SNAM Natural gas for decarbonisation – 2016 Sustainability Report

General standard Disclosures		Reference Document	Page/notes
Strategy and Analysis
G4-1	Sustainability strategy	SR	Letter to the Stakeholders Snam’s contribution to sustainable development Our responsibility
G4-2	Impacts, risks and opportunities:	AR	Risk oversight and the control system Elements of uncertainty and risk management Control activities
Profile of the organisation
G4-3	Name of the organisation	SR	cover
G4-4	Brands, products and services	SR	Business activities The development of services to facilitate the market
G4-5	Location of head office	The company headquarters is San Donato Milanese Headquarters
G4-6	Countries of operation, including significant impacts related to products, activities, services and relations	SR AR	Gas routes and energy security Snam and the national gas infrastructure Business activities
G4-7	Ownership structure	Shareholders Group structure at 31 December 2016
G4-8	Markets served	SR	The development of services to facilitate the market
G4-9	Size of the organisation	SR	Business activities
G4-10	Employees by type of contract, gender, geographical area, grade	SR	People
G4-11	Employees covered by collective agreements	The relevant national collective labour agreements (the energy and oil contract for the transportation, storage and regasification segments and the gas/water contract for the distribution segment) apply to all Snam workers.  At the end of 2016, 27% of employees were members of a union. Snam guarantees all workers the right to express their thoughts freely, to join associations and to engage in trade union activities.
G4-12	Description of the supply chain (number of suppliers, procurement volumes and markets)	SR	The supply chain
G4-13	Changes in the scope of operations including localisation of suppliers	SR	The supply chain
G4-14	Application of the prudential approach	AR	Risk oversight and the control system Elements of uncertainty and risk management Control activities
G4-15	List of charters or principles to which the organisation adheres or other initiatives supported	SR	Corporate Governance and conducting business
G4-16	List of trade associations that the organisation is a member of	Technological and regional partnerships
Materiality and scope of the report
G4-17	List of the consolidated entities in the consolidated financial statements and those not included in the sustainability report	SR	Methodology note
G4-18	Explanation of the process for defining the contents of the financial statements and the way in which the organisation has implemented the reporting principles	SR	Methodology note Our responsibility
G4-19	List of material aspects identified	SR	Our responsibility
G4-20	Give the scope outside of the organisation for every material aspect reported	SR	Methodology note Our responsibility
G4-21	Report the scope within the organisation for every material aspect	SR	Methodology note
G4-22	Explanation of the effects of any change in the information included in previous reports and the reasons	There are no significant modification
G4-23	Significant changes in objective or scope	SR	Our responsibility
Stakeholder engagement
G4-24	List of stakeholders engaged by the organisation	SR	The involvement of stakeholders
G4-25	Identification process	SR	The involvement of stakeholders
G4-26	Approach to the engagement, including frequency and type of activities	SR	The involvement of stakeholders Living in a culture of change Snam’s contribution to integration at a European level Customer satisfaction
G4-27	Themes that emerged from the engagement, management methods also through reporting	SR	Our responsibility
Profile of the report
G4-28	Period to which the Report refers	SR	Methodology note
G4-29	Lasted report published	SR	Methodology note
G4-30	Reporting frequency	SR	Methodology note
G4-31	Contacts	SR	Methodology note
G4-32	Choice of in accordance option and GRI table - see details	SR	Methodology note
G4-33	Assurance policies and practices	SR	Methodology note
Governance
G4-34	Governance structure including committees which depend on the main governing body	CGR	2.1 Introduction 2.9 Lead Independent Director 2.10 Succession plans 2.11 Remuneration system 3. Committees 3.1 Compensation Committee 3.2 Appointments Committee
