Growth Drivers

Snam pursues a sustainable model of growth, in order to create value through these main strategic drivers: committed to net zero by 2040 and ESG leader; long-term RAB growth; execution capabilities and technology edge; energy transition businesses; international footprint; strong balance sheet and disciplined investment approach.

Net zero by 2040

Snam is committed to achieving carbon neutrality by 2040, in line with the 1.5° C containment target set by the Paris Agreement, thus further consolidating its ESG (Environmental, Social and Governance) leadership. Furthermore, Snam raises its reduction target to 50% of Scope 1 and Scope 2 equivalent CO₂ emissions (direct and indirect) by 2030 (vs 2018), compared to the previous target of -40% vs 2016. Almost half of the overall reduction in emissions will derive from the dual fuel compressor stations project, while the remaining share will be achieved thanks to the reduction of methane emissions by 45% by 2025 (vs 2015), in line with UNEP objectives (UN Environment Program), with which a protocol was signed. Snam’s commitment on indirect Scope 3 emissions (emissions outside the direct control of the company, in Snam’s case mainly attributable to suppliers and investee companies) is also significant. In this an area the company has strengthened collaboration initiatives with subsidiaries and started the development of additional joint projects with suppliers to achieve a progressive and significant reduction.

Net Zero

Scorecard ESG

Snam has developed and published a “scorecard” on 13 areas with 22 material and quantitative objectives to provide stakeholders with a holistic view of the commitment and growing sensitivity in the ESG field, allowing them to monitor the results. In terms of the environment, for example, an increase in biomethane production from 18 to 141 million cubic meters is expected from 2021 to 2023 as well as an increase from 16 to 43 thousand tons of CO₂ saved by energy efficiency activities. In the social sphere, an enhanced focus on employees, supply chain, safety and the community is envisaged: for example, through the increase in the percentage of women in executive and middle management positions from 19.3% in 2019 to 25.5% in 2023, and an increase in social enterprises accredited in the vendor list of 20% by 2023. In the governance area, in 2023 at least 40% of the Board of Directors’ activity will be dedicated to ESG issues and on 100% of third party counterparties, reputational due diligences will be carried out.

ESG Scorecard



Superior long term RAB growth

  • Strategic role of gas infrastructure for energy transition supports the longevity of the network
  • RAB growth to 2040 to be at least in line with 2020-24
  • Acceleration potential depending on the pace of future-proof replacements.


  • Investments track record, incl. TAP: for the 14th consecutive year, and despite Covid, Snam has closed the investment program on time and within budget, including a very complex project such as TAP
  • Building world leading technology gas TSO: the plan envisages approximately € 500 million of investments in digitalization – from remote control of activities to the adoption of IOT, cloud and edge computing – to allow Snam to become the most technologically advanced gas transmission company in the world and to guarantee ever greater safety and sustainability of operating activities. In particular, the integration of IoT systems and machine learning will allow 100 times more daily data to be transmitted, analyzed and historicized almost in real time. In 2021, the first district of the future (TecHub) in Bologna will be launched, equipped with the most advanced technologies. Activities will include, among others, real-time monitoring of consumption, the use of drones and satellites for network inspection, geo-referenced and real-time identification of any leaks and predictive maintenance
  • Technology edge in H2 & H2O: recent partnership with ITM Power and De Nora
  • Leverage core competences across similar sectors

In recent years, Snam has created a wide and diversified platform of activities (energy efficiency, biomethane production and infrastructure, sustainable mobility, hydrogen along the entire value chain) to be a “system integrator” able to offer green solutions and contribute to development of renewable gases. For the period 2020-2024, Snam’s investments in energy transition activities will amount to approximately € 720 million, almost doubled compared to the previous plan, with an annual contribution to EBITDA of € 150 million from 2024.

  • Biomethane: develop installed capacity
  • Energy efficiency: pipeline of projects for public administration, residential and industrial clients
  • Sustainable mobility: consolidation of CNG footprint, focus on LNG and H2 supply infrastructure, SSLNG
  • Hydrogen: H2 for trains, fuel cells H2-ready on Snam network

Snam4Environment - biomethane

Investments of approximately € 220 million are planned to 2024 to build plants with an installed capacity of 64 MW, 22 more than the previous plan. Snam4Environment specializes in infrastructure for biomethane production (from organic waste, agricultural and agro-industrial waste, and zootechnical effluents) and in the promotion of green activities aimed at achieving decarbonisation objectives. The company is well positioned to benefit from the new trends of the circular economy. Snam4Environment aims to encourage market development thanks to a low-risk business model, leveraging on the skills of the Renerwaste and Iniziative Biometano platforms, which manage plants that produce biomethane from urban and agricultural waste in Italy., and the expertise in design, development and construction of plants of IES Biogas, active at Italian and international levels. In the plan period, also through specific research and development initiatives, the company will evaluate opportunities in adjacent sectors (recycling plastics, glass, paper and quality compost).

