Eni S p A : for 2023 - A Just Transition (online version)

Mission

We are an energy company.

We concretely support a just energy transition, with the objective of preserving our planet and promoting an efficient and sustainable access to energy for all.

Our work is based on passion and innovation, On our unique strengths and skills.

On the equal dignity of each person, recognizing diversity as a key value for human development,

On the responsibility, integrity and transparency of our actions.

We believe in the value of long-term partnerships with the Countries and communities where we operate, bringing long-lasting prosperity for all.

Global goals for a sustainable development

The UN's 2030 Agenda for Sustainable Development, presented in September 2015, identifies the 17 Sustainable Development Goals (SDGs) which represent the common targets of sustainable development on the current complex social problems. These goals are an important reference for the international community and Eni in managing activities in those Countries in which it operates.

2023

A JUST TRANSITION

Disclaimer

Eni for 2023 is a document published on a yearly basis that contains forward-looking statements related to the different topics covered therein. Forward-looking statements are founded on Eni management's reasonable assumptions and beliefs given the information available to them at the time the statements are made. Nevertheless, by their nature, forward‐looking statements involve an element of uncertainty as they relate to events and depend on circumstances that may or may not occur in the future and which are, in whole or in part, beyond Eni's control and reasonable prediction. Actual results may differ from those expressed in such statements, depending on a variety of factors, including, without limitation: the impact of the Covid-19 pandemic, the fluctuation of the demand, the offer and pricing of oil and natural gas and other petroleum products, the actual operating performances, the general macroeconomic conditions, geopolitical factors and changes in the economic and regulatory framework in many of the Countries in which Eni operates, the achievements reached in the development and use of new technologies, development of scientific research, changes in the stakeholders' expectations and other changes to business conditions. The readers of the document are therefore invited to take into account a possible discrepancy between the forward-looking statements included and the results that may be achieved as a consequence of the events or factors indicated above. Eni for 2023 also contains terms such as, for instance, "partnership" or "public/private partnership" used for convenience only, without a technical- legal implication. "Eni" means the parent company Eni SpA and its consolidated subsidiaries. The reporting of GHG Scope 3 emissions and related targets is not to be understood as the assumption of any legal responsibility in relation to the actual and/or potential impacts of said GHG emissions.

Photos

All the photos of the covers and the Eni for 2023 Report come from the Eni photographic archive.

Translations

The original text of Eni for - unless otherwise indicated - is in Italian. Translations into other languages are taken from the original text. In the event of discrepancies, the contents of the Italian version shall prevail over translations into any other language.

Why read

Eni for 2023?

Eni for 2023 describes Eni's path to a Just Transition that guarantees access to a just energy, with the 2050 target for carbon neutrality, to mitigate costs and share social and economic benefits with workers, suppliers, communities and customers inclusively and transparently. The storytelling is structured according to the three levers of the integrated business model - Carbon neutrality by 2050, Operational excellence and Alliances for development - which define Eni's scope of action to create long-term value for all stakeholders. In contrast to the Consolidated Disclosure of Non- Financial Information, Eni for delves into stories, concrete cases and testimonies to ensure access to efficient and sustainable energy.

REPORTING PRINCIPLES AND CRITERIA

Eni for 2023 is prepared per the "Sustainability Reporting Standards" of the Global Reporting Initiative, in accordance with the GRI Universal (2021) and Sector Standard Oil & Gas (2021) and in line with the 10 principles of the Global Compact.The Eni for 2023

• Sustainability Performance includes theGRI Content Index, as well as the reference tables with: Task Force on Climate related Financial Disclosure (TCFD);Climate Action 100+;Sustainability Accounting Standards Board (SASB); World Economic Forum (WEF); EU Sustainable Finance Disclosures Regulation (SFDR); andWomen's Empowerment Principles (WEPs).

EXTERNAL ASSURANCE

In line with previous editions, Eni for 2023 also underwent a limited assurance audit by the independent auditors (PwC), who audited also the Annual Report, which includes the Non- Financial Statement. Scope 1 and Scope 2 Operated (no equity) GHG emissions are subject to reasonable assurance and this report is included in Eni for Performance.

LEGEND

External links   Internal links  Eni's approach to Just Transition

GLOSSARY

Message to our stakeholders	4
Eni in the world	6
Eni's activities: the value chain	8
Business model	10

	Responsible and sustainable approach	12
Context: progress and challenges of the transition	12
Material topics for Eni	14
Stakeholder Engagement Activities	16
Eni's commitments	18
Eni's approach to the SDGs	20
Governance and sustainability safeguards	21
Innovation, Digitalisation and Cyber Security	26

	Carbon neutrality by 2050	30
Towards Net Zero in 2050	32
Business Evolution	38
Climate change impacts, risks, and opportunities	45
GHG Methodology and Transparency	47
Just Transition for Eni	50

	Operational excellence	52
Each of us	54
Occupational and Process Safety	61
People's health	65
Environment	68
Human Rights	76
Transparency, Anti-Corruption and Tax Strategy	82
Customers and suppliers	86

	Alliances for development	90
Eni as a local development player	92
Access to energy	94
New businesses in the territories	96
Local development projects in the world	98
Partnerships for development	106
Local content	107
Glossary	108
Independent Auditor's Report	109
Eni's sustainability reporting	112

Eni for 2023 - Sustainability performance

It includes reference tables to reference standards/guidelines

4 2023 A JUST TRANSITION

Message to our stakeholders

INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	5

work in this area, such as Sonatrach in Algeria, EGAS in Egypt, and ADNOC in the United Arab Emirates.

Eni has also actively contributed to facilitate the dialogue with stakeholders and the Presidency of COP28 - the United Nations Climate Change Conference

- and it was among the first companies

to join the Oil & Gas Decarbonization

Charter (OGDC) initiative.

