Stakeholders and relationship capital
Snam promotes a continuous dialogue with its stakeholders through constant and proactive communication with specific tools and instruments and through involvement actions, with the goal of developing constant growth for both parties, generating and cultivating a mutual relationship of trust.
In order to develop our business activities, internal cohesion, image and reputation are also important. As a result, it is essential to manage our long-term relations with stakeholders (social and relation capital) by focusing on trust, listening, being universally open and transparent, and attempting to maintain and develop constructive dialogue both within and outside the Company. Specifically, in 2019 engagement activities were concentrated on the energy transition front, supporting new businesses, from biomethane to energy efficiency, and the positioning of the company on the hydrogen front, in response to a market that is placing increasing importance on decarbonisation processes. As a testament to this, in October 2019 Snam organised “The Hydrogen Challenge – 2019 Global ESG Conference”, an event hosted by Lanterna di Fuksas in Rome. The two days 10-11 October 2019 were dedicated to the potential of hydrogen as a clean source of energy, on the horizon of the increasing importance of environmental, social and governance (ESG) factors for businesses. The conference, sponsored by the Ministry of Foreign Affairs and “Cooperazione Internazionale” and the National Research Council (CNR), was opened by the Prime Minister, Giuseppe Conte and featured numerous speeches of international relevance.
Still on the subject of energy transition, in November 2019 Snam, Cassa Depositi e Prestiti (CDP) and Terna also organised the first edition of the “Stati Generali della Transizione Energetica Italiana”(General States of Italian Energy Transition), one of the two days of meetings dedicated to the future of the Italian energy system. The event, which featured numerous institutional speeches including that of the Prime Minister Conte, was sponsored by the Prime Minister’s Office and the Ministry of Economic Development in conjunction with The European House – Ambrosetti.
As well as these major events, Snam organised other meetings and conversations with stakeholders, relating to the new businesses (sustainable mobility, biomethane, energy efficiency) and to the market and it was represented at several key events for the core business (Energy Summit Sole 24 Ore, Gastech, CERA Week) for the new activities and the world of innovation (Forum Automotive, Digital Week) and for the environment (Ecomondo, the Rimini Fair on technological innovation and sustainable development).
Value distributed to stakeholders
Breakdown of valued added
At Snam, sustainability and the creation of value are strongly connected concepts. Sustainability creates value for the Company and stakeholders, and establishes a connection between the business and corporate social responsibility. The Company produces wealth by contributing to the economic growth of the society and environment in which it operates, and it measures this wealth in terms of added value produced and distributed to its key stakeholders.
Snam calculates the added value based on the standard prepared by the Gruppo di Studio per il Bilancio Sociale (GBS) and the GRI Standards.
The table below is useful for understanding the Group’s economic impact and makes it possible to read the consolidated financial statements from the standpoint of stakeholders.
To this end, it should be noted that the calculation of the Value Added was made on the basis of the values drawn from the legal scheme of the Income Statement.
In 2019, the gross global Added Value produced by Snam was €2,695 million, an increase of €163 million or 6.4% compared with 2018 (€2,532 million).
The 39.2% of the gross global Added Value produced by Snam was reinvested within the Group (an increase compared with 2018, +3.7 percentage points), of which around 68.4% was intended for the depreciation and amortisation of group assets (77% in 2018). With regard to the main reference stakeholders, 2019 highlighted a reduction in the value distributed to financing bodies (7.8% or -2.0 percentage points compared with 2018), following a reduction in financial expense attributable to the effects of the actions taken to optimise the financial structure in 2016, 2017 and 2018, specifically the liability management operations. The value distributed to shareholder through the distribution of dividends was essentially stable (28.9% compared with 29.5% in 2018). With a unitary dividend that is increasing (+5% compared with 2018), confirmation of the commitment to guarantee shareholders attractive and sustainable remuneration, there was a reduction in the number of outstanding shares following Snam’s buyback of treasury shares as part of the share buyback programme.
