Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Sustainability
• Human Rights
• Local Content

Environmental Achievements

• Reduced environmental impact through development and continuous improvement of its management system
• Implementation of Eni Corporate greenhouse gas accounting software on the Castoro Sei
• Increase in ISO 14001 certified operating companies

Social Achievements

• Leadership in Safety workshops to create a strong safety culture
• E-Health system connecting employees with health services globally
• Sustainability and action plans for local communities in Peru
• Support for infrastructures, social centers, and training projects in Kazakhstan
• Training and health assistance projects in Nigeria
• Health promotion and disease prevention in Angola and Congo
• Technical training courses for local manual workers in Angola, Azerbaijan, and Congo

Governance Achievements

• Publication of a new Sustainability Policy
• Publication of a new Code of Ethics
• Implementation of Model 231 (Organisational, Managerial and Control Model) pursuant to Legislative Decree No. 231 of 2001
• Appointment of two external members to the Compliance Committee

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting oil prices and investment plans
• Reduced oil & gas demand and prices
• Tighter access to credit
• Postponement of less profitable projects
• Uncertainty in the short-term oil services market

Mitigation Strategies

• Record backlog and business portfolio in promising areas
• Industrial model combining engineering and execution with strong local presence
• Continued investment program (approximately €1.6 billion in 2009), focusing on drilling and unique offshore vessels

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

• ENSOLVEX technology for soil remediation

Awards & Recognition

• DuPont Safety International Award
• International Visual Communications Association awards for 'The Safer, The Better' film
• New York Film and Video Awards
• Rome International Short Film Festival award

Environmental Metrics

ESG Focus Areas

• Safety
• Sustainability
• Local Content
• Community Development
• Health

Environmental Achievements

• Implemented environmental awareness campaign focusing on energy saving, oil spill prevention, and waste recycling.
• Initiatives to mitigate environmental impact and restore affected areas in sensitive marine environments.
• Saipem facilities certified to international standards such as ISO 14001, OHSAS 18001, and EMAS.

Social Achievements

• Launched BE.ST (Better lifeSTyle) program to improve the lifestyle, wellbeing, and eating habits of site personnel.
• Continued community sustainability projects in areas where Saipem operates, including support programs for business growth, improvement of education and health facilities, and development of local resources.
• Increased number of female managers and local managers.

Governance Achievements

• Sustainability Committee met twice to discuss sustainability programs and approve the 2009 Sustainability Report.
• Implemented new procedure ‘Transactions involving interests held by board directors and statutory auditors and transactions with related parties’.
• Enhanced anti-corruption system and issued a procedure containing new anti-corruption guidelines and principles.

Climate Goals & Targets

Environmental Challenges

• Six fatal accidents occurred during the year, highlighting gaps in systems, particularly regarding the management of contractor staff and HSE management system implementation on new projects.
• Country risk associated with operating in politically or economically less stable countries.
• Project risk associated with the execution phase of engineering and construction contracts.

Mitigation Strategies

• Increased efforts to ensure high levels of safety awareness among Saipem personnel.
• Continuous and holistic approach to monitoring political, social, and economic risk in countries of operation.
• Adoption of effective management procedures and systems for HSE risk management, including risk identification, evaluation, and mitigation.

Supply Chain Management

Responsible Procurement

• Emphasis on maximizing local content during project execution.

Climate-Related Risks & Opportunities

Awards & Recognition

• Sustainability Leader in the Oil Equipment & Services sector in the SAM Sustainability Yearbook 2010

Environmental Metrics

ESG Focus Areas

• Local Content
• Human Resources
• Environmental Protection
• Health and Safety
• Community Development

Environmental Achievements

• Implemented a major paper recycling initiative in Qatar, saving landfill space and reducing greenhouse gas emissions.
• Reduced gas flaring in Nigeria by compressing and delivering previously flared gas for domestic use.

Social Achievements

• More than 76% of Saipem's 44,232 employees were locally employed in 2011.
• Launched a Vendor Social Responsibility campaign based on ILO principles and SA8000 standards.
• Implemented various training programs in different countries (e.g., welding inspector training in Angola, technical courses for Nigerian graduates).
• Contributed 1.3% and 0.44% to the GDP of Algeria and Nigeria respectively in 2010 (according to the SELCE model).