In line with the agreement reached at

COP28, Eni agrees with the need for

a progressive reduction ('transitioning

away from') of fossil fuels while rec-

ognising that this transition must take

place in a fairy, orderly and equitably

manner. In this perspective, both Eni's

acquisition of Neptune Energy, a lead-

ing company in exploration and pro-

duction with more than 70% of its port-

folio in the gas sector, and the start-up

of the production from the Congo LNG

project are part of a response to Eni's

need to increase access to safe and

mobility transformation. The actions implemented have allowed the achievement of a 21% reduction in the Net GHG Lifecycle Emissions indicator (Scope 1+2+3) compared to 2018. We are fully committed to offering our customers an increasingly comprehensive range of progressively decarbonized products and services, contributing to reduce the emissions that the energy products sold by Eni generate throughout the entire value chain.

In 2023, we also achieved major breakthroughs in our Carbon Capture

& Storage projects, a key lever of de-

carbonization, especially in the United

Kingdom, where we reached an agree-

ment in principle with the Department

of Energy Security and Net Zero on the

key elements of the economic, regu-

latory and governance model for CO2

transport and storage at the HyNet

North West cluster.

On this path, convinced of the crucial role

communities involved, in the name of the 'dual flag' model, working in partnership with local governments, institutions and organisations such as the ILO (International Labour Organisation), to improve the occupational safety and health of farmers in agri-feedstock supply chains, and IRENA, to promote the development of skills for the transition. In the Countries where we operate, business activities are always accompanied by action plans that respond to the needs of the territory, improving job opportunities, and access to education, health, water, and energy. An interesting example is the Oyo Centre of Excellence for Renewable Energy and Energy Effi- ciency, promoted and supported by Eni and managed by the Ministry of Higher Education, Scientific Research and Technological Innovation of the Republic of Congo and together with UNIDO (United Nations Industrial Development Organisation).

The global context presents us with complex, fragmented and constantly evolving dynamics. The two wars, in the Middle East and Ukraine, among all, give us back a socio-political and energy volatility that calls into question our feeling of personal and communal security, undermining the certainties on which we used to base our actions and oper- ations. At the same time, however, we are called upon to find answers to these challenges and to give our support. Energy remains a crucial junction, since it inherently provides a sense of security and opportunities for development: the energy transition is irreversible, and we must ensure its realisation without sacrificing the production system and social sustainability.

For Eni, 2023 has been the 70th anniversary year, an opportunity to reflect on the distinctive features of the com- pany's journey: the ability to evolve and anticipate changes, the willingness to take new paths, while holding on to our

shared values and, last but not least, our commitment to generate value for all our stakeholders. In designing and embarking on our path towards a just energy transition, we have been able to initiate a radical change, both industrial and cul- tural, focusing on scientific research and innovation, starting with the technologies we have developed. Significant investments in research and development have put Eni in the position of operating with the aim of progressively decarbonising its activities and transforming its industrial processes, products, and services, which allow to generate new businesses for the energy transition, along with new opportunities for Eni and the people and territories involved.

Eni has made decarbonization an integral part of its business strategy to achieve carbon neutrality by 2050, with clear intermediate targets. In 2023, we achieved a 40% reduction in net Scope 1 and 2 emissions in the Upstream sector and a 30% reduction of the total com-

pany's emissions compared to 2018. Particular attention is given to reducing methane emissions, an issue on which Eni has been a frontrunner for several years, also contributing to the reduction of its sector emissions. For this reason, Eni is part of numerous international initiatives, including the World Bank's Global Flaring and Methane Reduction fund, which helps Governments and operators in developing countries to eliminate routine flaring and reducing methane emissions to near zero target by 2030.

Over the past year, methane emissions from the Upstream business have been reduced by more than 20%, also through the measurement and reporting cam- paigns, whose accuracy has enabled Eni to obtain the 'Gold Standard' recognition under the Oil & Gas Methane Partnership 2.0 programme promoted by the United Nations Environment Programme (UNEP). We have also signed agreements to support our partners'

low-emission energy such as natural

gas, which is essential to accompany

the energy transition.

In addition, we started the production

from Baleine field, in the Ivory Coast, the

first project in Africa's Upstream sector

with net zero Scope 1 and 2 emissions.

Decarbonising also means taking ad-

vantage of new opportunities that

transformation offers us. COP28 sup-

ported an approach that focuses on the

solutions that accelerate the transition:

they are all part of Eni's strategy, and

we consider it crucial to apply them ac-

cording to the geographical context and

cost-efficiency logic.

Also, we are integrating traditional activ-

ities with transition-related businesses,

leveraging proprietary technologies,

and developing a satellite model based

on the creation of independent entities

that can independently access the cap-

ital market to grow and enhance their

business. For example, the expansion

in the renewable sector, where Pleni-

tude reached 3 GW of installed capacity

from renewable sources in 2023 as it

was planned, and the birth of Enilive, a

company aiming at a more sustainable

of chemistry from renewable sources,

we also completed the acquisition of No-

vamont by Versalis, in line with our strat-

egy of transformation and repositioning

of the chemical business according to

the drivers of: portfolio specialisation,

circularity and biochemistry.

In tackling the transition, Eni is firmly

committed in safeguarding the health

and safety of people and the integrity

of its assets, and also protecting the

environment, biodiversity and water re-

sources. Furthermore, a commitment to

respect human rights underpins our ac-

tivities: our Code of Ethics and the new

Policy 'Respect for Human Rights at Eni'

explicitly state this, and we demand the

same promotion and protection from all

the stakeholders with whom we main-

tain relations.

For Eni, Just Transition translates into a

commitment to managing the social im-

pact of transformation, maximising the

opportunities for conversion of existing

activities and development of new sup-

ply chains that consider the Countries'

specificities. We are convinced that a

sustainable transition must be inclusive

and able to bring tangible benefits to all

The strategic path that Eni has undertaken and the future progress cannot be separated from our colleagues and partners' skills, ideas, and team spirit: in this sense, collaborations with insti- tutions, public and private stakeholders, international and civil society organisa- tions, universities, research institutes, and innovation hubs are fundamental. The awareness of the value of our skills and of these partnerships, the desire to integrate those who work alongside us, the sense of responsibility for the communities that host our activities worldwide are and will continue to be crucial elements for achieving the results that Eni has set itself.

