Page 23 - EniFor2016_Report_eng

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Eni for 2016 | Path to decarbonization

price of its projects down energies. Eni pursues a solution almost 73% of emissions
from $45/b to $30/b of that combines natural gas and in this sector.
Brent equivalent, one of the renewables in order to eliminate The portfolio of assets and
lowest of all its peers. Natural the use of more polluting fossil new investments is regularly
gas plays a key role in the fuels, such as coal, which still reviewed by management in
decarbonization strategy and is represents 41% of electricity order to identify any emerging
the ideal partner for renewable production globally and causes risks.

| Portfolio resilience / Stranded Assets

Eni’s strategy and its portfolio composition minimize the risk of “stranded assets”. The resilience of Eni’s
production and reserves portfolio, even under a decarbonization scenario, is guaranteed by:

Focus on conventional Exploration leadership Cautious scenario Energy mix balanced
projects developed in at low unit costs and a assumptions which lead with gas. 18
stages (to limit initial dual exploration model to strong investment
investment). that enables early selectivity.
monetization of the
discoveries.

Eni also assesses the potential solutions for reducing the IEA 450 ppm scenario
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impacts of the energy transition emissions from the project’s to assess the risk of stranded
scenarios on its portfolio: initial stages. This assumption assets on the upstream
• by applying a sensitivity reduces the effect on average portfolio. Taking into account
with a CO price of 40 $/ton portfolio IRR by 0.5% and this scenario’s assumptions
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in real terms in 2015 on all all the projects stay above regarding the price of CO
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the main projects in order to the minimum rate of return. and Brent, the impacts on Eni’s
adopt the most appropriate • by conducting a stress test on portfolio are increased.

18) 50% of current production uses gas and this exposure will increase as the plan progresses with the development of reserves in Egypt and Indonesia and,
over the long term, with Mozambique.
19) A scenario that entails containing the increase of temperatures within 2 degrees with a coherent system of actions that ensure the containment
of consumption, the switch towards low-carbon sources and the promotion of energy efficiency using high prices of energy variables (crude and CO ).
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