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Eni’s Business model

In the deployment of its activities, Eni built important relations with the external world in order to maintain a constructive confrontation aimed at the diffusion and development of best practices. This has enabled Eni to be seen as a reliable and competitive partner. This approach is based on the respect of universal principles such as the protection of human rights, the adoption of the highest standards of work, the respect of the environment and communities, and the fight against corruption. In addition to this, Eni is oriented at seizing business opportunities while taking account the development of the socio-economic contexts in which it operates.

The respect for universal principles incorporated in Eni’s business model is expressed mainly in responsibility towards applicable laws and the adoption of best standards, the inclusion of all its people through fair and non discriminating policies, excellence in operations with the adoption of quality systems and advanced technologies. Integration, innovation and cooperation are the competitive drivers allowing Eni to stand out in the oil&gas industry, to consolidate its presence in Countries that are not always characterized by political stability and at the same time to contribute to the development goals of the United Nations.

Cooperation in the development of the territories where we work, expresses the ability to understand local needs and the willingness to contribute to their fulfilment. Eni is committed to provide concrete response to problems and requirements of the Countries where it operates, in synergy with the development strategies of these Countries and with reference to the Millennium Goals.

The cooperation model with producing Countries, or rather the will to invest with a long-term prospective and the flexibility of offering solutions to the requirements of the Countries, has been an integral part of corporate strategy from the very beginning. This is now transforming into ever greater integration among the Company development projects and the development of growth opportunities in the territories where Eni is hosted.

Integration of all activities along the energy supply chain is a source of crucial synergies for facing market challenges and ensuring competitive advantages. The integrated approach enables greater flexibility in managing relation with producing Countries, to whom Eni proposes solutions that each and every time are adapted to the specific requirements for technology, infrastructure and economic growth of the local society.

Innovation is a key element for accessing new energy resources, improving recovery from the subsoil and the efficiency of its use, ensuring respect for and responsible use of natural resources. Eni’s commitment to technological research is aimed at reducing the time-to-market for new scientific discoveries in the traditional oil&gas sectors, at enhancing renewable energy, and at developing innovative methods of environmental conservation.

Excellence in running the operations hinges on making use of best practices, quality systems, advanced technologies and safety systems to ensure full respect for the community and the environment. Environmental responsibility is a basic pillar of sustainable operations, in particular as concerns the environmental impact on health and wellbeing of communities living in the affected areas. Among the projects carried out by Eni are the reduction of polluting emissions and of greenhouse gases (by means of increased efficiency and flare down projects), the reduction in fresh water consumption, the provision of assessments on ecosystem and biodiversity protection.

Inclusion of all Eni people, with their broadly expressed diversity combines with health and safety protection in the workplace, as well as their personal development and involvement in the Company’s goals. Thanks to the skills of its employees and to their diversity, which Eni enhances inside its corporate structure, to its ability to integrate with different local contexts, Eni ensures a distinctive offering with significant advantages in terms of competitiveness.

Responsibility in terms of commitment to transparency in the business management, in the fight against corruption, and in the respect for human rights in every sphere of our work is a requisite for effective contribution toward the development of Countries and societies. As concerns human rights, Eni promotes their respect in all its operations and extends this to all its supply chain and to all its stakeholders. The respect of international standards is essential especially in Countries where rules and values for the protection and safeguard of human rights are not implemented. Eni is also engaged in the fight against corruption. Anti-corruption regulations are applied to all corporate levels through an articulated and homogenous system of rules based on the principles of integrity and transparency that have been extended along the entire value chain to promote a sustainable business and full respect of stakeholders.