Snam4Efficiency - energy efficiency

Investments of € 200 million are planned to 2024, with long-term cash flow visibility. Snam4Efficiency has become, in just two years, one of the main Italian operators in energy efficiency services for residential, industry and public administration. The company intends to continue its growth path organically and through acquisitions. Snam4Efficiency has a solid commercial pipeline (approximately € 700 million in weighted projects in the residential and industrial sectors) and is ready to seize the additional opportunities deriving from national and European stimulus programs for the sector.

Snam4Mobility - sustainable mobility

Approximately € 150 million of investments are planned to 2024. Snam4Mobility provides integrated services for sustainable “smart green” natural gas (CNG and LNG) and biomethane mobility, building distribution infrastructure and supplying components for distributors (compressors, dispensers) of which, through Cubogas, it is among market leaders. At the end of the plan, the company expects the construction of 150 new refuelling stations and the expansion of the offer for heavy vehicles also thanks to the activation of a new small-scale liquefaction plant and the adaptation of the Panigaglia LNG terminal for truck-loading services for transport. In addition, over the course of the plan, Snam4Mobility plans to launch the first five hydrogen refuelling stations.


In the hydrogen sector, investments of at least € 150 million are planned to 2024. Over the last year, Snam has launched a Business Unit focused on hydrogen, with the aim of being at the forefront in a sector with great prospects. Over the plan period Snam will start the conversion of the first railway lines from diesel to hydrogen, leveraging on partnership agreements FS Italiane and Alstom, and will install fuel cells for Snam’s own energy consumption. The company intends to focus on new technologies (as per the ITM and De Nora partnerships) and start new pilot projects. Snam, together with other partners, has also won three grants under the Fuel Cells and Hydrogen Joint Undertaking, which allow access to funds and pilot projects at European level and create new end-use partnerships.


Internationalization strategy and associates to 2024

In the course of 2020, Snam further strengthened its position as leader in energy infrastructures at an international level, thanks to the acquisition of the stake in ADNOC Gas Pipelines, the consolidation of its presence in China and the entry in India and Israel. These initiatives allow the company to evolve towards a portfolio strategy, coherent with Snam’s broader vision. The strategy is based on four pillars:

  • increase efficiency and flexibility for the associates that operate in mature markets
  • seize the opportunities relating to the energy transition
  • benefit from gas demand growth in key geographies, also driven by fuel switching to gas from more carbon intensive fuels
  • develop services in areas that offer interesting growth potential.

International footprint

More about international strategy

Strong financial structure

  • Strong liquidity profile with undrawn committed lines covering more than three years of bond maturities
  • Financial structure defined via an Asset and Liability Management model: ~3/4 fix rate; >5Y M/LT maturity with lower than sector-average gearing
  • Cost of debt expected flat over plan horizon at 1.2% or 20bps lower than last year guidance
  • Fully committed to current credit rating metrics

Sustainable finance aligned with corporate strategy

  • Ambition to reach ca. 60% of total available funding:
    - ~€ 6 bn of sustainable financing (~40% of total funding) at end-Sept 2020
    - new € 2.5 bn ESG labelled Commercial Paper Programme (EE from Standard Ethics)
    - further room for debt capital market sustainable instruments.

Financial flexibility

    - Criteria: committed to current credit rating metrics and risk profile; accretive returns (risk adjusted returns at least in line with Italian regulated assets); consistent with ESG strategy
    - Industrial opportunities: enhance existing infrastructure; leverage industrial capabilities; Unlock additional growth/optionality
    - Enhanced returns to shareholders: dividend policy; buyback.
    - 2020-24 Plan + € 2.7 bn investments vs first stand alone plan
    - € 4.5 bn regulated capex & Italian bolt on in 2016-20
    - € 0.5 bn investments in international regulated/contracted companies (GCA, IUK, Desfa, Adnoc)
    - c. € 0.3 bn already invested to build the platform to grow the energy transition
    - € 0.4bn investment in De Nora as a potential seed asset
    - dividend increased by almost 20% from demerger (€3bn dividends paid 2017-2020)
    - € 0.9 bn share buyback executed
    - new dividend policy extended to 2024.


  • Visible and sustainable long-term RAB growth underpinned by green gas
  • Exposure to net zero supercycle, leader in hydrogen, biomethane, circular economy, energy efficiency, and sustainable mobility
  • Stable and visible regulation
  • Presence in multiple geographies with upside from energy transition
  • Committed to strict financial discipline and compelling shareholder returns

Snam: a unique platform to invest in the energy transition

New dividend policy to 2024

  • 5% DPS annual growth to 2022
  • 2.5% DPS minimum annual growth to 2023-24

Shareholders return

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26 March 2021 - 11:52 CET