Governance Achievements

• Included sustainability performance data as an addendum to the Annual Report.
• Established a Sustainability Committee to define material issues.
• Implemented a Leading Behaviours campaign focusing on HSE.

Climate Goals & Targets

Environmental Challenges

• Inadequate local education systems hindering socio-economic development (e.g., Karimun, Indonesia).
• High accident rates in some regions (e.g., Algeria).
• Malaria risk in endemic areas.

Mitigation Strategies

• Collaborated with local authorities to upgrade educational facilities and implement training programs.
• Implemented a Safety Forum and Working at Heights campaign in Algeria.
• Implemented Malaria Control Programmes based on the ABCD principle (Awareness, Bite Prevention, Chemoprophylaxis, Diagnosis).
• Distributed insecticide-treated bed nets in Angola and Congo.

Supply Chain Management

Responsible Procurement

• Sustainability clause in general procurement conditions.
• Vendor Qualification system assessing reliability, including health and safety, and risk management.
• Vendor Social Responsibility Campaign.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Guidelines

Awards & Recognition

• Sustainability Leader in the Oil Equipment & Services industry (SAM Sustainability Yearbook 2011)
• Included in DJSI Europe index for the third consecutive year
• Appeared in FTSE 4 Good and Ethibel EXCELLENCE Investment Register

Environmental Metrics

ESG Focus Areas

• Local Content
• Health and Safety
• Environmental Sustainability

Environmental Achievements

• Completed energy efficiency analyses for a number of offices in accordance with ISO 50001:2001
• Updated environmental regulatory documentation
• Organized ‘Environmental Train the Trainer’ courses

Social Achievements

• Continued application of the SELCE Model (Saipem Externalities Local Content Evaluation) in Indonesia, Saudi Arabia, and Australia
• Increased number of women managers by 0.8% and local managers by 0.7%
• Launched ‘Share and Shape’ project to engage younger employees in improvement proposals

Governance Achievements

• Restructured research and development activities
• Created new corporate research and development department
• Achieved OHSAS 18001 (Health and Safety) and ISO 14001 (Environment) certifications

Climate Goals & Targets

Environmental Challenges

• Reduced activity in Offshore and Onshore sectors on high-margin contracts
• Significant increase in contracts with lower margins due to competitive market conditions
• Delays to important contract awards
• Deterioration in commercial relations in Algeria
• Critical issues in Onshore E&C projects in Mexico and Canada, Offshore E&C projects in the Gulf of Mexico, and completion works on a vessel in the Mediterranean

Mitigation Strategies

• Adopting a policy of cautious guidance reflecting market uncertainty
• Implementing the ‘Bring quality to the next level’ program to enhance quality management
• Focusing on efficient operational and commercial execution of low-margin contracts
• Investing in HSE training and emergency management
• Developing software applications to improve HSE processes

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3

Certifications: OHSAS 18001, ISO 14001

Sustainable Products & Innovation

• Multipipe gas/liquid gravity separation system
• Spoolsep liquid/liquid gravity separation system
• SPRINGS TM subsea sulphate removal system

Awards & Recognition

• Eni Safety Award

Environmental Metrics

ESG Focus Areas

• Health and Safety
• Environmental Protection
• Compliance

Environmental Achievements

• Main activities are detailed in the annual Saipem Sustainability Report, posted on the website, and comprise of: - technical measures/adjustments of assets to ensure a high level of environmental protection; - environmental awareness campaigns (currently ongoing) involving all employees, aimed at influencing personnel conduct towards the environment.

Social Achievements

• The Company’s LTIFR (Lost Time Injury Frequency Rate) increased slightly from the previous year’s 0.26 to 0.28, although the longer-term performance trend remained excellent. Unfortunately, one fatality was recorded during the year.

Governance Achievements

• Saipem has a compliance system in place, in line with international best practices. This system is based on Model 231, the Code of Ethics and the procedure issued on February 10, 2010 (and subsequent amendments) containing anti-corruption principles and guidelines that regulate Saipem business conduct for contracts to clients/suppliers.

