Mission
We are an energy company.
We concretely support a just energy transition, with the objective of preserving our planet and promoting an efficient and sustainable access to energy for all.
Our work is based on passion and innovation, On our unique strengths and skills.
On the equal dignity of each person, recognizing diversity as a key value for human development,
On the responsibility, integrity and transparency of our actions.
We believe in the value of long-term partnerships with the Countries and communities where we operate, bringing long-lasting prosperity for all.
Global goals for a sustainable development
The UN's 2030 Agenda for Sustainable Development, presented in September 2015, identifies the 17 Sustainable Development Goals (SDGs) which represent the common targets of sustainable development on the current complex social problems. These goals are an important reference for the international community and Eni in managing activities in those Countries in which it operates.
2023
A JUST TRANSITION
Disclaimer
Eni for 2023 is a document published on a yearly basis that contains forward-looking statements related to the different topics covered therein. Forward-looking statements are founded on Eni management's reasonable assumptions and beliefs given the information available to them at the time the statements are made. Nevertheless, by their nature, forward‐looking statements involve an element of uncertainty as they relate to events and depend on circumstances that may or may not occur in the future and which are, in whole or in part, beyond Eni's control and reasonable prediction. Actual results may differ from those expressed in such statements, depending on a variety of factors, including, without limitation: the impact of the Covid-19 pandemic, the fluctuation of the demand, the offer and pricing of oil and natural gas and other petroleum products, the actual operating performances, the general macroeconomic conditions, geopolitical factors and changes in the economic and regulatory framework in many of the Countries in which Eni operates, the achievements reached in the development and use of new technologies, development of scientific research, changes in the stakeholders' expectations and other changes to business conditions. The readers of the document are therefore invited to take into account a possible discrepancy between the forward-looking statements included and the results that may be achieved as a consequence of the events or factors indicated above. Eni for 2023 also contains terms such as, for instance, "partnership" or "public/private partnership" used for convenience only, without a technical- legal implication. "Eni" means the parent company Eni SpA and its consolidated subsidiaries. The reporting of GHG Scope 3 emissions and related targets is not to be understood as the assumption of any legal responsibility in relation to the actual and/or potential impacts of said GHG emissions.
Photos
All the photos of the covers and the Eni for 2023 Report come from the Eni photographic archive.
Translations
The original text of Eni for - unless otherwise indicated - is in Italian. Translations into other languages are taken from the original text. In the event of discrepancies, the contents of the Italian version shall prevail over translations into any other language.
Why read
Eni for 2023?
Eni for 2023 describes Eni's path to a Just Transition that guarantees access to a just energy, with the 2050 target for carbon neutrality, to mitigate costs and share social and economic benefits with workers, suppliers, communities and customers inclusively and transparently. The storytelling is structured according to the three levers of the integrated business model - Carbon neutrality by 2050, Operational excellence and Alliances for development - which define Eni's scope of action to create long-term value for all stakeholders. In contrast to the Consolidated Disclosure of Non- Financial Information, Eni for delves into stories, concrete cases and testimonies to ensure access to efficient and sustainable energy.
REPORTING PRINCIPLES AND CRITERIA
Eni for 2023 is prepared per the "Sustainability Reporting Standards" of the Global Reporting Initiative, in accordance with the GRI Universal (2021) and Sector Standard Oil & Gas (2021) and in line with the 10 principles of the Global Compact.The Eni for 2023
- Sustainability Performance includes theGRI Content Index, as well as the reference tables with: Task Force on Climate related Financial Disclosure (TCFD);Climate Action 100+;Sustainability Accounting Standards Board (SASB); World Economic Forum (WEF); EU Sustainable Finance Disclosures Regulation (SFDR); andWomen's Empowerment Principles (WEPs).
EXTERNAL ASSURANCE
In line with previous editions, Eni for 2023 also underwent a limited assurance audit by the independent auditors (PwC), who audited also the Annual Report, which includes the Non- Financial Statement. Scope 1 and Scope 2 Operated (no equity) GHG emissions are subject to reasonable assurance and this report is included in Eni for Performance.
LEGEND
External links Internal links Eni's approach to Just Transition
GLOSSARY
Message to our stakeholders | 4 |
Eni in the world | 6 |
Eni's activities: the value chain | 8 |
Business model | 10 |
Responsible and sustainable approach | 12 | |
Context: progress and challenges of the transition | 12 | |
Material topics for Eni | 14 | |
Stakeholder Engagement Activities | 16 | |
Eni's commitments | 18 | |
Eni's approach to the SDGs | 20 | |
Governance and sustainability safeguards | 21 | |
Innovation, Digitalisation and Cyber Security | 26 |
Carbon neutrality by 2050 | 30 | |
Towards Net Zero in 2050 | 32 | |
Business Evolution | 38 | |
Climate change impacts, risks, and opportunities | 45 | |
GHG Methodology and Transparency | 47 | |
Just Transition for Eni | 50 |
Operational excellence | 52 | |
Each of us | 54 | |
Occupational and Process Safety | 61 | |
People's health | 65 | |
Environment | 68 | |
Human Rights | 76 | |
Transparency, Anti-Corruption and Tax Strategy | 82 | |
Customers and suppliers | 86 |
Alliances for development | 90 | |
Eni as a local development player | 92 | |
Access to energy | 94 | |
New businesses in the territories | 96 | |
Local development projects in the world | 98 | |
Partnerships for development | 106 | |
Local content | 107 | |
Glossary | 108 | |
Independent Auditor's Report | 109 | |
Eni's sustainability reporting | 112 |
Eni for 2023 - Sustainability performance
It includes reference tables to reference standards/guidelines
4 2023 A JUST TRANSITION
Message to our stakeholders
INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 5 | |||
work in this area, such as Sonatrach in Algeria, EGAS in Egypt, and ADNOC in the United Arab Emirates.
