Eni for 2023 – A Just Transition: Introduction

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)

70%90%

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

1. 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 in Indonesia 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

18

2023 A JUST TRANSITION

INTRODUCTION

CARBON NEUTRALITY

OPERATIONAL EXCELLENCE

ALLIANCES FOR DEVELOPMENT

19

Eni's commitments

The Mission clearly expresses Eni's commitment to supporting a socially	is to achieve net zero emissions by 2050, with a view to sharing social
just energy transition, with the aim of preserving the planet and promoting	and economic benefits with workers, the value chain, communities and
efficient, sustainable access to energy resources for all, contributing to	customers in an inclusive, transparent and socially equitable manner. In
achieving the Sustainable Development Goals (SDGs). Eni's commitment	addition, to contribute to the achievement of the SDGs and to the growth

COMMITMENTS

of the Countries in which it operates, Eni is committed to building alliances	the Board of Directors examines and approves the Strategic Plan (four-year
with national and international development cooperation actors. The com-	plan and medium- to long-term plan), which includes industrial business
mitments for each topic are aligned with the Four-Year Plan and can be up-	targets, financial performance and sustainability targets, including emis-
dated and/or redefined between editions. On recommendation by the CEO,	sion targets.
MAIN RESULTS 2023	MAIN TARGETS

COMBATING
CLIMATE CHANGE	Immitting to reach net zero GHG emissions for all its products and processes by 2050.
SDG 7 9 12 13 15 17

•	-40% Net Carbon Footprint UPS and -30% Net Carbon Footprint Eni vs. 2018
• -21% Net GHG Lifecycle Emissions vs. 2018
•	-4% Net Carbon Intensity vs. 2018
•	+0.5 p.p. female population vs. 2022

•	Net Zero Carbon Footprint Upstream in 2030 and Eni in 2035
•	Net Zero GHG Lifecycle Emissions and Carbon Intensity in 2050
•	+4 p.p. vs. 2020 of the female population by 2030

PEOPLE

SDG 3 4 5 8 10

HEALTH

SDG 2 3 6 8

SAFETY

SDG 3 8 9 11 14

RESPECT FOR THE ENVIRONMENT

SDG 3 6 9 11 12 14 15

HUMAN RIGHTS

SDG 1 2 3 8 10 16

SUPPLIERS

SDG 3 5 7 8 9 10 12 13 16 17

TRANSPARENCY, ANTI-CORRUPTION AND TAX STRATEGY

SDG 16 17

Eni is committed to supporting the Just Transition process by consolidating and developing skills, enhancing every dimension (professional and otherwise) of its people and recognizing the values of diversity and inclusion.

Eni considers protecting the health of its people, workers, families and communities in the Countries where it operates a fundamental human rights and promotes their psycho-physical and social well-being by placing Health at the centre of its operating models.

Eni believes that safety at work is a basic right and an essential value shared by employees, contractors and local stakeholders to prevent accidents and protect the integrity of assets.

Eni promotes the protection of the environment and biodiversity through the identification, prevention and mitigation of potential impact, as well as through efficient management of resources with actions aimed at improving energy efficiency and adopting the principles of a circular economy.

Eni is committed to respecting human rights in its activities and to promoting such respect with partners and stakeholders. This commitment is based on the dignity of every human being and on companies' responsibility to contribute to the well-being of individuals and of local communities.

Eni is committed to sustainably develop its supply chain, involving and supporting companies with concrete tools to facilitate growth and improvement on ESG dimensions.

Eni carries out its business activities with loyalty, fairness, transparency, honesty, integrity and in compliance with the laws.

