Strategy and commitments
At the end of November 2018 Snam launched the new Business Plan for 2019-2022 which follows a path that will enable the Company to rise to the challenges associated with climate change and contribute to the reduction in emissions, minimising the increase in global temperature and keeping down the cost of energy for end users.
As far as the sector for the production and distribution of biomethane is concerned, in 2018 Snam gained control of IES Biogas and Enersi Sicilia through its subsidiary Snam4Mobility.
Since its establishment in 2017, the Foundation has undertaken the development of new projects, involving the corporate area and its employees in initiatives and gained accreditation from other Foundations and third sector national bodies.
Through the adoption of the new Business Plan, and consistent with the previous one, Snam aims to act as a point of reference for the Italian and European journey towards decarbonisation. Natural gas and biomethane can be used to satisfy peak energy demand, compensating and supporting the production of energy from renewable sources.
As far as environmental protection is concerned, under the scope of the investments announced in the Business Plan, there are also new objectives for the reduction of methane emissions, ongoing efforts to reduce emissions and the maximisation of energy efficiency and the development of new businesses, such as biomethane, CNG and SSLNG. Specifically, Snam intends also to investigate the potential of hydrogen as a solution for energy storage and to promote a more efficient use of intermittent renewable energy. To uphold the importance that the Company gives to the environmental sustainability, in 2018 Snam also subscribed to the Guiding Principles “Reducing methane emissions across the natural gas value chain”, through which Snam commits itself to reduce methane emissions from the construction and management of natural gas infrastructure and to encourage its suppliers to do the same. Actually, reviewing the objective of the previous plan to reduce natural gas emissions by 10% by 2021 compared with 2016 levels, Snam set a new target in its Business Plan to reduce methane emissions, forecasting to reduce them by 25% by 2025 (with an interim target of -15% by 2022).
Snam supports the Italian biomethane chain and will invest at least €100 million in this business segment by 2022. The Consorzio Italiano Biogas (CIB) estimated a biomethane production potential in Italy of 10 billion cubic metres by 2030, 80% of which will be produced from agricultural origins.
Biomethane’s contribution to the decarbonisation goals is not only limited to the energy consumption phase. Its production process can help significantly reduce the emissions of the agricultural sector and return organic substance to the soil with a philosophy of the circular economy: what remains after the anaerobic digestion process on agricultural matrices is in fact an excellent natural fertiliser.
In addition to the IES Biogas and Enersi acquisitions, in the biomethane production and distribution sector, Snam and BHGE (Baker Hughes, a GE Group company) signed an agreement in 2018 aimed at creating four micro-liquefaction plants in Italy. These plants will also be capable of liquefying biomethane produced from renewable sources and transforming it into bio LNG (Liquefied Natural Gas), which will then be used in the heavy road transport sector and to promote the expansion of this technology to sea transport in Italy.
Attention to the social dimension is also demonstrated by the support to Global Compact initiative and by the activities of the Snam Foundation, established in 2017, with the goal of making the Company's skills and know-how available to contribute to the progress and growth of the country. Strengthening the capacity to support the needs of a changing world, the Foundation promotes the dissemination of social innovation.
Sustainability is integral to Snam’s global strategy, investment decisions and everyday business practices: in short, it is a key development factor for all of the Group’s sectors of activity.
Since 2011, Snam has redefined its strategic thinking by reviewing its business activities from the perspective of Shared Value, which envisages an ever closer link between business activities and corporate social responsibility. This evolutionary approach, theorised by Michael Porter of Harvard Business School, is in line with the company’s vision of value created for itself and for its stakeholders. The strategic approach to Shared Value evolved over time being achieved by means of the Snam Foundationa creation. The Foundation has just the aim of intercepting the most promising ideas, mobilising financial and human resources and building relationships to increase the ability to design and execute them are practices too often limited by the company management philosophies.
Actually Snam gives special emphasis on safeguarding its employees and suppliers, also through specific development programmes such as “Snam4Safety”, for the promotion and dissemination of the culture of workplace health and safety or the adoption of innovative policies such as the Social Supply Chain policy. As further confirmation of the Company's commitment to the ongoing professional development of its people, the Snam Institute provides yearly around 100,000 hours of training to company employees.
The focus on sustainable growth is also reinforced by Snam’s active support of Global Compact and its principles, and the Sustainable Development Goals.
The sustainable development policy - drafted by Snam in May 2012 - is centralised at Group level and applies directly to all Group subsidiaries.
The Anti-corruption Policy declaration which prohibits bribery of any public or private party, without exception, is contained in the Anti-corruption Procedure
In addition to the Group policy, Snam has signed the Charter of Environmental Sustainability Principles , promoted by Confindustria as a policy-defining tool that sets out the shared values and the actions needed for a progressive move towards greater environmental sustainability, establishing realistic and achievable goals for Italian companies.
One of the sustainable development activities is a policy through which Snam develops and maintains its Business Continuity Management process: the purpose of this process is to increase the company’s ability to react in emergency situations and to improve the resilience of its business services. The Business Continuity Management policy is centralised at Group level and applies directly to all Group subsidiaries.
Snam, in accordance with the Sustainable Development Model and its strategic growth plans, has also created a policy to manage its philanthropic activities and social initiatives.
Snam recognises the central importance of stakeholders as the beneficiaries of the value created through the company's activities. In this view, the Company adopted in March 2016 a Stakeholder engagement policy.
Snam considers risk governance to be highly important and is committed to taking a structured, systemic approach to risk. In this view, the Company adopted in March 2018 the Enterprise Risk Management Guidelines (available only in italian).
Snam considers the Human Rights Protection an issue of paramount importance. In this view, the Company updated in May 2018 its Policy about Human Rights.
Snam believes that Supply Chain's activities must promote an inclusive and sustainable economic growth. To this end the Company adopted in November 2018 the Social Supply Chain Policy
- Given the great importance attached to occupational health, safety, environmental protection and the quality of services provided, in September 2019, Snam also updated its Health, Safety, Environment and Quality Policy.
18 October 2019 - 10:05 CEST