Claudio Descalzi

Chief Executive Officer

6 2023 A JUST TRANSITION

Eni in the world

INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	7

With over 32,000 people, Eni is facing the triple challenge of ensuring affordable, reliable and increasingly sustainable energy that are essential for the function of the economy and society. In addition to focusing on a decarbonization strategy for the Group's products and industrial processes, with the aim of Carbon neutrality by 2050, Eni is committed to a socially fair and just energy transition, as stated in its Mission. This includes concrete actions to promote universal access to efficient and more sustainable energy by focusing on innovative and proprietary technological solutions, diversifying energy sources and while generating long-term shared value. To pursue a Just Transition, costs must be distributed fairly, without burdening vulnerable communities, introducing concrete plans and adopting alternative solutions that safeguard different geographies and actors while considering the whole system overall. The strong involvement of top management and the inclusion of all its people demonstrate Eni's ongoing commitment to ensuring the dissemination of core values for an ethical and socially just energy transition.

2023 KEY FACTS

7061

Years of history	Countries
in the world	of presence

2,630	-30%
Net Carbon Footprint
Persons hired	Eni vs. 2018 (Scope 1+2)

70%90%

R&D expenditure	Reuse of fresh
in decarbonization	water

+23%	€95 mln
investments for local
training hours	development

Eni's activities in the world

AMERICAS

1. COUNTRIES

EUROPE

22 COUNTRIES

5

10

18

12

AFRICA

12 COUNTRIES

12

3

7

ASIA AND OCEANIA

19 COUNTRIES

13

3

9

2

Enilive, Refining and Chemicals

Exploration & Production

Plenitude & Power

Global Gas & LNG Portfolio

2023 KEY FACTS

SUSTAINABLE MOBILITY

Enilive is born // JV with PBF Energy for the St. Bernard biorefinery in the USA // Feasibility study with LgChem for new biorefinery

in South Korea // HVOlution, the first 100% renewable feedstock diesel launched

(EU Directive) // Kenya Airways makes first flight from the African continent with SAF (Sustainable Aviation Fuel) supplied by Eni

RENEWABLES AND BIO CHEMISTRY

Inauguration of photovoltaic plants in Texas and Kazakhstan // Dogger Bank for offshore wind energy field in the UK goes into production // Agreement (completed in 2024) with Energy Infrastructure Partners (EIP) to enter Plenitude's share capital // Versalis completes the acquisition of

Novamont

DECARBONIZATION

Achievement of the Gold Standard under the UNEP OGMP 2.0 programme, the UN programme for the environment // Emission reduction agreements with Sonatrach, EGAS and ADNOC // Participation in the COP28 Oil & Gas Decarbonization Charter and the World Bank's GFRM Fund to reduce methane and gas

flaring emissions

CAPACITY BUILDING

Launch of the first international network on energy transition in Africa, born from the collaboration between Eni and Luiss University // Inauguration of the Oyo Centre of Excellence for Renewable Energy and Energy Efficiency with UNIDO in the Republic of Congo // Training and job placement at the Centre of Excellence for Access to Employment in Port Said, Egypt

EXPLORATION AND UPSTREAM

Growing role of gas with the discovery of Geng North inIndonesia and Nargis in Egypt // New Mexican offshore discovery // Start of production at Baleine in the Ivory Coast // Launch of the Congo LNG project with the introduction of gas into the Tango FLNG liquefaction plant // Acquisition of Neptune and Chevron's assets in Indonesia // Signature of a long-term LNG supply contract in Qatar

PEOPLE

Partnership with the International Labour Organization (ILO) to improve occupational safety and health of farmers involved in agri feedstock supply chains // Letter of Intent with Dompé for research on the health of people and communities

• Extraordinary action plan adopted to support 20,000 non-managementemployees

CARBON CAPTURE AND STORAGE

Strengthening of Eni's role in the UK for the development of the first regulated CCS business, with HyNet North West and the storage licence for Bacton // In Italy,

the Ravenna CCS project in the European list of Projects of Common Interest

INNOVATION

Agreement with CFS (Commonwealth Fusion Systems) to accelerate the industrialisation of fusion energy // Launch of ROAD (Rome Advanced District), a hub dedicated to technological research // Creation of Enivibes, a venture that enhances proprietary technology for pipeline monitoring

8	2023 A JUST TRANSITION	INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	9

Eni's activities: the value chain

Eni is an energy tech company engaged in the entire value chain: from the exploration, development and extraction of oil and natural gas, to the generation of electricity from natural gas and renewable sources, traditional and bio refining and chemical activities, and the development of circular economy processes. Eni extends its reach to end mar- kets, marketing gas, power and products to local markets and to retail and business customers also offering services of energy efficiency and sustainable mobility. Consolidated expertise, technologies, geographical and energy sources diversification, alliances for development, as well as new business and financial models are Eni levers to effectively meet the challenge of a just energy transition, balanced and economically sustainable, while also maintaining a strong focus on value creation for shareholders. Along this path, Eni is committed to become a leading company in the production and sale of progressively decarbonized energy products, increasingly customer-oriented.

Eni's strategy to reach carbon neutrality by 2050 leverages on an industrial transformation to be implemented by strengthening available and economically sustainable technologies able to immediately contribute to emission reduction, among which:

• Gas component as a bridge energy source in the transition, flanked by in- vestments to reduce CO2 and methane emissions;
• Development of biomethane and biofuels, by increasing feedstocks of bio and renewable raw materials, waste and residues and of an integrated agri feedstock production chain and contributing to transport decarboni- zation with no sudden changes to existing infrastructures;
• Renewables through increased installed capacity and integration with the retail business leveraging on large customer base;

• Carbon capture utilization and/or storage (CCUS), currently available to reduce emissions in hard-to-abate sectors, through the development of
  hubs for the storage of the CO2 from emissions generated by Eni's and third parties' industrial plants;
• Progressive development of the production of new energy carriers, includ- ing low carbon and renewable hydrogen.

