Prevention of corruption in relations with business partners and third parties

In the event of agreements/contracts or other relations with certain parties or entities, Eni's functions carry out preventive checks by means of special Reference Lists in order to mitigate counterparty risks (unlawful conduct with respect to both external and internal regulations). These checks are carried out in the cases provided for and in the manner governed by the regulatory instruments in force and in accordance with the provisions of Model 231 and the Code of Ethics. The reference Lists are lists used by Eni to perform checks on counterparties, created on the basis of: Economic and Financial Sanctions Lists, PEP Lists (Politically Exposed Persons), PIL Lists (Local Italian Politicians), Internal Lists (e.g. feedback on suppliers). 

In our Code of Ethics, it is explicitly stated that Eni ascertains the ethical and reputational reliability of our potential business partners by preliminarily checking its counterparts and by asking them to undertake and share the company anti-corruption principles.
 

In line with Eni’s internal rules, before Eni selects a potential Business Associate or signs any contact with it (even in the case of an amendment/renewal/renegotiation), Due Diligence must be carried out, in addition to any other checks required by the specific regulatory instruments. The Due Diligence activities on the potential Business Associate can include the processing of personal data, including data related to investigations, indictments, convictions for criminally relevant behaviour, or involvement in any accusation of fraud, false statements, graft, corruption, tax evasion or other related activities. Moreover, contracts with the Business Associate must be prepared in writing and include at least the following:
 

• a detailed description of the activities to be provided by the Business Associate;
•  the currency and the amount to be paid; the payment terms (or methods for collection/payment) and the conditions for payment, taking into consideration that (i) payment must be strictly related to the activities indicated in the contract; (ii) according to the Code of Ethics, the payments must be made directly and exclusively to the Business Associate and be made exclusively to an account in the name of Business Associate as indicated in the contract and never to another account or in cash; (iii) advance payment (before the complete performance of the contract activities ) may be allowed only in specific cases which must be properly motivated and stated in the contract and, in any event, only for a part of the total amount; the anti-corruption clause, in its complete or reduced form, based on the risk level associated with the Business Associate.

Business associate: any third party for Eni that falls within one of the following categories:
 

• dealers, distributors, licensees, agents and sub-agents, franchisees and any third party appointed by Eni for the distribution/resale of products/services;
• Eni counterparties in commercial cooperation agreements, co-marketing agreements, research and development agreements, welfare conventions, joint marketing agreements, university agreements for the establishment of degree courses, masters, internships, etc. and other cooperation/partnership agreements in which Eni holds an interest (“Cooperation agreements”);
• Intermediaries, Consultants and any other third party that performs activities or provides services for Eni or on its behalf, with or without representation (“other Business Associates”).