Snam's alignment with the European taxonomy

The European Taxonomy is an integrated classification system at European level aimed at creating a common language that investors and companies can use when financing economic activities that have a substantial positive impact on the climate and the environment. The Taxonomy links the Paris Agreement with investment practices, clearly defining the types of activities that are consistent with the transition to a low-emission economy, adaptation to climate change and other environmental objectives. This instrument aims to facilitate the channelling of capital flows towards activities that can contribute to a zero greenhouse gas economy by 2050.

The implementation process is still in progress: by 2021, the Delegated Acts are expected to be approved, defining the technical criteria for the first two of the six environmental objectives of the Taxonomy – “climate change adaptation” and “climate change mitigation”. As a demonstration of its commitment to aligning itself with the European Taxonomy in defining its investment choices, during the Strategic Plan, Snam carried out an analysis of the amount of planned investments (about Euro 7.4 billion in total, over the 2020-2024 period), which showed that about 40% of the total was aligned with the technical criteria of the most recent version of the Delegated Acts.

The importance of increasing alignment with the European Taxonomy is also relevant for Snam in order to make extensive use of sustainable finance instruments at favourable conditions to support its investments, with the ambition of expanding its green investor base at the same time. Snam is actively monitoring the process of evolution of the Taxonomy with the aim of incorporating the planned disclosure indications.