The scale use of these solutions together with research and development of breakthrough technologies, such as magnetic confinement fusion, can support the revolution of the energy sector. Residual emissions, i.e. those that cannot be reduced due to technical and economic constraints, will be offset through high quality carbon offsets.

OUR VALUE CHAIN

PRODUCTS SERVICES

REMEDIATION,

DEVELOPMENT OF

AGRI-FEEDSTOCK

PURCHASE

OF GAS FROM

THIRD PARTIES

OIL & GAS

PRODUCTION

PURCHASE OF BIO AND RENEWABLE RAW MATERIALS, WASTE AND RESIDUES

WATER AND WASTE

INTO DEVELOPMENT

		FUEL
		BIOFUEL
	TRADITIONAL AND
	BIOREFINING	LUBRICANTS
	AND PETROCHEMICALS
TRADING		TRADITIONAL AND
& SHIPPING		BIOREFINING AND
		PETROCHEMICALS

FOOD

SERVICES

RETAIL

MARKETS

SUSTAINABLE

MOBILITY

E-MOBILITY

BUSINESS

MARKETS

ENERGY

EFFICIENCY

EXPLORATION

AND

DEVELOPMENT

PRODUCTION

FROM RENEWABLE

SOURCES

CARBON OFFSETS

THIRD PARTY INDUSTRY

TRANSMISSION			OIL & GAS
NETWORK
	ELECTRICITY GENERATION
		ELECTRICITY
			AND STEAM
	CAPTURE, STORAGE
		AND USE OF CO²

PHOTOVOLTAICHOST COUNTRIES

NETWORK SERVICES

CCUS

10 2023 A JUST TRANSITION

Business model

INTRODUCTION

CARBON NEUTRALITY

OPERATIONAL EXCELLENCE

ALLIANCES FOR DEVELOPMENT

11

Eni is an integrated energy company supporting a socially fair energy transition that through concrete and economically

Eni is an integrated energy company supporting a socially fair energy transition that through concrete and economically sustainable solutions, aims to face the crucial challenges of our time: combating climate change and giving access to energy in an efficient and sustainable way for all.

The business model is aimed at creating long-term value for all stakeholders through a consolidated presence along the entire energy value chain. The Company's mission integrates the Sustainable Development Goals (SDGs) by the United Nations 2030 Agenda and our distinctive approach permeates all our activities. Eni continues its commitment to energy security, continuing to ensure value creation while advancing its transition strategy

VALUE CREATION FOR STAKEHOLDERS

Through an integrated presence all along the energy value chain

sustainable solutions, aims to face the crucial challenges of our time: combating climate change and giving access to energy in an efficient and sustainable way for all

with a technologically neutral and pragmatic approach aimed at maintaining the competitiveness of the production system and social sustainability. These objectives are based on a diversified geographical presence and a portfolio of technological solutions to enable the creation of an increasingly decarbonized energy mix. Essential to the achievement of these objectives are partnerships and alliances with stakeholders to ensure and active involvement in shaping Eni's activities and in transforming the energy system.

The model combines the use of proprietary technology with the development of an innovative satellite model. This involves the creation of dedicated companies capable of independently accessing the capital market to finance their growth while bringing out the real value of each business. This integrated business model is supported by a Corporate Governance system inspired by the principles of transparency and integrity, an Integrated Risk Management Model ensuring, through the assessment and analysis of the risks and opportunities of the reference sce- nario, informed and strategic decisions, as well as materiality analysis to examine the most significant impacts generated by Eni on the economy, environment and people, including those on human rights.

The operation of the business model is focused on the best possible use of all the resources (inputs) available to the organisation and on their transformation into outcomes, through the implementation of its strategy. Eni also organically integrates its business plan with the principles of environmental and social sustainability, deploying its actions along three levers:

INPUT(*)

516.2 mln total GJ

energy consumption

33,142

employees(***)

over

300,000 km2

oil & gas exploration/ development licences

CARBON	OPERATIONAL	ALLIANCES
NEUTRALITY	EXCELLENCE	FOR
BY 2050		DEVELOPMENT
Products and	Approach to lead	Value creation shared
processes	the transformation	with host countries
decarbonization

STRATEGY E TARGET

OUTPUT(*)

-10%

Net Carbon footprint upstream (Scope 1+2)

0.40 TRIR

(recordable

injuries/hours

worked)

~900 mln boe

new resources

3.1 GW

CARBON NEUTRALITY BY 2050

Eni's business model envisages a decarbonization path towards Carbon neutrality by 2050 based on an approach oriented to emissions generated throughout the life cycle of energy products. This path, achieved through existing and under development technologies, will allow Eni to totally reduce its carbon footprint, both in terms of net emissions and net carbon intensity. On the back of this scenario, Eni believes natural gas having a role as a bridge energy source in the transition by virtue of its accessibility, reliability, versatility and reduced carbon footprint compared to other fossil fuels.

Agri-feedstock from 7 Countries

10.1 mln

customers

€70 bln

capital employed

V

D A

E

L

T

U

A

E

C

R

G

E

H

E

T

A

I

C

N

N

N

I

A

R

N

I

S

K

R

M

E

Eni Group renewable capacity

1.65 mln ton/y

biorefinery capacity

€4.8 bln

shareholders remuneration

OPERATIONAL	Eni's business is aimed at operational excellence through the continuous commitment
EXCELLENCE	in the enhancement, health and safety of people, assets integrity, environmental protec-
	tion, respect for human rights, resilience and diversification of activities and financial
	soundness. These elements allow Eni to seize the opportunities deriving from the possi-
	ble developments in the energy market and to progress its transformation path.
ALLIANCES	Eni is committed to reduce energy poverty in the countries where it operates through
FOR	the development of infrastructures relating to the traditional business but also to the
DEVELOPMENT	new frontiers of renewables aiming at generating value in the long term by transferring
	its know-how and skills to local partners (so called "Dual Flag" approach). In these
	countries, Eni promotes initiatives to support local communities accessing to energy,
	to diversify economy, training and health of community, access to water and sanita-
	tion, and protection of the territory, in collaboration with international players and in
	line with the National Development Plans and the United Nations 2030 Agenda.