Climate Goals & Targets

Environmental Challenges

• Lingering global oil supply glut causing a significant decline in oil prices during the second half of the year, leading Oil Companies to review their investments, cancelling activities and postponing new project awards.
• Execution of low-margin legacy contracts.
• Deterioration in the market scenario and the drop in market capitalization of Saipem and its main competitors.
• Increased rigidity in client attitudes resulting in a revision of estimates and write-downs of expected revenues.

Mitigation Strategies

• Focus on the execution of legacy contracts and on rebuilding the profitability of the business by improving its management and execution of major projects and by acquiring new contracts.
• Negotiations with clients regarding pending revenues.
• Cost cuts.
• Measures to improve efficiency and contribute to net debt reduction.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Anti-Corruption and ethical business practices
• Safety
• Safe operations, asset integrity and process safety
• Local employment
• Training and development
• Transparency
• Spill prevention and response
• Local procurement
• Innovation and business flexibility
• Labour rights
• Ethical supply chain
• Local social licence to operate
• Energy efficiency
• Climate change mitigation

Environmental Achievements

• Reduced total GHG emissions (Scope 1: 1,504 kt CO2 eq in 2015, compared to 1,420 in 2014 and 1,539 in 2013; methodology changed in 2015). Reduced total energy consumption (514 ktoe in 2015, compared to 564 in 2014 and 622.6 in 2013). Reduced number (38) and volume (2.18 m3) of spills compared to 2014 (50 and 21.6 m3).
• Improved CDP score from 81 C in 2014 to 92 B in 2015.

Social Achievements

• 68% of goods and services ordered locally (+12% compared to 2014), amounting to €4.43 billion. 80% of total workforce is local. Various community initiatives in multiple countries (e.g., Angola, Indonesia, Kazakhstan, Nigeria). Implemented the HOPE (Human OPerational Environment) training program in Angola.
• Improved TRIFR (Total Recordable Incident Frequency Rate) to 1.08 in 2015 (slightly down from 1.09 in 2014). Various safety initiatives, including 'We Want Zero' and 'Life Saving Rules' campaigns. Implemented a new emergency response model.

Governance Achievements

• Advanced Corporate Governance system. Updated 'Anti-Corruption' Management System Guideline in June 2015. 1,929 employees trained on Anti-Corruption, Model 231, and the Code of Ethics. Implemented a detailed system of rules and controls to prevent corruption-related crimes.

Climate Goals & Targets

Environmental Challenges

• Volatile energy market with depressed oil, gas, and coal prices. Increased political risks in North Africa and the Middle East. Hostilities in the Middle East and the impact of the Iran nuclear agreement. Oversupply of oil. Collapse in oil prices. Slowdown of emerging economies. Insufficient global agreement on climate change action.

Mitigation Strategies

• Implemented the 'Fit for the Future' project to optimize cost structures and process efficiency. Streamlined organizational and operational structure. Implemented a strict financial policy. Targeted higher added-value segments (SURF, FLNG). Refocused portfolio and reduced risk profile. Increased share of EPCM services. Strengthened cooperation with strategic partners.

Supply Chain Management

Supplier Audits: 13 audits held in India, China, Saudi Arabia, and Bahrain in 2015. Fifth audit campaign in 2015 at selected vendor operating sites to assess compliance with social responsibility.

Responsible Procurement

• Vendor qualification system includes requirements for complying with social and labour rights. Audits on social responsibility at vendor sites. Due diligence process before signing agreements with counterparties.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core Option

Certifications: OHSAS 18001, ISO 14001, ISO 9001 (most operating companies)

Third-party Assurance: Reconta Ernst & Young (limited assurance)

Sustainable Products & Innovation

• New and faster pipeline welding technologies, innovative laying and trenching technologies, innovative solutions for subsea field exploitation, innovative FLNG offloading systems, new drilling techniques for ultra-deepwater operations, Snamprogetti™ Urea Technology

Awards & Recognition

• IPLOCA Corporate Social Responsibility Award (runner-up), Construction Week Awards 2015 (Infrastructure Project of the Year for Shah-Habshan-Ruwais Etihad Railway project), Premier’s Sustainability Award (for Narrows Marine Crossing project)

Environmental Metrics

ESG Focus Areas

• Innovation
• Safety
• Human Capital Development
• Human Rights

Environmental Achievements

• Reduced number of spills by 21% compared to 2015
• Developed technologies for oil spill prevention and response (e.g., Subsea Well Response Project, Early Warning Integrated System)