•	Women's turnover rate is higher than men's
•	+0.7 p.p. female personnel in positions of responsibility vs. 2022
•	+1.2 p.p. population under 30 vs. 2022
•	+23% training hours vs. 2022
•	€57.9 million for Health activities, including expenditure on Community Health initiatives
•	70% employees with access to psychological support service
•	49 sensors tested at Italian on-shore sites for digital monitoring of indoor healthy working
	environment
•	Total Recordable Injury Rate = 0.40
•	5 applications of the THEME model on-site
•	Digitalization of HSE processes
•	>2K resources trained on the "Process Safety in Eni" course
•	90% reuse of freshwater
•	+25% waste generated from production activities vs. 2022
•	60% re-injection of produced water from the E&P sector
•	100% of new projects with human rights risk assessed with specific analysis
•	170 participants from Security Forces in the Security & Human Rights workshop in Iraq
• 100% of new suppliers assessed according to social criteria
•	100% of strategic suppliers' headquarters assessed on sustainable development path
•	Procurement processes with ESG assessment for 85% of Italian awarded contracts and 20% of
•	foreign awarded contracts value
1,600 foreign local suppliers on Open-es platform
•	Passing the ISO 37001:2016 recertification audit
•	Obtaining ISO 37301:2021 certification of Eni SpA's Compliance Management System
•	Start delivery of the new e-learning course on the Anti-Corruption Compliance Programme to
	medium and high-risk employees

•	+3.8 p.p. female personnel in positions of responsibility vs. 2020
•	+6.5 p.p. population under 30 by 2030 vs. 2020
•	+2 p.p. in 2030 presence of non-Italian employees in positions of responsibility vs. 2020
•	+20% training hours by 2027 vs. 2023
•	~€279 million for Health activities 2024-2027
•	85% of employees with access to psychological support service by 2027
•	100 sensors tested by 2027, including Italian off-shore sites and abroad for digital monitoring
	of indoor healthy working environment
•	Maintenance of the TRIR ≤0.40 in the four-year period 2024-2027
•	Extension of the Smart Safety initiative to 60 contractors
•	Implementation of technical & behavioural safety coaching initiatives
•	Commitment to minimise freshwater withdrawals in water-stressed areas
•	Reuse of freshwater in line with the trend of the past 5 years
•	Re-injected produced water in line with the trend of the last 5 years, considering the same
•	area of consolidation
Development of new technologies for waste recovery and implementation on an industrial scale
•	Commitment, in remediation works, to implement sustainable technological solutions
	inspired by the principles of a circular economy
•	100% of new projects with human rights risk assessed with specific analysis
•	100% on-time completion of the actions outlined in the Action Plans
•	Maintain position in the 10th decile of the Corporate Human Rights Benchmark
•	Update of Eni's salient issues
•	Keep 100% of new suppliers assessed according to social criteria
•	100% of worldwide strategic suppliers assessed on the sustainable development path by
•	2025
Procurement processes with ESG assessment for over 90% of Italian awarded contracts and
•	50% of foreign awarded contracts value by 2024
65% of the total value of active contracts awarded to suppliers registered on Open-es by 2025
•	2,000 foreign local suppliers involved on Open-es by 2024
•	Delivery of the Anti-Corruption Compliance Programme course to the entire medium-high risk
•	population
Maintain ISO 37001:2016 and ISO 37301:2021 certification

ALLIANCES FOR	The Alliances for Development represent Eni's commitment to an equitable transition with a broad portfolio of community-
DEVELOPMENT
based initiatives.
SDG12345678910131517
TECHNOLOGICAL	For Eni, research, development and rapid implementation of new technologies are an important strategic lever to drive
INNOVATION
business transformation.
SDG 7 9 12 13 16

•	35,500 new students supported with access to education; 19,000 people supported with
	professional development for economic empowerment(a); 62,000 people supported with access
	to drinking water; and 330,000 people supported with access to health services
•	70% of R&D expenditure is dedicated to decarbonization activities

•	2030 beneficiaries by sector: 103,000 access to education; 15.9M access to clean cooking(b);
	86,000 access to electricity(c); 21,000 economic development; 590,000 access to drinking water;
	1M access to health services; 85,000 environmental and biodiversity protection activities
•	Maintaining 70% of R&D expenditure on decarbonization issues each year for the four-year
	period 2024-2027

1. The beneficiaries include only those trained and/or supported for the start-up or strengthening of specific economic activities, not beneficiaries of the construction of infrastructure (roads, civil buildings, etc.) or new agri-business activities being started. In some cases, beneficiaries are not trained but receive input, funding or other support to start businesses.

