Case study: How Snam creates economic value for its stakeholders
Snam is one of the world’s leading energy infrastructure operators and ranks among Italy’s largest listed companies, by market capitalisation. Snam seeks to promote the creation of shared medium to long-term value for all its stakeholders, through operational and financial efficiency.
This case study is based on the 2020 Sustainability Report by Snam, 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
Snam is firmly committed to the development of business activities capable of generating value for all its stakeholders. Tweet This! In 2020, the Gross Global Value Added produced by Snam amounted to Euro 2,758 million, an increase of Euro 63 million, or 2.3%, compared to 2019. In order to create economic value for its stakeholders Snam took action to:
- create economic value for employees
- create economic value for local communities
- create economic value for lenders and shareholders
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With this case study you will see:
- Which are the most important impacts (material issues) Snam has identified;
- How Snam proceeded with stakeholder engagement, and
- What actions were taken by Snam to create economic value for its stakeholders
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What are the material issues the company has identified?
In its 2020 Sustainability Report Snam identified a range of material issues, such as health and safety, climate change, infrastructure reliability, business continuity and cyber security, human capital development. Among these, creating economic value for its stakeholders stands out as a key material issue for Snam.
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 Snam engages with:
| Stakeholder Group | Method of engagement |
| Employees
| · Intranet Easy · Webinars · Workshops · Video messages · Meetings with trade unions · Other initiatives |
| Suppliers
| · Supplier Portal · Questionnaires and workshops |
| Customers
| · Workshops · Other initiatives |
| Investors and lenders
| · Roadshows · Sector conferences |
| Community, territory and associations | · Engagement of local communities · Involvement of schools |
| Business partners | · Partnerships, collaborations and agreements |
| Institutions | · Meetings with local, regional and state institutions |
| Authority | · Technical tables |
| Media | · Digital engagement · Other communication initiatives |
| Other operators | · Sector associations |
How stakeholder engagement was made to identify material issues
To identify and prioritise material topics Snam obtained feedback from more than 6,000 stakeholders reached through specific questionnaires, with an overall response rate of around 32%. Additionally, three in-depth materiality workshops were held, involving 77 participants including suppliers, customers and employees.
What actions were taken by Snam to create economic value for its stakeholders?
In its 2020 Sustainability Report Snam reports that it took the following actions for creating economic value for its stakeholders:
- Creating economic value for employees
- People are central to Snam’s activities, and Snam values them by offering them opportunities for professional growth in an inclusive and meritocratic environment. In 2020, Snam spent Euro 278 million for its employees.
- Creating economic value for local communities
- Supporting local communities in times of economic uncertainty, also in order to strengthen the license to operate, is a top priority for In 2020, Snam spent Euro 19 million for local communities.
- Creating economic value for lenders and shareholders
- In 2020, Snam paid Euro 178 million to lenders and Euro 816 million to shareholders.
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 Snam, 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:
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