Commitment to sustainable development

Introduction

2009 was characterised for Snam Rete Gas by the start up of a process which will lead to important organisational transformations following the full integration of the companies Italgas and Stogit into the group. This has represented and still represents a real area of challenge where the progress of the Snam Rete Gas group in corporate social responsibility and in the development of an innovated and integrated managerial logic will be measured.

Along these lines, July saw the start up of the Energy Programme, a project involving about 300 people from the four companies (Snam Rete Gas, Stogit, Italgas and GNL Italia) who will work together up to March 2010 on studying, analysing and comparing processes and performance of the four businesses and in order to give new life to the new management model for operational processes.

This programme is also the start of the process of extending the sustainability model adapted to the new companies acquired.

In September 2009, Snam Rete Gas was awarded listing in the Dow Jones Sustainability World Index (DJSI World), the first and most prestigious stock index worldwide for evaluating the social responsibility of companies, which accepts only companies with management excellence in their own business according to sustainability criteria. The Dow Jones Sustainability Index, created in 1999 with the aim of tracking the financial performance of shares distinguished by their excellent results in economic, social and environmental terms, selects about 300 companies from a total of about 2,500 candidates with capitalisation qualification.

In December 2009 Snam Rete Gas also entered to participate in “ECPI Ethical Index Global” and received confirmation of inclusion in two other indexes, “ECPI Ethical Index Euro” and “ECPI Ethical Index EMU,” in which the Company had already appeared. Confirmation is also provided by all of the indexes for which Snam Rete Gas was selected in previous years, among them, in particular, the FTSE4Good index (for the eighth consecutive year).

The Company conducts its day-to-day business on the basis of the principles set out by international institutions and conventions covering the protection of human rights, labour rights and trade unionism, health, safety, the environment, abolition of forced and compulsory labour, child labour and all forms of discrimination, as well as compliance with the values and principles of correct behaviour, transparency and sustainable development.

To make this commitment more visible, in October 2009 Snam Rete Gas joined the Global Compact. This international initiative maintains ten universal principles that pertain to human rights, the right to work, environmental rights and to the fight against corruption, and it has brought governments, companies, agencies of the United Nations, labour organisations, and associations together with the aim of contributing to the creation of a more inclusive and sustainable global economy.

The Sustainability Report that the company publishes annually has proven to be an important tool of strategic control that examines the activities carried out, evaluating them according to the logics of economic efficiency, environmental protection and social welfare, communicating key indicators to which the company is committed and by which it publicly assesses itself. The report sets out the strategic objectives that Snam Rete Gas has identified in terms of sustainability, in line with its established sustainable development policies.

To stress the importance of the topics involved in sustainable development, the board of directors has a central role in the definition of the policies and approval of the Sustainability Report in conjunction with approval of the annual financial report.