Social Achievements

• Launched Leadership in Health and Safety (LiHS) program with 15,000+ participants
• Implemented Life Saving Rules (LSR) campaign reaching 24,000+ people
• Provided vocational training to 400+ youths in Nigeria
• Offered on-the-job training to university students in Nigeria (30,000 training man-hours)
• Implemented Talentissimo program in Angola for students in the Oil & Gas industry (~120 students)
• Provided internship opportunities to students in Azerbaijan (60+ students since 2010)
• Implemented Ersai Scholarship Programme in Kazakhstan for school-leavers from low-income families

Governance Achievements

• Officially joined the UN Global Compact
• Developed a human and labour rights action plan including training for HR personnel and managers
• Strengthened communication channels for employee grievances
• Implemented a rigorous selection and management process of international personnel from employment agencies
• Conducted vendor social responsibility audit campaign (+100 audits since 2011)
• Provided in-house training on human rights and supply chain (245 training man-hours)

Climate Goals & Targets

Environmental Challenges

• Difficult market context in the Oil & Gas services market

Mitigation Strategies

• Renewed financial solidity
• Robust and diversified order backlog
• Good operational performance
• Aggressive cost-cutting plan
• Streamlining of processes

Supply Chain Management

Supplier Audits: 100+ audits since 2011

Responsible Procurement

• Vendor social responsibility campaign
• Vendor qualification audits on HSE and labour rights (11 audits)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact

Environmental Metrics

ESG Focus Areas

• People safety
• Safe operations, asset integrity and process safety
• Anti-Corruption and ethical business practices
• Human and labour rights
• Training and development
• Technology and operational innovation
• Spill prevention and response
• Ethical supply chain
• Water management and pollution
• Health and well-being
• Energy efficiency
• Climate change prevention
• GHG emissions
• Renewables
• Local social licence to operate
• Local employment and procurement
• Community investments
• Corporate governance
• Tax and Transparency
• Public policy engagement
• Global diversity and inclusion
• Gender equality
• Security practices
• Biodiversity and impact on ecosystems
• Waste generation

Environmental Achievements

• Reduced CO2 emissions by implementing energy efficiency initiatives (2,800 tonnes of CO2 saving)
• Implemented multiple water reuse systems
• Extended ISO 14001 and OHSAS 18001 certifications to the entire Saipem Group
• Completed oil spill mapping for relevant offshore construction and drilling fleets and extended to yards
• Reduced the total number of spills compared to the previous year

Social Achievements

• Launched Alegria do Ambriz agricultural development project in Angola
• Implemented women’s empowerment initiative in Congo
• Launched Ersai scholarship programme in Kazakhstan
• Implemented a methodology to quantify socio-economic externalities associated with Saipem’s local content approach
• Launched ‘Boosting Entrepreneurship Potential in Kuryk’ programme in Kazakhstan
• Launched ‘Leading by Ethics Campaign’ in Nigeria with UN Global Compact
• Implemented Family Safety Day in Saudi Arabia
• Implemented the Leadership Model for employee development
• Launched K-map campaign for skill management
• Implemented Hands-on-Training programme in Saudi Arabia with Saudi Aramco
• Launched Saudi Arabian Drilling Academy (SADA) programme
• Implemented Talentissimo programme in Angola for student development

Governance Achievements

• Updated Model 231 to align with the latest legislative framework and best practices
• Implemented the Anti-Corruption Compliance Programme
• Established a whistleblowing process
• Approved the Agreement regulating Saipem’s European Works Council

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on business operations (extreme natural events, evolving environmental laws)
• Reduction in Oil Company investments
• High costs and risks associated with Oil & Gas projects
• Need to reduce CO2 emissions
• Managing spills
• Water scarcity in some operational areas
• Waste management
• Maintaining ethical supply chains
• Ensuring human and labor rights across operations

Mitigation Strategies

• Developing energy efficiency solutions and innovative technologies to reduce CO2 emissions
• Investing in renewables
• Developing innovative solutions for making expensive and risky projects viable
• Implementing a new Asset Integrity Management System
• Implementing route optimization for vessels
• Implementing multiple water reuse systems
• Implementing waste reduction, reuse, recycling, and recovery strategies
• Conducting vendor qualification audits on labor rights
• Implementing human rights training programs
• Developing a new Ship Energy Efficiency Management Plan (SEEMP) template

