Note on methodology
GRI - G4: 18, 20, 21, 28, 29, 30, 31, 32, 33, 48

Introduction and document presentation

The report on operations that Snam has attached to its 2015 consolidated financial statements represents its first attempt at the integrated reporting of economic, financial and non-financial data and information based on a distinctive layout developed in light of the IIRC (International Integrated Reporting Council) framework, with a view to presenting the business model and the creation of sustainable value.

At the same time, the Company decided to continue publishing a separate sustainability report, in synergy with the report described above, in order to provide a full and comprehensive account of material topics for the benefit of all stakeholders, particularly SRI and Global Compact analysts, which also complies with GRI-G4 guidelines.

This Report on Corporate social responsibility therefore replaces the Sustainability Report, which was published for nine years until last year, and is meant in particular to enhance relations between the company and its stakeholders and also present how sustainability processes and actions contribute to creating value in its various areas of operations.

Scope and criteria of consolidation

The report contains data and information referring to the year ending on 31^st December 2015, except for the information on corporate governance and ownership structure, which was updated as of the date of publication. The activities included within the reporting scope are:

• Corporate (Snam S.p.A. with the subsidiary Gasrule Insurance Limited);
• Transportation (Snam Rete Gas S.p.A.);
• Liquefied natural gas regasification (GNL Italia S.p.A.);
• Storage (Stogit S.p.A.);
• Distribution (Italgas S.p.A. with subsidiaries Napoletanagas, A.E.S and Acam Gas).

The reporting scope has expanded since last year, and now also includes the activities of Acam Gas S.p.A., a natural gas distribution company that has been wholly owned by Italgas since 1^st April 2015.

However, there are no differences with respect to the consolidation criteria adopted in the Annual Report.

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 16^th March 2016.

The economic and financial, operating and governance data are taken directly from the Annual Report and the Report on Corporate Governance and ownership structure. Data concerning the environment, employees and the other aspects addressed in the document were gathered from the applicable departments.

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 achieved, current values have been placed alongside those for the previous two years, using graphs and tables. The document aims to provide a balanced picture of both positive and negative aspects and, when deemed appropriate, to comment on the results obtained, including the events and actions concerning the Group in 2015.

The content of the report is also supplemented with additional information published in the sustainability section of the website www.snam.it.

Application of the GRI-G4 guidelines

The report was drafted in accordance with version G4 of the Global Reporting Initiative’s Reporting Guidelines.

The breadth and depth of reporting on the topics addressed in the document reflect the results of the materiality analysis conducted based on a specific methodology and updated each year during the sustainability commitment and action planning cycle. In this respect, the results of a broad, detailed company stakeholder engagement activity which was carried out in 2015 were used to refine the assessment of material aspects.

In order to apply the G4 standard, the results of the materiality analysis are associated with the list of material aspects set forth in the standard. The result is provided in the correspondence table above.

On the basis of the 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 – comprehensive”.

With regard to the material aspects for which reporting has not been extended to the external scope (Limitation of Aspect Boundary), Snam will undertake specific actions in the coming years to enable the reporting scope to be progressively broadened.

In addition, the business model and company capital described in "Capitals that create shared value" are broken down according to the instructions provided in the “International Integrated Reporting Framework” published by the IIRC.

Assurance

The report was subject to a legally-required audit by the independent auditor appointed (Reconta Ernst & Young S.p.A.) based on the principles and guidelines of the International Standard on Assurance Engagements (ISAE 3000) issued by the International Auditing and Assurance Standards Board (IAASB). The audit results are included in the Independent Auditor’s Report attached to this Report.