Note on methodology GRI - G4: 17, 18, 22, 23

Snam’s Sustainability Report, now in its eighth year of publication, is drawn up annually, within the same timeframe as the preparation of the Annual Report. It is the main tool used to communicate the Group’s values, commitments, strategies and results in the area of sustainable development and corporate social responsibility.

The document includes the disclosure to stakeholders provided in the Annual Report, setting out physical and monetary data and environmental, social and governance (ESG) performance indicators for Snam’s various activities:

• Corporate (Snam S.p.A)
• Trasporto (Snam Rete Gas S.p.A);
• Rigassificazione di gas naturale liquefatto (GNL Italia S.p.A);
• Stoccaggio (Stogit S.p.A.);
• Distribuzione (Italgas S.p.A con la controllata Napoletanagas).

This Report contains data and information referring to the year ending on 31 December 2013. The document maintains the same reporting scope as in the previous year, and the same consolidation criteria are used as for the Annual Report (G4-G17).

Reporting process and procedures

The process of gathering data and information and preparing the Report was coordinated and managed by the Sustainability unit of the parent company, Snam, in cooperation with the various corporate departments and the operating companies. Publication of the document, simultaneous with that of the Annual Report, was subject to approval by the Snam Board of Directors on 27 February 2014.

The economic and financial, operating and governance data are taken directly from the Annual Report and the Corporate Governance Report. The environmental and social data reported in the document were gathered directly, using procedures and operating instructions established within the Corporate System Framework, by the sustainability unit from the data owners.

The calculation methods used to determine the various figures are indicated in the specific related sections. To ensure the comparability over time of the indicators deemed most significant and to give the reader the chance to compare the performance obtained, 2013 values have been placed alongside those for the previous two years, using graphs and tables. The Report aims to provide a balanced picture of both positive and negative aspects and to comment on the results obtained.

During the year the contents of the Report are integrated into the additional information published in the sustainability section of the website at www.snam.it.

Application of the GRI-G4 guidelines

The document was drafted in accordance with the most recent version (GRI-G4) of the Reporting Guidelines of the Global Reporting Initiative, published in May 2013.

The scope and depth of the reporting on the subjects addressed in the Report reflect the results of the materiality analysis performed using the methods described on page 16.

The purpose of applying to the GRI-G4 standard was achieved by:

1. Relating Snam’s materiality topics to the aspects designed by G4;
2. Delineating the relevant boundaries between the organization (G4-20) and the outside (G4-21), for each of the aspects emerged from the previous point of analysis.
3. Reporting, whenever necessary, the limits emerged for each aspect.

The results of this analysis are shown in “List of Material Aspects according to the GRI-G4standard".

With regard to the material aspects for which reporting has not been extended to the external scope (G4-omissions), Snam undertakes to implement specific actions in the coming years to enable the reporting scope to be progressively broadened.

In some cases, the implementation of the GRI-G4 standard lead to the generation of new indicators or to new versions of the same ones. In the quoted cases, data from previous years was taken into account and re-calculated in order to be consequentially in accordance with to the GRI-G4 guidelines.

On the basis of the current coverage of the standard disclosures and indicators associated with the material aspects, the level of adherence to the G4 standard self-declared by Snam is “In accordance – Core”.

Assurance

The Report was subjected to a limited external audit by the company Ernst & Young. The audited sections are marked with the “External Assurance” label in the “GRI Content Index”. The relevant results produced by the auditing activity, are included in the compliance certification appended to this Report.