Our decarbonization journey

We have embarked on an industrial transformation involving all business lines to decarbonize the entire company. To this end, we invest in researching, developing, and implementing transition technologies. Our approach aims to help solve what the World Energy Council refers to as the energy trilemma by simultaneously striving to ensure environmental sustainability, supply security, and energy affordability. To this end, we diversify our sources from a geographical and technological standpoint to ensure efficient, safe, sustainable and affordable energy for an increasing number of people. While aiming for carbon neutrality by 2050, our decarbonization strategy defines medium- to long-term emission targets and business objectives. The process consists of a series of intermediate targets that first envisage zero net emissions (Scope 1+2) from the upstream business by 2030 and from all other business lines by 2035, then zero net emissions, including all GHG Scope 1, 2, and 3 emissions both in absolute terms and in terms of intensity, by 2050. Our growth and transformation plans involve the entire value chain. We align all our plans and investments to our strategy to achieve a fully decarbonized product portfolio.

We envisage the optimisation and enhancement of the Oil & Gas portfolio through its progressive reduction of emissions, expansion into renewable energy and the circular economy, and provision of new energy solutions and services. The plan is supported by cross-cutting activities that seek to optimise existing solutions and develop breakthrough innovations to accelerate the process.

^{a) KPI used in Eni Sustainability-linked Financing Framework. Targets are net of Eni’s equity stored CO₂ .}

^{b) Includes operated and joint operated assets.}

^{c) Subject to execution of projects in Libya.}

^{d) From this, 2.4 million tons of CO₂ eq were offset for Plenitude customers, using carbon credits, mainly obtained from Natural Climate Solutions. Of this amount, a portion of 1.6 million tons of CO₂ eq, related to Plenitude's customers gas consumption invoiced as of September 30, 2023, was offset in February 2024. The remaining portion, related to Plenitude's customers gas consumption invoiced in the fourth quarter of 2023, will be offset by September 2024.}

We anticipate investments dedicated to low- and zero-carbon activities reaching 30% of total investments in 2024-2027.

A gradual increase in the share of investment in developing new energy solutions and services to support the transition will sustain the evolution toward a decarbonized product portfolio. Eni plans to allocate more than 30% of its expenditure to low and zero carbon projects in the next four-year period between 2024 and 2027. This expenditure, unlike the EU Taxonomy regulation, also includes interventions made in Joint Ventures, all spending that contributes to emission reduction (e.g. energy efficiency and routine flaring abatement interventions), and the development of the Plenitude customer base. In the medium-to-long-term, the share of expenditure dedicated to Oil & Gas activities will be gradually reduced, with the progressive phase-out of investments in activities and products with a high carbon intensity.

The risk and opportunity management process related to climate change is part of the Integrated Risk Management Model (IRM) that we developed to support the management’s decision-making process by strengthening awareness of the risk profile and related mitigation actions. In parallel, we strive to ensure our operations’ integrity and to responsibly manage socio-economic and environmental impacts in the countries where we are present. Climate change risks are analyzed, assessed, and managed by taking into account the TCFD (Task Force on Climate-related Financial Disclosure) recommendations that refer to both energy transition risks (market scenario, regulatory, legal and technological evolution, and reputational aspects) and physical risks (acute and chronic), through an integrated and cross-cutting approach involving all relevant functions and business lines (NFS).