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Eni Sustainability Report 2008



From the time of the "Mattei formula", relationships with territories have been based on the recognition of the fact that the boundaries between the Company - as a group of people and not just capital - and the outer world, represented from time to time by suppliers or customers, host, Countries and the international community, are not fixed. Sustainability means creating constructive relationships with all these stakeholders.
In the Countries where it operates, Eni has applied an integrated model based on cooperation and development: it has signed agreements with local Governments and, after consulting the other players in the territories, has promoted initiatives in the support of independent development. An integral part of this process is the philanthropic activity of the Eni Foundation, created by Eni and dedicated to achieve the Company's humanitarian and social solidarity goals. The Sustainability concept today, also implies the support of an innovative approach to global challenges.
This is only achievable by promoting an on-going dialogue with the international bodies and the stakeholders. Eni has assumed an active role in the propagation of this culture and the principles for sustainable development by supporting relevant initiatives, by cooperating with top Universities and networks, by promoting research and innovation, also through the Fondazione Eni Enrico Mattei. Furthermore, Eni is consistently establishing relationships based on mutual trust and cooperation with suppliers and customers, two essential contributors in the creation of added value and with whom Eni shares sustainable principles and behaviour.

HIGHLIGHTS - INTERNATIONAL INSTITUTIONAL RELATIONSHIPS

The development of international institutional relationships, an essential component of Eni's activities, aims at building and strengthening relationships based on mutual consultations, with institutions of the Countries where the Company works, with Italian institutions and entities dealing with foreign Countries and with international entities and organizations.
This constant interaction promotes constructive analysis and debate with respect to different perspectives in approaching issues relative to development Sustainability as well as with respect to modes of cooperation that are more than simple contractual and business relationships.
In this regard, Eni is committed to maintaining strong and constructive relations with foreign institutions, both directly and through the embassies in Italy. These relationships have led, for instance, to meetings with institutional delegations from different Countries and to productive discussions on gas supply security, global warming and renewable energy.
In 2008, a training program for 59 engineers of the Ministry of Iraqi Oil was created. The courses - with an overall duration of 16 weeks - covered various themes, including the development of managerial skills and operational tools in order to improve efficacy within the petroleum sector through analysis of economics, human resources management and cross-cultural relations.
Within this cooperative approach, the constant contact with the Italian Ministry of Foreign Affairs, the Italian embassies and Italian organizations engaged in internationalization, is enabling the Company to work in observance of the so-called "Sistema Paese"* and to develop synergic relationships with the relevant countries.
In May 2008, Eni organized a three day event involving meetings with the Italian ambassadors of the Countries where Eni operates. This was the first of a series of events aimed to promote the understanding of Eni's philosophy, even through the direct testimonial of managers operating in the field.
The spirit of cooperation in the identification of a shared approach to extremely important international issues - such as gas supply security, protection of the environment and sustainable development - has characterized the dialogue, started in 2008, with the relevant Ministries involved in the organization of the next Summit on energy to be convened by the Italian Chairmanship of the G8.
Eni places great importance on a strong dialogue between producing and consuming countries, in the hope of achieving greater stability and transparency within energy markets.
This approach to an open dialogue on a wide range of subjects is reflected in the relationships established with several international organizations such as OECD, International Energy Agency (IEA), OPEC and International Energy Forum (IEF), and also through an active participation in conferences and seminars where Eni's vision of Sustainability is presented and shared.
In its capacity as a member of the Industry Advisory Committee, Eni has cooperated with the EFI's Secretary in the organization of the XI IEF of April 2008, in Rome, in which over 70 Ministry delegations and more than 30 executives from the main international companies in the industry participated in order to identify energy strategies that would be globally shared and capable of meeting the challenges of gas supply security, global warming and growth in the current world's oil demand.

