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Climate change

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Snam has defined a plan to become Net Zero Carbon by 2040, which includes intermediate targets for the reduction of greenhouse gas emissions by 2030. The plan includes actions to reduce Scope 1 and Scope 2 GHG emissions in line with the Paris agreement and a gradual reduction of Scope 3 emissions. Snam will not only reduce its emissions but will play a key role in the country's energy transition.

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The installed power increased by ad much as 3,922 kW compared to 2019, passing from 1,129 kW to 5,122 kW (+350%)

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Energy consumption is in line with that of 2019

The international scientific community considers the greenhouse gas emissions responsible for climate change to be in progress. The greenhouse gases emitted by Snam’s operations are:

  • carbon dioxide, produced in combustion processes and directly related to fuel consumption;
  • methane, the main component of natural gas. Natural gas emissions are derived partly from normal plant operations and partly from maintenance works or accidental leaks.


Snam’s commitment to preventing climate change is evident in a challenging climate strategy aimed at achieving carbon neutrality by 2040. Snam's Net Zero Carbon strategy is solid and concrete and includes intermediate reduction targets of -50% by 2030 compared to 2018 values for all direct (Scope 1) and indirect energy (Scope 2) CO2eq emissions. There are also a methane emission reduction target of -45% by 2025 and a plan to increase the use of green electricity by 2030.

The Net Carbon Zero strategy is mainly based on:

  • using natural gas as an energy source supporting decarbonization path. The use of natural gas instead of oil products or coal is one of the most beneficial and feasible ways of reducing carbon dioxide emissions (CO2) and can make a significant contribution to energy transition and to reach GHG emissions reduction target of the Country;
  • Progressive replacement of gas turbines with electric compressors in the compressor stations. In this way it's possible to eliminate CO2 combustion emissions and purchasing electric energy from renewable sources emission reset is guaranteed;
  • Gas natural emissions reduction by means of continuous monitoring, the introduction of Leak Detection and Repair (LDAR) programme, specialised gas recovery interventions nd equipment replacement. 
  • using electricity from renewable sources, in 2020, Snam increased the consumption of electricity produced from renewable sources, which passed from 44% in 2019 to 49% in 2020.
  • promoting energy efficiency  through the installation of photovoltaic panels in building construction and through the activities of TEP;
  • reduction of emissions related to company's buildings and the corporate fleet;
  • collaboration with suppliers and associates for the containment of indirect emissions (Scope 3);
  • offsetting of non-disposable emissions. The few remaining emissions will be reset with the purchase of certified carbon credits from select projects.

Additionally, the gas system could facilitate the options of decarbonisation and renewable consumption thanks to the introduction into the network of:

  • renewable gases, such as bio methane, bio syngas and "green" hydrogen, obtained from anaerobic digestion and biomass gasification technologies, electrolysis of renewable electricity;
  • low carbon natural gas and hydrogen, obtained from technologies that capture carbon and then store or reuse it (CCS/CCU).

Besides, Snam signed the Methane Guiding Principles, the guiding Principles that commit the company to further reduce methane emissions from the natural gas assets it operates. In signing to these principles Snam also agrees to encourage others across the natural gas value chain – from production to the final consumer – to do the same. Other signatories are: BP, Chevron, Eni, Equinor, ExxonMobil, Gazprom, Qatar Petroleum, Repsol, Shell, Total, Wintershall and Woodside.

Furthermore since novembre 2020 Snam adheres to the Oil and Gas Methane Partnership (OGMP) 2.0, and commits to reduce methane emissions from its activity by 45% in 2025 with respect to 2015 figures.
The OGMP is a multi-stakeholder voluntary initiative aimed at minimizing methane emissions in the oil and gas sector. Managed by UNEP, the United Nations Environment Programme, OGMP provides a protocol to help companies systematically and transparently manage their methane emissions from oil and gas operations and offers a credible platform to help member companies demonstrate their commitment to reduce emissions, to industry, civil society and governments.