1. The Clean Cooking initiatives involve replacing existing inefficient cooking techniques with higher efficiency stoves that reduce the carbon footprint of cooking activities by mitigating the impact on natural resources, while simultaneously improving the health and quality of life of users and allowing for time and economic savings.
2. Access to electricity provided through local development initiatives is considered, not through Eni's energy supply to the local market.

20	2023 A JUST TRANSITION

Eni's approach to the SDGs

INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	21

Governance and sustainability safeguards

In the transformation path that Eni has	Development Goals in its principles and	awareness of the SDGs. Furthermore, Eni
embarked on, the SDGs represent an	values, integrating the SDGs into its	participates in international sustainability
important reference for its activities	governance, business activities and local	initiatives and has initiated partnerships
in the Countries where it operates. Eni	development projects, financial instruments	both locally and with international bodies to
draws inspiration from the 17 Sustainable	and training activities to spread and promote	further the achievement of the SDGs.

SUSTAINABILITY

GOVERNANCE

Board of Directors

and Committees

Eni's Corporate Governance system, based on integrity and transparency principles, supports the integration of sustainability into the business

(Corporate Governance Report). This is implemented in the powers that the Board of Directors (BoD) has decided to reserve to its exclusive competence, with the aim of further consolidation, in alignment with national and international best practices and with the transition path undertaken. Specifically, the BoD plays a

Eni's economic and financial exposure to carbon pricing risk at the preliminary authorisation stage of the individual investment, and a central theme on which the BoD plays a key role is the energy transition process towards a low carbon future and the subsequent six- monthly monitoring of the entire project

Eni from 2021 applies the Corporate Governance Code that introduces the concept of sustainable

ENI'S

COMMITMENT TO THE SDGs

• The mission is inspired by the United Nations 2030 Agenda and represents the path to respond to global challenges, contributing to the achievement of the SDGs.
• The values that inspire Eni are reflected in the business model, which is based on the three pillars of Carbon Neutrality by 2050, Operational Excellence and Alliances for Development.
• The Corporate Governance system is based on the principles of integrity and transparency and reflects the desire to integrate sustainability into all Eni's business activities.
• The Code of Ethics enhances commitments and promotes virtuous behaviour among Eni people and its stakeholders. Each chapter corresponds to a principle, coherent with the SDG that inspired it.
• Eni involves the supply chain in a journey toward a low carbon and socially just energy transition by sharing the Supplier Code of Conduct.

model and strategy. This approach is confirmed by the adoption of the Corporate Governance Code (Code), which identifies "sustainable success" as the objective that must guide the Board of Directors' actions and consists of creating long-term value for the benefit of shareholders, considering the interests of other relevant stakeholders. Since 2021, Eni applies the Corporate

central role in defining, at the proposal of the Chief Executive Officer (CEO), the strategic guidelines and objectives of the Company and of the Group, pursuing the sustainable success and monitoring their implementation. At the proposal of the CEO, the BoD examines and approves the Strategic Plan (four-year plan and medium to long-term plan), which includes industrial business targets, financial

portfolio, receiving information on the impairment test results, performed on the main Cash Generating Unit. Another central theme that the Board of Directors oversees is respect for Human Rights. It approved the new Policy 'Respect for Human Rights in Eni' in September 2023. In carrying out its sustainability tasks, the BoD makes use of the support of the Board Committees, each within its remit,

success

TOOLS FOR INTEGRATING THE SDGs INTO BUSINESS

• Eni is committed to ensuring access to energy through industrial and local development projects, in line with sustainability objecti-

ves and the SDGs, in all its businesses and operating Countries.