Supply Chain Management

Supplier Audits: ~7,000 vendors qualified; 88% of vendors audited on HLR in high-risk countries

Responsible Procurement

• Vendor risk assessment
• Vendor qualification audits
• Supplier Development Plan for local vendors in Saudi Arabia
• Training on Human Rights for employment agencies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme natural events

Transition Risks

• Evolution of environmental laws and regulations (e.g., introduction of carbon pricing)

Opportunities

• New market opportunities for low emission services and green technologies (e.g., renewables, carbon capture)

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001, OHSAS 18001

Third-party Assurance: Ernst & Young SpA (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 8 (Decent work and economic growth)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 13 (Climate action)
• Goal 16 (Peace, justice, and strong institutions)

Saipem's initiatives contribute to these goals through various projects and programs related to energy efficiency, renewable energy, local community development, ethical business practices, and safety.

Sustainable Products & Innovation

• Heat Traced Pipe-in-Pipe technology
• Subsea water treatment technology (SPRINGSTM)
• Internal Plasma Welding technology
• Plastic Lined Pipes with Fusion Bonded Joint technique
• Small scale liquefaction and re-gasification of Natural Gas
• Tandem Offloading floating system
• Moss EcoTM hybrid drilling rig concept
• Novel process scheme for the re-gasification of LNG

Awards & Recognition

• Runner-up in IPLOCA Corporate Social Responsibility Award for Alegria do Ambriz project

Environmental Metrics

ESG Focus Areas

• Innovation for the new energy scenario
• Enabling carbon footprint reductions
• Keeping people and operations safe and sound
• Generating shared value

Environmental Achievements

• 18.8 kt of CO2 eq emission reduction achieved
• About 8 kt of CO2 saved thanks to the implementation of energy efficiency initiatives
• More than 10 kt of CO2 saved thanks to the implementation of energy saving initiatives
• 18 new patent applications, 5 of which were as filed energy decarbonisation technologies

Social Achievements

• 30 local community initiatives implemented, involving more than 28,000 beneficiaries, in 11 countries with €815,000 invested
• 2.2 mln HSE training man-hours delivered, 35% of which delivered to employees and 65% delivered to subcontractors
• Launch of the Millennials Road project
• Saipem’s contribution to strengthening school curriculum (i.e., the Sinergia Programme)

Governance Achievements

• Updated Group Air Emissions Estimation Methodology, obtaining a third-party verification
• Implementation of the TransformatiOn Programme
• Continued dissemination of the internal human rights and supply chain programme

Climate Goals & Targets

Environmental Challenges

• The energy transition
• Reducing carbon footprint
• Maintaining health and safety of people and operations
• Generating shared value and fostering trust with stakeholders
• Cybersecurity threats

Mitigation Strategies

• Investing in innovation and new technologies (e.g., floating offshore wind farms, small-scale LNG facilities)
• Implementing a Group Strategic Plan for GHG reduction
• Implementing Leadership in Health & Safety (LiHS) programme and Life Saving Rules (LSR) campaign
• Developing the SELCE model to quantify socio-economic impact
• Strengthening cybersecurity measures and collaborating with authorities

Supply Chain Management

Supplier Audits: 8 audits performed in 2019

Responsible Procurement

• Saipem Ethical Supply Chain Management System
• Assessment of vendors on critical topics such as child and forced labour, freedom of association, remuneration, discrimination, disciplinary practices, and legal working hours

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Expansion into renewable energy markets

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 45001, ISO 14001

Third-party Assurance: KPMG SpA (limited assurance)

Sustainable Products & Innovation

• Offset Installation Equipment (OIE)
• Hydrones
• HexaFloat floating wind turbine system
• Small-scale LNG solutions

Awards & Recognition

• Light New Technology award for OIE at OTC International Conference

Environmental Metrics

ESG Focus Areas

• Climate Change and Energy Use
• Environmental Preservation
• Governance and Ethics
• Human Capital
• Local Presence and Societal Issues
• Research and Innovation
• Safe Operations

