Relationship with the financial community

Snam considers maintaining constant relations with investors and the entire financial community as strategic for its reputation. In this respect, it is constantly committed to disseminating comprehensive and timely information, capable of effectively representing the business’s strategy and performance, enhancing the dynamics that ensure the creation of value over time.

In addition to the normal activities in presenting the Strategic Plan and conference calls upon the publication of the Company’s results (annual, half-year and quarterly) during 2019, the following were carried out:

2019 Engagement activity

11 road shows and 6 reverse road shows to meet shareholders and institutional investors in the major financial centres of Europe and North America;

15 industry conferences allowing investors specialized in the utilities and infrastructure sectors to meet the Company’s senior management;

Meetings with more than 210 institutional investors during the year, corresponding to more than 40% of shares owned by active operators.

The Eligible Projects are available on the Snam website at the link:­Investor_Relations/­debt_credit_rating/­climate_action_bond.html

Climate action bond

On 21 February 2019, Snam successfully concluded the issue of its first Climate Action Bond (CAB), the proceeds of which will be used to finance and, in part, refinance the so-called eligible projects, namely the projects defined in the Snam Climate Action Bond Framework (hereinafter also the Framework) published on Snam’s website.

These projects must comply with some set targets relating to their ESG performance (Environment, Social and Governance) and were classified in the following four main categories:

  1. Carbon & Emission Reduction Projects: installation of new technologies, systems, equipment and processes which involve a reduction in the use of energy and emissions in industrial facilities;
  2. Renewable Energy Projects: construction of biomethane facilities and upgrading of existing biogas facilities in Italy and abroad;
  3. Energy Efficiency Projects: energy efficiency projects for Snam buildings or in relation to its supply chain;
  4. Green Development Projects: development projects for new buildings and maintaining green areas.

The value of the CAB is €500 million, and it matures on 28 August 2025 and it is aimed at very important institutional investors with a wide geographical diversification. The annual coupon of the bond is 1.25% with a re-offer price of 99,489 (corresponding to a spread of 103 basis points at the reference mid swap). In December 2019 Snam’s CAB was also listed on the Borsa Italiana ExtraMOT segment.

Through this issue, Snam wanted to consolidate its role in the context of energy transition in Europe, raise the awareness of investors concerning its investments and initiatives as part of ESG and diversify its investor base.

The issuing of the CAB was supported by a preventive check by a third-party certification body that confirmed that the use of the proceeds of the bond is in line with the project categories defined in the framework.

For the entire term of the bond until its maturity, Snam will report and annually publish the ESG performance of the bond, with reference to the gradual allocation of the income from the bond in relation to the projects selected in a special document called the CAB Report. This report is subject to a limited external assurance in accordance with standard ISAE 3000 and in line with the requirements of Green Bond Principles.

ESG indices and ratings

Snam’s presence in sustainability indices

For the eleventh year in a row, Snam’s stock is listed in the Dow Jones Sustainability World Index, the world’s most important stock market index assessing corporate social responsibility.

Snam’s is once again present in the FTSE4Good, where it has been listed since 2002, an index created by the FTSE Group to encourage investment in companies that meet globally recognised social responsibility standards and is an important point of reference to establish benchmarks and ethical portfolios.

Snam’s listing is confirmed in the Ethibel Sustainability Index (ESI) Excellence Europe and in the Ethibel Sustainability Index (ESI) Excellence Global. Confirmed once again on the Ethibel PIONEER and Ethibel EXCELLENCE Investment Registers: the selection made by the Ethibel Forum indicates that Snam is one of the leading companies in the industry in terms of CSR.

Snam’s listing has been confirmed for the fifth year running in the two sustainability indexes MSCI ACWI SRI Index and MSCI ACWI ESG Leaders, by MSCI, an international leader providing IT tools to support the investment decisions of global investors. The MSCI Global Sustainability indices includes companies having high sustainability ratings in their affiliated sectors.

For the tenth consecutive year Snam stock came to form part of the STOXX Global ESG Leaders Indices, a group of indices based on a transparent process of selection of the performance, in terms of sustainability, of 1,800 companies listed worldwide.

Snam is included in five of the main ECPI sustainability indexes. Snam’s inclusion in the family of ECPI indices dates back to 2008. The ECPI methodology consists in screening based on testing more than 100 ESG (Environmental, Social and Governance) indicators.

Snam is confirmed to be included in 2019 as well in the (Europe, Eurozone, World) NYSE Euronext Vigeo 120 indices, managed by Vigeo, a leading company at a European level in rating companies regarding CSR issues.

Snam was also listed, in 2019, for the sixth year running, in the United Nations Global Compact 100 index (GC 100), developed by the United Nations Global Compact with the research firm Sustainalytics, which includes the 100 companies that have distinguished themselves at the global level both for attention to sustainability issues and to financial performance, and that adhere to the ten fundamental principles of the United Nations on the human rights, labour, environment and anti-corruption issues.

ESG ratings

Snam was included for the seventh consecutive year among the highest scorers of CDP, a non-profit organisation which is one of the most important internationally for climate change and was also included on the A List.

Snam joined the CDP supply chain programme for the first time, the CDP programme aimed at the involvement of its supply chain in the climate change questionnaire. Snam got a score of A-, demonstrating the commitment of its suppliers in engagement activities involving issues related to the reduction of emissions and the development of sustainable strategies.

In 2018, Snam was confirmed at “PRIME” level (with rating B-) by Oekom research, a leading international agency rating socially responsible investments, which operates on behalf of institutional investors and financial services companies.

Snam was confirmed again in 2019 in the Sustainalytics index, a leading ratings agency that evaluates companies from an ESG perspective, which the company has been part of since 2013.

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