Introduction and guide to reading the document

The Consolidated Non-Financial Statement (hereinafter also the “Non-Financial Statement”, “Declaration” or “NFS”) of Snam Group for the year 2020 (from 1^st January 2020 until 31^st December 2020) constitutes a specific section of the Directors’ Report – Integrated Report (hereinafter also referred to as the “Integrated Management Report”) and is drafted in compliance with the provisions of the Legislative Decree of 30 December 2016, no. 254 and subsequent supplements (hereinafter also referred to as the “Decree”)⁴⁷.

The NFS contains relevant data and information on environmental, health and safety, social, personnel-related aspects and active and passive corruption prevention, which have been coherently selected on the basis of a structed materiality analysis, that allowed to identify the most relevant sustainability topics for the Group and its stakeholders. The materiality analysis is described in the paragraph “Material topics in relation to the activities carried out” in the Director’s report Integrated report. The relevance of the individual topics is defined taking into account the activities carried out and the characteristics of Snam⁴⁸.

The scope of reference of the information in the NFS coincides with the scope of consolidation of the Consolidated financial statements and includes, in addition to the parent company Snam S.p.A.:

• Transportation of natural gas (Snam Rete Gas S.p.A., Asset Company 2 S.r.l., Infrastrutture Trasporto Gas S.p.A., Enura S.p.A.);
• LNG regasification (GNL Italia S.p.A.);
• Natural gas storage (Stogit S.p.A.);
• Sustainable mobility (Snam 4 Mobility S.p.A., Cubogas S.r.l.);
• Biogas / Biomethane (Snam 4 Environment S.r.l., Renerwaste S.r.l., Ecoprogetto Milano S.r.l., Ecoprogetto Tortona S.r.l., Renerwaste Lodi S.r.l., IES Biogas S.r.l., Enersi Sicilia S.r.l.);
• Energy efficiency (Snam 4 Efficiency S.r.l., TEP Energy Solution S.r.l. and Mieci S.p.^A., Tlux S.r.l., Evolve S.p.^A.).
• Other activities (Snam International BV, Gasrule Insurance DAC, Snam Gas & Energy Service-Beijing)

With reference to the reported environmental aspects, the companies Snam International BV, Gasrule Insurance DAC, Enura S.p.A. and Snam Gas & Energy Service-Beijing, which do not have significant environmental impacts, are excluded from the consolidation.

The structure of the Snam Group, including investments abroad, is shown on page 22 of the Integrated Management Report⁴⁹.

The content of the NFS is supplemented, where necessary or appropriate, with other information included in the Integrated Management Report, in the Report on Corporate Governance and Ownership Structure, and on the Company’s Website (www.snam.it/en/), which can be found and consulted by following the specific references⁵⁰.

In order to standardise the reporting of data and information, as well as to facilitate the connection with each issue envisaged by the Decree, each area listed above has been divided into specific paragraphs divided into four sections dedicated respectively to:

• The main results achieved, future objectives and reference SDGs;
• Material topics and relevant generated or incurred risks;
• Company policies and commitments and details of their implementation by the Group, in order to manage the topics and mitigate relevant risks;
• Relevant performance indicators to understand the results obtained in pursuing these commitments.

The NFS has been prepared in conformity with the GRI Sustainability Reporting Standards published by the GRI (Global Reporting Initiative) and subsequent updates adopting the option “in accordance – Core”⁵¹ . Alongside the tables displaying the data for the financial year ending 31 December 2020, the results of the previous two financial years are shown for comparison purposes In the annex of this section has been inserted the GRI content index where the GRI standards are matched with the Group’s material topics.

With the current NFS the new GRI 403 2018 (Occupational Health & Safety) has been adopted.

In order to guarantee the reliability of the presented data, estimates have been avoided or based on the best calculation methodology that have been promptly disclosed.

In addition, the Directors’ Report has been enriched with the content required by the recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD).

To fulfil our aim of constantly improving transparency on the Company’s performance, the guidelines provided by the Sustainability Accounting Standards Board (SASB) for the identification and publication of information considered most relevant to the creation of long-term value for the sector were also considered.

This Non-Financial Statement has been approved by the Board of Directors of Snam S.p.A. of 17 March 2021. The same Statement, prepared using the GRI as a reporting standard according to the level of application indicated above, was subjected to a judgment of conformity, with respect to the provisions of art. 3 and 4 of Legislative Decree 254/16, by Deloitte & Touche S.p.A., which is expressed in a specific “Independent auditor’s Report”. The opinion of the auditing firm and the related verification activities did not concern the information relating to the SASB and TCFD requirements respectively summarized in the tables below in the Independent auditor’s Report.

The Report, of which the NFS is a specific section, is published in the 2020 Annual Report available on the Company’s website at www.snam.it/en/Investor_Relations/Reports/.

An association table is shown below, highlighting the information content required by the Decree and its location within the document.