Eni has also actively contributed to facilitate the dialogue with stakeholders and the Presidency of COP28 - the United Nations Climate Change Conference
- and it was among the first companies |
to join the Oil & Gas Decarbonization |
Charter (OGDC) initiative. |
In line with the agreement reached at |
COP28, Eni agrees with the need for |
a progressive reduction ('transitioning |
away from') of fossil fuels while rec- |
ognising that this transition must take |
place in a fairy, orderly and equitably |
manner. In this perspective, both Eni's |
acquisition of Neptune Energy, a lead- |
ing company in exploration and pro- |
duction with more than 70% of its port- |
folio in the gas sector, and the start-up |
of the production from the Congo LNG |
project are part of a response to Eni's |
need to increase access to safe and |
mobility transformation. The actions implemented have allowed the achievement of a 21% reduction in the Net GHG Lifecycle Emissions indicator (Scope 1+2+3) compared to 2018. We are fully committed to offering our customers an increasingly comprehensive range of progressively decarbonized products and services, contributing to reduce the emissions that the energy products sold by Eni generate throughout the entire value chain.
In 2023, we also achieved major breakthroughs in our Carbon Capture
& Storage projects, a key lever of de- |
carbonization, especially in the United |
Kingdom, where we reached an agree- |
ment in principle with the Department |
of Energy Security and Net Zero on the |
key elements of the economic, regu- |
latory and governance model for CO2 |
transport and storage at the HyNet |
North West cluster. |
On this path, convinced of the crucial role |
communities involved, in the name of the 'dual flag' model, working in partnership with local governments, institutions and organisations such as the ILO (International Labour Organisation), to improve the occupational safety and health of farmers in agri-feedstock supply chains, and IRENA, to promote the development of skills for the transition. In the Countries where we operate, business activities are always accompanied by action plans that respond to the needs of the territory, improving job opportunities, and access to education, health, water, and energy. An interesting example is the Oyo Centre of Excellence for Renewable Energy and Energy Effi- ciency, promoted and supported by Eni and managed by the Ministry of Higher Education, Scientific Research and Technological Innovation of the Republic of Congo and together with UNIDO (United Nations Industrial Development Organisation).
The global context presents us with complex, fragmented and constantly evolving dynamics. The two wars, in the Middle East and Ukraine, among all, give us back a socio-political and energy volatility that calls into question our feeling of personal and communal security, undermining the certainties on which we used to base our actions and oper- ations. At the same time, however, we are called upon to find answers to these challenges and to give our support. Energy remains a crucial junction, since it inherently provides a sense of security and opportunities for development: the energy transition is irreversible, and we must ensure its realisation without sacrificing the production system and social sustainability.
For Eni, 2023 has been the 70th anniversary year, an opportunity to reflect on the distinctive features of the com- pany's journey: the ability to evolve and anticipate changes, the willingness to take new paths, while holding on to our
shared values and, last but not least, our commitment to generate value for all our stakeholders. In designing and embarking on our path towards a just energy transition, we have been able to initiate a radical change, both industrial and cul- tural, focusing on scientific research and innovation, starting with the technologies we have developed. Significant investments in research and development have put Eni in the position of operating with the aim of progressively decarbonising its activities and transforming its industrial processes, products, and services, which allow to generate new businesses for the energy transition, along with new opportunities for Eni and the people and territories involved.
Eni has made decarbonization an integral part of its business strategy to achieve carbon neutrality by 2050, with clear intermediate targets. In 2023, we achieved a 40% reduction in net Scope 1 and 2 emissions in the Upstream sector and a 30% reduction of the total com-
pany's emissions compared to 2018. Particular attention is given to reducing methane emissions, an issue on which Eni has been a frontrunner for several years, also contributing to the reduction of its sector emissions. For this reason, Eni is part of numerous international initiatives, including the World Bank's Global Flaring and Methane Reduction fund, which helps Governments and operators in developing countries to eliminate routine flaring and reducing methane emissions to near zero target by 2030.
Over the past year, methane emissions from the Upstream business have been reduced by more than 20%, also through the measurement and reporting cam- paigns, whose accuracy has enabled Eni to obtain the 'Gold Standard' recognition under the Oil & Gas Methane Partnership 2.0 programme promoted by the United Nations Environment Programme (UNEP). We have also signed agreements to support our partners'
low-emission energy such as natural |
gas, which is essential to accompany |
the energy transition. |
In addition, we started the production |
from Baleine field, in the Ivory Coast, the |
first project in Africa's Upstream sector |
with net zero Scope 1 and 2 emissions. |
Decarbonising also means taking ad- |
vantage of new opportunities that |
transformation offers us. COP28 sup- |
ported an approach that focuses on the |
solutions that accelerate the transition: |
they are all part of Eni's strategy, and |
we consider it crucial to apply them ac- |
cording to the geographical context and |
cost-efficiency logic. |
Also, we are integrating traditional activ- |
ities with transition-related businesses, |
leveraging proprietary technologies, |
and developing a satellite model based |
on the creation of independent entities |
that can independently access the cap- |
ital market to grow and enhance their |
business. For example, the expansion |
in the renewable sector, where Pleni- |
tude reached 3 GW of installed capacity |
from renewable sources in 2023 as it |
was planned, and the birth of Enilive, a |
company aiming at a more sustainable |
of chemistry from renewable sources, |
we also completed the acquisition of No- |
vamont by Versalis, in line with our strat- |
egy of transformation and repositioning |
of the chemical business according to |
the drivers of: portfolio specialisation, |
circularity and biochemistry. |
In tackling the transition, Eni is firmly |
committed in safeguarding the health |
and safety of people and the integrity |
of its assets, and also protecting the |
environment, biodiversity and water re- |
sources. Furthermore, a commitment to |
respect human rights underpins our ac- |
tivities: our Code of Ethics and the new |
Policy 'Respect for Human Rights at Eni' |
explicitly state this, and we demand the |
same promotion and protection from all |
the stakeholders with whom we main- |
tain relations. |
For Eni, Just Transition translates into a |
commitment to managing the social im- |
pact of transformation, maximising the |
opportunities for conversion of existing |
activities and development of new sup- |
ply chains that consider the Countries' |
specificities. We are convinced that a |
sustainable transition must be inclusive |
and able to bring tangible benefits to all |
The strategic path that Eni has undertaken and the future progress cannot be separated from our colleagues and partners' skills, ideas, and team spirit: in this sense, collaborations with insti- tutions, public and private stakeholders, international and civil society organisa- tions, universities, research institutes, and innovation hubs are fundamental. The awareness of the value of our skills and of these partnerships, the desire to integrate those who work alongside us, the sense of responsibility for the communities that host our activities worldwide are and will continue to be crucial elements for achieving the results that Eni has set itself.
