SNAM Sustainable Paths – 2015 Report on Corporate Social Responsibility - Material issues and business capital initiatives

Financial/Governance
Issues	2015 Initiatives	Actions to be implemented under the 2016-2019 Plan
Creation of sustainable value	In March, we presented our four-year strategic plan for the 2015-2018 period to the financial community. We distributed a total of €2,535 million to our stakeholders. We made technical investments worth €1.27 billion.	Implement the 2015-2018 Strategic Plan.
Corporate governance management	We published our Corporate Governance Report, which included an executive summary and a table showing an overview of compliance with the Code of Corporate Governance. We analysed the major changes in the Code of Corporate Governance in order to ensure alignment of our own governance. We set up the new Governance and Conduct section of our website. We obtained ISO 14001 certification for our environmental management system across the whole Snam Group.	Implement measures to ensure ongoing compliance with the Code of Corporate Governance. Maintain a level of governance in line with best international practice. Prepare and publish the 2015 Corporate Governance Report. Implement a structured and permanent board induction process for directors and statutory auditors for the duration of their mandate. Update the Governance and Conduct section of our website. Analyse governance issues that need addressing in relation to the investment choices made by institutional investors and assess the need and/or opportunity for further intervention. Implement the quality management system across the Group and obtain ISO 9001 certification.
Risk and Crisis Management	We shared and consolidated the metrics used to measure opportunities and began meetings with process owners to map these opportunities. We carried out training in our business impact analysis support software (Archer) as part of the business continuity management programme. We updated our business impact analysis. We revised and enhanced our documentary framework. We completed our preparatory work for ISO 22301 business continuity certification.	Extend the ERM model to identify and measure opportunities and consolidate it as a business process support instrument. Always ensure that the organisational and regulatory system is in line with ERM analysis results. Implement technological solutions to support the business continuity management process. Assess the compliance of the management system with the international benchmark ISO 22301 standard. Continue with half-yearly updates of the annual audit plan based on the key issues flagged by the corporate risk management system.
Transparent management	We implemented the corporate system framework. We updated the process for defining material issues. We updated the stakeholder map and listened to the views of more than 1,000 stakeholders. We completed our first integrated report in accordance with the IIRC Framework within the Annual Report.	Implement the corporate sustainable development model ensuring adequate supervision of matters relating to sustainability. Design and create new reporting tools that integrate financial and CSR information. Consolidate/update antitrust and privacy training programmes.
Anti-corruption	We updated the Model 231 of Snam and concluded the Risk Assessment for Italgas following the introduction of self-laundering offences, false corporate communication offences and eco-offences. We conducted 3,025 training hours dedicated to the Code of Ethics, Model 231 and anti-corruption. 1,920 people took part in this training. We monitored the Anti-corruption Procedure and transposed the “Anti-corruption Regulatory Instruments” (the so-called Ancillary Procedures) of the principles therein. We defined the contractual clauses on corporate administrative responsibility for crimes committed by employees and on anti-corruption. We set up the new Business conduct, Code of ethics and Anti-corruption sections of our website. We analysed the suitability of the Group’s anti-corruption compliance programme in relation to best international practice. We performed reputational checks on suppliers and subcontractors.	Update the Model 231 of our subsidiaries following the introduction of self-laundering offences, false corporate communication offences and eco-offences. Conduct training on the Code of Ethics, Model 231 and Anti-corruption. Retain the structured system of alerts for the internal control system, the Code of Ethics, Model 231 and, more generally, business conduct. Continue to monitor the Anti-corruption Procedure. Continue to analyse reputational checks on suppliers and subcontractors. Consolidate the partnership with Transparency International Italia on topics of interest and training programmes, and join the network of Transparency International.
Human rights	We continued to participate in activities promoted under the Global Compact.	Verify, through business intelligence surveys, respect for human rights and compliance with anti-corruption regulations by third parties (suppliers and customers). Participate actively in the working groups promoted by the Global Compact.
Reputation and brand	We strengthened our online identity by redesigning entire sections of our website and seeking closer integration with the Group’s social channels. We took part in national and international industry events.	Strengthen Snam’s brand awareness and visibility inside and outside the Company via communication tools and initiatives in line with the development of the business.