Safety   2007 2008 2009 2010 2011
Injury frequency rate (number of injuries/million of worked hours) 1.62 1.42 1.11 0.89 0.73
- employees 1.93 1.45 1.00 0.91 0.71
- contractors 1.45 1.40 1.18 0.88 0.74
Fatality index (fatal injuries/one hundred million of worked hours) 2.97 2.68 1.33 4.64 1.89
- employees 1.00 2.43 0.85 6.40 1.15
- contractors 4.04 2.81 1.65 3.48 2.34
Safety expenditures and investments (€ thousand) 446,597 425,593 514,773 283,501 349,229
Professional illnesses reported (number) 109 83 127 184 135
Health and hygiene expenditure and investments (€ thousand) 53,762 68,561 80,896 57,756 81,192
Spending for the territory (€ million) 2007 2008 2009 2010 2011
Total spending for the territory: 85.9 86.5 98.6 108.0 101.8
– project investments 58.1 69.4 70.4 75.4 69.3
– short-term investments and donations 2.7 0.5 1.2 4.5 1.1
– association membership fees 0.9 1.5 1.5 1.7 1.6
– contributions to the Eni Foundation 8.0 0.0 5.0 5.0 3.0
– sponsorships for the territory 12.9 11.8 16.6 17.6 22.9
– contributions to the Eni Enrico Mattei Foundation   3.3 3.3 3.9 3.9 3.9
Employment   2007 2008 2009 2010 2011
Employees as of December 31 (number) 75,125 78,094 77,718 79,941 78,686
– men 64,148 65,873 65,154 67,187 65,501
– women 10,977 12,221 12,564 12,754 13,185
Employees abroad by type 38,634 41,971 42,633 45,967 45,516
– locals 31,279 33,233 33,483 35,835 34,801
– Italian expatriates 2,386 2,769 2,771 3,123 3,208
– International expatriates (including TCN) 4,969 5,969 6,379 7,009 7,507
Senior Managers employed 1,532 1,594 1,562 1,574 1,586
– of which women 108 134 149 155 160
Managers/Supervisors employed 11,700 12,527 12,893 13,350 13,298
– of which women 1,761 2,124 2,310 2,479 2,545
Employees 36,231 36,895 37,295 37,885 39,296
– of which women 8,804 9,619 9,720 9,567 9,961
Workers employed 25,662 27,078 25,968 27,132 24,506
– of which women 304 344 385 553 519
Local employees abroad by professional category 31,279 33,233 33,483 35,835 34,801
– senior managers 230 245 224 228 228
– managers/supervisors 2,668 2,900 3,138 3,461 3,476
– employees 14,407 14,864 15,533 16,269 17,529
– workers 13,974 15,224 14,588 15,877 13,568
Training hours (thousand hours) 2,797 2,960 3,097 3,114 3,327
Procurement by geographical area 2011   Africa Americas Asia Italy Rest of Europe Oceania
Number of suppliers used (number) 6,356 4,111 4,649 14,067 7,407 276
Total procurement: (€ million) 8,351 2,283 6,125 13,682 3,456 379
- in goods (%) 14.7 36.3 10.3 26.1 24.5 19.0
- in works 29.5 8.7 36.2 15.1 7.7 1.5
- in services 39.3 50.8 45.0 51.7 60.7 79.1
- unidentifiable   16.5 4.2 8.4 7.1 7.1 0.4
% procurement on local market Countries
0 - 25% Portugal, Peru, Pakistan, Malaysia, Luxembourg, Germany, Libya, Venezuela, Austria, Czech Republic, Slovenia, China,
Spain, Poland, Russian Federation.
25 - 50% Kazakhstan, Republic of Congo, Angola, France, United Kingdom, Algeria, Tunisia, Switzerland, Gabon, Hungary.
50 - 75% Italy, Nigeria, Iraq, Saudi Arabia, Australia, Indonesia, Iran, India, Ghana, Croatia, Romania.
75 - 100% United States, Egypt, Norway, Canada, Brazil, Mexico, Ecuador, Singapore, Belgium, Netherlands, Argentina.
Relations with suppliers   2007 2008 2009 2010 2011
Procurement by macro-class (€ million) 23,208 30,026 35,205 32,626 34,275
Supplier concentration top 20 (%) 18 24 25 18 20
Suppliers used (number) 26,270 29,416 35,113 33,961 34,064
Qualification cycles carried out during the year 19,058 15,936 22,108 33,700 29,362
Suppliers subjected to qualification procedures including screening on human rights 5,784 6,174 8,388 10,643 12,300
% procurement from suppliers subjected to qualification procedures including screening on human rights (%) 83 89 87 89 91
Relations with customers   2007 2008 2009 2010 2011
R&M Customer satisfaction            
Customer satisfaction index (likert scale) 8.22 8.14 7.93 7.84 7.74
Clients involved in the survey (number) 33,692 22,609 10,711 30,618 30,524
             