Claudio Descalzi
Chief Executive Officer
6 2023 A JUST TRANSITION
Eni in the world
INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 7 | |||
With over 32,000 people, Eni is facing the triple challenge of ensuring affordable, reliable and increasingly sustainable energy that are essential for the function of the economy and society. In addition to focusing on a decarbonization strategy for the Group's products and industrial processes, with the aim of Carbon neutrality by 2050, Eni is committed to a socially fair and just energy transition, as stated in its Mission. This includes concrete actions to promote universal access to efficient and more sustainable energy by focusing on innovative and proprietary technological solutions, diversifying energy sources and while generating long-term shared value. To pursue a Just Transition, costs must be distributed fairly, without burdening vulnerable communities, introducing concrete plans and adopting alternative solutions that safeguard different geographies and actors while considering the whole system overall. The strong involvement of top management and the inclusion of all its people demonstrate Eni's ongoing commitment to ensuring the dissemination of core values for an ethical and socially just energy transition.
2023 KEY FACTS
7061
Years of history | Countries |
in the world | of presence |
2,630 | -30% |
Net Carbon Footprint | |
Persons hired | Eni vs. 2018 (Scope 1+2) |
R&D expenditure | Reuse of fresh |
in decarbonization | water |
+23% | €95 mln |
investments for local | |
training hours | development |
Eni's activities in the world
AMERICAS
- COUNTRIES
EUROPE
22 COUNTRIES
5
10
18
12
AFRICA
12 COUNTRIES
12
3
7
ASIA AND OCEANIA
19 COUNTRIES
13
3
9
2
Enilive, Refining and Chemicals | Exploration & Production | Plenitude & Power | Global Gas & LNG Portfolio |
2023 KEY FACTS
SUSTAINABLE MOBILITY
Enilive is born // JV with PBF Energy for the St. Bernard biorefinery in the USA // Feasibility study with LgChem for new biorefinery
in South Korea // HVOlution, the first 100% renewable feedstock diesel launched
(EU Directive) // Kenya Airways makes first flight from the African continent with SAF (Sustainable Aviation Fuel) supplied by Eni
RENEWABLES AND BIO CHEMISTRY
Inauguration of photovoltaic plants in Texas and Kazakhstan // Dogger Bank for offshore wind energy field in the UK goes into production // Agreement (completed in 2024) with Energy Infrastructure Partners (EIP) to enter Plenitude's share capital // Versalis completes the acquisition of
Novamont
DECARBONIZATION
Achievement of the Gold Standard under the UNEP OGMP 2.0 programme, the UN programme for the environment // Emission reduction agreements with Sonatrach, EGAS and ADNOC // Participation in the COP28 Oil & Gas Decarbonization Charter and the World Bank's GFRM Fund to reduce methane and gas
flaring emissions
CAPACITY BUILDING
Launch of the first international network on energy transition in Africa, born from the collaboration between Eni and Luiss University // Inauguration of the Oyo Centre of Excellence for Renewable Energy and Energy Efficiency with UNIDO in the Republic of Congo // Training and job placement at the Centre of Excellence for Access to Employment in Port Said, Egypt
EXPLORATION AND UPSTREAM
Growing role of gas with the discovery of Geng North inIndonesia and Nargis in Egypt // New Mexican offshore discovery // Start of production at Baleine in the Ivory Coast // Launch of the Congo LNG project with the introduction of gas into the Tango FLNG liquefaction plant // Acquisition of Neptune and Chevron's assets in Indonesia // Signature of a long-term LNG supply contract in Qatar
PEOPLE
Partnership with the International Labour Organization (ILO) to improve occupational safety and health of farmers involved in agri feedstock supply chains // Letter of Intent with Dompé for research on the health of people and communities
- Extraordinary action plan adopted to support 20,000 non-managementemployees
CARBON CAPTURE AND STORAGE
Strengthening of Eni's role in the UK for the development of the first regulated CCS business, with HyNet North West and the storage licence for Bacton // In Italy,
the Ravenna CCS project in the European list of Projects of Common Interest
INNOVATION
Agreement with CFS (Commonwealth Fusion Systems) to accelerate the industrialisation of fusion energy // Launch of ROAD (Rome Advanced District), a hub dedicated to technological research // Creation of Enivibes, a venture that enhances proprietary technology for pipeline monitoring
8 | 2023 A JUST TRANSITION | INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 9 | |||
Eni's activities: the value chain
Eni is an energy tech company engaged in the entire value chain: from the exploration, development and extraction of oil and natural gas, to the generation of electricity from natural gas and renewable sources, traditional and bio refining and chemical activities, and the development of circular economy processes. Eni extends its reach to end mar- kets, marketing gas, power and products to local markets and to retail and business customers also offering services of energy efficiency and sustainable mobility. Consolidated expertise, technologies, geographical and energy sources diversification, alliances for development, as well as new business and financial models are Eni levers to effectively meet the challenge of a just energy transition, balanced and economically sustainable, while also maintaining a strong focus on value creation for shareholders. Along this path, Eni is committed to become a leading company in the production and sale of progressively decarbonized energy products, increasingly customer-oriented.
Eni's strategy to reach carbon neutrality by 2050 leverages on an industrial transformation to be implemented by strengthening available and economically sustainable technologies able to immediately contribute to emission reduction, among which:
- Gas component as a bridge energy source in the transition, flanked by in- vestments to reduce CO2 and methane emissions;
- Development of biomethane and biofuels, by increasing feedstocks of bio and renewable raw materials, waste and residues and of an integrated agri feedstock production chain and contributing to transport decarboni- zation with no sudden changes to existing infrastructures;
- Renewables through increased installed capacity and integration with the retail business leveraging on large customer base;
-
Carbon capture utilization and/or storage (CCUS), currently available to reduce emissions in hard-to-abate sectors, through the development of
hubs for the storage of the CO2 from emissions generated by Eni's and third parties' industrial plants; - Progressive development of the production of new energy carriers, includ- ing low carbon and renewable hydrogen.
The scale use of these solutions together with research and development of breakthrough technologies, such as magnetic confinement fusion, can support the revolution of the energy sector. Residual emissions, i.e. those that cannot be reduced due to technical and economic constraints, will be offset through high quality carbon offsets.