With reference to employees, there was a decrease in the Added Value distributed (9.6% or -1.5 percentage points compared with 2018) through direct remuneration consisting of salaries, wages and TFR (employee severance indemnity) and indirect remuneration composed of social security contributions and staff-related service costs (canteen services, reimbursement of travel expenses). The reduction is essentially due to the extraordinary items recorded in 2018 following the costs of redundancy packages, the application of early retirement pursuant to Article 4, paragraphs 1-7 Law 92/2012, the “Fornero Law”.
The value allocated to the Public Administration through the payment of direct and indirect taxes was essentially stable (14.4% or +0.4% compared with 2018). Lastly, an amount of approximately €3 million was designated for local communities (0.1% of the value generated) through donations and sponsorship initiatives and environmental compensation pursuant to the law.
On environmental protection, Snam spent approximately €114 million (€101 million on investments and €13.4 million on operating costs).
Engagement of people
Through internal communication, Snam promotes the involvement of people with regard to events and activities which affect the company, with the aim of stimulating participation in the processes of change, especially from a cultural point of view.
Communication in 2019 focused on the enrichment of contents and the introduction of new initiatives, information activities and formats and the involvement of people, also courtesy of the collaboration with Snam Foundation and external experts.
The collaboration with the Foundation makes it possible to marry social commitment with strengthening team building and relations between people in line with company values. Initiatives for “volunteering day” continued with employees also able to involve friends and family, for Christmas with the family, dedicated to employees with children operating in 11 areas in conjunction with non-profit organisations, and match giving was introduced, a financial solidarity activity for employees in which the Snam Foundation doubles every monetary contribution made to non-profit organisations and associations.
As far as the information format is concerned, the spread of streaming and webinars for events has allowed the Snam Institute to develop a training initiative plan that is accessible to everyone through the company intranet with the objective of disseminating the issues of sustainability, talks on climate change to the open journey on the issues of Diversity & Inclusion and take an in-depth look into important themes through comparison with other companies or experts.
An important topic, which has been the subject of an information and engagement campaign for employees, is the problem of plastic and the way it is not correctly disposed of with damaging effects in particular on biodiversity in the oceans. Snam decided to work on this by eliminating single-use plastic from dining areas in its work premises from 2020. The awareness raising and engagement campaign implemented involved giving all employees a water bottle, upgrading the drinking water fountains on the premises, circulating a set of guidelines for the responsible use of plastic at home as well and information launches at the intranet portal with evocative images and payoffs of the beauty of the oceans.
Instruments |
Description |
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“Easy” the intranet portal |
Information space for raising awareness aimed at all Snam people, but also a place for sharing and exchanging work documents. In 2019 the re-design of the instrument was launched, involving around 80 employees through focus groups for collaborative design and evaluation activities. The new version of the portal will be available from the second half of 2020. |
Main hard copy and online instruments |
The magazine “Energie”, represents Snam’s corporate identity and is the voice of the main corporate events. |
Meetings for sharing and engagement |
Online webinar presenting the strategic plan during which the CEO illustrated the pillars of the new plan, directly answering the questions posed by employees throughout the organisation. |
Market reputation
Though in regulated sectors Snam has a natural monopoly, when dealing with its customers it adopts an approach based on a competitive market, in which it is essential to understand how the customer perceives value.
In December 2019 a new online survey was conducted, involving all shippers and traders with whom Snam collaborated in the Thermal Year 2018-2019 just ended.
The analysis, extended to transportation, storage and regasification activities, involved surveying customer satisfaction on the quality of services offered, the customer engagement activities undertaken by the Company and on the functionality and additional services introduced in 2019 including in response to the needs of customer that emerged on previous occasions as well as regulatory developments.
The participation rate was 57% and the results demonstrated a very positive reception with regard to the customer engagement activities implemented by Snam to improve the services offered and consolidate collaboration with its stakeholders. The total average score for the quality of service was considerably improved compared with the previous year (7.4) standing at 8.4 on a scale of 1 to 10. The collection of observations received constitutes the starting point for identifying actions aimed at making Snam’s operations even more efficient.
Snam also organised in-depth workshops, which were an opportunity to meet with customers and discuss important issues with them, innovation and operating performance, balancing and transportation, storage and regasification activities and provide/receive feedback on the IT system updating process.