G&P Customer satisfaction          
Customer satisfaction index (%) n.a. 75.3 83.7 87.4 91.0
Average Panel (G&P)(a)   n.a. 84.9 87.0 87.4 89.8
  1. Referred to companies representing more than 50% of the gas market and totalling over 50,000 customers.
Technological innovation   2007 2008 2009 2010 2011
R&D expenditures (€ million) 205 329 279 268 237
- R&D expenditures net of general and administrative costs   208 217 207 221 191
Tangible value generated by R&D activities(a)   n.a. n.a. 362 540 492(b)
Personnel employed in R&D activities (full time equivalent) (number) 1,001 1,123 1,019 1,019 925
Existing patents   8,122 8,049 7,760 7,998 8,784
  1. Figures refer to E&P, R&M and Polimeri Europa activities and had been measured since 2009, when the measurement process started.
  2. The figure is net of benefits related to the increase of reserves.
Operating efficiency   2007 2008 2009 2010 2011
Direct GHG emissions (tons CO2eq) 67,246,179 62,013,146 57,694,175 60,642,340 51,099,412
- of which CO2 from combustion and process (tons) 39,252,511 37,389,394 36,587,311 39,006,120 36,014,381
- of which CO2 equivalents from flaring (tons CO2eq) 20,070,000 16,535,835 13,839,353 13,834,988 9,553,894
- of which CO2 equivalents from CH4 (methane)   5,733,668 5,697,220 5,085,309 5,461,211 4,498,120
- of which CO2 equivalents from venting   2,190,000 2,390,697 2,182,202 2,340,021 1,033,017
CO2eq emissions/100% net operated hydrocarbon production (tons CO2eq/toe) 0.292 0.265 0.245 0.245 0.206
CO2eq emissions/kWheq (EniPower) (kg CO2eq/kWheq) 0.400 0.402 0.410 0.407 0.410
CO2eq emissions/gas distributed (Italgas) (tons CO2eq/mmcm) 96.29 93.04 87.68 92.86 87.00
CO2eq emissions/uEDC (R&M) (tons CO2eq/kbbl/SD) n.a. 1,297 1,240 1,284 1,230
NOx (nitrogen oxide) emissions (tons NO2eq) 111,824 113,952 112,263 107,724 98,117
SOx (sulphur oxide) emissions (tons SO2eq) 62,980 47,163 45,988 50,085 37,940
NMVOC (Non-Methane Volatile Organic Compounds) emissions (tons) 87,889 80,923 75,392 68,490 46,228
TSP (Total Suspended Particulate) emissions   4,567 4,230 3,973 3,783 3,297
Energy used/net 100% operated hydrocarbon production (GJ/toe) 1.387 1.481 1.746 1.934 1.958
Total water withdrawals (mmcm) 3,370.77 3,028.06 2,844.75 2,791.47 2,583.87
Total production and/or process water extracted (mmcm) 48.34 52.93 59.67 61.15 58.16
- of which re-injected   14.73 14.88 23.32 27.11 25.18
Total recycled and/or reused water (mmcm) n.a. 460.93 490.22 544.63 521.39
Total number of oil spills(a) (number) 367 382 308 330 418
Total volume of oil spills(a)(b) (barrels) 9,337 7,024 21,547 22,964 13,422
- of which from sabotage and terrorism   2,608 2,286 15,288 18,695 6,127
- of which from accidents   6,729 4,738 6,259 4,269 7,295
Waste from production activities (tons) 1,543,619 1,253,750 1,158,645 1,452,717 1,324,808
Hazardous waste from production activities   393,028 487,607 440,244 497,092 477,558
Non hazardous waste from production activities   1,150,591 766,143 718,401 955,625 847,250
Waste from reclamation activities to be disposed of or recovered/recycled (tons) 6,862,915 9,209,054 10,180,216 10,490,267 10,863,767
Environmental expenditures and investments (€ thousand) 1,062,850 1,080,707 1,324,066 1,006,777 1,006,711
  1. For the E&P sector only oil spills of more than one barrel are considered.
  2. For 2009 the total volume of spills does not include the Engineering & Construction sector.

Delivering on sustainable valueEni’s excellent strategic positioning and competitive advantages leverage on a business model for the creation of sustainable value founded on a wealth of distinctive assets, guidelines for industrial actions (drivers) deriving from strategic management choices consistent with the long-term nature of the business. Cooperation, integration, innovation, inclusion of all Eni people, excellence and responsibility inspire Eni’s operations in the continuous interaction with all stakeholders in a framework of stringent and clear rules of governance.

www.eni.com

  • Eni S.p.a. – Registered head office
    Piazzale Enrico Mattei, 1 00144 Roma

  • Vat number
    n. 00905811006

  • Company share capital
    € 4.005.358.876,00 paid up

  • Rome Company Register
    n. 00484960588

  • Branches
    Via Emilia, 1, e Piazza Ezio Vanoni, 1
    20097 – San Donato
    Milanese (MI)