OUR VALUE CHAIN
PRODUCTS SERVICES
REMEDIATION,
DEVELOPMENT OF
AGRI-FEEDSTOCK
PURCHASE
OF GAS FROM
THIRD PARTIES
OIL & GAS
PRODUCTION
PURCHASE OF BIO AND RENEWABLE RAW MATERIALS, WASTE AND RESIDUES
WATER AND WASTE
INTO DEVELOPMENT
FUEL | ||
BIOFUEL | ||
TRADITIONAL AND | ||
BIOREFINING | LUBRICANTS | |
AND PETROCHEMICALS | ||
TRADING | TRADITIONAL AND | |
& SHIPPING | BIOREFINING AND | |
PETROCHEMICALS |
FOOD
SERVICES
RETAIL
MARKETS
SUSTAINABLE
MOBILITY
E-MOBILITY
BUSINESS
MARKETS
ENERGY
EFFICIENCY
EXPLORATION
AND
DEVELOPMENT
PRODUCTION
FROM RENEWABLE
SOURCES
CARBON OFFSETS
THIRD PARTY INDUSTRY
TRANSMISSION | OIL & GAS | |||||||
NETWORK | ||||||||
ELECTRICITY GENERATION | ||||||||
ELECTRICITY | ||||||||
AND STEAM | ||||||||
CAPTURE, STORAGE | ||||||||
AND USE OF CO² |
PHOTOVOLTAICHOST COUNTRIES
NETWORK SERVICES
CCUS
10 2023 A JUST TRANSITION
Business model
INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 11 |
Eni is an integrated energy company supporting a socially fair energy transition that through concrete and economically
Eni is an integrated energy company supporting a socially fair energy transition that through concrete and economically sustainable solutions, aims to face the crucial challenges of our time: combating climate change and giving access to energy in an efficient and sustainable way for all.
The business model is aimed at creating long-term value for all stakeholders through a consolidated presence along the entire energy value chain. The Company's mission integrates the Sustainable Development Goals (SDGs) by the United Nations 2030 Agenda and our distinctive approach permeates all our activities. Eni continues its commitment to energy security, continuing to ensure value creation while advancing its transition strategy
VALUE CREATION FOR STAKEHOLDERS
Through an integrated presence all along the energy value chain
sustainable solutions, aims to face the crucial challenges of our time: combating climate change and giving access to energy in an efficient and sustainable way for all
with a technologically neutral and pragmatic approach aimed at maintaining the competitiveness of the production system and social sustainability. These objectives are based on a diversified geographical presence and a portfolio of technological solutions to enable the creation of an increasingly decarbonized energy mix. Essential to the achievement of these objectives are partnerships and alliances with stakeholders to ensure and active involvement in shaping Eni's activities and in transforming the energy system.
The model combines the use of proprietary technology with the development of an innovative satellite model. This involves the creation of dedicated companies capable of independently accessing the capital market to finance their growth while bringing out the real value of each business. This integrated business model is supported by a Corporate Governance system inspired by the principles of transparency and integrity, an Integrated Risk Management Model ensuring, through the assessment and analysis of the risks and opportunities of the reference sce- nario, informed and strategic decisions, as well as materiality analysis to examine the most significant impacts generated by Eni on the economy, environment and people, including those on human rights.
The operation of the business model is focused on the best possible use of all the resources (inputs) available to the organisation and on their transformation into outcomes, through the implementation of its strategy. Eni also organically integrates its business plan with the principles of environmental and social sustainability, deploying its actions along three levers:
INPUT(*)
516.2 mln total GJ
energy consumption
33,142
employees(***)
over
300,000 km2
oil & gas exploration/ development licences
CARBON | OPERATIONAL | ALLIANCES |
NEUTRALITY | EXCELLENCE | FOR |
BY 2050 | DEVELOPMENT | |
Products and | Approach to lead | Value creation shared |
processes | the transformation | with host countries |
decarbonization |
STRATEGY E TARGET
OUTPUT(*)
-10%
Net Carbon footprint upstream (Scope 1+2)
0.40 TRIR
(recordable
injuries/hours
worked)
~900 mln boe
new resources
3.1 GW
CARBON NEUTRALITY BY 2050
Eni's business model envisages a decarbonization path towards Carbon neutrality by 2050 based on an approach oriented to emissions generated throughout the life cycle of energy products. This path, achieved through existing and under development technologies, will allow Eni to totally reduce its carbon footprint, both in terms of net emissions and net carbon intensity. On the back of this scenario, Eni believes natural gas having a role as a bridge energy source in the transition by virtue of its accessibility, reliability, versatility and reduced carbon footprint compared to other fossil fuels.
Agri-feedstock from 7 Countries
10.1 mln
customers
€70 bln
capital employed
V | ||||||||||||||||||||
D A | ||||||||||||||||||||
E | L | |||||||||||||||||||
T | U | |||||||||||||||||||
A | ||||||||||||||||||||
E | C | |||||||||||||||||||
R | ||||||||||||||||||||
G | ||||||||||||||||||||
E | H | |||||||||||||||||||
E | T | A | ||||||||||||||||||
I | ||||||||||||||||||||
C | N | N | ||||||||||||||||||
N | I | |||||||||||||||||||
A | R | |||||||||||||||||||
N | I | |||||||||||||||||||
S | ||||||||||||||||||||
K | ||||||||||||||||||||
R | M | |||||||||||||||||||
E |
Eni Group renewable capacity
1.65 mln ton/y
biorefinery capacity
€4.8 bln
shareholders remuneration
OPERATIONAL | Eni's business is aimed at operational excellence through the continuous commitment |
EXCELLENCE | in the enhancement, health and safety of people, assets integrity, environmental protec- |
tion, respect for human rights, resilience and diversification of activities and financial | |
soundness. These elements allow Eni to seize the opportunities deriving from the possi- | |
ble developments in the energy market and to progress its transformation path. | |
ALLIANCES | Eni is committed to reduce energy poverty in the countries where it operates through |
FOR | the development of infrastructures relating to the traditional business but also to the |
DEVELOPMENT | new frontiers of renewables aiming at generating value in the long term by transferring |
its know-how and skills to local partners (so called "Dual Flag" approach). In these | |
countries, Eni promotes initiatives to support local communities accessing to energy, | |
to diversify economy, training and health of community, access to water and sanita- | |
tion, and protection of the territory, in collaboration with international players and in | |
line with the National Development Plans and the United Nations 2030 Agenda. |
~9,900
patents
Strategic acquisitions
€95 mln
investments for local development
€9.2 bln
capex
V | NATURAL | ENERGY | A | |||
RESOURCES | EVOLUTION | |||||
O | ||||||
MISSION | N | |||||
G | ||||||
A | ||||||
PROPRIETARY | ENERGY SOURCES | |||||
E | G | |||||
TECHNOLOGIES AND | DIVERSIFICATION | |||||
T | BREAKTHROUGH | E | ||||
A | M | |||||
R | ||||||
SATELLITE | DEEP PORTFOLIO | N | E | |||
O | MODEL | OF OPPORTUNITIES | T | |||
P | |||||||||||
R | |||||||||||
O | F | E | |||||||||
C | I | I | |||||||||
N | A | L | |||||||||
I | |||||||||||
N | C | P | |||||||||
C | |||||||||||
S | |||||||||||
IAL DI |
€16.5 bln
adjusted cash flow
€17.8 bln
proforma adj. EBIT
1.66 mln boe/d
hydrocarbon production
~450 thousand
people involved in local development projects(**)
(*) At December 31, 2023 and/or in 2023, unless stated otherwise.