~9,900

patents

Strategic acquisitions

€95 mln

investments for local development

€9.2 bln

capex

V		NATURAL	ENERGY			A
	RESOURCES	EVOLUTION
O
	MISSION			N
G
			A
		PROPRIETARY	ENERGY SOURCES
E				G
TECHNOLOGIES AND	DIVERSIFICATION
T		BREAKTHROUGH				E
A						M
R
	SATELLITE	DEEP PORTFOLIO		N	E
O	MODEL	OF OPPORTUNITIES	T

P
R
O	F										E
C	I								I
		N	A						L
							I
				N	C			P
					C
					S
						IAL DI

€16.5 bln

adjusted cash flow

€17.8 bln

proforma adj. EBIT

1.66 mln boe/d

hydrocarbon production

~450 thousand

people involved in local development projects(**)

(*) At December 31, 2023 and/or in 2023, unless stated otherwise.

(**) People involved in local projects could have benefitted from more than one initiative in different areas of opportunity.

(***) This figure differs from the one published in the Consolidated Disclosure of Non-Financial Information (NFI) in Eni for, as it does not include only the fully consolidated.

12 2023 A JUST TRANSITION

Context: progress and challenges of the transition

INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	13

~760mln

people have no access to electricity

Over 2 billion people use biomass for cooking

GLOBAL CHALLENGES

The challenges the world energy system must face in the immediate and coming years appear increasingly complex, dictated by the changing global context and multiple crises that make energy transition and economic security an interconnected priority. Ensuring the transition to a decarbonized energy system that is both secure and affordable for all, will not be possible without security of supply, which is essential to ensure economic growth, and universal and sustainable access to energy. The energy transition must be balanced, economically sustainable, and, in the immediate term, built with available technologies capable of ensuring the proper supply of an energy system that is fundamental to the industrial system and all major essential activities. It must also be a driver of future transformation. Energy consumption is linked to demographic change, economic development and improved living condi-

tions for the global population. However, today around 80% of the world's population is concentrated in emerging Countries where per capita energy consumption is well below that of developed Countries. The economic and demographic development of these Countries, increasing urbanisation and the transition to higher living standards will require more and more energy and a fair transition. This will require lasting solutions in the medium- to long- term. In Sub-Saharan Africa, for example, the increase in population over the years has not been matched by a commensurate increase in access to energy. The real challenge for the energy transition is to ensure universal access to energy while reducing carbon emissions. Primary energy consumption on a global scale is still closely linked to the use of fossil sources for about 80%, among which coal (the highest polluting fossil source) still accounts for 27% of the total with particularly high percentages

in Asian economies (45% in India, 61% in China) and residual in developed Countries (13% in the EU and 11% in the US). The economic and demographic grown of the next few decades lead to hypothesizing an increase in energy demand driven by the needs of emerging economies, while industrialised Countries will see a gradual slowdown in consumption, mainly driven by energy efficiency enhancement and energy saving processes. Fossil sources will continue to play an essential role in the energy mix, also thanks to CCUS, which allows for a lower emission profile. However, they are expected to decrease compared to today, mostly due to a lower amount of carbon to replace with lower impact sources such as gas and renewables. Breakthrough technologies such as magnetic confinement fusion may enter the mix and, together with new sources/vectors, will help reduce the carbon footprint of the world's energy system.

TRANSITION PROGRESS AND CHALLENGES

The Intergovernmental Panel on Climate Change (IPCC) underlines the need to achieve Net Zero for CO2 emissions around 2050 in order to limit the temperature increase to 1.5°C compared to preindustrial times by the end of the century. In this regard, the latest IPCC reports (AR6) identify several compatible scenarios, which call for the decarbonization of the energy system through the combined application of a number of levers. The IPCC's main messages were the focus of COP28, which concluded with the unanimous agreement on the Global Stocktake, taking stock of progress towards the Paris Agreement goals and identifying measures, best practices and opportunities to strengthen climate action. This major breakthrough in the negotiations includes new elements such

as: targets for 2030 to triple renewable energy sources and double the rate of increase in energy efficiency; definition of a global framework on adaptation; a fund to compensate for the loss and damage of climate change in the most vulnerable developing Countries (Loss and Damage Fund); for the first time, a commitment to negotiating text for a fair, orderly and equitable transition away from fossil fuels ('transitioning away'); recognize the need, to increase the deployment of all low- and zero-emission technologies with a technology-neutral approach, such as renewables, nuclear, CCS; and the role of transition fuels (e.g. biofuels). The large number of scenarios illustrated by the IPCC and the multiple levers suggested within the COP shows the difficulty of tracing unambiguous energy transition trajectories due to the simultaneous action of several variables. These include geopolitical evolutions, decarbonization policies

(which are extremely uneven geographically), and different speeds of adjustment between energy supply and demand in different Coun- tries. The International Energy Agency (IEA) also publishes a series of scenarios annually in the World Energy Outlook (WEO). They are based on detailed energy demand forecasts by sector, built on specific demographic and economic variables for the coming decades:

• Forecasting, which produces trajectories of energy consumption trends using de- mographic/economic inputs and existing or likely future policies/ambitions stated (STEPS - Stated Policies Scenario and APS - Announced Pledges Scenario);
• backcasting, which identify backward trajec- tories compatible with one or more targets imposed through the use of technologies even in the demonstration phase, the hy- pothesis of a sudden change in consumer habits and an acceleration of the efficiency of final consumption (NZE scenario - Net
  Zero Emissions).