In 2019 4 commercial workshops were organised plus a seminar entirely dedicated to settlement, the presentation of 10-year gas transportation network development plans and the cost/benefit analysis method, a workshop on biomethane, an event with customers at the Panigaglia terminal and an event in December attended by the Snam CEO.
Relations with the Supply Chain
Snam carries out intense engagement activities with its suppliers to encourage growth and improvement and to create a common vision, sharing values, ideas, know-how, best practices and information. The ongoing dialogue with suppliers is intended to establish long-term relations and create an effective partnership, consolidating relations and endorsing a shared vision.
In 2019, over 2000 suppliers were involved in a survey on issues of social responsibility involving companies, relations between buyers, suppliers and customers, relations with businesses in the voluntary sector, interaction with local communities and financial reporting. The answers, received from a sample of suppliers corresponding to over 60% of the 2018/2019 acquisition, made it possible to outline a reliable snapshot of the sustainability of the Snam supply chain and assess its development potential.
Snam, having joined the CDP Supply Chain Program in 2019, involved its supply chain in climate change awareness raising actions. 35 strategic suppliers announced the figures for their greenhouse gas emissions (Scope 3 indirect emissions) and CDP, through the analysis of the data received, will award them a score, which will be an incentive in the management of future environmental impacts.
Another important initiative was the partnership launched with the supply chain is Snam Plasticless. Given that plastic has become one of the greatest dangers for the environment, specifically for the biodiversity of the oceans, Snam has decided to make its own contribution. As well as eliminating single-use plastic in the dining areas on its work premises from 2020, the Company decided to analyse the use of plastic in its core business and discovered that the most significant consumption involves the supply chain and packaging processes relating to the delivery and redistribution of goods used for operations. Awareness raising, dialogue and engagement activities were launched with suppliers which made it possible to set a challenging target for eliminating all plastics from packaging by 2023.
Continuous communication with suppliers takes place through the Supplier Portal, the web platform through which existing and potential suppliers come into contact with Snam. Activated in 2013, the portal represents the main tool through which the Company implements its procurement policy, in total transparency, with the information published being total traceable. Suppliers and candidates mainly come into contact with Snam through this means: it contains documents, best practices, details and updates on the processes and procedures that regulate the procurement qualification and activities.
In addition, all suppliers registered have a dedicated reserved area at their disposal which contains information that involves them directly (the product categories for which they are qualified, activated contracts, performance in terms of workplace safety, notifications for invoicing for services provided).
At the end of 2019, there were more than 2,000 suppliers registered at the portal, with a number of unique users who accessed it at least once during the year standing at 1,881 (+33%). Over 700,000 thousand pages read in the year (+51% compared with 2018) are evidence of a lively site with involvement.
Relations with local communities
Snam is present, through its infrastructure, in almost all the country’s regions, in areas and communities that are varied in terms of culture, traditions and economic, social and environmental conditions.
In creating new infrastructure and in managing existing infrastructure, Snam takes a strict, transparent, collaborative and constructive approach to ensure the environmental compatibility of the sites and to facilitate their acceptance on the part of stakeholders.
The assessments of environmental effects involve all phases of the work life cycle, site selection, planning, construction, operation and decommissioning. These assessments are made within the purview of the Environmental Impact Assessment (EIA) procedure, at the end of which the central and local administrations issue the permits required under current law.
Snam also evaluates, in relation to the performance of the most important works (compression systems or large natural gas pipelines), the direct and indirect economic and social impact on the territory and on the local communities with “Social Impact Assessment” tools and methods. Specifically, in 2019, the collaboration project with the Department of Economics and Management of the University of Brescia, for the revision of the methodology used adopting a regionalised input-output model, was concluded. This model made it possible to evaluate the impact of a project, calculating the added value generated by the investment starting with the total value of production.
Over time Snam has built a network of relationships with regional branches of Confindustria and other local associations to discuss issues of energy, economic and environmental policy affecting the territory. On a local level, the Company collaborates with authorities and participates in the works of numerous associations and committees, offering its commitment, and skills and know how to participate in the social innovation and sustainable development processes.