Environmental Achievements

• Achieved emission reduction of 26.57 kt CO2 eq (Target 2020: 19.3 kt di CO2)
• Avoided atmospheric emission of: - 319.9 t of NOX. - 14.4 t of SO2. - 50.3 t of CO. - 17.1 t of NMVOC to the atmosphere. - 10.2 t of PM10.
• Performed 15 energy diagnoses and feasibility studies. Carried out 18 energy efficiency initiatives. Carried out 6 energy saving initiatives. Implemented 2 renewable energy initiatives. Implemented 3 energy consumption monitoring initiatives.
• Successfully installed the world’s first commercial floating wind farm, the Hywind Scotland project for Equinor
• Completed activities for the Hornsea Wind Power project for Oersted
• Secured a contract from EDF Renewables to build the Neart na Gaoithe wind farm off the coast of Scotland

Social Achievements

• Launched a Mentoring programme focused on Diversity & Inclusion
• Launched a scholarship dedicated to the memory of our colleague Egidio Palliotto
• Definition of a partnership with educational institutions in Mozambique for didactic support
• Implemented 20 community-based initiatives, targeting more than 64,000 beneficiaries in 12 countries. €1,560,000 invested.

Governance Achievements

• Updated 231 Model and Anti-Corruption Procedures
• 100% of countries scheduled to cover Anti-Corruption and Compliance 231 training

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting operations and supply chains
• Climate change risks and the need for decarbonization
• Maintaining safety standards during a global pandemic

Mitigation Strategies

• Implemented strict sanitary protocols and remote working
• Developed GHG emission reduction strategies (short, medium, and long-term)
• Launched COVID-19 Awareness Programme and International COVID-19 Awareness Campaign
• Continued HSE training programs, adapting to online formats
• Developed and implemented a Sustainability action plan for Onshore Drilling Division

Supply Chain Management

Supplier Audits: 504 suppliers assessed on social responsibility during qualification phase; Human Rights audit of 44 suppliers during contract execution; desktop audits of 10 subcontractors in Nigeria.

Responsible Procurement

• Saipem Ethical Supply Chain Management System
• Vendor Management System assessing ethical behavior, human and labor rights, HSE standards, and environmental management
• Green Procurement Products/Services Guideline

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy sector

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001, ISO 37001:2016 (Antibribery Management Systems)

Third-party Assurance: KPMG SpA (limited assurance)

UN Sustainable Development Goals

• 7 (Affordable and Clean Energy)
• 9 (Industry, Innovation, and Infrastructure)
• 13 (Climate Action)

Saipem's initiatives contribute to these SDGs through investments in renewable energy technologies, decarbonization projects, and sustainable supply chain practices.

Sustainable Products & Innovation

• HexaFloat floating wind technology
• Hydrone subsea drones
• Eco Drilling Floaters technology
• SuperCups trays for ammonia-urea complexes
• CO2 capture technology from CO2 Solutions Inc.

Awards & Recognition

• Environmental Sustainability Award 2020 from the International Marine Contractors Association (IMCA)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Transition to Low-Carbon Technologies and Energy Use
• Governance and Business Ethics
• Human Capital
• Natural Capital Management and Environmental Preservation (Non-Climate-Related)

Environmental Achievements

• Achieved emission savings of 36,976 t of CO2 eq.
• 11 worksites powered with 100% renewable sourced electricity (20% of the total) for a total of 10,874 MWh electricity.
• 5,100 tonnes of avoided fuel consumption, equivalent to 16,300 tonnes of avoided CO2 emissions

Social Achievements

• Launched a Mentoring programme to promote Diversity and Inclusion.
• Implemented 6 new digital solutions in the EPCI area and 5 in the asset management area.
• Renewal of the Group’s ISO 14001 and ISO 45001 certifications.

Governance Achievements

• Saipem’s Model 231 was updated to incorporate regulatory and organisational updates.
• 100% coverage of identified countries for training activities on Anti-Corruption and 231 Compliance.
• ISO 37001:2016 certification renewed.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions (supply chain)
• Achieving carbon neutrality in indirect emissions from purchased energy (Scope 2) by 2025
• Reducing direct emissions from own assets (Scope 1) and indirect emissions from purchased energy (Scope 2) by 50% by 2035

Mitigation Strategies

• Formed a Green Procurement Workstream within the Net-Zero Programme
• Prioritising energy saving and efficiency, renewable energy, and offsetting (as a last resort) for Scope 2 emissions.
• Implementing Retrofit, Renewal, and Renewables initiatives for Scope 1 emissions.