GLOBAL EMISSIONS FROM FUEL COMBUSTION BY REGION IN 2022

MAIN INDICATORS FOR THE INTERNATIONAL ENERGY AGENCY (IEA) SCENARIOS

Rest of the world

47%

Source: International Energy Agency, "World Energy Outlook 2023".

		India
China	33%
USA	13%	7%

NZE

(Net Zero Emissions)

Backcasting scenario. It identifies

backward a possible path compatible to target net zero emissions by 2050, with different speeds between advanced and

APS

(Announced Pladges Scenario)

Forecasting scenario. Analyses the implications in terms of emissions and energy demand if all the net zero targets announced by Governments are actually met and

STEPS

(Stated Policies Scenario)

Forecasting scenario. It identifies

an evolutionary trajectory derived from economic, demographic inputs and includes all policies implemented and planned by

SCENARIO

THE EVOLUTION OF GLOBAL ENERGY DEMAND

developing economies.

within the planned timelines.

Governments.

Final energy consumption per capita (GJ)

200

Key economic and energy indicators in 2022 highlight different starting points, among the regionally selected Countries, the United States has both the highest per capita income and the highest energy demand, while Africa has the lowest

100

Population (millions of people)

GDP per capita (USD 2022, PPC)

1,424

5,800

76,000

336

50,400

177

approx. 1.4°C

5.2% in 2030

• 14% reduction in global energy demand compared to 2022, despite a growing global economy and a growing population of about 1.7 billion
• immediate investments are needed to adapt and innovate existing energy systems

approx. 1.7°C

2.3% in 2030

3.9% in 2050

• almost in line with current levels with an increased role of low carbon sources
• although declining, the maintenance of a significant role for Oil & Gas in the energy mix (30% by 2050 vs. the current 52%), growth of intermittent renewables (28% of the mix by 2050 vs. the current 2%) and nuclear (9% of the mix vs. the current 5%)

approx. 2.4°C

0.6% in 2030

0.8% in 2050

• growth of 15%, mitigated by the push towards energy efficiency
• the maintenance of a significant role for Oil & Gas in the energy mix (45% by 2050
  vs. the current 52%) and growth of intermittent renewables (16% of the mix by 2050 vs.
  the current 2%)

EXPECTED TEMPERATURE INCREASE @2100

AVERAGE % REDUCTION OF CO2 EMISSIONS(*)

GLOBAL ENERGY DEMAND @2050

Africa	India	Southeast	Latin	China	European	Middle	Japan	Eurasia	United
		Asia	America		Union	East	and		States
			and Caribbean				South Korea

(*) Includes emissions from industrial processes and flaring.

Source: International Energy Agency, "World Energy Outlook 2023".

14	2023 A JUST TRANSITION	INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	15

Material topics for Eni

Materiality analysis aims to identify the sustainability topics most relevant to Eni and its sta- keholders. The material topics are instrumental for defining the Strategic Plan - the origin of the formulation of the sustainability Managerial Objectives (MBO - Management by Objectives) for all managers - and directing reporting. The analyses of the socio-economic, environmental and cultural contexts of the Countries where Eni operates help to break down Strategic Plan priorities at the local level and define local development promotion activities. The materiali-

ty analysis, updated in 2023, led to identifying relevant topics from the impact relevance per- spective, as required by the GRI Standards. This perspective considers material topics related to the most significant impacts (positive and ne- gative, actual and potential) of the organisation on the economy, environment and people, including impacts on human rights. In addition, as in 2022, the analysis also considered identifying the relevant topics by analysing the risks of the Integrated Risk Management model (financial materiality)1. This analysis confirmed the iden-

tification of impact-based topics. Analysis of both perspectives represents a preliminary financial statement carried out in relation to future CSRD forecasts on double materiality2 Eni is conducting the required in-depth analyses considering the ongoing regulatory development. Eni's materiality process included the following steps:

• Identification of relevant issues and their im- pacts, combining the results of the 2022 mate- riality analysis with the most significant ones

for the 2023 context and sector of operation, also based on the GRI Sector Standard for Oil

• & Gas;

• Evaluation of the topics: (i) Impact Materiality perspective to GRI standard, submitting a que- stionnaire to internal and external stakehol- ders3 to assess the importance of the topics based on the significance of the impacts and their likelihood of occurrence (Stakeholder en- gagement activity); and (ii) Financial Materiali- ty perspective - considering the results of the

Integrated Risk Management risk assessment process Integrated Risk Management Model;

• Prioritisation of topics according to impact and financial analysis carried out separately. The topics submitted for evaluation, which were all found to be material, were divided into three dif- ferent significance levels;
• Sharing the results of the materiality analysis with the Control and Risk Committee, the Sustainability and Scenarios Committee and BoD. The final Eni

document for 2023 was submitted to the Sustainability and Scenarios Committee, the Management Committee and subsequently approved by the BoD.

Under the changing context, the analysis results show a certain dynamism over time, both in terms of significance and the merger/subdivision4 of a few to- pics. The table below shows the results of the materiality analyses. It also shows some current/potential positive and negative impacts, by way of non-limiting examples, and the trend compared to the last financial year as well as the business sector, Upstream or Mid-downstream, in which these could materialise.

