ESG scorecard and targets
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ESG scorecard and targets

ESG scorecard

Snam further strengthens the ESG Scorecard aligning it to Strategic Plan with targets to 2025 and adds the area of Sustainable Finance.

Driven by a growing need to redefine its priorities for the future and improve its extra-financial communication, Snam is strengthening its process for defining ESG objectives.

The ever-increasing importance of non-financial aspects in defining corporate strategies, the consideration that investors place on ESG issues in their investment choices, as well as the interest of all stakeholders in the Company's modus operandi, have driven Snam to strengthen its ability to measure its impact on the planet and society. Having implemented a sustainable development model and committed to reducing its impacts through sustainability projects and initiatives several years ago, Snam has decided to further integrate sustainability into its business: this is how the new ESG Scorecard was born, a tool designed to provide maximum disclosure on the main environmental, social and governance aspects and to assess the performance of the group with respect to certain targets defined for the coming years.

With its ESG Scorecard, Snam has decided to further strengthen this process by defining specific annual KPIs and targets in the environmental sphere (natural gas emissions, energy savings, green innovation, land protection and biodiversity), the social sphere (welfare, employee engagement, safety, gender diversity, responsible and sustainable supply chain, local communities) and the governance sphere (governance structure and its functioning, infrastructure reliability, anti-corruption, sustainable finance), with targets covering both next year and the 2025 planning horizon.

The ESG Scorecard into action process is annual. Led by the ESG Officer, the process of publishing involves all the competent functions of the Company and its subsidiaries, aimed at revisiting and updating the ESG areas and the reference KPIs, with an aim of demonstrating continuous improvement and maintaining a constant dialogue with stakeholders and the market.

In the environmental field, Snam has always been committed to reducing its impact on the planet and to safeguarding the natural habitat in which it operates. The goal of achieving carbon neutrality by 2040 (Net Zero Carbon) and reducing emissions along its value chain, is in line with the efforts made in past years and positions the company as a leader in the energy transition process defined in 2015 with the Paris agreements. However, Snam's commitment in the environmental field is not limited to its ambitious strategy of containing and offsetting climate-changing emissions, but also touches on other aspects such as energy efficiency, the development of new businesses aimed at the energy transition and the protection of biodiversity. This holistic approach enables Snam to make a concrete contribution to the fight against climate change and to safeguarding the environment in general.

 
ESG Focus Areas

KPI

2019

2020

2021

Target
2021

Target 2025

Target achievement
ESG Natural Gas Emissions • % reduction of total natural gas emissions (vs 2015) [1] [2] -21.09% -29.71% -28.87% -21.1% -55% Annual target reached
• % natural gas recovered from maintenance activities (avg. last 5 years) 44.35% 49.08% 52.03% > 40% > 40% Annual target reached
ESG
ESG
Energy savings of operational management • MWh of electricity production by photovoltaic plants 829 MWh 872 MWh 950 MWh > 860 MWh > 860 MWh Annual target reached
• % of retrofit and methane fuelled cars out of total car fleet 34% 39% 51% 49% 88% Annual target reached
ESG
ESG
New Business - Green Innovation • Production of biomethane 0 Mln Scm 0.44 Mln Scm 7.2 Mln Scm 19 Mln Scm 229 Mln Scm Annual target not reached
• Reduction of CO2 equivalent from energy efficiency interventions 3 kton 5 kton 10 kton 16 kton 73 kton Annual target not reached
• Cumulated number of CNG and LNG Stations n. 9 n. 25 n. 65 n. 74 n. 175 Annual target not reached
• Available LNG capacity for SSLNG market New KPI New KPI - - 250 kton Implants start in 2023
ESG Land Protection & Biodiversity • % vegetation restoration of the natural and semi-natural areas involved in the construction of the pipeline routing New KPI New KPI 100% >99% >99%  Annual target reached


1. KPIs aligned to UNEP-led Climate and Clean Air Coalition’s (CCAC’s) Mineral Methane Initiative.
2. Scope 1 and 2 GHG emissions will be reduced by 50% by 2030 vs 2018 baseline to reach neutrality by 2040.

 

The above KPIs are shown in the following table available in excel:

xls table

Employees and local communities are at the heart of Snam's social strategy, a strategy that has been further strengthened in recent months in response to the global health emergency of Covid-19. Snam’s approach puts people at the centre, committing to spreading a culture both internally and externally that values and defends the individual as a whole, protects their mental and physical health, promotes their development and diversity. Through the sustainable management of its supply chain and specific involvement of local suppliers, Snam is also committed to supporting the Italian economy in its small and medium-sized enterprises.