Social
Issues	2015 Initiatives	Actions to be implemented under the 2016-2019 Plan
Developing and promoting human capital	We defined and implemented a new model of professional and managerial skills and a new system for assessing the skills and abilities needing work in our international teams. We confirmed our new system for allocating and assessing sustainability targets. We delivered a total of 160,405 training hours to 15,716 participants. We continued to offer all our staff the opportunity to take an online English course and we launched dedicated linguistic studies programmes.	Assess managerial skills using ad hoc tools for our executives and managers, and draw up any necessary training initiatives. Use specific programmes to increase the skill set of our employees. Begin the second performance management cycle. Implement the succession planning process to ensure coverage of key managerial positions.
Employment and safeguarding jobs	We made 273 new hires. We have agreed a permanent contract of employment with 97% of Snam employees.	Continue with the activities mentioned in the Snam Group’s Industrial Relations Protocol.
Diversity and equal opportunities	We increased the female portion of our workforce (+1.8% on 2014).	Develop ways of promoting diversity, particularly with regard to gender.
Health and safety	We continued our awareness-raising and involvement initiatives under the “Objective Safety” plan. We continued our training activities in this area, with 20,722 training hours delivered to 3,629 participants. We reduced the frequency of accidents involving contractors. We implemented a centralised HSE information system.	Continue with specific training activities and implement ad hoc communication plans (including digital projects). Continue with the initiatives undertaken as part of “Objective Safety”, and involve more corporate activities. Prepare workplace environment survey programmes. Create IT applications to support the HSE processes. Develop awareness-raising initiatives on supplier safety. Improve plant access conditions and the methods used to conduct operations.
Work/life balance	We continued our welfare continuity programmes. We implemented welfare services.	Implement the new welfare plan in an attempt to offer a broader range of services.
Quality and development of services	We implemented and modernised our customer support information systems.	Improve the quality of services offered to our customers. Conduct feasibility studies relating to the transportation of biomethane in the distribution network in light of changes to the regulatory framework.
Strategic supply chain management	We implemented the Supplier Portal. We added more OHSAS 18001 certified candidates for A and B level work to our vendor list. We monitored 243 suppliers and got feedback from 1,300 at the contract execution phase. We checked 1,862 suppliers and subcontractors as to the regularity of their contributions. We stepped up our anti-corruption oversight and shared our pact of ethics with Group suppliers.	Step up controls of the reputational requirements of our suppliers/contractors as part of the procurement process. Implement a new IT system to support the supplier services assessment and qualification process. Upgrade the Supplier Portal in terms of content and communication tools. Make it compulsory for candidates for A and B level work to be OHSAS 18001 certified. Implement the subcontracting management process. Implement controls during the supplier qualification process (reputational and contribution regularity controls). Get more information on suppliers’ social and environmental responsibility in order to avoid risks and damage to our brand and reputation.
Stakeholder relations and engagement	SUPPLIERS
	We held our annual sustainability workshop.	Initiate and promote partnership and engagement measures to improve social and environmental performance.
	RATINGS AGENCIES – INVESTORS – BANKS
	We took part in assessment conducted by the leading financial and sustainability ratings agencies. We continued to communicate with bondholders and market analysts. We set up the “Investor Relations” section of our website.	Maintain excellent relations with the ratings agencies and the high quality of disclosure to institutional and retail investors. Develop guidelines on engaging with the financial community. Maintain excellent relations with the Italian and international banking systems, partly with a view to diversifying our sources of funding.
	CUSTOMERS
	We continued with our feasibility study on creating a single portal. We continued to implement the online portals. We carried out customer satisfaction surveys in the transportation and storage segments.	Develop and apply methods to measure customer satisfaction levels. Computerise the front end for complaints management and the management of connection requests, starting with initial contact with customers. Start to create a single portal for delivering commercial services to users. Raise awareness among the transportation network metering station owners of the issues affecting interconnection.
	PEOPLE
	We developed and launched the Group’s new intranet. We provided content for our channels of internal communication (intranet, newsletters, brochures and other media). We continued our long-running “Saperne di +” (“Find out more”) initiative, aimed at spreading the Company’s values and strategies.	Create a digital version of the “Energies” and “Special Features” newsletters. Continue to communicate with managers about the breakdown of their remuneration package. Create meetings and interaction between the Group’s young graduates. Continue with the “Saperne di +” initiative in the aim of a top-down dissemination of the Company’s strategic objectives.
	LOCAL COMMUNITIES AND ASSOCIATIONS
	We continued to meet with local government and regional associations. We launched our “A vegetable garden in the network” project. In the “Sustainability” area of our website, we set up a new section called “Stories from the regions” dedicated to our main community initiatives. We used social media to promote our CSR initiatives. We created specific online CSR events with digital PR activities targeted at bloggers and influential social media personalities. We carried out the second staging of our schools series “Stories about the future”.	Develop and schedule innovative tools for meeting and discussing with local government and institutional decision makers, including via the involvement of local employers’ associations. Organise meetings and discussions with regional authorities by way of educational activities. Identify and develop shared-value initiatives. Develop analysis and surveys on plans to build infrastructure in the different regions. Apply models and/or instruments for measuring how the different regions would respond to plans to build infrastructure there. Adopt corporate guidelines defining systematic methods for local and peripheral functions to engage local communities in new initiatives.

Environmental
Issues	2015 Initiatives	Actions to be implemented under the 2016-2019 Plan
Protecting the local area and biodiversity	We carried out 240 km of replanting, more than 1,009 km of environmental monitoring and 11 km of reforestation.	Continue with environmental restoration and replanting activities.
Protecting the atmosphere	We put two DLE turbocompressors into operation.	Install low-emission equipment and turbines.
Climate change and energy efficiency	We executed energy management interventions to reduce our energy consumption. We took in-line gas recompression measures to recover natural gas and replaced pneumatic gas valves and cast-iron pipes. We installed solar power facilities and procured electricity from renewable sources.	Optimise energy consumption. Increase the use of energy from renewable sources. Reduce natural gas emissions. Upgrade the videoconferencing system.