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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 the 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 total number of plants has grown from 2,360 to 2,833.

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Renovit, the Snam subsidiary that offers energy efficiency services, was certified by B Corporation following the audit conducted by B Lab, the international body that grants certification to companies that operate according to the highest standards of social and environmental performance, responsibility and transparency.

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 -28% by 2025 vs. 2018 values, -40% by 2027 vs. 2018 values and -50% by 2030 vs. 2018 values for all direct (Scope 1) and indirect energy (Scope 2) CO2eq emissions. There are also a methane emission reduction target of -55% by 2025 and a plan to increase the use of green electricity by 2030.

In addition, in 2021 Snam set targets on Scope 3 emissions:

  • - 46% of emissions from participated companies, fuel and electricity production, business travel and employee commuting by 2030 vis a vis 2019 values;
  • - 55% tCO2e/M€ capex for suppliers by 2030 vis a vis 2019 values.

 

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 2021 Snam consumed 41% of electricity produced from renewable sources with respect to the total electricity purchased;
  • 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 55% 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 2021, we entered in the A- list of the CDP and in the A list of the CDP Supply Chain.

Total direct ghg emissions - scope1 (ktCO2eq)

 
Despite the increase in energy consumption (+ 16.5% compared to 2020), the total GHG emissions that were recorded in 2021 didn't increase proportionally, but by 6%. This was possible thanks to the continuous interventions concerning the recovery of emissions of natural gas, the increasing use of green electricity and energy efficiency interventions. All the activities together recorded over 171 thousand tons of CO2eq avoided. 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)

 
In 2021, electricity consumption, equal to approximately 111 thousand MWh, decreased by 14% compared to 2020 following the reduction in consumption of GNL Italia (-57% compared to 2020), due to the decrease in gas regasified. This decrease is reflected in the reduction of CO2eq Location Based emissions (-20.5%).
Market Based CO2eq emissions, on the other hand, remained in line with the previous year (30.8 thousand tons vs. 31.3 thousand tons), following the increase in consumption of new businesses (+ 24% vs. 2020), mainly due to the energy expenditure necessary for the treatment of waste and the production of biogas of the Snam4Environment sites, which have entered full capacity and which they represent 85% of the total electricity consumption of the new businesses.
The result of the two effects in indirect emissions from energy consumption made it possible to avoid a total of over 12 thousand tons of CO2eq.

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

 
Snam's Scope 3 emissions are calculated according to the GHG Protocol and are now reported or years, in the CDP Climate Change Questionnaire (formerly the Carbon Disclosure Project). In the context of project for defining the Scope 3 objectives, Snam has revised the calculation methodologies and has thus refined the data of previous years. Furthermore, a great coordination effort has been made also to include in the emissions reported in this Report the emissions of investee companies, for which numerous exchange and coordination meetings were held.
The issues of the Snam value chain can be classified into the following macro-categories: issues deriving from Snam's subsidiaries; emissions deriving from the Supply Chain, which include emissions from suppliers who work for Snam; emissions for the extraction of fuels and from the production and transport of electricity that are not included in Scope 1 and 2); other, which includes employees' business trips and home-work trips.
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 31.12.2021)

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.

 

In the last years Snam developed an internal carbon price, applied on Scope 1 emissions, since they are subject to legal requirements.
Moreover Snam, to develop cost-benefit analysis of investments in projects regarding operations, uses the social cost of carbon in order to redirect investments toward low-carbon solutions and green technologies.
The carbon price is one of the components considered in the energy and market evolution scenarios that are the basis of the five-year strategic plan. For the approval and implementation of development projects, Snam carries out cost-benefit analyses, which are submitted for approval to the regulator. These analyses, among the different aspects, consider also the cost of CO2 emissions evaluated as the social cost of carbon. Internal carbon pricing is therefore one of the components for assessing the costs and benefits of corporate investment projects.

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Explore our 2021 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 June 2022 - 09:38 CEST