 
ESG Focus Areas

KPI

2019

2020

2021

Target
2021

Target
2025

Target achievement
ESG
ESG
Welfare • % participation in welfare initiatives New KPI 39% 50% 50% 56% Annual target reached
ESG Employee engagement • % employee engagement index New KPI 82% No surveys done 82% New methodology under development Annual target not reached
ESG Safety • IpFG (Combined Frequency and Severity Index) 0.32 0.49 0.65 < average last 5 years < average last 5 years Annual target not reached
ESG Gender Diversity * • % of women in executive and middle-management roles [1] 19.3% 20.3% 22.3% 22.5% 27% Annual target not reached
• % of women in succession planning (first and second reporting line) [1] 22% 22% 25% 25% 27% Annual target reached
ESG
ESG
Responsible Supply
 
• % spending to local suppliers (Italy based SMEs) on total non-public procurement 30% 37% 40.7%

40% 

• 50% on spending

• 55% on # suppliers involved

Annual target reached
• Increase third sector suppliers in Vendor List 7

26

+271%

82

+219%

+20% vs 2020 - Target reached earlier
• Introduction of ESG criteria in scoring models New KPI New KPI New KPI New KPI 30% on spending Target set in 2021
ESG Local Community Engagement •  employees hours devoted to Snam Foundation’s initiatives supporting local communities 4,400 4,100 4,562 +10% vs 2020 5,100 Annual target reached

 

1. The scope relates to the following companies: Snam S.P.A. Snam Rete Gas, Snam4Mobility, Snam Gas & Energy Services, Snam International B.V., GNL Italia, Stogit, Cubogas, Enura, Gasrule, Ies Biogas S.r.l., Renerwaste Lodi, Renerwaste, TEP.

The above KPIs are shown in the following table available in excel:

xls table

Legality and integrity, as well as the reliability of its service and efficiency in managing the network, are the guidelines that inspire all of Snam's actions and projects. With the awareness that a company must be evaluated and perceived not only for what it does but also for how it does it, Snam is committed to defining targets that make its business responsible and valuable. Guaranteeing a reliable service, measuring customer satisfaction, assessing the risks associated with the supply chain and bringing ESG issues into the decision-making and induction processes of the Board of Directors are issues of absolute priority for the company for conducting its business in an increasingly ethical and sustainable manner. In this respect, in 2021 Snam also added the new area of Sustainable Finance, thus underlining its commitment to ESG issues throughout its business lines.

 
ESG Focus Areas

KPI

2019

2020

2021

Target
2021

Target
2025

Target achievement
ESG Governance Functioning and Structure • % of BoD time dedicated to ESG matters​ in strategy meetings and induction sessions 40% [3] 41% [4] 41% [4] >40% New methodology under development Annual target reached
ESG
ESG
Infrastructure Reliability • Average annual customer satisfaction rate in terms of service quality [5] 7.6 8.2 8.4 7.8 New methodology under development Annual target reached
• % of reliability levels on gas supply New KPI 99.99% 99.99% 99.9% 99.9% Annual target reached
ESG
ESG
Anti-corruption • % of third party counterparts on which reputational due diligence checks done 100% 100% 100% 100% 100% Annual target reached
ESGESG Sustainable Finance
• ESG Financing % / Total Committed Funding New KPI New KPI 60% - >80% Target set in 2021


3. Data extracted from BoD meeting minutes from April 2019 to April 2020 and from the Corporate Governance Report.
4. Data extracted from BoD meeting minutes from January to December.
5. Average annual customer satisfaction rate of the last three years.

 

The above KPIs are shown in the following table available in excel:

xls table

Other monitored KPI

Snam had set other goals in the past that continue to be pursued and monitored while not being part of the scorecard.

KPI - Social 2017 2018 2019 2020 2021 Target Target achievement
Snam - No. of training hours / / /  67,966 157,341 Reach 320.000 training hours up to 2023. Target set in 2019.
Snam - Female involvement in training initiatives / / / 95% 92% Increase the female involvement in training reaching 90% up to 2026. Target set in 2020
Snam - Number of meetings with municipalities, local institutions and agricoltural associations 106 127 99 52 46 Mantain an average value of 50 for the period 2021-2022 Annual target  not reached
KPI - Environment 2017 2018 2019 2020 2021 Target Target achievement
Snam - Green electricity purchased 35.4% 37.0% 44.1% 49.0% 41.0% Increase the share of green electricity purchased respect to the total to 55% by 2030 Target born in 2019
Snam - Plastic Less Programme n.a. n.a. n.a. 60% 96% Eliminate plastic in industrial packaging (without prejudice to safety) by 2023 and eliminate disposable plastic in beverage dispensers in all corporate headquarters from 2020 Target born in 2019. The plastic in the headquarters will be eliminated in 2022 due to covid.
SRG - High-efficiency heat generators 14.5 20.7 66.5 81 94 Install power of 110 MW in 2025 Under construction
SRG and Stogit - Installation of LED lighting systems n.a. 26.3 209 351 534 Replace 534 kW in 2022 Target reached
SRG - Trigeneration plants n.a. n.a. 359 1,966 5,445 Produce 13,000 MWh in 2025 Under construction
SRG - Improved energy efficiency of buildings n.a. n.a. 15,000 m3 of gas, 65 MWh of electricity 15,000 m3 of gas, 65 MWh of electricity 30,000 m3 of gas, 80 MWh of electricity Save annually 75,000 m3 of gas and 850 MWh of electricity by 2025 Under construction

The above KPIs are shown in the following table available in excel and pdf:

Other KPI trend (xls)

Other KPI trend (PDF)

Discover Snam's strategic plan

Discover Snam's strategic plan

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Find out more Snam's Net Zero Carbon strategy

Find out more Snam's Net Zero Carbon strategy

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Find out more about 2021 Sustainability Report

Find out more about 2021 Sustainability Report

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updated
09 November 2022 - 12:17 CET