• Since 2020, Eni has been using a methodology to assess industrial projects against the SDGs to maximise their contribution in

Countries of presence and guide its project choices. The aim is to consolidate this assessment, today applied to some case stu-

dies, and extend it to different types of business.

Governance Code that introduces the concept of sustainable success

performance andsustainability targets, including emission targets. In examining

based on the preparatory, advisory and consultative functions assigned to them.

ACTIVITIES

• Eni's area initiatives and local development projects with local partners follow the SDGs, using standard indicators and internal and

external evaluations to measure effectiveness and contribution to the SDGs.

• Since 2019, Eni offers training content on the SDGs for all employees, and since 2022, in Italy, a course with international "SDGs

User" certification, available on the Open-esplatform for Eni employees and partners.

ROLES AND RESPONSIBILITIES OF THE BOD, THE CEO, THE CHAIRMAN OF THE BOD AND THE COMMITTEES ON SUSTAINABILITY TOPICS

BOARD OF DIRECTORS

Defines:	It reviews or approves:
• The Corporate Governance system;	• The fundamental outlines of the internal Regulatory

PARTICIPATION

Eni participates in international initiatives including the UN Global Compact, WBCSD, IPIECA and other voluntary initiatives with the objective

IN EXTERNAL

of achieving the SDGs:

• SDG 5 - adherence to the Women Empowerment Principles and participation in the Orange the World campaign promoted by UN Women;

SDGs INITIATIVES

• SDG 6 - endorsement of the CEO Water Mandate;

• SDG 7 - launch of the Energy Compact;

• SDG 8 - voluntary participation in the Workforce Disclosure Initiative;

• SDG 16 - adherence to the Voluntary Principles on Security and Human Rights.

PARTNERSHIPS

Through the partnerships and collaborations with various cooperation organisations around the world, Eni contributes to the achie-

FOR THE SDGs

vement of the SDGs, multiplying the impacts of the initiatives undertaken in the Countries where it is present.

REPORTING

The integration of the SDGs has also been an integral part of sustainability reporting since 2017: through the correlation of each

ON THE SDGs

SDG Material Topic to which the company contributes through its activities, and the identification of performance indicators

with the SDGs target.

CHIEF EXECUTIVE OFFICER

COMMITTEES

• the fundamental lines of the organisational, administrative	System and the main corporate regulatory instruments;
• the main risks, including socio-environmental ones;
and accounting set-up and the guidelines of the internal
control and risk management system;	• the Policy for the Remuneration of Directors and
• the strategic lines and the objectives, pursuing their	managers with strategic responsibilities;
sustainable success and monitoring their implementation,	• financial and non-financial reporting.
as proposed by the CEO.
• The person in charge of managing the Company, without	CHAIRMAN	• Central role in the system
prejudice to the tasks reserved to the Board;	OF THE BOARD	of internal controls;
• implements the resolutions of the BoD, informs and	OF DIRECTORS	• leads the BoD's activities
submits proposals to the BoD and to the Committees;		and ensures that
• in charge of establishing and maintaining the Internal		Directors are trained
	on sustainability topics.
control and risk management system.

Sustainability and	Control and	Remuneration	Nomination
Scenarios Committee	Risk Committee	Committee	Committee
It assists the BoD with preparatory,	It supports the BoD in	It informs, makes proposals	It supports the BoD in
consultative and advisory functions	evaluations and decisions	and provides advice to	the appointments, in the
on scenarios and sustainabilty	relating to the internal control	the Board of Directors on	periodic assessments
issues. This means processes,	and risk management system,	remuneration topics, and	of the directors'
initiatives and activities to oversee	and in particular in the	in this context proposes	requirements and in the
the Company's commitment to	quarterly review of the main	annual and long-term	self-assessment process,
Sustainable Development along the	risks, including ESG risks,	rewarding systems, defining	formulating opinions
value chain, in particular on issues of	and the approval of periodic	their objectives, also	to the BoD on the
climate transition and technological	financial and non-financial	supporting the guidelines	composition of the BoD
innovation, environment, Local	reports.	adopted on sustainability	and of its Committees
Development, human rights, integrity		topics.	also with respect to
and transparency, and D&I.			required competencies.

