Eni

Eni has set targets to reduce 65% of its upstream scope 1 and 2 emissions by 2025 and achieve zero scope 1 and 2 emissions by 2030. It also plans to achieve zero scope 1 and 2 emissions for the Eni group by 2035. The company has set a target for net-zero emissions by 2050 for all the scopes 1, 2 and 3. Residual emissions, which account for about 5% of the company’s total emissions, will be offset. Further, Eni has set targets to reduce scope 1, 2 and 3 lifecycle emissions by 35% by 2030, 55% by 2035 and 80% by 2040 compared to 2018. The company aims for a reduction of the net carbon intensity of its sold energy products by 15% by 2030 and 50% by 2040 compared to 2018.

Eni’s scope 1, 2 and 3 emissions intensity is estimated to have remained stable between 2018 and 2021. This is because the proportion of gas, which is less emissions intensive, has only slightly increased, while the proportion of sold upstream oil, which is more emissions intensive, has remained the same. The company is planning to increase the share of gas in its sold product mix to 60% by 2030 and 90% by 2040. However, a transition to gas alone will not be enough to align with its 1.5°C pathway. In 2019, the company acquired 60% of the energy company SEA, which supplies services and solutions for energy efficiency in residential and industrial segments in Italy.

Eni has implemented board-level oversight of climate change and has significant expertise in the low-carbon transition on its board. It has also set short-, medium- and long-term emissions reduction targets. Further, the company plans to allocate 25% of its investment of USD 39 billion between 2023 and 2026 to low-carbon projects. It plans to increase this investment share dedicated to new energy solutions and services to about 30% of total investments in 2026, 70% in 2030 and more than 85% in 2040. However, it is unclear if the company considers gas expansion a low-carbon project or a new energy solution. The company is planning the production of 15 GW of renewable energy by 2030 and 60 GW by 2050. Additionally, it plans to use CCS to decarbonise, with an aim to achieve a total storage of around 10 million tonnes of carbon dioxide per year by 2030. Eni uses climate scenario analysis to support its transition plan. Nevertheless, Eni’s transition plan is undermined by its reliance on gas. It views gas production as a transition fuel and aims to grow its production share to 60% by 2030 and 90% by 2040.

Eni has published guidelines on responsible engagement on climate change within its business associations. In these guidelines, the company commits to periodically checking the consistency of its climate and energy advocacy positions and those of the trade associations to which it belongs. This process is completed every two years. However, among the topics Eni considers essential is the role of gas in the energy mix. Therefore, any trade association that lobbies against the use of gas does not align with Eni’s principles on climate-related topics.

Eni aims to achieve zero upstream scope 1 and 2 emissions by 2030 and zero scope 1 and 2 emissions for the Eni group by 2035. The company also aims for net-zero scope 1, 2 and 3 emissions by 2050. Additionally, the company has set several interim targets.

The company plans to reach 15 GW of renewable energy capacity by 2030 and increase this to 60 GW by 2050. It is also developing magnetic confinement fusion to generate a surplus of useable energy, with the first plant expected to be operational by the start of 2030. The company plans to allocate 25% of its investment of USD 39 billion between 2023 and 2026 to low-carbon projects.

The company is currently producing biofuels and sustainable aviation fuel (SAF), developing electric vehicle (EV)charging stations and has launched a project to create a hub for CCS in depleted reservoirs. It aims to reach 50 million tonnes of carbon storage capacity per annum by 2050. The retail and renewables segment of Plenitude, a subsidiary of Eni, has a renewable energy capacity of over 2 GW.

Eni’s scope 1 and 2 emissions intensity saw a slight increase between 2018 and 2022. It’s locked-in scope 3 emissions from its upstream activities alone are expected to exceed its 1.5°C carbon budget by approximately 40% between 2022 and 2050. Eni’s scope 1, 2 and 3 emissions intensity is estimated to have remained stable between 2018 and 2021.

Eni has ambitious emissions reduction targets, interests in multiple low-carbon business activities, and plans to reduce its reliance on oil. However, it has no plans to withdraw from gas production and lobbies for the continued use of gas in the long term. The company’s aim to grow the share of gas in its energy mix to 90% by 2040 is not compatible with its target for net-zero scope 3 emissions by 2050, which intends to only use offsets to compensate for the residual emissions of 5%.

The company commits to engaging in social dialogue with workers and unions. It also discloses the categories of stakeholders it engages with on a just transition, including workers, suppliers and business partners, communities and consumers/customers. However, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders. No evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in just transition planning. The company has time-bound indicators to mitigate the social impacts of the transition on affected stakeholders. For instance, it aims to have more than 72,000 students attend schools built or renovated and serviced by the company by 2025. However, no evidence was found that the company has a set of time-bound, measurable indicators to mitigate the social impacts of the low-carbon transition on workers and its business relationships.

The company has a commitment to create and support access to green and decent jobs as part of the low-carbon transition. However, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks. The company has a commitment to reskill and upskill workers and stakeholders affected by the low-carbon transition and discloses the actions it takes in this regard. For instance, its Eni Corporate University offers a wide range of master’s programmes and scholarships in partnership with prestigious universities. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

The company discloses its process for identifying the impacts of the low-carbon transition on the social protection of workers and affected stakeholders. However, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders. The company discloses its process for understanding the alignment of its lobbying activities with policies and regulations that support the just transition. However, no evidence was found that the company discloses any misalignment, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. Furthermore, the company discloses a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as modern slavery, land rights and migrant workers. The company takes action to mitigate these risks in its own operations and in its supply chain, and it engages with affected stakeholders. Additionally, the company has a grievance mechanism available to workers and external stakeholders.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. However, no evidence was found of the company having a time-bound target for paying all workers a living wage. While the company discloses the proportion of its direct workforce covered by collective bargaining agreements, no relevant disclosure was found of the company’s required working hours. No evidence was found that the company discloses the proportion of its direct workforce covered by collective bargaining agreements and the company’s required working hours. The company discloses the age and gender of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company commits to gender equality and women’s empowerment.

The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. The company discloses its global tax strategy and the corporate income tax it pays in each relevant jurisdiction. The company also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its business relationship contracts. While the company specifies that it does not make political contributions, no evidence was found of its lobbying and political engagement policy. Moreover, no relevant disclosure was found of the company’s expenditure on lobbying activities.