G4-35	Delegation of processes by the main governing body to senior executives and other members of the organisation with regard to economic, social and environmental issues	SR	Our responsibility
G4-36	Appointment of an executive with responsibility for sustainability and their line of reporting	CGR	2.8 Maximum accumulation
G4-37	Direct engagement of main governing body with stakeholders with regard to issues of sustainability or management of feedback in the case of delegation	SR	Our responsibility
G4-38	Composition of governing bodies and committees (executive role, independence, other positions, etc.)	CGR	2.1 Introduction 2.9 Lead Independent Director 2.10 Succession plans 2.11 Remuneration system 3. Committees 3.1 Compensation Committee 3.2 Appointments Committee 3.3 Control, Risk and Related-Party Transactions Committee
G4-39	Executive role of the Chairman	Snam President is not executive
G4-40	Selection criteria and processes of members of the main governing body and committees, specifying whether or not criteria of diversity and independence are included	CGR	2.1 Introduction 2.9 Lead Independent Director 2.10 Succession plans 2.11 Remuneration system 3. Committees 3.1 Compensation Committee 3.2 Appointments Committee 3.3 Control, Risk and Related-Party Transactions Committee
G4-41	Conflicts of interest	CGR	3.1 Compensation Committee
G4-42	Role of the main governing body in the definition of the vision/mission of sustainability, policies and objectives	SR	Our responsibility
G4-43	Initiatives to increase awareness of the main governing body of sustainability issues	SR	Our responsibility
G4-44	Process for the evaluation of the main governing body with regard to the governance of economic, environment and social issues and corrective measures	CGR	6.2 The corporate bodies, structures and functions involved
G4-45	Role of the main governing body in the evaluation of the effectiveness of the management of the process of risks relating to sustainability issues	AR	Elements of uncertainty and risk management
G4-46	Role of the main governing body in the process of reviewing the risks relating to sustainability issues	AR	Elements of uncertainty and risk management
G4-47	Review frequency by the main governing body of the impacts, risks and opportunities relating to sustainability issues		Quarterly
G4-48	Indication of the main governing body which approves the Sustainability Report and checks that all material issues are covered	SR	Methodology note
G4-49	Process for notifying main governing body of critical situations	CGR	6.2 The corporate bodies, structures and functions involved 6.3 Coordination between the parties involved in the ICRMS 6.4 Key features 7. Snam’s Regulatory System 7.1 Overview 7.2 Compliance programmes 7.3 Related-Parties Procedure 7.4 Market Abuse Procedure
G4-50	Nature and number of critical situations notified to the main governing body and mechanisms used to manage them	AR	Control activities
G4-51	Remuneration policies for main governing body and executives (in detail) and information if they are related to sustainability performance	RR	Abstract
G4-52	Processes for calculating remuneration, any involvement of external consultants and their degree of independence from management	RR	Shareholders’ Meeting Board of Directors Remuneration Committee
G4-53	Involvement of stakeholders in the processes for calculating remuneration	RR	Governance of the remuneration process
G4-54	Relation between total annual compensation of the highest executive and the median compensation of employees in each relevant country	Confidential
G4-55	Ratio between the percentage increase of the total annual compensation of the highest executive and that of the median compensation of employees in each relevant country	Confidential
Ethics and integrity
G4-56	Principles, values and standards of behaviour	SR	The commitment to fighting corruption and illegality
G4-57	Internal and external mechanisms for obtaining opinions on behaviour (helplines, etc.)	Whistleblowing
G4-58	Processes for encouraging reporting of illegal or unethical behaviour and or promoting ethical behaviour (hotlines, etc.)	Whistleblowing