Besides, Snam participates to Climate Disclosure Project (CDP) questionnaire, CDP beeing one of the world’s most important non-for-profit organization, which assesses companies’ transparency in the disclosure of information on climate change and greenhouse gas emissions, as well as in the management of water resources. In 2020, we entered in the A list of the CDP and in the A- list of the CSP Supply Chain.

Total direct ghg emissions - scope1 (ktCO2eq)

 
Although energy consumption remained in line with 2019, total GHG emissions decreased by 13% in 2020 compared to 2019, thanks to reduction measures concerning, in particular, the recovery of natural gas emissions, the use of green electricity and energy efficiency measures, which, together, made it possible to avoid atmospheric emissions of more than 200 thousand tonnes of CO2eq (+12% compared to 2019). The CO2eq emissions were calculated based on a global warming potential (GWP) of 28 for methane, as indicated in the scientific study of the Intergovernmental Panel on Climate Change (IPCC), “IPCC Fifth Assessment Report”.

indirect ghg emissions - scope 2 (ktCO2eq)

 
Snam calculates indirect energy emissions both with the Market Based (MB) approach, which attributes a zero CO2eq emission factor for energy consumption deriving from renewable sources, and with Location Based (LB) approach, which instead considers an average CO2eq emission factor of the national electricity grid. Emissions (calculated using the MB method) stood at 31.3 thousands tonnes of CO2eq (-3.4% compared with 2019), in reduction thanks to the increasing use of renewable energy sources, thus avoiding the emission into the atmosphere of approximately 18,600 tonnes of CO2eq, up compared to the 16,100 tonnes avoided in 2019.

indirect ghg emissions - scope 3 - supply chain (ktCO2eq)

 
Aware of the impact created along its entire value chain and convinced of the importance of shared action to reduce climate-changing emissions, Snam has been calculating its Scope 3 emissions according to the GHG Protocol for years and reports them in the CDP Questionnaire (formerly the Carbon Disclosure Project). This year, this reporting has also been included in this document, except for the category related to investments, due to the timing of data validation by the participated companies, which historically represent about 50% of the total Scope 3 emissions. The other most representative categories are those related to the supply chain and those associated with fuel and energy production.
During 2020, Scope 3 emissions amounted to approximately 433 thousand tonnes of CO2eq, a figure recalculated by including the 8 emission categories applicable to Snam, with a 31% reduction compared to the 2019 figure due to a different nature of supplies and a reduction in emissions for business travel due to the health emergency. On this front, Snam is implementing additional initiatives to promote a culture aimed at saving energy and minimising the indirect emissions associated with the Group's activities, including the adoption of green procurement criteria for the procurement of goods and services, sustainable mobility initiatives and all activities aimed at saving energy by employees (company shuttles, public transport concessions, smart working and the use of videoconferencing systems for meetings), as well as participation in the CDP Supply Chain programme.
COMPANY PLANTS e.t. (N.) INFRASTRUCTURE
Snam Rete Gas 13 Compression stations Enna, Istriana, Malborghetto, Masera, Melizzano, Messina, Montesano, Poggio Renatico, Tarsia, Terranuova Bracciolini, Gallese, Minerbio and Sergnano
Stogit 8 Storage compression stations of Cortemaggiore, Fiume Treste, Minerbio, Ripalta, Sabbioncello, Sergnano, Settala, Bordolano
GNL Italia 1 Regassification of liquefied gas natural of Panigaglia

Snam plants - Emissions Trading (at 31.12.2020)

Before the Emissions Trading regulations on climate change came into effect, Snam had already undertaken initiatives to contain emissions using high-yield technologies and natural gas as the main fossil fuel in its plants. Natural gas is used almost exclusively as fuel in the emissions trading plants.

 

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Explore our 2020 Sustainability Report

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Discover the CDP score obtained by Snam in the Sustainability indices section

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Read about the Methane Guiding Principles

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updated
28 April 2021 - 11:17 CEST