(**) People involved in local projects could have benefitted from more than one initiative in different areas of opportunity.
(***) This figure differs from the one published in the Consolidated Disclosure of Non-Financial Information (NFI) in Eni for, as it does not include only the fully consolidated.
12 2023 A JUST TRANSITION
Context: progress and challenges of the transition
INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 13 | |||
~760mln
people have no access to electricity
Over 2 billion people use biomass for cooking
GLOBAL CHALLENGES
The challenges the world energy system must face in the immediate and coming years appear increasingly complex, dictated by the changing global context and multiple crises that make energy transition and economic security an interconnected priority. Ensuring the transition to a decarbonized energy system that is both secure and affordable for all, will not be possible without security of supply, which is essential to ensure economic growth, and universal and sustainable access to energy. The energy transition must be balanced, economically sustainable, and, in the immediate term, built with available technologies capable of ensuring the proper supply of an energy system that is fundamental to the industrial system and all major essential activities. It must also be a driver of future transformation. Energy consumption is linked to demographic change, economic development and improved living condi-
tions for the global population. However, today around 80% of the world's population is concentrated in emerging Countries where per capita energy consumption is well below that of developed Countries. The economic and demographic development of these Countries, increasing urbanisation and the transition to higher living standards will require more and more energy and a fair transition. This will require lasting solutions in the medium- to long- term. In Sub-Saharan Africa, for example, the increase in population over the years has not been matched by a commensurate increase in access to energy. The real challenge for the energy transition is to ensure universal access to energy while reducing carbon emissions. Primary energy consumption on a global scale is still closely linked to the use of fossil sources for about 80%, among which coal (the highest polluting fossil source) still accounts for 27% of the total with particularly high percentages
in Asian economies (45% in India, 61% in China) and residual in developed Countries (13% in the EU and 11% in the US). The economic and demographic grown of the next few decades lead to hypothesizing an increase in energy demand driven by the needs of emerging economies, while industrialised Countries will see a gradual slowdown in consumption, mainly driven by energy efficiency enhancement and energy saving processes. Fossil sources will continue to play an essential role in the energy mix, also thanks to CCUS, which allows for a lower emission profile. However, they are expected to decrease compared to today, mostly due to a lower amount of carbon to replace with lower impact sources such as gas and renewables. Breakthrough technologies such as magnetic confinement fusion may enter the mix and, together with new sources/vectors, will help reduce the carbon footprint of the world's energy system.
TRANSITION PROGRESS AND CHALLENGES
The Intergovernmental Panel on Climate Change (IPCC) underlines the need to achieve Net Zero for CO2 emissions around 2050 in order to limit the temperature increase to 1.5°C compared to preindustrial times by the end of the century. In this regard, the latest IPCC reports (AR6) identify several compatible scenarios, which call for the decarbonization of the energy system through the combined application of a number of levers. The IPCC's main messages were the focus of COP28, which concluded with the unanimous agreement on the Global Stocktake, taking stock of progress towards the Paris Agreement goals and identifying measures, best practices and opportunities to strengthen climate action. This major breakthrough in the negotiations includes new elements such
as: targets for 2030 to triple renewable energy sources and double the rate of increase in energy efficiency; definition of a global framework on adaptation; a fund to compensate for the loss and damage of climate change in the most vulnerable developing Countries (Loss and Damage Fund); for the first time, a commitment to negotiating text for a fair, orderly and equitable transition away from fossil fuels ('transitioning away'); recognize the need, to increase the deployment of all low- and zero-emission technologies with a technology-neutral approach, such as renewables, nuclear, CCS; and the role of transition fuels (e.g. biofuels). The large number of scenarios illustrated by the IPCC and the multiple levers suggested within the COP shows the difficulty of tracing unambiguous energy transition trajectories due to the simultaneous action of several variables. These include geopolitical evolutions, decarbonization policies
(which are extremely uneven geographically), and different speeds of adjustment between energy supply and demand in different Coun- tries. The International Energy Agency (IEA) also publishes a series of scenarios annually in the World Energy Outlook (WEO). They are based on detailed energy demand forecasts by sector, built on specific demographic and economic variables for the coming decades:
- Forecasting, which produces trajectories of energy consumption trends using de- mographic/economic inputs and existing or likely future policies/ambitions stated (STEPS - Stated Policies Scenario and APS - Announced Pledges Scenario);
-
backcasting, which identify backward trajec- tories compatible with one or more targets imposed through the use of technologies even in the demonstration phase, the hy- pothesis of a sudden change in consumer habits and an acceleration of the efficiency of final consumption (NZE scenario - Net
Zero Emissions).
GLOBAL EMISSIONS FROM FUEL COMBUSTION BY REGION IN 2022
MAIN INDICATORS FOR THE INTERNATIONAL ENERGY AGENCY (IEA) SCENARIOS
Rest of the world
47%
Source: International Energy Agency, "World Energy Outlook 2023".