22	2023 A JUST TRANSITION	INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	23

SUSTAINABILITY TOPICS ADDRESSED BY THE BOARD OF DIRECTORS AND/OR BY THE SUSTAINABILITY

AND SCENARIOS COMMITTEE IN 2023

Management's role in sustainability topics

all businesses and transversal business areas, including Sustainability. The latter

sustainability reporting, Eni redefined its internal organisation, with responsibility

STRATEGY AND ENERGY TRANSITION

HUMAN RIGHTS AND SOCIAL ISSUES

• Energy system and reference scenarios

• Four-year and long-term plan, including sustainability objectives

• Definition of short-term and long-term rewarding plan objectives to support strategic guidelines on environmental

sustainability topics

• Transition plan with emission calculation methodology and related strategic levers for emissions reduction

• Presentation of the "Zero Carbon Technology Roadmap" study and updates on R&D activities for energy transition with a

focus on technologies

• Insights into Eni's positioning with respect to peer climate objectives and strategies, climate resolutions and disclosures at

shareholders' meetings, and related to financial markets (sustainable finance and ESG ratings)

• Analysis of actions and levers for Oil & Gas to support the transition, aspects related to sustainable mobility (regulation,

market and strategy) and actions and strategies of Eni's environmental company

• Approval, as part of the evolution of Eni's Regulatory System, of fundamental policy outlines on: human rights, diversity and

inclusion, zero tolerance for violence and harassment at work, consumer protection and green claims

• Approval of the Statement according to "Modern Slavery Act"

• Investment plan for local development and Non-Profit budget

All corporate structures at Eni participate to define and implement the Carbon neutrality strategy. This is reflected in the Natural Resources and Energy Evolution (Business Model) Directions. Since 2019, issues relating to climate strategy, an integral part of long-term planning, have been managed by the CFO area through dedicated structures that supervise the process of defining and identifying the portfolio of initiatives, in line with international agreements, and in coordination with

coordinates and supervises sustainability context monitoring, the approach to Sustainable and local development, impact analysis of business activities, human rights, partnerships, in collaboration with various staff and business functions. The sustainability department supports the top management and sustainability functions at local companies to define plans for development initiatives based on the specific needs of communities and areas. Given recent regulatory developments on

for drafting and approving sustainability disclosures being transferred to the Financial Reporting Officer, a figure who oversees the financial reporting processes. This was followed by a necessary internal regulatory adjustment, which saw the redesigning of roles, responsibilities, processes and timeframes, enhancing the greater integration between the financial and non-financial components through unitary oversight, with a view to the internal control system.

REPORTING AND MONITORING

• Examination of Eni's sustainability and reporting model and approval of the non-financial statement and Eni for

• Insight into HSE results

• Insight into European regulatory developments on reporting

SHORT-TERM INCENTIVE PLAN

REMUNERATION LINKED TO SUSTAINABILITY OBJECTIVES

In continuity with previous years, the Plan includes a target related to environmental sustainability and human capital objectives associated with the reduction of net GHG Upstream emissions Scope 1 and 2 equity (weighting 12.5%) and personnel safety (weighting 12.5%) through the Severity Incident Rate (SIR) index, which focuses on management's commitment to reduce the most severe accidents, as well as the incremental installed capacity of renewable sources (weighting 12.5%).

