SNAM 2014 Annual Report - The sustainability model

Commitment to sustainable development (Photo)

Snam believes that sustainability forms an integral part of its business model. It is in fact a leading factor in defining the Company’s strategic and operational decisions and a lever for long-term sustainable growth. Meanwhile, it delivers the shareholders’ expected results, sharing the value generated with all of its stakeholders including in terms of environmental and social issues.

The Company bases the day-to-day conduct of its activities on the principles set out by international bodies and conventions on the protection of human rights, employment and trade union rights, health, safety and environmental rights, repudiation of forced labour, child labour and any form of discrimination, and on conformity with values and principles concerning fairness, transparency and sustainable development. These principles are listed in the Codes of Ethics adopted by all the companies, which are the fundamental tools for orientating the conduct of personnel and for the responsible management of relationships with stakeholders.

In order to give greater visibility to this commitment, Snam is a signatory to the Global Compact. This international initiative upholds ten universal principles concerning human rights, employment, the environment and anti-corruption, and brings together governments, businesses, United Nations agencies, labour organisations and civil associations, with the aim of contributing to the creation of a more inclusive and sustainable global economy. Snam’s commitment to the Global Compact also continued in 2014 with activities for engagement and dissemination of the ten principles by participating both actively, as a member of the Italian Global Compact Network, in the meetings of the Integrated Reporting Working group, and in specific initiatives aimed at its own stakeholders.

Snam’s sustainability management model extends to all group companies and is integrated into all phases of the corporate business process (Planning, Management, Control, Reporting, Communication and Stakeholder Engagement).

The Board of Directors takes on a central role in defining the policies, while the Sustainability objectives, submitted for the approval of top management, are pursued by means of specific short- and medium-term projects and initiatives included in the Company’s action plan. All of the activities provided for by the model are coordinated by the Snam sustainability department with the participation of the various Snam departments and subsidiaries.

Snam publishes an annual Sustainability Report, which is considered to be an important tool for strategic control and communication with stakeholders. The Report, approved by the Board of Directors at the same time as the Annual Report, examines the activities carried out in terms of economic efficiency, environmental protection and social protection, providing the performance indicators on which the business is measured and compared publicly. Since 2013, the Sustainability Report has been drawn up in accordance with the new guidelines (GRI-G4) published by the Global Reporting Initiative.

The results achieved and maintained over time have enabled Snam’s shares to maintain their position in the main ethical indices, such as the Dow Jones Sustainability Index World, the FTSE4Good Europe Index, the FTSE4Good Global Index, the ECPI Ethical Index Euro, the STOXX Global ESG Leaders Index, the CDP Italy 100 Climate Disclosure Leadership Index (CDLI), Vigeo World 120 and Vigeo Europe 120.

Since 2014 Snam’s shares have also been listed in the United Nations Global Compact 100 index (“GC 100”) and the MSCI World and MSCI ACWI ESG indices, which include the companies with the highest sustainability ratings in their sectors. MSCI is a leading international company in the supply of information tools to support the investment decisions of global investors, such as asset managers, banks, hedge funds and pension funds.

Snam has incorporated into its own path to sustainability the Shared Value approach, which emphasises the connection between the economic system and society, and redefines the boundaries of corporate social responsibility. The premise of this new concept is that companies need to take action to reconcile business and society by promoting knowledge, best practices and current or possible future initiatives: in short, to create economic value in ways that generate value not only for the Company but also for the stakeholders and the locations where it operates.

Following this approach, during the year the Company has started up further processes for identifying new projects that maximise positive external results, and it has completed several projects (see the table below).