India | ||
China | 33% | |
USA | 13% | 7% |
NZE
(Net Zero Emissions)
Backcasting scenario. It identifies
backward a possible path compatible to target net zero emissions by 2050, with different speeds between advanced and
APS
(Announced Pladges Scenario)
Forecasting scenario. Analyses the implications in terms of emissions and energy demand if all the net zero targets announced by Governments are actually met and
STEPS
(Stated Policies Scenario)
Forecasting scenario. It identifies
an evolutionary trajectory derived from economic, demographic inputs and includes all policies implemented and planned by
SCENARIO
THE EVOLUTION OF GLOBAL ENERGY DEMAND
developing economies.
within the planned timelines.
Governments.
Final energy consumption per capita (GJ)
200
Key economic and energy indicators in 2022 highlight different starting points, among the regionally selected Countries, the United States has both the highest per capita income and the highest energy demand, while Africa has the lowest
100
Population (millions of people)
GDP per capita (USD 2022, PPC)
1,424
5,800
76,000
336
50,400
177
approx. 1.4°C
5.2% in 2030
- 14% reduction in global energy demand compared to 2022, despite a growing global economy and a growing population of about 1.7 billion
- immediate investments are needed to adapt and innovate existing energy systems
approx. 1.7°C
2.3% in 2030
3.9% in 2050
- almost in line with current levels with an increased role of low carbon sources
- although declining, the maintenance of a significant role for Oil & Gas in the energy mix (30% by 2050 vs. the current 52%), growth of intermittent renewables (28% of the mix by 2050 vs. the current 2%) and nuclear (9% of the mix vs. the current 5%)
approx. 2.4°C
0.6% in 2030
0.8% in 2050
- growth of 15%, mitigated by the push towards energy efficiency
-
the maintenance of a significant role for Oil & Gas in the energy mix (45% by 2050
vs. the current 52%) and growth of intermittent renewables (16% of the mix by 2050 vs.
the current 2%)
EXPECTED TEMPERATURE INCREASE @2100
AVERAGE % REDUCTION OF CO2 EMISSIONS(*)
GLOBAL ENERGY DEMAND @2050
Africa | India | Southeast | Latin | China | European | Middle | Japan | Eurasia | United |
Asia | America | Union | East | and | States | ||||
and Caribbean | South Korea |
(*) Includes emissions from industrial processes and flaring.
Source: International Energy Agency, "World Energy Outlook 2023".
14 | 2023 A JUST TRANSITION | INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 15 | |||
Material topics for Eni
Materiality analysis aims to identify the sustainability topics most relevant to Eni and its sta- keholders. The material topics are instrumental for defining the Strategic Plan - the origin of the formulation of the sustainability Managerial Objectives (MBO - Management by Objectives) for all managers - and directing reporting. The analyses of the socio-economic, environmental and cultural contexts of the Countries where Eni operates help to break down Strategic Plan priorities at the local level and define local development promotion activities. The materiali-
ty analysis, updated in 2023, led to identifying relevant topics from the impact relevance per- spective, as required by the GRI Standards. This perspective considers material topics related to the most significant impacts (positive and ne- gative, actual and potential) of the organisation on the economy, environment and people, including impacts on human rights. In addition, as in 2022, the analysis also considered identifying the relevant topics by analysing the risks of the Integrated Risk Management model (financial materiality)1. This analysis confirmed the iden-
tification of impact-based topics. Analysis of both perspectives represents a preliminary financial statement carried out in relation to future CSRD forecasts on double materiality2 Eni is conducting the required in-depth analyses considering the ongoing regulatory development. Eni's materiality process included the following steps:
- Identification of relevant issues and their im- pacts, combining the results of the 2022 mate- riality analysis with the most significant ones
for the 2023 context and sector of operation, also based on the GRI Sector Standard for Oil
& Gas;
- Evaluation of the topics: (i) Impact Materiality perspective to GRI standard, submitting a que- stionnaire to internal and external stakehol- ders3 to assess the importance of the topics based on the significance of the impacts and their likelihood of occurrence (Stakeholder en- gagement activity); and (ii) Financial Materiali- ty perspective - considering the results of the
Integrated Risk Management risk assessment process Integrated Risk Management Model;
- Prioritisation of topics according to impact and financial analysis carried out separately. The topics submitted for evaluation, which were all found to be material, were divided into three dif- ferent significance levels;
- Sharing the results of the materiality analysis with the Control and Risk Committee, the Sustainability and Scenarios Committee and BoD. The final Eni
document for 2023 was submitted to the Sustainability and Scenarios Committee, the Management Committee and subsequently approved by the BoD.
Under the changing context, the analysis results show a certain dynamism over time, both in terms of significance and the merger/subdivision4 of a few to- pics. The table below shows the results of the materiality analyses. It also shows some current/potential positive and negative impacts, by way of non-limiting examples, and the trend compared to the last financial year as well as the business sector, Upstream or Mid-downstream, in which these could materialise.