Board's skills and knowledge

Based on the self-assessment conducted in the first year of the Board's term of office, a positive judgement was made on the Board's professionalism. It was considered generally in line with the infor-

also supported by the "board induction" training programme for directors and statutory auditors, which began after the appointment of the Board of Directors and the Board of Statutory Auditors, and which covered, among other things: (i) Eni's Mis-

carbon products and services (ii) the Strategic Plan guidelines, which summarises the four-year and medium- to long-term plan, including Eni's commitments to de- carbonization; (iii) issues relating to the decarbonization path, energy transition

LONG-TERM INCENTIVE PLAN

The Plan supports the implementation of the strategy through a specific objective concerning environmental sustainability and energy transition, broken down into a series of targets related to the processes of decarbonization, renewables development and circular economy, with an overall weighting of 35%, for both the CEO and all Eni's management recipients of the Plan.

mation set forth in the Shareholder Orientation document on the optimal composition approved in 2023. This document considered the knowledge, experience, skills represented, and individual contribution (preparation, motivation and sense of belonging) that individual Board members believe they can make. These skills are

sion and business model, with particular reference to the Natural Resources and Energy Evolution General Divisions activities, respectively dedicated to the enhancement, in a more sustainable key, of traditional businesses and the promotion of renewable sources, to provide an increasingly ample portfolio of lower

and environmental and social sustainability of Eni's activities; (iv) the evolution of sustainability reporting. Induction and on-going training activities represent a well-established tool to ensure knowledge of Eni's strategic policies and objectives, as well as to delve into specific issues related to the mission.

INTERNAL CONTROL SYSTEM

The Internal Control and Risk Management System (hereinafter ICRMS) comprises the set of tools, organisational structures, standards and corporate rules aimed at enabling Eni's business to be

conducted in a healthy, correct manner and consistent with the corporate objectives defined by the Board of Directors. In a context marked by increasing complexity and scenario variability, the ICRMS is part of Eni's strategy in the transformation process. The ICRMS is integrated in

the company's operations, using a risk- based and synergic approach among the various players in the System. It is called upon to support, like the other production factors, Eni's evolutionary process in a modern and dynamic manner. With this in mind, a series of initiatives with

ENI INTERNAL CONTROL SYSTEM CHART

GOVERNANCE BODIES AND ENTITIES(a)

OVERALL SKILLS, KNOWLEDGE AND EXPERIENCE OF THE BOARD BASED ON SELF-ASSESSMENT

			ADMINISTRATION,		INSTITUTIONAL
94%	GOVERNANCE	78%	FINANCE, INTERNAL	78%	72%	ESG &
AND PUBLIC
AND LEGAL	CONTROLS AND RISK	SUSTAINABILITY
SECTOR RELATIONS
			MANAGEMENT
	ENERGY SECTOR		CLIMATE				DIGITAL &
67%	61%	CHANGE	33%	INTERNATIONAL	28%
AND STRATEGIC	CYBER SECURITY
& ENERGY	EXPERIENCE
VISION	INNOVATION
		TRANSITION

MANAGEMENT		INTERNAL AUDIT	EXTERNAL
FIRST LEVEL	SECOND LEVEL		THIRD LEVEL
Identification and	Monitoring of main	Assurance and independent advice
management of risks	risk categories and	on the first and second level	ASSURANCE	LEGEND
/RISK OWNER	FUNCTIONS		FUNCTION
of competence and	adequacy of controls		of control and ICRMS			Direction, delegation,
related controls					as a whole
									oversight, resources
									Accountability, reporting,
LINE MANAGEMENT	SPECIALIST		INTERNAL AUDIT			assurance
	SUPPORT		AND SECOND LEVEL	PROVIDERS		Communication,
			Auditors, 231 Supervisory
									coordination, cooperation
								(a) They include: Board of
									Directors, Control and Risk
	FIRST LEVEL		ADVICE TO FIRST			Committee, Board of Statutory

Board, Chairman of the BoD,

and CEO.