TOPIC

CLIMATE CHANGE

SDG: 7 9 12 13 15 17

HUMAN CAPITAL

SDG: 4 5 8 10

IMPACT MATERIALITY

Positive Impacts

Investments in zero- and low-carbon technology

Developing employees' skills and improving career opportunities through training activities

		Sector where		FINANCIAL MATERIALITY*
		TREND		TREND
Negative Impacts	Significance	the impact	compared	Significance	compared
occurs	to 2022	to 2022

Climate-changing emissions in the course of their activities or along the value chain

Lack of employee skill development, non-compliance with contractual rules, freedom of association and collective bargaining, job insecurity

EQUAL TREATMENT AND OPPORTUNITIES FOR ALL

SDG: 3 4 5 8 10

OCCUPATIONAL HEALTH AND SAFETY AND PROCESS SAFETY

SDG: 2 3 6 8 9 11 14

POLLUTION

SDG: 3 6 9 12 14

WATER RESOURCES

SDG: 6

BIODIVERSITY AND ECOSYSTEMS

SDG: 14 15

CIRCULAR ECONOMY AND WASTE MANAGEMENT

SDG: 6 12 14 15

HUMAN RIGHTS

SDG: 1 2 3 8 10 16

RESPONSIBLE SUPPLY CHAIN MANAGEMENT

SDG: 3 5 7 8 9 10 12 13 16 17

CUSTOMER RELATIONS

SDG: 7 12 16

BUSINESS CONDUCT

SDG: 16 17

Increase employee well-being through adequate welfare and equal opportunity plans

Negative impacts on the well-being of workers and their families and cases

of discrimination

Increased health and safety awareness of employees through training activities and service reliability through

Injuries and/or damage to employees' health due to potential hazards and

exposure to hazardous substances, as well as service disruptions and impacts

proper maintenance and constant monitoring of infrastructure and asset integrity

on the environment and people caused by accidents and infrastructure failure

Climate-changing air emissions (NOX, SOX, NMVOC, and PM) during their

activities or along the value chain. Water and/or soil pollution caused by oil

spills from Eni-owned infrastructure

Water scarcity and water quality deterioration at sites where Eni operates

Creation of new natural habitats through the use of abandoned structures, land conservation projects, land resto-

Loss of biodiversity at sites where Eni operates

ration/land remediation and forest conservation

Reducing the use of natural resources through practices and processes aimed at recycling and recovery

Environmental impact due to incorrect waste management

Protection and respect of human rights through due diligence on corporate activities and those of suppliers and

Violation of the human rights of workers, local communities and indigenous

commercial partners

peoples

Spreading environmental and social sustainability principles through the involvement of suppliers and supply

Suppliers' violation of workers' rights and negative environmental impact

chain partners

Fostering strong customer relationships through engagement, listening and customer care

Interruption of the service offered (e.g. energy supply) to customers for rea-

sons attributable to Eni

Incidents of corruption and illegal conduct with possible economic repercus-

Creating economic value in the territories of presence with investments, payment of taxes and royalties

sions on markets and companies caused by tax evasion, monopolistic poli-

cies and lobbying practices

CLOSURE AND REHABILITATION

SDG: 4 8 11 14 15

LOCAL DEVELOPMENT AND ACCESS TO ENERGY

SDG: 1 2 3 4 5 6 7 8 9 10 13 15 17

DIGITALIZATION AND CYBER SECURITY

SDG: 7 9 12 13 16

Re-use of abandoned facilities, materials and plants for the benefit of local communities

Development of communities and local entrepreneurship through initiatives in various policy areas, including partnerships and business agreements with local suppliers, creating infrastructure, and improving the service quality in remote areas

Innovative initiatives for the development of company processes, partner support and improving cyber security in Countries of presence through partnerships with institutions and companies

Loss of jobs and failure to develop employees' skills due to plant or site closures

Violations of community rights, well-being and involuntary resettlement, unequal compensation, exploitation of natural resources to the detriment of local communities, and inefficiency of the distribution network with effects on the community and environment

Loss of data and personal information of employees, customers, partners, ecc.

									1 The limited audit by the Independent Auditors (PwC SpA) on the Eni for refers to the GRI standard. Its conclusions do not extend to any information resulting from the preliminary exercise carried out in relation to future
									CSRD forecasts on the analysis of double materiality.
									2 Please note that interpretative guidelines on double relevance analysis prepared by EFRAG (so-called Materiality Assessment Implementation Guidance) will be published in 2024.
									3 In 2023, about 7,500 stakeholders were engaged for the materiality analysis.
									4 Compared to the previous analysis, some topics have changed in 2023: (i) "Occupational and Process Health and Safety" has been merged with "Asset Integrity"; (ii) the following were merged: "Local Development"
Carbon neutrality to 2050		Operational Excellence		Alliances for Development		Transversal themes	Upstream	Mid-downstream	and "Energy Access", "Local development" and "Access to energy", and "Innovation" and "Digitalization and Cyber Security"; (iii) "Reduction of environmental impacts" was subdivided into: "Pollution", "Biodiversity and
			ecosystems", and "Water resources"; (iv) "Transparency, anti-corruption and tax strategy" was changed to "Business conduct".
									(*) The limited audit by the Independent Auditors (PwC SpA) on the NFI refers to Legislative Decree 254/16 and the GRI standard. Its conclusions do not extend to any information resulting from the preliminary exercise
									carried out in relation to future CSRD forecasts on the analysis of double materiality.

16 2023 A JUST TRANSITION

Stakeholder Engagement Activities

INTRODUCTION		CARBON NEUTRALITY		OPERATIONAL EXCELLENCE		ALLIANCES FOR DEVELOPMENT	17

Stakeholder engagement is a central issue for Eni to pursue a fair and equitable transition, as such participation helps maximise long-term value creation while reducing business risks. Also in line with the Code of Ethics, Eni maintains relations based on principles such as fair- ness, legality, transparency, traceability, respect for human rights, inclusion, gender equality and protection of the environment and communities. Participation in and sharing of company choices,

objectives and results foster solid relationships and mutual trust and are even a vital component of the materiality process. Eni's cornerstones include the attention to relations with stakeholders of interest present in all Countries where it operates (61) by guaranteeing an active and constant dialogue, taking their needs into account, and tracking requests and complaints in a structured and transparent manner. To support the relationship with local stakeholders, Eni uses the

company's "Stakeholder Management System" application, which maps over 5,800 stakeholders and allows a constant and punctual management of grievances, requests and critical issues. The table below represents the most relevant issues for Eni's key stakeholder categories emerged from the materiality analysis, as well as any additional issues reported by the corporate functions responsible for relationships with that specific category.