TOPIC
CLIMATE CHANGE
SDG: 7 9 12 13 15 17
HUMAN CAPITAL
SDG: 4 5 8 10
IMPACT MATERIALITY
Positive Impacts
Investments in zero- and low-carbon technology
Developing employees' skills and improving career opportunities through training activities
Sector where | FINANCIAL MATERIALITY* | ||||
TREND | TREND | ||||
Negative Impacts | Significance | the impact | compared | Significance | compared |
occurs | to 2022 | to 2022 | |||
Climate-changing emissions in the course of their activities or along the value chain
Lack of employee skill development, non-compliance with contractual rules, freedom of association and collective bargaining, job insecurity
EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
SDG: 3 4 5 8 10
OCCUPATIONAL HEALTH AND SAFETY AND PROCESS SAFETY
SDG: 2 3 6 8 9 11 14
POLLUTION
SDG: 3 6 9 12 14
WATER RESOURCES
SDG: 6
BIODIVERSITY AND ECOSYSTEMS
SDG: 14 15
CIRCULAR ECONOMY AND WASTE MANAGEMENT
SDG: 6 12 14 15
HUMAN RIGHTS
SDG: 1 2 3 8 10 16
RESPONSIBLE SUPPLY CHAIN MANAGEMENT
SDG: 3 5 7 8 9 10 12 13 16 17
CUSTOMER RELATIONS
SDG: 7 12 16
BUSINESS CONDUCT
SDG: 16 17
Increase employee well-being through adequate welfare and equal opportunity plans | Negative impacts on the well-being of workers and their families and cases | ||||||||||||||||||||
of discrimination | |||||||||||||||||||||
Increased health and safety awareness of employees through training activities and service reliability through | Injuries and/or damage to employees' health due to potential hazards and | ||||||||||||||||||||
exposure to hazardous substances, as well as service disruptions and impacts | |||||||||||||||||||||
proper maintenance and constant monitoring of infrastructure and asset integrity | |||||||||||||||||||||
on the environment and people caused by accidents and infrastructure failure | |||||||||||||||||||||
Climate-changing air emissions (NOX, SOX, NMVOC, and PM) during their | |||||||||||||||||||||
activities or along the value chain. Water and/or soil pollution caused by oil | |||||||||||||||||||||
spills from Eni-owned infrastructure | |||||||||||||||||||||
Water scarcity and water quality deterioration at sites where Eni operates | |||||||||||||||||||||
Creation of new natural habitats through the use of abandoned structures, land conservation projects, land resto- | Loss of biodiversity at sites where Eni operates | ||||||||||||||||||||
ration/land remediation and forest conservation | |||||||||||||||||||||
Reducing the use of natural resources through practices and processes aimed at recycling and recovery | Environmental impact due to incorrect waste management | ||||||||||||||||||||
Protection and respect of human rights through due diligence on corporate activities and those of suppliers and | Violation of the human rights of workers, local communities and indigenous | ||||||||||||||||||||
commercial partners | peoples | ||||||||||||||||||||
Spreading environmental and social sustainability principles through the involvement of suppliers and supply | Suppliers' violation of workers' rights and negative environmental impact | ||||||||||||||||||||
chain partners | |||||||||||||||||||||
Fostering strong customer relationships through engagement, listening and customer care | Interruption of the service offered (e.g. energy supply) to customers for rea- | ||||||||||||||||||||
sons attributable to Eni | |||||||||||||||||||||
Incidents of corruption and illegal conduct with possible economic repercus- | |||||||||||||||||||||
Creating economic value in the territories of presence with investments, payment of taxes and royalties | sions on markets and companies caused by tax evasion, monopolistic poli- | ||||||||||||||||||||
cies and lobbying practices |
CLOSURE AND REHABILITATION
SDG: 4 8 11 14 15
LOCAL DEVELOPMENT AND ACCESS TO ENERGY
SDG: 1 2 3 4 5 6 7 8 9 10 13 15 17
DIGITALIZATION AND CYBER SECURITY
SDG: 7 9 12 13 16
Re-use of abandoned facilities, materials and plants for the benefit of local communities
Development of communities and local entrepreneurship through initiatives in various policy areas, including partnerships and business agreements with local suppliers, creating infrastructure, and improving the service quality in remote areas
Innovative initiatives for the development of company processes, partner support and improving cyber security in Countries of presence through partnerships with institutions and companies
Loss of jobs and failure to develop employees' skills due to plant or site closures
Violations of community rights, well-being and involuntary resettlement, unequal compensation, exploitation of natural resources to the detriment of local communities, and inefficiency of the distribution network with effects on the community and environment
Loss of data and personal information of employees, customers, partners, ecc.
1 The limited audit by the Independent Auditors (PwC SpA) on the Eni for refers to the GRI standard. Its conclusions do not extend to any information resulting from the preliminary exercise carried out in relation to future | |||||||||
CSRD forecasts on the analysis of double materiality. | |||||||||
2 Please note that interpretative guidelines on double relevance analysis prepared by EFRAG (so-called Materiality Assessment Implementation Guidance) will be published in 2024. | |||||||||
3 In 2023, about 7,500 stakeholders were engaged for the materiality analysis. | |||||||||
4 Compared to the previous analysis, some topics have changed in 2023: (i) "Occupational and Process Health and Safety" has been merged with "Asset Integrity"; (ii) the following were merged: "Local Development" | |||||||||
Carbon neutrality to 2050 | Operational Excellence | Alliances for Development | Transversal themes | Upstream | Mid-downstream | and "Energy Access", "Local development" and "Access to energy", and "Innovation" and "Digitalization and Cyber Security"; (iii) "Reduction of environmental impacts" was subdivided into: "Pollution", "Biodiversity and | |||
ecosystems", and "Water resources"; (iv) "Transparency, anti-corruption and tax strategy" was changed to "Business conduct". | |||||||||
(*) The limited audit by the Independent Auditors (PwC SpA) on the NFI refers to Legislative Decree 254/16 and the GRI standard. Its conclusions do not extend to any information resulting from the preliminary exercise | |||||||||
carried out in relation to future CSRD forecasts on the analysis of double materiality. |
16 2023 A JUST TRANSITION
Stakeholder Engagement Activities
INTRODUCTION | CARBON NEUTRALITY | OPERATIONAL EXCELLENCE | ALLIANCES FOR DEVELOPMENT | 17 | |||
Stakeholder engagement is a central issue for Eni to pursue a fair and equitable transition, as such participation helps maximise long-term value creation while reducing business risks. Also in line with the Code of Ethics, Eni maintains relations based on principles such as fair- ness, legality, transparency, traceability, respect for human rights, inclusion, gender equality and protection of the environment and communities. Participation in and sharing of company choices,
objectives and results foster solid relationships and mutual trust and are even a vital component of the materiality process. Eni's cornerstones include the attention to relations with stakeholders of interest present in all Countries where it operates (61) by guaranteeing an active and constant dialogue, taking their needs into account, and tracking requests and complaints in a structured and transparent manner. To support the relationship with local stakeholders, Eni uses the
company's "Stakeholder Management System" application, which maps over 5,800 stakeholders and allows a constant and punctual management of grievances, requests and critical issues. The table below represents the most relevant issues for Eni's key stakeholder categories emerged from the materiality analysis, as well as any additional issues reported by the corporate functions responsible for relationships with that specific category.
