Technology, ENEA and Italian National Institute of Geophysics and Volcanology · Establishment with the CNR of 4 research centres in Southern Italy for sustainable environmental and economic development in Italy and worldwide · Collaboration with the Polytechnic of Milan in the organisation of the Master’s in Energy Innovation and for the development of Impact Assessment Models (the latter also with the University of Milan – Faculty of Agrarian Sciences) |
| Volunteer organisations and category associations
| · Membership and participation in OGCI, IPIECA, WBCSD, UN GLOBAL COMPACT, EITI · Collaboration with IHRB and other international human rights institutions · Conferences, debates, seminars and training initiatives on sustainability issues (energy, circular economy, remediation, corporate social responsibility); implementation of guidelines and sharing of best practices · Participation in meetings of the association bodies and working tables on strategic issues, monitoring legislative developments · Meetings with Local Business Associations on the supplier qualification process |
| Organisations for cooperation and development | · Development of new public-private partnership models · Dialogue and development of collaborations with United Nations organisations and cooperation agencies UNIDO, UNESCO, FAO, World Bank, E4Impact Foundation, Dom Bosco Institute in Maputo and Halo Trust Foundation · Consolidated relations with Faith-Based Organisations (2nd “Vatican Dialogue on Energy Transition and Care for Our Common Home”; Scientific and Organisational Committee of the Mediterranean Frontier of Peace event organised by the Italian Episcopal Conference) |
What actions were taken by Eni to promote human rights among its suppliers?
In its Eni for 2019 Report Eni reports that it took the following actions for promoting human rights among its suppliers:
- Engaging suppliers
- Eni is carrying out numerous engagement initiatives with its suppliers, including the following:
- Local meetings for local companies, organised in collaboration with trade associations and/or local authorities, during which Eni’s sustainability values and principles are illustrated;
- Individual meetings with selected suppliers within the scope of assessments on human rights, to create awareness on the promotion and respect for human rights; in 2019, 9 suppliers were involved, of which 3 from Vietnam, 1 from Ecuador, 1 from Mexico and 4 from Tunisia;
- Annual events with the participation and recognition of suppliers with the best safety performance who also distinguished themselves by their commitment (Safety & Environment Day).
- Implementing a code of conduct for suppliers
- Eni is finalising and subsequently diffusing a code of conduct for suppliers, which confirms the importance of respect for the cardinal principles of sustainability in the supply chain. Lastly, more generally referring to Eni’s business partners, starting from 2018, specific human rights clauses were introduced in the agreements stipulated with the countries and with the other companies in activities managed through Joint ventures, to represent and bind the parties to behave in line with the main international standards and to exercise an appropriate form of leverage on them. Every business partner is also subjected to a preventive screening, to identify the presence of any critical issues regarding respect for human rights and to provide the appropriate measures to manage them. In this area, over 70 new business partners were screened in 2019.
Which GRI Standards and corresponding Sustainable Development Goals (SDGs) have been addressed?
The GRI Standard addressed in this case is: Disclosure 414-1 New suppliers that were screened using social criteria
Disclosure 414-1 New suppliers that were screened using social criteria corresponds to:
- Sustainable Development Goal (SDG) 5: Gender Equality
- Targets: 5.2
- Sustainable Development Goal (SDG) 8: Decent Work and Economic Growth
- Targets: 8.8
- Sustainable Development Goal (SDG) 16: Peace, Justice and Strong Institutions
- Targets: 16.1
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References:
1) 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 original on the Global Reporting Initiative’s Sustainability Disclosure Database at the link:
http://database.globalreporting.org/
2) https://www.globalreporting.org/standards/gri-standards-download-center/
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