In addition, the Company’s collaboration with local and national authorities to best lay out its plans for carrying out the work to both the authorities and the affected communities is ongoing. During the course of the year, 99 meetings were held with local government authorities and regional associations to illustrate works projects. Together with the latter, 8 agreements were concluded involving easements, in which the easement is a lien for owners of land, remunerated by Snam, not to construct buildings and not to carry out deep excavations a certain distance from the pipeline.
In 2019, approximately €0.3 million was allocated for donations and sponsorships and about €2.6 million for environmental compensation.
Young Energy from Snam, to bring young people closer to work |
The programme, established to facilitate the orientation of students and bring them closer to the world of work through initiatives focused on its business, is in its third edition. In this academic year, Young Energy will be held in 5 regions and 8 technical colleges with around 800 students involved in training activities. Since the first edition, 18 young people from the organisations involved in the project have been hired. |
“Thumbs Up Youth Award” |
This is a project dedicated to sustainable development in which around 400 students from the third and fourth grades have taken part, under the scope of the school/work alternation project. Through this initiative, realised by the Thumbs Up association, with the support of the Cariplo Foundation and in partnership with the Università Cattolica del Sacro Cuore, Snam involved around 60 students of the Liceo Statale “G.B. Vico” (Milan) in proposing solutions for energy efficiency solutions at their school. |
Snam Foundation, the Corvetto Adottami project |
This is a multi-sector participatory initiative that involves the community launched by the Snam Foundation to actively contribute to the redevelopment and social redevelopment of the Corvetto district in Milan, together with the Cariplo Foundation and, specifically, through the LacittàIntorno and Qubì projects with the Municipality of Milan and a network of local associations. |
The Snam Foundation and company volunteering |
The second edition of Volunteering Day was organised in 2019, extended in length (two weeks) and scope. The initiative involved not only employees, but also their friends and family and Snam partners with the global participation of 750 people, around 150 of whom were family members, universities, start-ups, partners and suppliers. In total, more than 6,000 hours of volunteering were supplied to 70 organisations in the voluntary sector spread over 60 locations in Italy. |
Snam Foundation, the TESORI ban |
An initiative launched in 2017 in conjunction with Confagricoltura aimed at promoting social agriculture projects through the development of social assets, local skills and the strengthening of relations with the area. Projects in 2 areas were supported in 2019: Recanati and Ronco all’Adige. |
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The value of brand reputation
Snam continued to consolidate its brand identity, strengthening the position of the company in terms of energy transition and decarbonisation in the areas, with constant activity supporting the new businesses, from biomethane and sustainable mobility to energy efficiency, with a specific focus on hydrogen and on the potential leadership position of Snam and Italy in the development of this clean energy source, always in line with the purpose of “Energy to inspire the world”.
The objective is to communicate proactively and transparently with all its stakeholders, from the press to the ever increasing audience reached through social media and the company website not forgetting overseeing and conversing with the areas involved in the main projects. By virtue of this undertaking, Snam’s visibility in the media increased, as well as the publication of news on proprietary platforms. Specifically, Snam recorded a more obvious presence in international media particularly on issues of global interest, first and foremost energy transition.
Snam was confirmed, for the sixth year running, on the podium of leading Italian companies in the field of digital communication. For the last 15 years the company has been in the top 10 of the Italian webranking classification by Lundquist in conjunction with the Swedish company Comprend, standing out for its digital transparency. The 2019 survey involved 112 companies: among the listed companies Snam took second place with a score of 91.3 out of 100, establishing itself as one of only two firms that scored over 90 points in the band of excellence. Future international research, dedicated to the digital communication of sustainability, placed Snam among the “Gold” companies.
As far as social activities are concerned, in 2019 Snam won the “Best employer brand su LinkedIn” award, recognition that confirms how digital platforms, specifically LinkedIn, represent a strategic tool for the company to make themselves known by possible candidates and get in touch with them. The growth in Snam’s reputation is also proved by the result of the international “Top Employers” classification by Forbes and Statista: according to the analysis, the company is one of only two Italian organisations among the best 150 in the world to work in. The research is based on 1.4 million interviews conducted globally and regionally.