SHARED VALUE PROJECTS COMPLETED AND STARTED IN 2014

Scope for generation of Shared Value	Initiative
Within the framework of supplier relationships, making corporate know-how available through a system of knowledge sharing, which will help companies in the supply chain in a process of continuous improvement that can increase both their own competitiveness and the dependability of their partnership with Snam, to the ultimate benefit of service quality.	Responsible relationship between company and supply chain. Workshop organised by Snam in Milan: this initiative is part of the strong commitment that the Company is developing on the issues of safety, environment and sustainability in the supply chain, and forms part of a programme launched in 2011 with the “Supplier’s Day for Sustainability” initiative, continued in 2012 with the workshops “My Safety is Your Safety” and “Making Comparisons to Prevent and Improve”.
	Growing together: the Suppliers’ Portal Since 2013 Snam has been operating the Supplier’s Portal, a web platform designed to improve and optimise the day-to-day operations of everyone involved in the management of the entire supply chain. The Portal is the new point of reference and interaction between Snam and its suppliers, aimed at simplifying and improving the day-to-day operations of the entire supply chain through the effective management and dissemination of information of common interest. The Portal is also a place for strengthening corporate social responsibility, by exchanging information on key issues such as health and safety of workers, human rights and respect for the environment. During the year, various sections were added to the Portal to make it an increasingly useful tool for dialogue and the sharing of know-how with suppliers. In particular, the “Snam for Suppliers” section was created, which provides the most significant data and indices relating to Snam’s procurement activities, making a further contribution in terms of transparency and completeness of information.
As part of Snam’s management and enhancement of sites and infrastructure, sharing space and knowledge with stakeholders in the area to encourage public acceptance of the legitimacy of the networks and the creation of competitive advantage for the area.	Cultivating value: the community garden in Terranuova Bracciolini In 2014, Snam signed a contract with the social cooperative Betadue, giving it the free use, for four years, of a plot of land outside Snam’s compressor station in Terranuova Bracciolini. The Betadue cooperative, which works for the general interests of the community by promoting social development and inclusion through a variety of activities aimed at helping disadvantaged people find work placements, will use the land to grow vegetables to support the short food supply chain in the area.
	Helicopter fly-overs Snam has begun a collaboration with the University of Bergamo, and specifically with the “Lelio Pagani” Centre for Territorial Studies, a university centre for research and training focused on the region, to give the University free use of the aerial photographs taken during overflight activities to inspect the network. The photographs can serve as an essential point of reference for a series of studies and research projects aimed at obtaining a more thorough knowledge of the many aspects of the region (agriculture, forestry, geology, town planning, landscape, etc.). This information will then be used and capitalised upon for a wide variety of purposes: educational, cultural and analytical.
	Tour of Italy in 80 bookshops This initiative, sponsored in partnership with the Associazione Letteratura Rinnovabile, provided an opportunity to promote the group’s local presence through a cycling, cultural and environmental relay that covered around 2,000 km between May and July, from Valle d’Aosta to Abruzzo. The tour also stopped off at various group sites where interesting cultural events were held, providing opportunities to interact and share experiences with local communities.
	The Italgas Historical Archive and Museum: a historic asset for the community The Italgas Historical Archive and Museum contains a wealth of knowledge that is testimony to the life of the Company and of a technological revolution that has helped to change the face of the region: here the Company has sought to enhance its cultural heritage through the creation of ‘Thursday Workshops’, an educational programme aimed at primary and secondary schools that uses archived records to tell not only the history of the Company, but also a part of the history of Italy and of the city of Turin. During 2014, the Museum received 320 visitors, many of whom were students from all levels of study.
As part of the implementation of new investments, sharing with local communities and disseminating among local protagonists the knowledge of best business practices in the application of naturalistic engineering techniques in particularly delicate areas with complex ecosystems, such as parks and protected areas.	Sustainable Trails – Parco della Majella As part of the business sustainability initiatives, a third book in the Sustainable Trails series, produced in collaboration with 24 ORE Cultura-GRUPPO 24 ORE and supported by the Ministry of the Environment, is about to be published. This represents another important and significant example of constructive collaboration between Snam and a Park Authority, that of Majella, and of a sustainable commitment to caring for an area under special environmental protection. The infrastructure, which crosses the park over a stretch of around 15 km, is the Campochiaro-Sulmona gas pipeline, built to upgrade the existing structure for gas imports from northern Africa.
	Shared Value Education Generating value for the Company and, at the same time, for the geographical area, giving the local community a concrete and positive contribution. This is how the cooperation between Snam and the Municipality of Crema was established for the enhancement of six urban areas through the active joint involvement of Snam employees and citizens. The initiative was based on Snam’s specific needs for training designed to enhance the culture and strengthen the integration and the unique expertise of the Information Technology area of the Company. To achieve this goal we have chosen an original path inspired by the methodology of team building, improving in practical terms the relationship between operational activities and the social context. In 2014, with Snam’s support, the first project saw the light of day with the construction of the “outdoor classroom” for Santa Maria della Croce primary school.