management

safety

for

all

energy

Security

and

management

opportunities

Cyber

change

health

ecosystem Right

resources

relations

conduct

rehabilitationand access

to

and

waste

process

chain

Pollution

capital

and

and

economy

treatment

and

Human Water

Closure

and

digitalization

and

supply

Biodiversity

Customer

development

Climate

Human

Business

Circular

Occupational Responsible

Equal

Local

Innovation,

CATEGORIES	2023 MAIN ENGAGEMENT ACTIVITIES
ENI'S PEOPLE	Professional and training paths on emerging skills related to business strategies and development of entrepreneurship //
Training and awareness-raising initiatives to support inclusion, recognition of the value of all types of diversity and zero
AND NATIONAL
tolerance // Initiatives supporting team building and mobility to foster internationality // Initiatives to develop young resources
AND INTERNATIONAL
under 36 // New Golden Rules and Eni Principles of Process Safety campaign with special focus on the Stop Work Authority //
UNIONS
Finalisation and/or signing of agreements with trade unions including Remote Work in Italy and its gradual extension abroad
	Capital Markets Day (strategic plan for 2023-26 and long-term to 2050) and Virtual Road-Show in major financial centres //
FINANCIAL	Road-Shows with investors and proxy advisors on the remuneration of executives // Conference call on quarterly results //
Top management participation in conferences organized by banks // Participation in thematic conferences and continuous
COMMUNITY
engagement with institutional investors and leading ESG rating agencies // Please note that "Strategy and Economic-Financial
	Performance" is a relevant topic in addition to the sustainability topics on the right
LOCAL COMMUNITIES	Consult with local Authorities and communities for new exploration activities and/or the development of new business projects
AND COMMUNITY BASED	and local development projects // Management of requests and grievances of local communities // Regular communication on
ORGANISATIONS	project progress // Local community awareness campaigns on health issues and the use of improved cookers
CONTRACTORS,	Supplier awareness-raising, involvement and training initiatives and industry workshops to foster sustainability awareness
SUPPLIERS AND	throughout the supply chain // Expansion of the Open-es community and reinforcement of the initiative with more tools and
COMMERCIAL	services (e.g. training programmes on ESG issues) // Extension of the application of the risk-based due diligence model on
PARTNERS	human rights to prevent and mitigate risks along the entire supply chain // Sustainable Supply Chain Finance Programme
	Regular interactions with Consumer Associations (CAs) to: present results, objectives and future strategies; meetings
CUSTOMERS	and workshops with Presidents, General Secretaries and Energy Managers of national and local CAs on issues related to
sustainability, energy transition, circular economy, digitization and commercial initiatives; share results on protocol monitoring
AND CONSUMERS
for the prevention of unsolicited activations; improve customer satisfaction and service quality, also through dedicated
	channels and reserved web area
	Participation in economic promotion initiatives, meetings and round tables on topics related to business, geopolitical and
NATIONAL,	energy scenarios, sustainable development and new technologies // Representation of Eni's positioning on energy transition and
INTERNATIONAL	decarbonization at public events and major international multilateral fora (e.g. G20, B20, COP28) // Institutional engagement and
AND EUROPEAN	dialogue, also in the context of partnerships and memberships, with think tanks, associations and international organizations
INSTITUTIONS	on energy and ecological transition, innovation and sustainable mobility // Project presentations, visits by associations,
	institutional and political delegations to industrial facilities, operational sites and research centres
	Collaboration with: a) Italian universities: Milan and Turin Polytechnics, Universities of Bologna, Bicocca, Federico II, Pavia, Padua,
UNIVERSITIES,	Pisa, INSTM Inter-University Consortium; b) Research Centres: CNR, ENEA and INGV; c) the MIT; d) as a founding partner under the
RESEARCH CENTRES	PNRR, 4 National Research Centres, 2 Innovation Ecosystems, 2 Extended Partnerships // Launching of ROAD - Rome Advanced
AND INNOVATION	District, a technological research hub dedicated to new energy chains // Launching of new alternating school-work projects to
HUBS	combat school drop-outs // Presence in the main national and international innovation hubs, agreements with innovation brokers,
	incubators and start-up accelerators
ADVOCACY	Membership of and participation in OGCI, IETA, WEF, IPIECA, WBCSD, UN GLOBAL COMPACT, EITI, The Council for Inclusive
ORGANISATIONS
Capitalism, UN Energy Compact and collaboration with international human rights institutions // Conferences, debates, events
AND TRADE
and training initiatives on sustainability issues; creation of guidelines and sharing of best practices, capacity building for the
ASSOCIATIONS,
generation and use of carbon credits // Meetings with local business and trade associations for sustainable supply chain, energy
CONFINDUSTRIAL
issues and to support business through position analyses and studies for energy transition
ASSOCIATIONS
ORGANISATIONS	Collaboration/partnership agreements with cooperation organisations to consolidate development activities in Countries.
Agreements with UN agencies (UNIDO, UNESCO and IOM) and civil society organisations (ADPP, AVSI, Banco Alimentare and Oikos)
FOR DEVELOPMENT
// Collaborations with national cooperation agencies (AICS and USAID), private sector organisations (CNH Industrial and IVECO
COOPERATION
Group), host Country ministries and civil society organisations

RELEVANT TOPICS

THE YEAR IN NUMBERS

~300 initiatives in support of the internationalization

of Eni resources

~5,000 people invited to the Engagement Survey of valorisation of resources under 36

~670 funds met

~270 meetings/calls with investors and agencies

139 grievances handled

782 local communities mapped (including indigenous)

>15,000 companies participating in Open-es

500 Consumer Association representatives met

75 Scholarships funded/co-funded for PhDs

6 Joint Research Centres in Italy with 28 active projects

8 entrepreneurial development hubs active in Italy and 2 abroad (Kenya and Congo)

>100 incubated/accelerated innovative start-ups

28 agreements signed

for socio-economic development and health initiatives