Supply Chain Management

Supplier Audits: 144 qualification audits on human and labour issues in high-risk countries since 2011

Responsible Procurement

• Ethical Supply Chain Management System
• Vendor qualification process including assessment of technical capabilities, financial reliability, ethical conduct, and ability to manage sustainability issues.
• Contractual provisions requiring compliance with Saipem’s Code of Ethics and respect for human rights.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy and low-carbon technologies markets

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001, ISO 45001, ISO 37001:2016, ISO/IEC 27001

Third-party Assurance: KPMG SpA (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 9 (Industry, Innovation and Infrastructure)
• Goal 13 (Climate Action)

Initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• EmiRed™ (GHG emission reduction tool)
• SuperCups (urea production technology)
• Wind2Sub (green power for offshore facilities)
• HexaFloat™ (floating wind turbine foundation)
• SUISO (green hydrogen production)
• Elemanta (port decarbonisation solution)

Awards & Recognition

• Top-ranked on ESG among sector companies in the Refinitiv assessment
• Gold Award in the S&P Global Sustainability Yearbook
• IMCA award for CO2 estimation tool
• Hydrone-R winner of Spotlight on New Technology® Award by Offshore Technology Conference (OTC)

Environmental Metrics

ESG Focus Areas

• Climate change mitigation strategy
• Renewables
• GHG emissions and energy
• Water management
• Disaster management, recovery and relief
• Health and Safety along the value chain
• Public health risks
• Human and labour rights along the value chain
• Diversity, equity and inclusion
• Sustainable employment
• Cybersecurity
• Business diversification
• Board effectiveness on ESG governance
• Data privacy management
• Local communities engagement and development
• Anti-corruption & bribery

Environmental Achievements

• 38.19 kt CO2 eq GHG emissions avoided due to energy management initiatives in 2022
• 6 new sites signed 100% renewable electricity contracts
• Savings in cumulative GHG emissions associated with energy efficiency initiatives (target reductions equal to 153,120 t of CO2 eq in the period 2022-2024)
• Reduction in fresh water withdrawal of around 20% for the whole Group due to the new Saipem headquarters' efficient water use and rainwater reuse system

Social Achievements

• TRIFR of 0.36 and HLFR of 0.88 achieved in 2022
• Launched "Choose Life" mental health program involving 7,000 people
• Attainment of ISO 30415 - Human Resource Management Diversity and Inclusion attestation
• 27 community initiatives in 11 countries involving more than 230 thousand beneficiaries

Governance Achievements

• 100% coverage of countries included in the training Plan for Anti-Corruption and 231 Compliance
• Human rights risk assessment on 100% of the main construction sites
• Publication of Vendor Code of Conduct
• Saipem SpA attained SA8000 certification

Climate Goals & Targets

Environmental Challenges

• Climate-related physical risks (extreme weather events)
• Climate-related transition risks (regulatory changes, market shifts)
• Supply chain disruptions
• Risks related to human resources
• Cyber risks and data protection
• Compliance risks

Mitigation Strategies

• Insurance coverage, contractual clauses, HSE management system, specialized training
• Sharing best practices, contractual clauses, personnel skills development
• Market and technological trend analysis, strategic partnerships, innovation spending
• GHG emission regulation monitoring, Net-Zero program, energy efficiency initiatives
• Stakeholder engagement, materiality analysis, sustainability reporting, control processes
• Implementation of a solid whistleblowing system, updates to Model 231, anti-corruption training, ISO 37001 certification

Supply Chain Management

Supplier Audits: 4 qualification audits and 3 human and labour rights audits in 2022

Responsible Procurement

• Vendor Code of Conduct
• ESG requirements in purchasing
• Open-es platform for supplier ESG information

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Reputation risks

Opportunities

• Increased revenues in decarbonisation and circular economy projects
• Increased revenues in offshore renewables
• Increased revenues in low-carbon infrastructure projects
• More efficient and cost-optimized solutions through energy-efficient technologies

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Certifications: ISO 14001:2015, ISO 45001, SA8000, ISO 30415:2021

Third-party Assurance: KPMG SpA (limited assurance)

UN Sustainable Development Goals

• Goal 7
• Goal 13

The "Energy for a sustainable future" Sustainability Plan contributes to the achievement of 12 UN SDGs.