management | safety | for | all | energy | Security | |||||||||||||||||||||||
and | management | opportunities | Cyber | |||||||||||||||||||||||||
change | health | ecosystem Right | resources | relations | conduct | rehabilitationand access | to | |||||||||||||||||||||
and | waste | process | chain | Pollution | capital | and | and | |||||||||||||||||||||
economy | treatment | and | Human Water | Closure | and | digitalization | ||||||||||||||||||||||
and | supply | Biodiversity | Customer | development | ||||||||||||||||||||||||
Climate | Human | Business | ||||||||||||||||||||||||||
Circular | Occupational Responsible | Equal | Local | Innovation, |
CATEGORIES | 2023 MAIN ENGAGEMENT ACTIVITIES |
ENI'S PEOPLE | Professional and training paths on emerging skills related to business strategies and development of entrepreneurship // |
Training and awareness-raising initiatives to support inclusion, recognition of the value of all types of diversity and zero | |
AND NATIONAL | |
tolerance // Initiatives supporting team building and mobility to foster internationality // Initiatives to develop young resources | |
AND INTERNATIONAL | |
under 36 // New Golden Rules and Eni Principles of Process Safety campaign with special focus on the Stop Work Authority // | |
UNIONS | |
Finalisation and/or signing of agreements with trade unions including Remote Work in Italy and its gradual extension abroad | |
Capital Markets Day (strategic plan for 2023-26 and long-term to 2050) and Virtual Road-Show in major financial centres // | |
FINANCIAL | Road-Shows with investors and proxy advisors on the remuneration of executives // Conference call on quarterly results // |
Top management participation in conferences organized by banks // Participation in thematic conferences and continuous | |
COMMUNITY | |
engagement with institutional investors and leading ESG rating agencies // Please note that "Strategy and Economic-Financial | |
Performance" is a relevant topic in addition to the sustainability topics on the right | |
LOCAL COMMUNITIES | Consult with local Authorities and communities for new exploration activities and/or the development of new business projects |
AND COMMUNITY BASED | and local development projects // Management of requests and grievances of local communities // Regular communication on |
ORGANISATIONS | project progress // Local community awareness campaigns on health issues and the use of improved cookers |
CONTRACTORS, | Supplier awareness-raising, involvement and training initiatives and industry workshops to foster sustainability awareness |
SUPPLIERS AND | throughout the supply chain // Expansion of the Open-es community and reinforcement of the initiative with more tools and |
COMMERCIAL | services (e.g. training programmes on ESG issues) // Extension of the application of the risk-based due diligence model on |
PARTNERS | human rights to prevent and mitigate risks along the entire supply chain // Sustainable Supply Chain Finance Programme |
Regular interactions with Consumer Associations (CAs) to: present results, objectives and future strategies; meetings | |
CUSTOMERS | and workshops with Presidents, General Secretaries and Energy Managers of national and local CAs on issues related to |
sustainability, energy transition, circular economy, digitization and commercial initiatives; share results on protocol monitoring | |
AND CONSUMERS | |
for the prevention of unsolicited activations; improve customer satisfaction and service quality, also through dedicated | |
channels and reserved web area | |
Participation in economic promotion initiatives, meetings and round tables on topics related to business, geopolitical and | |
NATIONAL, | energy scenarios, sustainable development and new technologies // Representation of Eni's positioning on energy transition and |
INTERNATIONAL | decarbonization at public events and major international multilateral fora (e.g. G20, B20, COP28) // Institutional engagement and |
AND EUROPEAN | dialogue, also in the context of partnerships and memberships, with think tanks, associations and international organizations |
INSTITUTIONS | on energy and ecological transition, innovation and sustainable mobility // Project presentations, visits by associations, |
institutional and political delegations to industrial facilities, operational sites and research centres | |
Collaboration with: a) Italian universities: Milan and Turin Polytechnics, Universities of Bologna, Bicocca, Federico II, Pavia, Padua, | |
UNIVERSITIES, | Pisa, INSTM Inter-University Consortium; b) Research Centres: CNR, ENEA and INGV; c) the MIT; d) as a founding partner under the |
RESEARCH CENTRES | PNRR, 4 National Research Centres, 2 Innovation Ecosystems, 2 Extended Partnerships // Launching of ROAD - Rome Advanced |
AND INNOVATION | District, a technological research hub dedicated to new energy chains // Launching of new alternating school-work projects to |
HUBS | combat school drop-outs // Presence in the main national and international innovation hubs, agreements with innovation brokers, |
incubators and start-up accelerators | |
ADVOCACY | Membership of and participation in OGCI, IETA, WEF, IPIECA, WBCSD, UN GLOBAL COMPACT, EITI, The Council for Inclusive |
ORGANISATIONS | |
Capitalism, UN Energy Compact and collaboration with international human rights institutions // Conferences, debates, events | |
AND TRADE | |
and training initiatives on sustainability issues; creation of guidelines and sharing of best practices, capacity building for the | |
ASSOCIATIONS, | |
generation and use of carbon credits // Meetings with local business and trade associations for sustainable supply chain, energy | |
CONFINDUSTRIAL | |
issues and to support business through position analyses and studies for energy transition | |
ASSOCIATIONS | |
ORGANISATIONS | Collaboration/partnership agreements with cooperation organisations to consolidate development activities in Countries. |
Agreements with UN agencies (UNIDO, UNESCO and IOM) and civil society organisations (ADPP, AVSI, Banco Alimentare and Oikos) | |
FOR DEVELOPMENT | |
// Collaborations with national cooperation agencies (AICS and USAID), private sector organisations (CNH Industrial and IVECO | |
COOPERATION | |
Group), host Country ministries and civil society organisations | |
RELEVANT TOPICS
THE YEAR IN NUMBERS
~300 initiatives in support of the internationalization
of Eni resources
~5,000 people invited to the Engagement Survey of valorisation of resources under 36
~670 funds met
~270 meetings/calls with investors and agencies
139 grievances handled
782 local communities mapped (including indigenous)
>15,000 companies participating in Open-es
500 Consumer Association representatives met
75 Scholarships funded/co-funded for PhDs
6 Joint Research Centres in Italy with 28 active projects
8 entrepreneurial development hubs active in Italy and 2 abroad (Kenya and Congo)
>100 incubated/accelerated innovative start-ups
28 agreements signed
for socio-economic development and health initiatives
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Eni S.p.A. published this content on 15 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 May 2024 11:28:10 UTC.