SPECIFIC STANDARD DISCLOSURES
Material aspects		Reference Documents	Pages/notes
Category: Economic
Economic performance
DMA		SR	Gas routes and energy security Snam and the national gas infrastructure 2016 Highlights Business activities Our responsibility
EC1	Economic value directly generated and distributed	SR	Added value produced and distributed
EC2	Economic-financial implications linked to climate change	SR	Innovation and climate change
EC3	Cover of obligations undertaken during definition of pension plan (benefit plan obligations)	In 2016 Snam has fulfilled social contributions in compliance with by applicable law
EC4	Significant government economic aid	Not present
Procurement practices
DMA		SR	Our responsibility The supply chain
EC9	Policies, practices and percentage of expenses concentrated on local suppliers	SR	Procurement numbers

Material aspects		Reference Documents	Pages/notes
Category: Enviromental
Energy
DMA		SR	Our responsibility Energy consumption Production of energy from renewable sources
EN3	Energy consumption within the organisation divided by primary energy source	SR	Energy consumption
EN4	Energy consumption outside the organisation	No data available
EN5	Energy intensity	SR	Data and Performance Indicators
EN6	Energy saving	SR	Energy consumption Production of energy from renewable sources
EN7	Reduction of energy requirement for products and services	SR	Energy consumption Production of energy from renewable sources
Biodiversity
DMA		SR	Our responsibility The protection of biodiversity
EN11	Location and dimensions of land owned, rented or managed in protected areas (or adjacent to protected areas) or areas with high biodiversity outside of protected areas	SR	The protection of biodiversity
EN12	Description of major impacts of activities, products and services on biodiversity of protected areas or areas of high biodiversity outside of protected areas	SR	The protection of biodiversity
EN13	Protected or restored habitats	SR	The protection of biodiversity
EN14	Number of protected species whose habitat is in areas where the organisation operates, divided by level of risk of extinction	Not applicable
Emissions
DMA		SR	Our responsibility Innovation and climate change Protecting the atmosphere
EN15	Total direct greenhouse gas emissions by weight (scope I)	SR	Climate protection
EN16	Total indirect greenhouse gas emissions by weight (scope II)	SR	Climate protection
EN17	Other indirect greenhouse gas emissions (scope III)	SR	Climate protection
EN18	Carbon intensity	SR	Data and Performance Indicators
EN19	Initiatives to reduce greenhouse gas emissions and results achieved	SR	Climate protection Industrial relations
EN20	Emissions of substances harmful to the ozone layer by weight		Absent
EN21	NO_x, SO_x and other significant emissions into the atmosphere broken down by type and weight	SR	Protecting the atmosphere
General expenses
DMA		SR	Added value produced and distributed Our responsibility Land and Environment
EN31	Expenses and investments for the protection of the environment broken down by type	SR	Land and Environment
Supplier evaluation by environmental criteria
DMA		SR	Our responsibility The supply chain
EN32	Percentage of new suppliers selected on the basis of environmental criteria	SR	The supply chain
EN33	Percentage of critical existing suppliers in terms of environmental impacts analysed in terms of performance and corrective measures undertaken	SR	The supply chain

Material aspects		Reference Documents	Pages/notes
Category: Social
WORK
Employment
DMA		SR	Our responsibility People
LA1	Total number of new hires and turnover by age group, gender and geographical area	SR	People
LA2	Planned benefits for employees on permanent contracts not planned for employees on fixed-term or part time contracts	There are no significant modification
LA3	Return rate after parental leave broken down by gender	SR	People
Management of employment
DMA		SR	Our responsibility People
LA4	Minimum period of notice for operational changes (organisational changes), specifying whether or not these conditions are included in the collective agreement	The provisions of the national collective labour agreement are applied (see G4 11)
Occupational health and safety
DMA		SR	Our responsibility Accident prevention
LA5	Percentage of workers represented on the health and safety committee		Worker representation is ensured through ref. T.U. Legislative Decree No. 81/2008 and the national agreements
LA6	Rate of accidents at work, illnesses, work days lost, absenteeism and total number of deaths, broken down by geographical area	SR	Accident prevention
LA7	Existence of workers at a high risk of contracting occupational illnesses	SR	Health protection
LA8	Health and safety trade union agreements		Worker representation is ensured through ref. T.U. Legislative Decree No. 81/2008 and the national agreements
Training and education
DMA		SR	Our responsibility Development of skills and professionalism
LA9	Average hours of training per year per employee, broken down by gender and category of workers	SR	Development of skills and professionalism
LA10	Programmes for the management of skills and for promoting progressive training/updating to support the continuous deployment of employees and for the management of the final stage of their careers	SR	Development of skills and professionalism
LA11	Percentage of employees regularly receiving performance assessments and career development	SR	Remuneration policies and systems
Supplier evaluation on work practices
DMA		SR	Our responsibility The supply chain
LA14	Percentage of new partner suppliers analysed in terms of work practices and actions undertaken	SR	The supply chain
LA15	Percentage of existing critical suppliers analysed in terms of work practices and actions undertaken	SR	The supply chain
Labor Practices Grievance Mechanism
LA16	Number of grievances about labor practices filed, addresses, and resolved through formal grievance mechanism	SR	Industrial relations

Material aspects		Reference Documents	Pages/notes
SOCIETY
Supplier evaluation on human rights
DMA		SR	Our responsibility The supply chain
HR 10	Percentage of new suppliers analysed in terms of compliance with human rights	SR	The supply chain
HR 11	Percentage of existing critical suppliers analysed in terms of human rights and actions undertaken	SR	The supply chain
Local communities
DMA		SR	Our responsibility Land and Environment Seasonal Paths Infrastructure sustainability and safety The protection of biodiversity
SO1	Percentage of operations that have implemented engagement programmes, impact assessment and local development programmes	SR	Land and Environment
SO2	Operations with a potential or actual negative impact on local communities	SR	Innovation and climate change
Anti-Corruption
DMA		SR	The commitment to fighting corruption and illegality
SO3	Percentage of business units analysed for risk of corruption and risks identified	SR	The commitment to fighting corruption and illegality
SO4	Communication of anti-corruption policies and employee training	SR	The commitment to fighting corruption and illegality
SO5	Actions undertaken in response to episodes of corruption	AR	Control activities
Compliance
DMA		CGR	All the document
SO8	Monetary value of significant fines and total number of non-monetary sanctions for non-conformity to laws or regulations	AR	Disputes and other measures

GRI correlation table