Sustainable Products & Innovation

• Saipem CO2 Solutions technology
• Floating substations for offshore wind farms
• Chemical recycling plants for plastic waste

Environmental Metrics

ESG Focus Areas

• Climate change mitigation & environmental protection
• People centrality
• Value creation

Environmental Achievements

• Reduced Scope 1 and 2 emissions by 26% compared to 2018
• Avoided 47 kt of CO2 eq emissions due to energy management initiatives
• Avoided 100 kt of CO2 eq emissions through offsetting projects (70 kt from REDD+ projects)
• Achieved 100% recycled waste types at most applicable sites
• Reduced water withdrawal by 27% compared to 2022
• Reduced waste produced by 7% compared to 2022

Social Achievements

• Total Recordable Injury Frequency Rate (TRIFR) of 0.32 (26% less than the previous year)
• Subcontractor TRIFR of 0.23 and HLFR of 0.44
• Launched the “Fondo Nuove Competenze” training project for Saipem Italy employees, involving 85% of target employees
• Obtained Gender Equality certification in line with Italian Reference Practice No. 125:2022
• Maintained ISO 30415 - Human Resource Management Diversity and Inclusion certification
• Implemented the “Leadership in Health & Safety” cultural strengthening programme

Governance Achievements

• Updated Supplier Code of Conduct with a specific paragraph on Diversity, Equality & Inclusion
• Established the Diversity & Inclusion Steering Committee
• Maintained ISO 37001:2016 “Antibribery Management Systems” standard certification
• Implemented a robust whistleblowing system

Climate Goals & Targets

Environmental Challenges

• Geopolitical issues and ongoing conflicts
• Supply chain issues, including the supply of key raw materials
• New technological frontiers affecting all players
• Market volatility
• Slowdown in offshore wind due to limited supply chain capacity, rising material costs and high interest rates

Mitigation Strategies

• Careful and responsible analysis and action
• Implementation of the best long-term strategic decisions
• Focus on integrated offshore and onshore projects
• Decarbonisation of fleet, promoting the use of biofuels
• Selective commercial approach in onshore construction, focusing on energy transition products
• Multi-step approach in offshore wind, consolidating experience and expanding along the value chain

Supply Chain Management

Supplier Audits: 14 human and labour rights audits on vendors; 431 suppliers evaluated on labour rights topics; 10 key vendors involved in social assessment programme

Responsible Procurement

• Supplier Code of Conduct
• Open-es platform for ESG data collection
• SupplHi Carbon Tracker Platform for tracking vendors’ emissions
• Sustainable Market Surveys to identify green technologies and minimum green design requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services
• Growth in demand for innovative solutions and energy infrastructure in various areas of the energy transition

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14064-3:2019 (GHG emissions), ISO 37001:2016 (Antibribery Management Systems), ISO 30415:2021 (Human Resource Management Diversity and Inclusion), ISO 27001 (Information Security Management System)

Third-party Assurance: KPMG SpA (limited assurance)

UN Sustainable Development Goals

• SDG 7 (Affordable and clean energy)
• SDG 13 (Climate action)
• SDG 8 (Decent work and economic growth)
• SDG 9 (Industry, innovation, and infrastructure)
• SDG 11 (Sustainable cities and communities)
• SDG 12 (Responsible consumption and production)
• SDG 17 (Partnerships for the goals)

Saipem’s initiatives contribute to these goals through various actions related to climate change mitigation, renewable energy, job creation, sustainable infrastructure development, community engagement, and responsible resource management.

Sustainable Products & Innovation

• Bluenzyme™ for CO2 capture
• Star1 and Hexafloat for floating wind
• FlatFish and Hydrone subsea drones
• EmiRed™ for low-carbon design
• SPELL electrochemical technology for wastewater treatment
• ChemPET technology for PET recycling

Awards & Recognition

• Energy Transition Changemaker award (COP28)