THE DIALOGUE WITH BODIES AND ASSOCIATIONS ON SUSTAINABLE DEVELOPMENT SUBJECTS


Eni supports and participates in several global initiatives and associations: the United Nations Global Compact; Extractive Industries Transparency Initiative (EITI, see the section, "The transparency of payments and EITI"); World Business Council on Sustainable Development (WBCSD); International Petroleum Industry Environmental Conservation Association (IPIECA).
More specifically, in 2008 Eni was part of the IPIECA workteam for the update on the "Reporting" on Sustainability guidelines, and actively contributed to the definition of environmental, social, health and security indicators. In 2008, Eni has also further expanded its network of relationships with the main advocates of Sustainability in the Italian territory. In November 2008, Eni has opened with WWF a "transparency operation" to initiate dialogue on its activities in Val d'Agri. In the first meeting, Eni illustrated the activities carried out in the Basilicata region and the main results achieved within the AgriBioDiversity Project were discussed. Finally, Eni also initiated cooperation in 2008 with Legambiente on the project "The future of the planet: energy scenarios" for the purpose of sharing skills and values, promoting dialogue and knowledge on global energy topics with the members of the scientific community and the academic world, as well as with institutions and students. The partneship took into consideration, as its first activity, the organization of an international conference on solar energy, intitled "Anche il sole fa la sua rivoluzione" (Even the sun has its own revolution) which was held at the Politechnical Institutes of Turin in April 2009.

RESPETING THE PRINCIPLES OF THE GLOBAL COMPACT

Since joining the Global Compact in 2001, Eni has been committed to applying its principles to all its operations; in order to follow new trends in this area, it is actively participating in workshops organized in Italy by the Technical Secretariat of GC, entrusted to FONDACA (Fondazione per la Cittadinanza Attiva) since 2006. In addition - within the "Communication on Progress" annual report - the Company identifies the elements of evolution in terms of actions taken and actions planned in compliance with the 10 principles underlying the initiative.

RELATIONSHIP WITH  STAKEHOLDERS

The respect and attention given to stakeholder expectations is one of the fundamental values of Eni's business. The Company, in compliance with the best international practises, has in fact adopted a stakeholder engagement methodology that is used to identify, analyze and consult with stakeholders who share an interest in Sustainability matters as they relate to business operations. Eni is aware that the creation of value and its Sustainability over time also depends on the quality of the relations established with the stakeholders, and is committed to maintaining an on-going proactive dialogue with the main parties involved. The strategic approach of involving the stakeholders is defined and shared at the Company level and is applied to all operating contexts while still respecting specific local characteristics and promoting transparency, dialogue and the sustainable development of the surrounding communities.

TESTIMONIALS FROM "LIVING THE WORLD" CONFERENCE

The way Eni interacts with the local communities of the Countries in which it operates represents a model of success inspired by pragmatism and not driven by political ideology. Eni tackles any new problem by providing efficient, effective and innovative solutions, without being negatively influenced by politics. The integration model implemented by Eni should also be a source of inspiration in Italy.
Amara Lakhous - Algerian writer

One of the principles that drives Eni's operations, since Mattei's time, is the pursuit of concrete profit. Mattei chose to take Eni's operations into Countries south of the Mediterranean Sea because, with an extremely broad political vision, he understood that the southern world was a problem that needed to be addressed and that it could turn into opportunities that would give Eni a competitive edge on other oil companies, and mostly a new source of profit.
Sergio Escobar - Piccolo Teatro of Milan

Eni should be given credit for having offered, in cooperation with Research Centers and Universities, innovative solutions and projects aimed at improving its operations; these were later extended to the community, in particular to the local communities of the Countries where it operates. A good example is the Telemedicina project, developed with the Politecnico University of Milan, for the assistance of workers on oil platforms. Thanks to Eni, this project has developed into a service that can be used by local communities.
Giulio Ballio - Dean of the Polytecnical Institutes of Milan

RELATIONSHIPS WITH STAKEHOLDERS